Rules For Sea And Inland Waterway Transport

Published Date: 02 Nov 2017

4.1 Introduction

The researcher selects TransMisr Shipping Clearing and Trading as a case study for this dissertation. TransMisr is a logistics services provider in all Egyptian ports providing full logistics services and multimodal transport. TransMisr services cover all Egyptian ports with worldwide coverage.

TransMisr started as local Custom Clearance Agent in 1977, with Mr. Hosni El Antably as own-entrepreneurship business. To fulfill our customer’s needs of logistics, new services have been introduced in inland, freight forwarding, and shipping Agency. Due to the privatization of the shipping sector TransMisr is acting as shipping agent in all Egyptian ports.

Since 1996 TransMisr is acting as Agent for Turkish Cargo Lines for containerized and Break bulk services. TransMisr offers its customer full logistics services through its well-trained staff.

TransMisr handles through its Agency Department all kind of Vessels (Break bulk/tankers general cargo) offering to ship owners smooth and safe birthing, loading and discharging, drawing of SOA, ready to D/A and solving any problem that face owners in Egyptian ports.

From November 2002, TransMisr is an ISO 9001:2000 certified company, BVQI/UKAS certification. TransMisr provides the transportation services in accordance with international rules and its standard trading conditions.

TransMisr is registered with the "General Petroleum Authority" and is a member of the below organizations:

ACS (Alexandria Chamber of Shipping)

BIMCO (The Baltic and International Maritime Council)

EIFFA (Egyptian International Freight Forwarders Association)

FIATA (Fédération Internationale des Associations de Transitaires et Assimilés)

IATA (International Air Transport Association)

http://www.transmisr.com/images/spacer.gif

The General Manager and Vice President of TransMisr, Shipping Clearing and Trading, is responsible for the determination and the implementation of TransMisrs’ Quality Policy. Focusing on customer Satisfaction as a quality objective and customer feedback as quality measures.

The Quality of the services rendered by TRANS MISR is determined by the following principles:

Definition of the Quality requirements, by using the most economic method, is adopted for the same functional use.

Fulfillment of the agreements with our client.

Application of the generally accepted technical procedures in conformance with the applicable statutory regulations, technical rules and standards.

Motivation of the staff.

Ensuring that TRANS MISRs’ suppliers meet Quality requirements.

Regular Internal Audits and Management Reviews to ensure that the application of the Quality Management System is efficient and properly.

Ensure the compliance with requirements and continually improve effectiveness of the Quality Management System.

Periodical review of Quality Policy to insure its compliance with market changes.

4.2 TransMisr Services

4.2.1 Sea Freight Services

TransMisr controls regular sea traffic (Sea import & Sea export) of Full Container Load (FCL) and Less Container Load (LCL) traffic for several destinations from and to all Egyptian ports. TransMisr is a specialist of the transport of products which need special handling, agriculture products and dangerous goods. TransMisr handles a regular traffic of ISO tanks for several multinational and local companies specialized in liquid bulk cargo, food stuff, etc.

TransMisr provides door to door services in a professional way, with company’s strong and worldwide network of agents and wide range services for flexi tanks as alternative solution for barrels and drums use, and cost effective

The company also provides household removal from and to the steps of customer premises to and from wherever customer traffic is generated and also reaches wherever customer traffic originated by offering top, custom made services to meet customer requirements.

The Operation Department and Customer Service Officers are ready to receive customers’ inquiry and comments.

4.2.2 Air Freight Services

TransMisr offers a wide choice of all kind of Air Shipments (Import and Export) direct, transshipment and Consolidation Cargo, from Alexandria and Cairo Airports and vice versa. TransMisr offers aircraft chartering for its dedicated customers.

The company is IATA certified and skilled staff has experience in handling Project Cargo, Plants transfers, oversize cargo, dangerous cargo and products which need special handling.

4.2.3 Local Services

Local services provided by the company are Custom Clearance, Pick up & Delivery and Insurance & Consultation.

Trans Misr provides trucking to and from all major cities in Egypt. Trans Misr employs its own customs brokers, well trained to handle all kind of Import and Export shipments.

Trans Misr provides insurance services and follows up any generated claim. TransMisr provides customs consulting services, and Free Zone & Transit clearance as well as assist in Traffic and commodity interpretation.

4.2.4 International Trucking Services

TransMisr provides International Trucking Services from Egypt to all Arabian countries and to the Middle East.

4.2.5 Shipping and Chartering

TransMisr, as Shipping Agent of Turkish Cargo Lines (TCL), maintains vessel’s chartering services with competitive rates, and as Shipping Agency, TransMisr is operating from and to all Egyptian ports.

TransMisr handles all kind of vessels (Break Bulk/Tankers/General Cargo). We are offering smooth and safe services, quick berthing, discharging, and loading in all Egyptian ports.

TransMisr handles for owner’s or their representative’s account:

Crew changes (sign on and sign off)

Spare parts and parcels dispatch

Repairs, workshop, surveys, underwater inspection and cleaning, slops removal.

Provisions, stores, fresh water supplies

From the analysis point of view the company data flow system is following the International Commercial Terms, known as "Incoterms", which are accepted internationally that define the responsibilities of importers and exporters in the shipments arrangement and the transfer of responsibilities involved at different stages of the transaction. Incoterms is not responsible to cover ownership or the transfer of goods title. It is approved to agree on an Incoterm at the start of a quotation/ negotiation of a sale operation, as it will affect all the cost operations and all responsibilities that involved in shipping, tariffs and insurance. The new rules of Incoterms 2010 has been revised by the International Chamber of Commerce and will be ready to use and effective starting from January 1, 2011. Four terms has been canceled (DAF, DEQ, DES, DDU) and two has been added: Delivered at Place (DAP) and Delivered at Terminal (DAT).

The modifications affect on many terms like obligations, transfer of risk, and sharing of cost for both seller and buyer, that give results and outputs for better clarification and application of the eleven (11) Incoterms, and to be consistent with the global trade way that is actually conducted from the last update in year 2000.

Figure 4.1 shows Incoterms- Seller/Buyer Risks, costs and Obligations Transfer

Figure 4.1: Incoterms Source: VEDP International Trade- www.exportvirginia.org

In any sales transaction, it is important for all the sellers and buyers to agree on this terms of sale and to accurately know what is included in the sale price. Exporters must choose the suitable Incoterm that works best for their company, but also must be prepared to quote in work on other terms.

The importer’s agent (i.e. their designated U.S. freight forwarder) will work to arrange and to pay for the pre-carriage, shipping, insurance and pay any additional costs needed from the exporter’s door. A sale that based on the Incoterm "CIF", on the other hand, the exporter has to arrange and pay for all the pre-carriage, shipping, and to finish the insurance to a named port. In this case, the sale price (invoice) consist of not only the (C)ost of goods, but depends also on (I)nsurance and (F)reight costs that the buyer of importing pays for the seller of exporting.

The 11 Incoterms consist of two main groups that are listed below in order to increase the risk and liability to the exporter. Under the revised and filtered terms, buyers and sellers are being urged to finish the contract precisely where delivery done and covering of all charges. This should make avoidances of paying the bill twice for the terminal that handling charges at the port of discharge. References to "ship’s rail" were taken out to explain that delivery word means "on-board" the vessel. Insurance, electronic documentation (Edocuments), and security of supply chain are addressed and written in more detail, and gender-neutral language is now used.

Rules for Sea and Inland Waterway Transport:

FAS - Free Alongside Ship: The risk is at the buyer's side, as its the buyer responsibility for all transportation cost and insurance, as long as the payment is done through the seller. Also getting the objects from the export is with the same seller.

FOB - Free On Board: Also risk is at the buyer’s side as once the payments on board by the seller, it included the transportations and insurance. A step further than the FAS.

CFR - Cost and Freight: When goods are delivered by the seller on the vessel, the risk is at the buyer’s side. At this point the seller starts arranging pays of cost and freight to the destination port. A step further than FOB.

CIF - Cost, Insurance and Freight: At this step the risk goes to the buyer as the delivery of the goods completed on board of the ship. The seller has the responsibility of handling pays cost, freight and insurance to the destination port. Adds insurance costs to CFR.

Rules for Any Mode or Modes of Transportation:

EXW - Ex Works: Seller delivers and send (without loading) the goods at disposal of buyer at premises of the seller. Long held as the most preferable term we preferred for those new-to-export because it represents the minimum liability to the seller. On these routed transactions, the buyer has limited obligation to provide export information to the seller.

FCA - Free Carrier: Seller delivers the goods to the carrier and may be responsible for clearing the goods for export (filing the EEI). More realistic than EXW because it includes loading at pick-up, which is commonly expected, and sellers are more concerned about export violations.

CPT - Carriage Paid To: Seller delivers goods to the carrier at an agreed place, shifting risk to the buyer, but seller must pay cost of carriage to the named place of destination.

CIP - Carriage and Insurance Paid To: Seller delivers goods to the carrier at an agreed place, shifting risk to the buyer, but seller pays carriage and insurance to the named place of destination.

DAT - Delivered at Terminal: Seller bears cost, risk and responsibility until goods are unloaded (delivered) at named quay, warehouse, yard, or terminal at destination. Demurrage or detention charges may apply to seller. Seller clears goods for export, not import. DAT replaces DEQ, DES.

DAP - Delivered at Place: Seller bears cost, risk and responsibility for goods until made available to buyer at named place of destination. Seller clears goods for export, not import. DAP replaces DAF, DDU.

DDP - Delivered Duty Paid: Seller bears cost, risk and responsibility for cleared goods at named place of destination at buyers disposal. Buyer is responsible for unloading. Seller is responsible for import clearance, duties and taxes so buyer is not "importer of record".

4.3 System Analysis Phases’ Activities

In this section we have to focus on the groups and the team work activities and responsibilities which will take place in the analysis phase to our practical case study.

4.3.1 Initiation phase Activities

A business scenario and context had been established in which a business problem is clearly expressed in purely business terms.

Establish Project Sponsorship who must understand what constitutes a requirement and must take ownership of the requirements, input and output.

Appointing to a project manager who carries both the responsibility and accountability for project execution.

The results of the efforts of this phase was documented in the Concept Proposal and the Project Management Charter.

The Approval to Proceed to the next phase had been taken.

When the approval to proceed has been given, a core project team with participation of a Project Manager was established in order to move on to the System Concept Development Phase.

4.3.2 System Concept development Phase Activities

Analyzing the business needs. The project team determined the acquisition strategy by analyzing all feasible technical, business process, and commercial alternatives to meeting the business need. In addition, these alternatives had been analyzed from a life cycle cost perspective. The results of these studies showed a range of feasible alternatives based on life cycle cost, technical capability, operational feasibility and scheduled availability. Typically, these studies narrowed the system technical approaches to only a few potential, desirable solutions that should proceed into the subsequent life cycle phases.

The project team planned the subsequent phases to allow development of project schedule, budget requirements, and the expected performance benefits.

Determining the strategies to be used during the remainder of the project concurrently with the development of the cost-benefit analysis.

Estimate, justify, submit requests for, and obtain resources to execute the project in the format of the Information Technology Project Request (ITPR).

The results of the phase efforts are presented to project stakeholders and decision makers together with a recommendation to:

Proceed into the next life cycle phase,

Continue additional conceptual phase activities, or

Terminate the project.

The emphasis of the review:

The successful accomplishment of the phase objectives,

The plans for the next life cycle phase, and

The risks associated with moving into the next life cycle phase.

The review also addressed the availability of resources to execute the subsequent life cycle phases. The results of the review were documented reflecting the decision on the recommended action.

4.3.3 Planning Phase Activities

During this phase, the decision had been made on the role of system development contractors during the subsequent phases. strategy option included active participation of system contractors in the Requirements Analysis Phase, so the Planning Phase included complete planning, solicitation preparation, and source selection of the participating contractors.

Analyze and refine the project schedule, taking into account acquisition risk and resource availability.

Create Internal Processes by Creating, gathering, adapting, and/or adopting the internal management, engineering, business management, and contract management internal processes that will be used by the project office for all subsequent life cycle phases.

Establishing relationships and agreements with internal and external departments that will be involved with the project and identified previously. These departments included HR, finance, internal and external audit, and resource providers (people, space, office equipment, communications, etc).

Strategy had been approved to execute the management aspects of the project on a project management plan.

Approval of the strategy to execute the technical management aspects of the project. A detailed system had been developed. This provided the technical requirements; managerial direction, and used in preparation of a statement of work.

4.3.4 Requirements Analysis Phase Activities

During the Requirements Phase, the Project Team will:

Further define and refine functional and data requirements,

Complete business process engineering of the functions to be supported,

Develop detailed data and process models,

Define functional and system requirements that are not easily expressed in data and process models. Functional and system requirements also include the requirements of the business process, the user requirements, and operational requirements.

Refine the high level architecture and logical design to support the system and functional requirements, and

Continue to identify and mitigate risk that the technology can be phased-in and coordinated with the business.

The Data Flow Diagram (DFD) is needed in the analysis phase:

DFD Modeling represents the flow of information around a system. DFDs take a ‘top-down’ approach, expanding the system description into more and more detail via a series of ‘levels’, so a set of DFDs will comprise a Context Diagram.

DFDs show how information flows around a system, the objectives of the DFD:

To graphically document boundaries of a system;

To provide hierarchical breakdown of the system;

To show movement of information between a system and its environment;

To document information flows within the system;

To aid communication between users and developers.

4.3.5 Design Phase Activities

Identify/specify the target environment, the development environment and the design environment.

In the system design, first the general system characteristics are defined. The data storage and access for the database layer need to be designed. The user interface at the desktop layer needs to be designed. The business rules layer or the application logic needs to be designed. The interfaces from application to application and application to database also need to be designed and documented.

The Contingency Plan will contain emergency response procedures; backup arrangements, procedures and responsibilities; and post-disaster recovery procedures and responsibilities. It is included in this phase because many of these factors will affect the design of the system.

The system design document will be developed by the Project Manager and project team, identifying the steps used in the design of the application/system. The System Design Document is a deliverable in the Design Phase.

In this phase development of the maintenance manual begins to ensure continued operation of the system once it is completed. This manual is completed as a deliverable in the Development Phase and it contains all the essential information for the user to make full use of the information system.

The Training Plan begun during the Design Phase.

Documents from the previous phases need to be revised during the Design Phase. The updates should be signed off by the Project Manager with significant changes approved by the Project Sponsor.

4.3.6 Development Phase Activities

Transform the requirements for the software item into an architecture that describes its top-level structure and identifies the software components. Ensure that all the requirements for the software item are allocated to its software components and further refined to facilitate detailed design.

Develop and document a top-level design for the interfaces external to the software item and between the software components of the software item.

Develop and document a top-level design for the database.

Develop and document preliminary versions of user documentation.

Define and document preliminary test requirements and the schedule for Software Integration.

Evaluate the architecture of the software item and the interface and database designs using the criteria listed below.

Trace ability to the requirements of the software item.

External consistency with the requirements of the software item.

Internal consistency between the software components.

Appropriateness of design methods and standards used.

Feasibility of detailed design.

Feasibility of operation and maintenance.

Develop and document each software unit and database as well as test procedures and data for testing each software unit and database.

Test each software unit and database ensuring that it satisfies its requirements. Document the results.

Update the user documentation as necessary.

Update the test requirements and the schedule for Software Integration.

Evaluate software code and test results

Develop an integration plan to integrate the software units and software components into the software item. The plan shall include test requirements, procedures, data, responsibilities, and schedule.

Integrate the software units and software components and test as the aggregates are developed in accordance with the integration plan. It shall be ensured that each aggregate satisfies the requirements of the software item and that the software item is integrated at the conclusion of the integration activity.

Evaluate the integration plan, design, code, tests, test results, and user documentation. Conduct qualification testing in accordance with the qualification requirements for the software item. Ensure that the implementation of each software requirement is tested for compliance.

Develop a plan to install the software product in the target environment as designed. The resources and information necessary to install the software product shall be determined and be available. The developer shall assist the acquirer with the set-up activities.

Complete the Conversion Plan, Implementation Plan, Maintenance Manual, Operations Manual or systems Administration Manual, Training Plan, and User Manual.

Support the acquirer’s acceptance review and testing of the software product.

The developer shall complete and deliver the software product as specified.

The developer shall provide initial and continuing training and support to the acquirer as specified.

4.3.7 Integration and Testing Phase

The test and evaluation team is responsible for creating/loading the test database(s) and executing the system test(s).

All results should be documented on the Test Analysis Report, Test Problem Report, and on the Test Analysis Approval Determination.

Any failed components should be migrated back to the development phase for rework, and the passed components should be migrated ahead for security testing.

The test and evaluation team will create/load the test database(s) and execute the acceptance test(s).

All tests will be documented.

4.3.8 Implementation Phase Activities

The implementation notice should be sent to all users and organizations affected by the implementation. Additionally, it is good policy to make internal organizations not directly affected by the implementation aware of the schedule so that allowances can be made for a disruption in the normal activities of that section. The notice should include:

The schedule of the implementation;

A brief synopsis of the benefits of the new system;

The difference between the old and new system;

Responsibilities of end user affected by the implementation during this phase; and

The process to obtain system support, including contact names and phone numbers.

Provide training before the end user uses the new system. Because there has been a previously designed training plan established, complete with the system user manual, the execution of the plan should be relatively simple. Typically what prevents a plan from being implemented is lack of funding. Good budgeting should prevent this from happening.

Data entry or conversion. With the implementation of any system, typically there is old data which is to be included in the new system. This data can be in a manual or an automated form.

Verify the new and old system operation and data integrity by implementing the Parallel operations which consists of running the old process or system and the new system simultaneously until the new system is certified. In this way if the new system fails in any way, the operation can proceed on the old system while the bugs are worked out.

Install the system in a production environment to ensure that the system is fully operational.

Post-implementation evaluation to document implementation experiences to recommend system enhancements and provide guidance for future projects.

During this phase, the documentation from all previous phases will be finalized to align it with the delivered system. The Project Manager coordinates these update activities.

4.3.9 Operations and Maintenance Phase Activities

Operations support which is an integral part of the day-to-day operations of a system. In small systems, all or part of each task may be done by the same person. But in large systems, each function may be done by separate individuals or even separate areas. The Operations Manual was developed in previous SDLC phases. This document defines tasks, activities, and responsible parties and will need to be updated as changes occur. Systems operations activities and tasks need to be scheduled, on a recurring basis, to ensure that the production environment is fully functional and is performing as specified. The following is a checklist of systems operations key tasks and activities:

Ensure that systems and networks are running and available during the defined hours of Operations.

Implement non-emergency requests during scheduled Outages, as prescribed in the Operations Manual.

Ensure all processes, manual and automated, are documented in the operating procedures. These processes should comply with the system documentation.

Acquisition and storage of supplies, e.g., paper, toner, tapes, removable disk.

Perform backups (day-to-day protection, contingency).

Perform the physical security functions including ensuring adequate UPS, Personnel have proper clearances and proper access privileges etc.

Ensure contingency planning for disaster recovery is current and tested.

Ensure users are trained on current processes and new processes.

Ensure that service level objectives are kept accurate and are monitored.

Maintain performance measurements, statistics, and system logs. Examples of performance measures include volume and frequency of data to be processed in each mode, order and type of operations.

Monitor the performance statistics, report the results, and escalate problems when they occur.

Data / Software Administration is needed to ensure that input data and output data and databases are correct and continually checked for accuracy and completeness. This includes insuring that any regularly scheduled jobs are submitted and completed correctly.

A User Satisfaction Review must be made which can include a Customer Satisfaction Survey can be designed and distributed to obtain feedback on operational systems to help determine if the systems are accurate and reliable.

Systems administrators and operators need to be able to make recommendations for upgrade of hardware, architecture and streamlining processes. For small in-house systems, modification requests can be handled by an in-house process. For large integrated systems, modification requests may be addressed in the Requirements document and may take the form of a change package or a formal Change Implementation Notice and may require justification and cost benefits analysis for approval by a review board. The Requirements document for the project may call for a modification cut-off and rollout of the system as a first version and all subsequent changes addressed as a new or enhanced version of the system. A request for modifications to a system may also generate a new project and require a new project initiation plan.

Daily operations of the system /software may necessitate that maintenance personnel identify potential modifications needed to ensure that the system continues to operate as intended and produces quality data. Daily maintenance activities for the system, takes place to ensure that any previously undetected errors are fixed.

At this phase of the SDLC all security activities have been at least initiated or completed. An update must be made to the System Security plan; an update and test of the contingency plan should be completed.

Review and update documentation from the previous phases.

4.3.10 Disposition Phase Activities

Retire the system, software, hardware and data. The tasks and activities actually performed are dependent on the nature of the project.

The Disposition Plan must be developed and implemented. The Disposition Plan will identify how the termination of the system/data will be conducted, and when, as well as the system termination date, software components to be preserved, data to be preserved, disposition of remaining equipment, and archiving of life cycle products.

The data from the old system will have to be implemented into the new system or if it is obsolete, archived.

The software components will need to be transferred to the new system, or if that is not feasible, disposed of.

A lot of documentation went into developing the application or system. This documentation needs to be archived, where it can be referenced if needed at a later date.