A smart port is one that makes global connections easier through advanced technologies and efficient logistics.
Spearheaded by the Transport & Logistics Bureau, Hong Kong's Port Community System (PCS) is an essential piece of digital infrastructure bolstering the city's smart port development.
The PCS began pilot trials in early 2023 and was officially launched in January of this year. It allows enterprises to perform cargo tracking and cross-border customs clearance via a single platform.
End-to-end visibility
One PCS registrant, and an early adopter of the system during its pilot phase, is a logistics company headquartered in Japan.
Operating across markets in Asia, Europe and the Americas, the company has over 700 offices and distribution centres worldwide, and specialises in sectors including healthcare and automobiles. Its Hong Kong branch, a key regional hub, offers a comprehensive suite of freight services, such as international forwarding and door-to-door delivery.
With the PCS, the firm has embraced the integration of data on freight logistics and customs clearance status. Its Deputy Head of Air Freight Forwarding Group Kazunori Goto said that the PCS enhances operational efficiency and sidesteps human error.
He explained that, prior to the PCS being introduced, data was scattered across multiple platforms. Staff members lacked real-time visibility and spent significant time reconciling conflicting data.
"The PCS has effectively resolved these challenges. It provides a standardised customs clearance status that interfaces directly with our internal system.
"This enables us to offer seamless end-to-end cargo visibility for every shipment, while substantially reducing the subsequent manual follow-up workload for our teams."
Specifically, Mr Goto mentioned that staff previously had no direct access to customs data from the China International Trade Single Window.
"With the adoption of the PCS, we can now conveniently obtain this critical data via API (application programming interface) integration. This has not only shortened our operational processing time, but also significantly reduced manual data entry errors."
Digital empowerment
The PCS is developed and managed by the Logistics & Supply Chain MultiTech R&D Centre (LSCM).
LSCM Chief Executive Officer Simon Wong said the system's development has followed an industry demand-oriented approach, and is being rolled out in three phases.
"In the final stage, we will connect and complete end-to-end workflows for multimodal transportation, and build a comprehensive digital ecosystem to enable the industry to reap the benefits of artificial intelligence-powered digital services."
Mr Wong said that by linking to the PCS, enterprises can simply enter an ocean or airway bill number to check real-time information covering everything from cargo receipt to loading, departures, arrivals and customs clearance.
Notably, the PCS provides a "One-Data-Multiple-Declarations" function, which enables auto-filled data and one-click submissions to both Hong Kong customs and the China International Trade Single Window, thereby reducing repetitive data entry and mistakes.
The system also sends real-time alerts about shipping delays and temperature anomalies, allowing companies to adjust vehicles and warehousing arrangements.
Moreover, the PCS utilises blockchain technology to guarantee data safety and prevent unauthorised access.
Mr Wong explained that the data recorded covers cargo movement transfers, document numbers, warehousing, land transport tracking, customs declaration records and operational timestamps.
"Once this information is recorded on the blockchain system, it cannot be altered unilaterally. This provides credible evidence for trade financing, cargo traceability and other logistics services."
Public reputation
Deputy Secretary for Transport & Logistics Amy Chan revealed that the industry's response to the system has been highly positive since its launch, with over 6,000 enterprises getting on board to date.
Among the registrants are shipping companies, trading firms, freight forwarders and warehousing companies. Most of these are small and medium-sized enterprises.
Citing registrants' feedback, Ms Chan said the system is viewed as highly cost-effective, and urged more firms to make use of it to realise the scale benefits of data interconnectivity.
"Looking ahead, we will actively explore connecting the PCS with more ports worldwide and international shipping data platforms to further strengthen Hong Kong's digital connectivity as an international maritime hub."
Ms Chan also outlined that the bureau is planning a number of pilot programmes in areas such as trade finance, offshore cargo tracking and smart customs, with a view to expanding PCS application scenarios.
"Nine banks in Hong Kong have already recognised the reliability of the trusted cargo status data for use in processes such as risk management, thereby facilitating trade finance."
She added that the Government is expanding offshore cargo tracking to offer banks more comprehensive data, which will make it easier for Hong Kong's offshore trading firms to secure financing.
In addition, the Government this month launched the Future Innovative Logistics Acceleration Scheme to encourage industry adoption of logistics data platforms, such as the PCS, that are operated by the Government or public organisations, with a goal of benefiting 100 logistics enterprises.
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