Tesla Electric Vehicle Operations in India

India’s political environment is reliably stable compared to other countries in the region. However, the country’s strained relations with Pakistan and border confrontations with China are major concerns. Overall, as the world’s largest democracy, the country is committed to generally accepted standards of governance (World Bank, 2021). The government of India has adopted policies focused on fast-tracking the adoption of electric vehicles and environmentally friendly energy. An example is the Faster Adoption and Manufacturing of Electric Vehicles policy, which offers subsidies to facilitate electric vehicle production capacity and investment in related infrastructure (Shashidhar, 2021). The country has a large economy, ranked among the world’s top 10. India’s economy is forecasted to remain on a positive growth trajectory—although at a slower pace compared to recent years—having expanded by 4% in 2020 despite the impacts of the COVID-19 pandemic (World Bank, 2021). The country ranks at position 69 out of 128 countries as regards the rule of law (World Justice Project, 2020). The ranking incorporates a range of factors such as constraints on the powers of the government, basic rights, regulatory enforcement, and civil and criminal justice. In the past few years, the country has embraced some questionable policies that constrain the operations of technology-oriented global companies. India’s data policies, for instance, require local storage of data. This scenario creates uncertainty in the country’s legal environment.

Other major changes that have occurred in the country over the years include an increased focus on space exploration, demonetization, and harmonization of tax regimes. India’s space exploration efforts date back decades, but the area has received renewed interest recently. The country has increased funding for the Indian Space Research Organization (Gill, 2021). Such efforts are intended to make India a key player in space exploration. Demonetization was a major reform the country undertook in 2016 to curb corruption and money laundering. The change has had a significant impact on digital payments. The Indian government also revamped the country’s tax regime to foster the business environment. Adopted in 2017, the Goods and Services Act addressed double taxation and other tax-related challenges (Josh, 2017, p. 68). Previously, the indirect tax regime involved double taxation at the state and national levels. The change simplified taxation and boosted the country’s wider efforts to improve the business environment.

The country has several risks associated with relations with Pakistan and China, human rights, corruption, tariff regulation, and regulatory uncertainty. Strained relations between India and its neighbors Pakistan and China have hampered trade with these countries. Border clashes with China in 2020 and other disagreements saw India ban Chinese applications in the country. The threat of violent extremism and terrorism in India is somewhat tied to the country’s relations with Pakistan. India ranked position 8 on the 2020 Global Terrorism Index, signifying significant risk (“Overseas business risk”, n.d. ). The strained relations might impact how companies with operations in the country approach cross-border as well as local trade. The challenge of human rights in India involves child labor and the impact of businesses on indigenous communities. As regards corruption, India ranked 86out of 100 countries in transparency (“Overseas business risk”, n.d.). The country’s power landscape is dominated by state-run enterprises. Tariff regulation is common in the form of subsidies. This scenario might undermine competition if subsidies are adopted to provide an unfair advantage to state enterprises. India’s regulatory environment continues to change in the face of changes in the business environment. The adoption of stringent laws on data storage, requiring foreign entities to store data locally, highlights the risk of regulatory uncertainty in the country.

India’s socio-cultural system is dominated by a hierarchical system, notably the caste system. Social interdependence is also a key feature of the country’s socio-cultural system. Caste groups in the country reflect societal hierarchy. This system is largely associated with Hinduism but similar systems are present in other religions. The influence of societal hierarchy on organizations and other domains of society is profound. For instance, in gender equality, India ranked about 112 between 2011 and 2020 (“Overseas business risk”, n.d.). The country has adopted measures to enhance equality in society, including the Transgender Persons Act of 2019, but progress has been slow (“Overseas business risk”, n.d.). Societal interdependence and close family ties indicate an emphasis on collective wellbeing.

The analysis suggests that India has major potential implications for Tesla in the context of viability and profitability of operating in the country, regional expansion, and contributions to the Indian society. The relatively stable political environment, together with a large, growing economy indicate a significant market potential for Tesla. The supportive government policies in the context of electric vehicle adoption create a favorable outlook for Tesla. India’s space efforts also represent another area that is potentially profitable for Tesla. The company could build on its collaboration with SpaceX to foster a public-private partnership in India’s space exploration efforts. A harmonized taxation regime across states enhances the business environment for Tesla. The key challenges in the Indian market require a proactive approach from Tesla to succeed in the country. These challenges involve a changing legal landscape, geopolitical tensions, and inequality. The requirement to comply with the country’s new data laws, for instance, creates a challenge for Tesla’s innovation efforts. The geopolitical tensions and the risk of terrorism are important considerations for Tesla when selecting a location for its national or regional office. Issues such as human rights and inequality indicate the need for Tesla to forge partnerships with local communities and other organizations as part of its social responsibility initiatives. Such a proactive approach to the risks would help Tesla to expand into India successfully.

References

Gill, P. (2021, Feb. 4). ISRO will transform in 2021 as India pumps big money to draw in startups for the ‘second space age’. Retrieved August 11, 2021, from Retrieved August 11, 2021, from

https://www.businessinsider.in/science/space/news/isro-will-transform-in-2021-as-india-pumps-big-money-to-draw-in-startups-for-the-second-space-age/articleshow/80683054.cms
https://www.worldbank.org/en/country/india/overview

Josh, J. (2017). Current Affairs August 2017 eBook. Jagran Josh.

Overseas business risk – India. (n.d.). Retrieved August 11, 2021, from https://www.gov.uk/government/publications/overseas-business-risk-india/overseas-business-risk-india

Shashidhar, K. J. (2021, April 4). Four policy issues to consider for electric vehicles in India. Retrieved August 11, 2021, from https://www.orfonline.org/expert-speak/four-policy-issues-to-consider-for-electric-vehicles-in-india/

World Bank (2021, March 31). The World Bank in India. Retrieved August 11, 2021, from

World Justice Project (2020). INDIA ranked 69 out of 128 countries on the rule of law. Retrieved August 11, 2021, from https://worldjusticeproject.org/sites/default/files/documents/India%20-%202020%20WJP%20Rule%20of%20Law%20Index%20Country%20Press%20Release.pdf

How Women Face Discrimination in Today’s Workforce

Gender discrimination remains a major issue in society today. This problem is pronounced in the workforce as women are bearing the brunt of gender discrimination in today’s workforce. In 2018, the participation of women in the U.S. labor force was 57.1% compared to 69.1% for men (U.S. Bureau of Labor Statistics, 2019). Occupational discrimination contributes to the lower labor force participation for women. in 2016, on average, women earned about 67% of men’s wages (Gharehgozli & Atal, 2020, p. 207). Women are also underrepresented in leadership positions. Women held just 5.4% of the CEO positions in the S&P 500 companies in 2017 (Lyness & Grotto, 2018, p. 228). The observations indicate that the laws aimed at addressing gender discrimination are inadequate as gender-based occupational, wage, and leadership discrimination disproportionately affect women.

Three Forms of Gender Discrimination

There are various forms of gender discrimination against women in today’s workforce. Three notable forms include occupational discrimination, low wages, and few leadership opportunities. Occupational discrimination or segregation is at the center of such discrimination in that it sets an early foundation for the other forms of gender discrimination. Faniko et al. (2015) referred to this phenomenon as “sexual division of professional orientation” and noted that it represented the groundwork for the development of gender inequalities (p. 11). Sexism rooted in traditional norms is to blame for occupational discrimination, at least to some extent. According to Hideg and Ferris (2016), hostile and benevolent sexism alike lead to occupational discrimination against women. Hostile sexism is characterized by stereotypes that depict women as weak. Benevolent sexism involves subjectively positive attitudes towards women but are lacking in that they depict women as wonderful but weak. Such attitudes restrict the access of women to occupations and jobs that are considered masculine.

Overall, women receive significantly low wages compared to men. As noted in the preceding paragraph, occupational discrimination is partly to blame for this wage gap. Such discrimination restricts women to mostly low-paying jobs. Women’s pay was about 53% that of men in 1986 and rose to 67% in 2016 (Lyness & Grotto, 2018, p. 207). The authors also observed that the wage gap was wider in the top category of jobs. This observation suggests that women in high positions are likely to be paid much lower than their male counterparts despite having to overcome greater barriers. The wage gap, however, is more complex when other variables such as race are considered. For African Americans and Hispanics, for instance, women have higher wages than men (U.S. Bureau of Labor Statistics, 2019). The higher earnings for women do not offset the underrepresentation of the gender in the labor force and leadership positions.

In leadership, the gender gap is concerning as the concept of the glass ceiling comes into effect. Women’s representation in leadership positions lags behind the gender’s participation in the labor force. In 2017, 44.3% of the employees of the S&P 500 were women but only 5.4% of the CEOs were women (Lyness & Grotto, 2018, p. 228). The concept of the glass ceiling helps to explain gender discrimination against women in leadership. Stereotypes entrenched in society underpin the glass ceiling and hinder the selection and promotion of women. A break from the misguided beliefs is necessary to encourage and support women to achieve their potential in leadership.

Laws to Manage Gender Discrimination

Title VII of the Civil Rights Act of 1964 and The Equal Pay Act of 1963 were enacted to address occupational, wage, and leadership position discrimination against women. As per the U.S. Equal Employment Opportunity Commission (n.d.), Title VII of the Civil Rights Act of 1964 prohibits employment discrimination based on sex and several other demographics, including race, color, national origin, and religion. The law prohibits employers from engaging in hiring, firing, promotion, and other employment activities that discriminate against individuals due to their sex. This prohibition indicates the relevance of the law in protecting women against occupational, wage, and leadership position discrimination. The law applies to all state and local government employers, private employers, and educational institutions with 15 or more workers.

A major strength of Title VII of the Civil Rights Act of 1964 is that it has been expanded to offer protection to women against discrimination in the labor force. One such expansion involved the definition of sex to cover pregnancy (Bardes et al., 2021). Another strength of this law is the creation of the EEOC, the agency with the mandate to enforce the Act. According to Guy and Fenley (2014), the EEOC has made various rulings and decisions that have helped to shape the protection of women in the workforce, forced employers to abandon some unfair employment policies, and given the law a mechanism for achieving the intended effect. Guy and Fenley (2014) noted that the law had a major loophole in that it appeared to only prohibit outright and blatant discrimination. The loophole involves two aspects. First, the law’s exemptions overlook the different experiences of women such as childbearing and, as a result, disadvantage women. Second, the law has subjective elements that give employers the power to determine whether or not sex is a legitimate qualification for a position. These shortcomings have undermined the effectiveness of the law and led to mixed outcomes for women. Whereas the law has had a major positive impact on protecting women against discrimination in the workplace, it has not addressed all the key dimensions of gender discrimination sufficiently.

The Equal Pay Act (EPA) of 1963 sought to address the gendered wage gap. Unlike Title VII of the Civil Rights Act of 1964, which covers various forms of discrimination, including the wage gap, EPA focuses on wages. This law prohibits employers from compensating women and men differently for substantially the same kind of job performed in the same establishment, requiring substantially the same skill, effort, and responsibility, and performed under similar working conditions (Eisenberg, 2010). A major strength of EPA is that it is enforced by the EEOC, which ensures the law is translated into practice to enforce equal pay. The law has two major weaknesses. First, EPA places a heavy burden on women to prove the employer’s violations but does not require employers to disclose data on pay (Yearby, 2019). Without publicly available data on pay, women find it difficult to prove their case in the face of pay discrimination. Second, EPA, like Title VII of the Civil Rights Act of 1964, has subjective elements in that employers can falsely defend their case under the guise of the factor other than sex. These downsides have rendered the law partly effective, leaving wage discrimination an ongoing problem.

Two Recommendations for HR to Minimize Discrimination

Recommendations that HR can undertake to minimize gender discrimination include avoiding recruitment strategies that favor a certain gender and adopting equal pay structures. Job advertisements that indicate the organization is seeking male workers lock out female candidates are likely to involve gender discrimination. HR should embrace a recruitment strategy that uses careful wording and is genuinely committed to equal opportunity employment practices. Another example of a recruitment strategy that would violate the law is using word-of-mouth recruitment by a mostly male workforce. Such a strategy, as per the EEOC (n.d), might lead to a situation where virtually all new hires are male. The appropriate recruitment strategy would use different communication channels to reach a balanced audience of involving all genders.

The HR’s pay structures represent an important opportunity to address gender discrimination. A regular review of pay structures can ensure that HR maintains equal pay practices regardless of gender. The previous section revealed that employers resort to subjective tenets of EPA to justify pay inequality in bad faith. Clear, regularly reviewed pay structures can help employers to ensure pay equity while avoiding legal pitfalls. Such a strategy would also enhance HR’s position as a champion of gender equality in the workplace.

Conclusion

The laws aimed at addressing gender discrimination are inadequate as gender-based occupational, wage, and leadership positions discrimination disproportionately affect women. Occupational discrimination forms an early foundation for other forms of gender discrimination in the workforce. Women are paid significantly lower than their male workers. Women are also less likely to hold leadership positions in companies. Two notable laws that were enacted to address gender discrimination are Title VII of the Civil Rights Act of 1964 and The Equal Pay Act of 1963. Although these laws have helped to reduce gender discrimination, they have loopholes that disadvantage women. HR can avoid violations of these laws by avoiding recruitment strategies that favor a certain gender and adopting regularly reviewed equal pay structures. These measures can help HR to champion gender equality in the workplace.

References

Bardes, B. A., Shelley, M. C., & Schmidt, S. W. (2021). American government and politics today: The essentials. Cengage Learning.

EEOC. (n.d.). Prohibited Employment Policies/Practices. Retrieved from https://www.eeoc.gov/prohibited-employment-policiespractices

Eisenberg, D. T. (2010). Shattering the equal pay act’s glass ceiling. SMUL Rev.63, 17.

Faniko, K., Lorenzi-Cioldi, F., Sarrasin, O., & Mayor, E. (Eds.). (2015). Gender and Social Hierarchies: Perspectives from Social Psychology. Routledge.

Gharehgozli, O., & Atal, V. (2020). Revisiting the gender wage gap in the United States. Economic Analysis and Policy66, 207-216, https://doi.org/10.1016/j.eap.2020.04.008

Guy, M. E., & Fenley, V. M. (2014). Inch by inch: Gender equity since the Civil Rights Act of 1964. Review of Public Personnel Administration34(1), 40-58.

Hideg, I., & Ferris, D. L. (2016). The Compassionate Sexist? How Benevolent Sexism Promotes and Undermines Gender Equality in the Workplace. Journal of Personality and Social Psychology111(5), 706, https://doi.org/10.1037/pspi0000072

Lyness, K. S., & Grotto, A. R. (2018). Women and leadership in the United States: Are we closing the gender Gap? Annual Review of Organizational Psychology and Organizational Behavior5, 227-265, https://doi.org/10.1146/annurev-orgpsych-032117-104739

U.S. Bureau of Labor Statistics (2019). Women in the Labor Force: A Databook. Retrieved from https://www.bls.gov/opub/reports/womens-databook/2019/home.htm

Yearby, R. (2019). When Equal Pay Is Not Enough: The Influence of Employment Discrimination on Health Disparities. Public Health Reports134(4), 447-450.

Command and Conquer: Generals Unit Tactics: GLA Unit Strategies

Command and Conquer: Generals Unit Tactics: GLA Unit Strategies:

The GLA or Global Liberation Army is known for its resourcefulness and shrewd tactics. Some of the armored vehicles including technicals and marauders have the ability to scavenge destroyed enemy vehicle and upgrade their firepower.

One of the key important units to look out for is the scud launcher, bomb truck and the terrorist infantry unit. The truck can be very deceptive and can inflict serious damage on enemy structures. Learn more about GLA units and the strategies required to use them in this Command and Conquer: Generals tactics guide.

Rebel:

The rebel is the basic infantry unit of the GLA. It has the ability to capture buildings, which can be researched at the barracks. There are several additional abilities that can be upgraded. You can increase the damage by 25 percent if you research “AP bullets” at the black market. What’s more, you can also use their stealth ability against enemy infantry. All you have to do is research the “camouflage” upgrade at the Palace to have this ability.

With the help of stealth, the GLA rebel units can ambush enemy units, particularly in areas that are left undefended. With stealth, you can use them to capture buildings and oil derricks silently.

RPG Trooper:

The RPG trooper is very handy unit against both land and air units, but can get killed by the Chinese Gatling tanks, American Humvees and infantry units. Use 5-6 units to destroy armored vehicles and aircraft easily. You can also put them inside GLA Technicals to inflict maximum damage. Just like the rebels, the RPG troopers’ fire power can be increased by 25 percent if upgraded to “AP rockets” at the black market.

Terrorists:

These are very dangerous when used against enemy tanks and missile launchers, but can easily fall prey to Gatling tanks, Humvees, pathfinders or foot infantry. Always disperse them and then detonate enemy units, do not use them in packs.

In most skirmish maps, you will find vacant black-colored cars. Garrison them inside to create car bombs and drive inside enemy buildings and units to inflict maximum damage. But, remember that they can also cause damage to nearby GLA structures and units, so use them wisely. These are very resourceful and are the one of the best Command and Conquer Generals tactics for the GLA faction.

Angry Mob:

Angry mob are generally a group of specially created units that can cause maximum damage. They are generally created in groups. They can be unlocked after building the Palace. They have the most unique weapons including stones, Molotov cocktails and can be upgraded with firearms after researching “arm the mob” at the palace.

While they are not the best of command and conquer: generals tactics to employ against USA pathfinders, Humvees and Chinese Gatling tanks, they can cause serious damage to tanks and enemy structures. Use at least 4-5 upgraded mobs against enemy buildings and vehicles. They can also be a great option for defending key GLA structures.

Jarmen Kell:

This unit is the perfect answer to USA’s Colonel Burton. He has the abilities of the sniper and can denote buildings through his remote controlled bomb. You can use him to snipe infantry units as well as vehicle drivers and later steal them. But, his weakness is the slow reload time of his sniper rifle. You can easily eliminate Jarmen Kell with the help of your anti-stealth units. But, beware, he can hide inside buildings and take out all your infantry units. To make things difficult, the building does not change to the GLA team color, but once you locate him, you can force him to evacuate by throwing flash bang grenades.

Hijacker:

Hijackers are one of the most expensive units of the GLA faction, but can be tactically employed to inflict the maximum damage. They are mainly used to steal assault and general enemy vehicles. You can use them to capture enemy vehicles with the first level veteran status. You can also hijack enemy dozers, build their structures and units and create havoc on them with their own structures. to unlock the hijacker, you will have to build, palace, barracks and sped three general points. Quite a hard work to create this unique unit!

GLA Armored Vehicles:

Technical:

Playing as GLA ensures you have excellent Command and Conquer: Generals tactics and strategies up on your sleeves. Most GLA vehicles are very resourceful. The technical is the best example of a cheap, resourceful yet destructive GLA vehicle. It can serve as an excellent vehicle transport for infantry, terrorists and hijackers. Put some of them inside and drop them on the enemy zone make your fight easier.

A good example of its resourcefulness is its ability to upgrade its firepower by stealing scrap of destroyed enemy vehicles. Just run over the scraps of two destroyed vehicles and see its firepower change from machine gun to missile attacks.

Scorpion:

The scorpion may be the weakest armored vehicle of the GLA, but once it is upgraded with “scorpion rockets”, it can cause destruction to enemy vehicles and infantry. Scorpion upgrades are mainly available at the arms dealer structure, the palace and the black market. To upgrade its fire power to rockets research the scorpion rockets at the arms dealer, but if you want to upgrade it with deadly anthrax, then research “toxin shells”. This can inflict serious damage to the opponent’s infantry units. You can also enhance the damages by researching “anthrax beta” at the palace. When battling against enemy units, use at least 7-8 upgraded Scorpions to get excellent damage results.

Marauder:

The Marauder is one of prime GLA armored vehicles. With its increased range, accuracy and good armor the Marauder can cause great damage to your opponent’s vehicles and units. It has features similar to the scorpion. You can upgrade using scraps of enemy units and use it to fire anthrax weapons from its projectiles. Use at least 6-7 marauders along with other units while planning an attack on your opponents. The rest upgrades are similar to the Scorpion.

Quad Cannon:

The quad cannon can be used as a good defensive unit against light armored vehicles and infantry. But, it is very weak against heavy armored vehicles and air units. Always have a group 0f 5 or 6 quad cannons to take out any nuisance infantry units. You can increase its damage power by 25 percent by researching AP bullets at the black market.

Rocket Buggy:

Rocket Buggies are fast, accurate, but have slow reload times. Because they are fast-paced, they can easily hide beyond the reach of enemy units and come back strong. The best tactic is to use 3-4 rocket buggies to shoot and quickly hide them beyond the reach of enemy units. When it reloads, attack your opponents again. Using its speed and heavy fire power can be the perfect strategy against your opponents.

Bomb Truck:

Bomb trucks are extremely effective against a large group of enemy units. As the name suggests, bomb trucks are loaded with explosives and chemical weapons. You can employ multiple tactics with these expensive units. Use them silently to sneak inside enemy base and run over a cluster of vehicles. You can also use them to sneak into unguarded enemy structures.

Scud Launcher:

The scud launcher is GLA’s artillery weapon that can fire scud missiles from a good distance. It has two types of fire power-anthrax warheads and explosives. When playing skirmish battles in Command and Conquer: Generals, use the scud launcher’s explosives against enemy structures and warheads on infantry and vehicles. Make sure your launchers are protected with RPG troopers and marauders as they are very vulnerable against enemy armors.

Because they can bombard from a great distance, make sure you place them at strategic isolated areas near enemy base camp.

Toxin Tractor:

This unit spurts green toxins at enemy units and can be very effective against light infantry units. You can eliminate your opponents infantry garrisoned in civilian buildings. But, always support it with other units and make sure they are far off against heavy armor.

Financing Shipping companies

There are several advantages for a shipping company to outsource a particular service or department. The main advantages with outsourcing are better cost control, lower risk and the outside supplier’s expertise.

Better cost control is achieved because outsourcing leads to less fixed costs and more variable costs. This means that the company in the short term is more flexible, and able to adjust costs faster and in some cases with less hassle. Outsourcing a service or department also lowers the need for an initial investment by removing the capital injection necessary for establishing a department/service. Less fixed costs and less long term fixed assets means lower risk for the company.

In economical theory there also is an general opinion that outsourcing in many cases leads to cost reductions, due to a small internal department within the company not having the same degree of expertise as a bigger outside supplier and therefore not being able to deliver the services at a competitive cost. This lack of expertise compared to the outside supplier that specialises in the segment might also lead to a lower quality of service if the work is kept in house.

With regards to expertise there also is a big advantage in that the company can keep focus on their core business where they have the necessary know-how and stay clear of outside disturbance.

There are however also disadvantages with outsourcing. The main problem is loss of control due to the company not having the same supervision over the work being done. Another problem is that the outside supplier might not be able to adjust the service as well as an inside department after the company’s needs at any given time.

The degree of the advantages/disadvantages with outsourcing varies greatly with the complexity of the work that has to be done, the potential savings and the importance of in-house supervision. A certain degree of outsourcing of services will always exist i.e. transportation for a company’s employees, postal services, big IT reforms etc.

Solstad has decided to keep outsourcing at a minimum and integrated shipping operations are a part of the company’s philosophy[1]. The company manages the total operation of the vessels[2], and have a large onshore support mechanism which includes freight, crewing, accounting, chartering, technical, and other administrative functions. The company is nevertheless open to outsourcing services and will evaluate whether it is possible to achieve more cost effective operations and an optimal return on capital employed in cooperation with new suppliers with a view to long-term strategic co-operations[3]. Such collaboration is also evaluated with regard to risk and capital injection.

How has your company financed its vessels? Explain advantages and disadvantages by such financing.

It isn’t possible to find public information on how most of the specific vessels have been financed. However according to a news article in Skipsrevyen[4] about the acquisition of the M/S Normand Seven, the long term financing for that vessel is provided by Eksportfinans in cooperation with Nordea Bank, Fokus Bank and Danmarks Skibskredit AS.

The company’s balance sheet doesn’t show in detail to whom the long term liabilities is owed, so to answer the question we will have to assume that the financing of the M/S Normand Seven is representative of how Solstad normally finances its fleet.

As of the end of 2008 the company have long term fixed assets in vessels and new buildings of 7.289.858.000 NOK[5]. This equals just over 70% of the company’s total assets of 10.213.357.000. The assets are financed with a total equity of 3.697.624.000 and total liabilities of 6.515.734.000. Out of the total liabilities long term loans to credit institutions/leasing obligations amounts to 4.831.208.000.

In economic theory an equity ratio of 30 % is generally considered healthy, and the company also states in the annual report that the aim is to be financed by the owners (equity) with a ratio higher than 30 %. The total equity in percentage of total assets in 2008 was 36%, well above the company’s goal. The company’s equities are important when you need to raise capital from outside sources, as it may provide security for the lenders.

Assuming that the financing of M/S Normand Seven is representative for the entire fleet the long term liabilities is provided by commercial banks like Nordea bank, Fokus bank, and Danmarks Skibskredit as well as government backed ship credit schemes like Eksportfinans. According to the annual report some of the fleet is also financed by leasing agreements.

The advantages in getting mortgage-backed loans from commercial banks are that capital can be raised quickly and flexibly, while the owner is still left with full ownership of the business.

The disadvantages by such financing is that commercial banks are uncomfortable with loans that are longer than 5-6 years[6] and often prefers to receive a balloon payment that might be difficult to handle for the shipping company. A leasing company is often more attractive if the borrower want longer finance than a commercial bank is willing or able to take onto their balance sheets. Eksportfinans also offers longer term finance than is usual for commercial banks, and offer repayment periods for up to 20 years[7].

Commercial banks normally take little risk and require a lot of security to protect their investment. According to the annual report[8] some vessels are placed as security for the mortgages. In addition, accounts receivables and bank deposits (2007) are tied. Solstad’s loan agreements are also subject to the owner’s working capital being positive at all times and that the market value of the vessels amounts to at least 110-125% of the outstanding loans. The company states that they satisfy all conditions of the loan agreements at 31.12.08[9].

Name three of the most important conventions your company must adhere to. Give reasons why those are among the most important ones.

Solstad have ships registered in the Norwegian International Ship Register (NIS), Isle of Man Ship Registry (IOM), and the Norwegian Ship Register (NOR). Some of the criteria for NIS/IOM/NOR registered vessels are that they adhere to international conventions such as “Safety of Life at Sea (SOLAS 74)”, “Prevention of Pollution from Ships (MARPOL 73/78)” and “Standards of Training, Certification and Watch keeping (STCW 95)” as well as other international regulations ratified by the flag states.

“Safety of Life at Sea (SOLAS 74)” is the most important international treaty protecting the safety of merchant ships in the world. The first version of the treaty was passed as early as 1914 in response to the sinking of the Titanic.[10] It prescribed numbers of lifeboats and other emergency equipment along with safety procedures, including continuous radio watches.

The intention had been to keep the convention up to date by periodic amendments, but a completely new convention was adopted in 1974. The convention regulates among other things use of the global maritime distress safety system, set construction criteria (subdivision and stability, machinery and electrical installations), fire protection/detection/extinction, obligatory life-saving appliances and arrangements, radio communications, safety of navigation etc. and is the centrepiece of maritime safety.

Prevention of Pollution from Ships (MARPOL 73/78) is the main international convention covering prevention of pollution of the marine environment by ships from operational or accidental causes[11]. It was designed to minimize pollution of the seas, including dumping, oil and exhaust pollution. Its stated objective is to preserve the marine environment through the complete elimination of pollution by oil and other harmful substances and the minimization of accidental discharge of such substances.

MARPOL contains 6 annexes, concerned with preventing different forms of marine pollution and covers pollution by oil, chemicals, harmful substances in packaged form, sewage, garbage and air pollution.

The International Convention on Standards of Training, Certification and Watch keeping (STCW 95) sets qualification standards for masters, officers and watch personnel on seagoing merchant ships[12]. The aim of the convention was to introduce internationally acceptable minimum standards relating to training, certification and watchkeeping for officers and crew members.

Today there are amendments concerning quality standards systems, oversight of training, certification procedures and rest period requirements. The amendments require that seafarers are provided with familiarization training and basic safety training which includes basic fire fighting, elementary first aid, personal survival techniques, and personal safety and social responsibility. This training is very important in ensuring that seafarers are aware of the hazards of working on a vessel and can respond appropriately in an emergency.

Literature and references:

Annual report (2008). Annual report 2008 Solstad Offshore ASA. Skudeneshavn. * Financial report (2009). 3rd quarter 2009 Solstad Offshore ASA. Skudeneshavn. · International Convention for the Prevention of Pollution from Ships (MARPOL) (1973). http://www.imo.org/Conventions/contents.asp?doc_id=678

Toyota Motor Vehicles: SWOT Analysis

Toyota Motor Vehicles

Background

Toyota Motor Corporation is a famous Japanese multinational corporation, and is considered the world’s second largest automaker of automobiles. The founder of Toyota is Kiichiro Toyoda, who born in 1894, and the son of Sakichi Toyoda, who was popular in the invention of the automatic loom.

Toyota motors became a mainstay of Japan economy 1n 1960. And it get great growth in this time. And the annual sale of TMC in Japan was about one million dollar I 1962

Introduction

Toyota Motor Corporation, being a multinational is the world’s largest automaker in terms of sales volume. As of 2008, Toyota employs approximately 316,000 people around the world in comparison to second ranked automaker General Motors’ 266,000 employees. The company is mainly engaged in automobile business and financial business.

In end of 1989, Toyota started its manufacturing in Europe by having two main manufacturing plants working in UK. It provides all ranges of cars from mini vehicles to big trucks.

Toyota Philosophy

Toyota’s management philosophy has evolved from the company’s origins and has been reflected in the terms “Lean Manufacturing” and Just In Time Production, which it was instrumental in developing. The Toyota Way has four components: 1) Long-term thinking as a basis for management decisions, 2) a process for problem-solving, 3) adding value to the organization by developing its people, and 4) recognizing that continuously solving root problems drives organizational learning.

They deals in wide range of cars like:

Avensis

Previa

Dyna

CBU Camry

Coaster

Land cruiser Prado

Fortuner

Toyota Motor’s main competitors:

General Motors (GM): It was the world’s largest selling vehicle producer but their market shares were decline in the 80’s and mid 90’s.

Ford: It was the second largest motor car selling and profit making company in the world right behind the GM Company.

Chrysler: It was the third main competitor of Toyota. The company was almost gone bankrupt during the 80’s but their government support their company and saved them.

Main Body

SWOT Analysis

(S)trengths

One of the main biggest strengths of Toyota is the JUST IN TIME concept. Just in Time spirit implies to the two opposing forces of providing fast and

flexible response, and yet building mechanisms and systems that are efficient and waste-free. The concept is to provide the right product and information, at the right time, in the right amount, in the right manner, while maintaining high standards of efficiency and cost control. JIT has resulted in ZERO inventory and enormous saving in the cost.

The company has recorded a strapping financial performance in recent years. Toyota Motor’s revenues increased at a compound annual growth rate of 11.1% during 2004-08.The Company also had witnessed a considerable increase in profitability. During 2004-08, the average operating profit margin and net profit margin of the company stood at 9.1% and 6.5%, respectively. The strong financial performance of the company has contributed to its market domination. This, in turn, enhances investors’ confidence in the company for investment.

Toyota is one of the top leading automotive brands in the world. In the annual ranking of top 100 global brands by BusinessWeek and Interbrand in 2008, Toyota figured in the sixth position. According to the survey, Toyota’s brand value has increased by 6%, to reach $34.1 billion in 2008. In addition, it is the highest ranking automotive brand name in the world. It is ranked well ahead of its competitors like Mercedes, BMW, Honda, Ford, Hyundai, Porsche and Nissan. For instance, in the same period, Ford has been faced with a number of troubles, including a failure to meet its goals for SUV mileage gains or to exploit its well-regarded Escape hybrid; subsequently, the brand value of Ford fell by 12%, to $7.9 billion in 2008. Toyota’s luxury car, Lexus, also has an independent ranking in the top 100 global brands. The brand value of Lexus was around $3.6 billion, with a ranking of 90. Some of the other popular product brands of the company include

Corolla, Camry, Sienna, Prius and Scion. The company’s strong brand image gives it considerable competitive advantage and helps the company to register higher sales growth in domestic, as well as in international markets.

In 2003 Toyota has beaten its rival Ford into third spot, to become the World’s second largest carmaker with 6.78 million units. The company is still behind rivals General Motors with 8.59 million units in the same period. Its strong industry position is based upon a number of factors including a diversified product range, highly targeted marketing and a commitment to turn manufacturing and quality. The company makes a large range of vehicles for both private customers and commercial organizations, from the small Yaris to large trucks. The company uses marketing techniques to identify and satisfy customer needs. Its brand is a household name. The company also maximizes profit through efficient manufacturing approaches (e.g. Total Quality Management).

(W)eaknesses

Usually big setup faces problems during oversupply as in it the company need to make sure that it is the models that consumers want. Toyota markets most of its products in the US and in Japan due to which they are always exposed to fluctuating economic and political conditions. Perhaps that is the reason that now the company is beginning to shift its attentions to the emerging Chinese market.

Toyota Motor provides pension benefits and other post-retirement health and life insurance benefits to employees. During the Year 2008, the company incurred post retirement benefit expenses of approximately $709.1m. The company also paid a total of approximately $671.5m for the post retirement benefit plans during 2007. Furthermore, by the end of March 2008, the company’s projected pension and post-retirement benefit obligations stood at approximately $14,865.9m as compared to the planned assets of approximately $11,256.4m, resulting into an unfunded status of approximately $3,609.5m. Sizeable unfunded post retirement benefits would force the company to make periodic cash contributions towards bridging the gap between post retirement benefits obligations and planned assets, which would reduce cash available for growth plans.

The company needs to keep producing the cars in order to retain its operational efficiency. Car plants represent a huge investment in expensive fixed costs, as well as the high costs of training and retaining labor. So if the car market experiences a down turn, the company could see over capacity. If on the other hand the car market experiences an upturn, then the company may miss out on potential sales due to under capacity i.e. it takes time to accommodate. This is a typical problem with high volume car manufacturing companies.

(O)pportunities

Worldwide demand for light hybrid electric vehicles (HEV) is estimated to reach 4.0 million units by 2015. Rising energy costs and increased emissions regulations are likely to increase the demand for HEVs, as hybrid engines are more fuel efficient and less polluting than conventional gasoline and diesel engines. The primary markets for HEVs will be within Triad countries (the US, Western Europe and Japan), although the quickly growing Chinese market is also expected to experience relatively strong demand for these fuel efficient and environmentally friendly vehicles.

Toyota Motor Company is keen to capitalize on the growing demand for hybrid electric vehicles. The company has spent a large amount of money for the development of hybrid vehicles over the years. The accumulative total of Toyota Motor’s hybrid vehicle sales reached 1.5 million in June 2008. Furthermore, the company plans to expand its hybrid lineup and achieve annual sales of one million hybrid vehicles by early 2010. For this, the company plans to introduce demand-creating products. The company also launched models such as the Prius and LS600h hybrids at the 2008 Beijing International Automotive Exhibition, held at the new China International Exhibition Center in Beijing. The company’s emphasis on hybrid technology will enable it to capitalize on the positive market trends in this segment to enhance its market position

Lexus and Toyota now have a reputation for manufacturing environmentally friendly vehicles. Lexus has RX 400h hybrid, and Toyota has it Prius. Both are based upon advance technologies developed by the organization. Such moves can only firm up Toyota’s interest and investment in hybrid R

Drug Trafficking Through Maritime Routes

Drug interdiction is a mission of the USCG and falls within the DHS. With the increasing illegal smuggling of narcotics, the U.S. Coast Guard (USCG) is facing many new challenges. The maritime route has been an increasing route for drug smuggling especially in the “transit zone” which is between south America and the USCG mission is to reduce the supply of drugs from the source by denying smugglers the use of air and maritime routes in the Transit Zone, a six million square mile area, including the Caribbean, Gulf of Mexico and Eastern Pacific. On an average day the USCG seizes 874 pounds of cocaine and 214 pounds of marijuana (2016 presidential transition)

Background, DHS, USCG

National security refers to the concept of the security of a nation including its citizen, economy, institution and considered a duty of the government. It also includes protecting the nations “secrets”.

To answer the issue of national security, the department of national security (DHS) has for mission to protect the nation from the many threats it faces. The DHS was established in 2002, in the aftermath of 9/11, and falls within the Presidential Policy Directive / PPD-8 which gives each agency within the national security their guideline and what they should be doing. Within the DHS fall some support component such as FEMA and the USCG (Figure 1). The USCG is one of the five military forces the United State possesses and the USCG serves alongside the navy – and together they comprise the “national fleet” (white paper 2013), however the only military branches belonging to DHS. It is a federal agency and Maritime’s first responders which protects those on the sea, against threats delivered by sea and the sea itself. It protects the border, manages movement of commerce and shipping indeed since the US relies on its maritime field for commerce but also for security. The USCG is in charge of inland and coastal waters. Us waterways and offshore zone are vulnerable to illicit and criminal activities.

Figure 1: adapted from DHS

It is also important to keep in mind that the USCG is part of the intelligence community (2016, presidential transition). There are 16 members of the intelligence community that work separately and together to conduct intelligence activities to support the foreign policy and national security of the United States.

The role of the USCG within the DHS falls within eleven missions (Haddow et al 2017) including: (1) port, waterway and coastal security, (2) drug interdiction, (3) aids to navigation, (4) search and rescue, (5) living marine resources, (6) defense readiness, (7) marine safety, (8) migrant interdiction, (9) marine environment protection, (10) ice operation, (11) other law enforcement.

In addition, the USCG is dealing with our ever changing world and challenges such as the opening of the Artic where the CG faces commercial, environmental, and security concerns. Looking at the budget of DHS in 2014, the USCG received about 16% of their total funds (Haddow et al 2017). The Coast Guard’s fleet has been updated and keeping up with the new technologies. Indeed National Security Cutter (NSC), that started coming online in 2008 are replacing the older high endurance cutters that have been in duty since the 1960s. The range of a cutter is about 12.000 miles.

USCG and drug interdiction

The USCG drug interdiction mission has been present for many years. Chinese immigrants were the first known to smuggle drug in the 1870s (Rosen, 2015). Opium was being smuggled in the country via merchant ships and cargos. The first documented opium seizure was made by the Revenue Cutter Wolcott on Aug. 31, 1890. During the 1920s, more funding and resources was provided to the USCG to increase drug interedition, which was proven successful. Through time, smugglers kept using the maritime route as a primary way for illegal smuggling of narcotics into the U.S. with the USCG remaining the main player in counteractions (Kramek, 2000).

Its first major marijuana seizure on March 8, 1973, when Coast Guard Cutter Dauntless boarded a 38-foot sports fisherman and arrested crew, with more than a ton of marijuana on board.

With technology evolving, so did the drug smuggling and task forces across agencies but also internationally have been put together to increase drug interdiction.

In 2014, more then 90% of cocaine smuggled into the country came from maritime routes with the rest being by aircraft. With the increasing illegal movement of narcotics, the USCG has paid special focus on the matter using different techniques. Indeed, in April 2015, Coast Guard Cutter Boutwell returned to homeport with more than 29,700 pounds of pure, uncut cocaine, with an estimated street value of more than half a billion dollars. The narcotics was seized during an international joint operation, marking the largest maritime cocaine seizure in the Eastern Pacific Ocean since 2009.

In the fiscal year of October 2014 to the same month of 2015 the USCG seized approximately 50,000 kilos of cocaine in maritime areas, interestingly for the period 2016-2017 the figure had increased to 206,000 kilos with a value exceeding 6,000 million dollars (Petrov, 2018). Numbers are increasing. The Mexican Navy, seized, in 2018 already, 4 tons of cocaine that was being smuggled via maritime routes, which same time in 2017 they had only seized 1 ton. This is only what is being seized, indicating even more illegal drugs being smuggled.

Coast Guard Cutter Stratton

The Coast Guard Cutter Stratton is one of six USCG cutters and part of the National Security Cutter or also the known as Legend-class national security cutter (NSC). The program is the core of the Coast Guard’s fleet, capable of executing the most challenging operations, including supporting maritime homeland security and defense missions. The cutters are designed to complete open ocean patrol missions (Box 1).

The DEA is suggesting that in 2012, 80% of the drug arrived in that country by sea and by 2015 it had already increased to 95 %.

Drug route

Cartels, the main manufacturers of drugs, usually do not aim to sail drugs directly into the U.S., they have boats trying to avoid USCG by cruising along beaches along the Mexican coast (figure 2). The main maritime routes include the Pacific, the Gulf of Mexico and now, more intensively, the Caribbean. The Tijuana cartel were the first to use maritime routes for smuggling and have been using it since the 90s. They run from different Mexican ports of the Pacific and the Gulf of California: in Topolobampo, Sinaloa; La Paz and Ensenada, in the peninsula of Baja California; Guaymas Sonora; Acapulco Guerrero; Lázaro Cárdenas, in Michoacán; Manzanillo, Colima, and Tapachula, Chiapas. Trafficking via the sea has turned into a business or industry comprised of many individual enterprises of varying size and organization with complex dynamics and moving parts (Aune 1990). It has been misleading to believe that the drug trafficking is run by a handful of powerful cartels, when what appears to be happening is a flexible and fluid flow, depending on demand, market opportunities and constraints (Kenney, 2007). This trafficking area is known as the “transit zone” which is an area six million square mile the USCG patrols. In the fiscal year of 2017, 455,000 pounds of cocaine worth over $6 billion wholesale have been stopped by the Coast Guard (Petrov 2018).

Smuggling methods

Cargo trains, passenger busses, planes, tunnels, catapult, mule and many more methods have been used by cartels to smuggle narcotics into the US. However there has been a significant increase in use of maritime routes. The cartels have been very inventive, indeed in 2009, drug was being smuggled in the stomachs of dead sharks. However nowadays new techniques are being used such as self-propelled, semi-submersible able to hold tons of drugs (Nixon 2017). The Department of Homeland Security has estimated that drug submarines account for nearly 32 percent of all maritime cocaine flow. The cartels have developed some highly sophisticated and diverse methods from motorboats, hidden in large container vessels, submarines. In 2016, the Columbian authorities discovered a drug shipment “sailing” north for Panama driven by currents and highly sophisticated radars operating with solar energy and which could be located via cellphone.

Globalization of drug use

This also raises the question of the globalization of drug use, also considering the current heroin crisis (Bagley, 2012). Indeed, the drug use remains low in Latin America compared to increase use in the U.S. (Seelke. 2010). The drug use is an addiction which leads to ever higher demand too. So, unless drug issue and the heroin crisis are reducing the demand will keep rising. The primary consumption countries are US, Canada and western Europe. A study in Australia showed that almost 60% of young people reported the ‘lifetime use’ of illegal drugs and about 30% recent users (in the last month) (Duff, 2005)

Conclusion

Illegal trafficking of narcotics through the maritime routes is an ever growing challenges with increased demands and new and more sophisticated technologies. The U.S. Coast Guard within the Department of Homeland security aim to reduce the entry of narcotics into the country a. With the underline worry of what is the profit of selling drugs used to fund terrorism; human, weapon and drug trafficking; piracy; environmental crime; and cyber-crime.

Box 1: USCG capabilities: USCGC Stratton

References:

2013 white paper on resourcing the USCG, Homeland Security

2016 Presidential Transition – DHS Component Overview, U.S. COAST GUARD

Aune, B. R. (1990). Maritime drug trafficking: an underrated problem. Bulletin on narcotics, 42(1), 63-72.

Bagley, B. (2012). Drug trafficking and organized crime in the Americas. Woodrow Wilson Center Update of the Americas.

Duff, C. (2005). Party drugs and party people: Examining the ‘normalization’of recreational drug use in Melbourne, Australia. International journal of drug policy, 16(3), 161-170.

Haddow, G., Bullock, J.,

Case Study on Existing Solutions to Issues in the Transport Industry

Case study on existing solutions to issues in the transport industry

Course title: Transport Management and Technology

Transport telematics

Objectives.

– One of the main objectives for this case study is to summarise the relevant information required for a transport manager in relation to telematics. Under the following subheadings

– Legality of telematics

– Safety requirements

– Management requirements and responsibility

– Evaluate the main technology available and information systems being used today in modern day fleets. Also identify the make up and function of the system. Highlighting the information being collected.

– Investigate the modern-day issues within the transport sector, which telematics reduces and removes.

Legality of telematics

Some general guidelines to telematics legalities. To keep the business and all employees running efficiently. Also, to help the longevity of the business.by preventing law suits and court courses against the business due to incorrect management of the telematics system and operations. On the contrast this system if legally obeyed and operating correctly can prevent court and law suits even coming into practice. Some of the main EU law guidelines relating to vehicle telematics are as follows.

– You are legally allowed to track business vehicles owed by the company, all employees should be made aware of this and have signed consent.

– If using tracking or telematics on business vehicles that are also used in private uses. A privacy feather or button must be installed on the system. This is to protect the driver’s privacy outside business or company hours.

– Under no circumstances is it legal to retrieve employees’ locations or track individuals. The tracking is only legally for following truck movements that an employee oversees.

– If the business vehicle if over 3500kg it legally requires a Tachograph to monitor drivers’ hours. This tachograph is independent of telematics system. The tachograph simply records drivers’ hours. it is the legal responsibility of the driver and transport manager to ensure the driver is obeying his hours and that the route is achievable within set hours.

– The EU data protection directive. This was set in play by the EU to protect people’s person information. any relevant data collected by the employer over the employees. The reason for collecting it, who it concerns and for what purpose must be made aware to the employees.

– The EU data protection laws are more relevant and of a higher risk to fleets operation out of the EU states. Is illegal to release information collect of any EU citizens to non-EU states or third-party companies.

(Telematics.com , 2017)

Safety actions of telematics

Vehicle telematics pay a huge role is reducing fleet costs annually.by preventing safety incidents or accidents. The information conveyed on the live system is only as good as the person interpreting the information and the corresponding measures carried out. Some of the ways telematics systems offer security and safety to a fleet are as follows

Identifying training required by drivers

The telematics system offers a whole host of information to the route planners and transport managers. Including vehicle speeds within designated zones, driver driving times, harsh braking percentage, harsh acceleration, excessive rpm, time of vehicle idling and as well as other less relevant features.

By being able to monitor drivers’ habits and controls it gives an insight into certain driver’s undesirable characteristics. For example, a high percentage of harsh braking may reveal a driver who is unable to anticipate the road conditions ahead. This can result in dangerous driving and excessive wear and tear. The manager reviewing the information should compare drivers and routes in a similar situation before making any major decision. Once a decision has been the driver may require training to counteract this behaviour. This driver improvement may reduce the chance of an accident occurring and lower overall running costs. The telematics system can help identify areas of potential concern for employers. Drivers also consider that they are more accountable for their actions and are being monitored across the clock.

The Hawthorne effect

‘The Hawthorne effect is a type of reactivity in which individuals modify an aspect of their behaviour in response to their awareness of being observed.’

(wikipedia, 2017)

The Hawthorne effect works hand in hand with telematics systems and drivers. Drivers feel more responsible for driving habits and manoeuvres which can be accessed on the live feed. Drivers can also be shown the results at weekly and monthly meeting to show what needs to be done to improve and errors which are noted by management. The driver almost feels he is under observation all the time during working hours. The days of drivers not giving a concern in the world once they left the yard are long gone.

Management requirements and responsibility

The requirements and actions carried out by management in a direct response to the information provided by telematics are essential. The information if assed and validated correctly could result reduced overall costs of the company.

Reviewing driver’s performance

As discussed earlier the telematics system can identify drivers who require training. This can be a good and bad commodity for the business. The good side potentially reducing costs and lowering risk of accidents. But this can give a counter intuitive effect if a driver is involved in a collision and the telematics is reviewed by a third party outsource and finds the drivers characteristics to be negative over a period and no proof of counteracting this is available. The decision may fall back upon management.

The telematics system also has the luxury of being able to carry out the daily walk around test and imputing this live into the system. the manager should be able to view and compare the results to make sure they don’t not conflict. meaning a driver has the same impute over a period. This will also help improve vehicle safety by being checked daily. Also, this information can be essential if an accident may occur.

The system can also be used as a way of reducing costing. For example, the system gives the amount of time and percentage engine is idling. This information can be replayed onto the driver and route planner to help minimise excessive idling. this can be achieved by avoiding certain routes during peak hours. Also making sure customers and drivers are fully aware of each other’s intentions of delivery and time constraints.

The driver’s hours and time of running can also help with keeping within drivers’ hours. This can reduce costly fines and potential investigations in the future. The driver’s hours are fixed per day with gives no room for working overtime or excelling targets. This can leave drivers in a station rate of performance and not improving over time. The telematics system offers a KPI of drivers up against each other. this can be used by the manager to help improve overall driver qualities. by having a driver’s league of performance by offering a reward in exchange monthly. By revising and comparing the following traits of drivers. Fuel consumption per 100 km, excessive braking, acceleration, lower speeding times, excessive rpm and reduced idling time

Negatives of driver performance

On the negative side, some drivers may feel this system is too fare stretched and that the best driver will never be beaten and just stick to their own driving style. This can be avoided by having best improvement in the list. Also, the risk of unsafe or reclass driving can come back into the picture is some drivers feel they need a big push on towards the end of the month to boost overall proceedings.

Telematics systems

The word telematics derives from two meanings. It is a merger of the tele and mastics which is short for telecommunication dans information. The main functions of telematics systems are to record, store and send data via telecommunications. (fraser, 2017)

The following list shows the most commonly monitored factors that are recorded and observed by transport managers.

In Journey Time: 08:26:08

Total Driving Time: 07:34:09

Km Travelled: 541.50

Excess RPM: 1.02%

Excess Idle Time: 0.06%

Total Idle Time: 10.27%

Harsh Accel: 279 times

Harsh Brake: 15 times

Average MPG: 9.6

Fuel Used: 160.00 l

CO2: 428.80 kg

Fuel Used on Idle: 2.10 l

Litres per 100 km: 29.55 l

Cruise Control: 02:59

Stopped Time: 02:25:04

This system can also be used in conjunction with 360-degree live cameras around the vehicle. To give a full vision of the vehicle during driving times.

Telematics operation and technology

The operations and set up of telematics systems in modern day fleets are relatively similar with different vehicles. The example of the telematics system I am using in this report is the Flex unit by Squarell technology. A company from the Netherlands who specialises in vehicle data and can bus systems. (Squarell Technology, 2018)

The flex unit is a compact module which transfer vehicle data to telematics. The unit has a bonus of extra add on parameters to monitor if required by the company. The optimal interface modules are as follows driver awareness panel, Bluetooth module, fuel level sensor and trailer ID system. The flex system interface works with CAN bus, SAE J1708 and the K-line. Its also obeys universal standards CAN (FMS/J1939) AND RS-232 (ASCII). (Squarell Technology, 2018)

(Squarell Technology, 2018)

Connection of flex module to the vehicle

The flex unit is generally universal, but some additional modules vary with manufactory. On the example down below showing how the system is set up. The CAN bus lines, vehicle ECU, tachograph and J1708 in the diagram below are the original vehicle components. The two block connectors DetacliQ, CANcliQ, squarell FLEX and driver awareness panel centre are all the parts of the flex unit. The flex unit reads data from the CAN bus line via the green connector and reads tachograph data via the K-line. The purple block connector reads signals from J1708 and feeds the data back to the flex unit. The driver awareness panel gives feedback to the driver about their driving behaviour. The information monitored is portrayed with several led indicators. Red green and amber. Red requires major improvement, amber is starting to become a problem and green needs no improvement. Under the following sections of high RPM, eco driving, unsteady driving, harsh acceleration and anticipating the road ahead. The indicators for each are seen below. The data received at FLEX is sent via two or more connection lines to the vehicle fleet management system or modem which can be viewed on pc or laptop.

(Squarell Technology, 2018)

Flex squarell connection to a vehicle diagram

(Squarell Technology, 2018)

The contactless can reader connector

The CAN bus system can be a complicated system, especially to connect into. the squarell unit is not directly hard wired into the system. The system works by reading signals through wire isolation. The CAN bus wires of interest are isolated, the CANcliQ clip is placed over the two can bus wires. The connection I simply clicked into place via plastic clips. Which then connects into the CANdiode port connection of the squarell unit.

The benefits of this system include

– One cable / connector fits all

– Non-intrusive technology

– Reusable system on other vehicles

– Reliable and safe can bus data collected

– No hard wire connection, no soldering, cutting or crimping

– Quick and clean installation

– No issue with manufacture warranty voids

The connector wiring diagram below

(Squarell Technology, 2018)

Transport issues adjourned by fleet telematics

The transport industry like others has issues and challenges when operating on a day to day basis. Some of the main issues facing any business are costs, employee welfare and training, the environmental challenge and keeping everything up to standard and above board. Some of the issues in which telematics are as follows driver overspeed, excessive braking / RPM, idling times, time on site

Time on site

Time on site refers to the time a driver spends at each route drops off location. The manager would only have the drivers trust and word. telematics gives an in-depth analysis into each driver’s times per day, per weeks and per month. A vast saving and efficiency can be achieved by reducing unnecessary time on site. This can be done reducing idle times of vehicles, becoming more accurate with delivery times for customers with less delays. The system can also be set up to send a delivery notice on time of arrival to the next customer. The driver may also spend less time chatting and conversing with customers if he knows his times are being observed. The issues reduced by telematics in this instinct are lower CO2 produced, less ideal time, improved fuel efficiency, shorter driver times, less overtime of drivers, more loads potentially moved and improved customers service

Camera report

A camera report offers a large amount of piece off mind for drivers and managers. It can be included in most telematic systems. Giving the vehicle and driver cover on vulnerable angles. The driver also 100 % accountable for his actions. Any third-party claims of damage can be linked to specific times and area the driver was in. This footage can be used to prove innocence or guilt on part of the company. This asset if fitted to all the fleet vehicles can significantly reduce the company annual insurance bill. Thus, reducing overall cost and leaves the company with stronger security measures.

Fuel level reports

Fuel level reports can offer a huge insight into driver performance and styles. if you have a relatively unvaried fleet with static routes. It is much easier to compare drivers fuel level performance and to view any discrepancy’s in the level of fuel. The days of every truck driver owing a diesel are gone. The system identifies any discrepancies is fuel level lost. it also gives the true location and time, while offering the percentage of fuel increase this is available on a graph. This system can highlight deceitful drivers and personal but also person who takes diesel deceitfully. This can give managers the information needed if major changes are required. If a person is found of the charge they are also more than likely not the most caring and respectful operator. Which could prevent break downs and repairs in the future. An example of a graph is seen below.

(Transport, 2018)

Fill Ups: 3

Fuel Filled: 0.000000

Unexpected Fuel Loss: 0

Fuel Lost: 0

Date Time

Driver

Location

Before

After

Neckfill

Approx Litres

Odometer [km]

Show On Map

Graph

2018-10-01 07:37:06

Anglesea Street, Cork, , IE

34

99.6

N

65.6

0 l

246165.03293184

2018-10-03 10:53:57

Promenade Road, Dublin, 3 , IE

19.6

99.6

N

80

0 l

247231.03021056

2018-10-05 12:03:06

Murphy Transport Cork

31.2

99.6

N

68.4

0 l

248119.99964928

Daily and weekly full end report

The weekly report offers managers a quick and accessible report into each individual driver and vehicle. It can be essential when summarising which vehicles and driver may not suit a specific load. It can also reduce management time by filtering through individual reports. Its offers fuel reports, drivers’ undesirable traits, time spent driving and idling, distances covered, emissions and cruise control times.

all this information can be vital to help reduce emissions, fuel consumption and improve MPG, lower driver times and improve general driver safety on the road. The list of real time information recorded are seen below.

In Journey Time: 42:52:50

Total Driving Time: 33:29:44

Km Travelled: 1999.55

Excess RPM: 1.39%

Excess Idle Time: 0.82%

Total Idle Time: 21.89%

Harsh Accel: 1628 times

Harsh Brake: 79 times

Average MPG: 8.2

Fuel Used: 691.00 l

CO2: 1851.88 kg

Fuel Used on Idle: 16.40 l

Litres per 100 km: 34.56

Cruise Control: 11:57

Stopped Time: 62:59:09

(Transport, 2018)

Conclusion

My overall conclusion from this report is that telematics has made the transport world are much more efficient operating one. Without telematics the transport sector would be fare costlier effective. The systems give managers freedom to allow drivers work and rewards good driving styles. Undesirable drivers are filtered out and this can only help improve both drivers and general road safety. The system while improving road safety and working conditions also offers managers reassurance that they are obeying current legislation.

The overall effectiveness of the telematics system is only as good as the operator. Both the manager and drivers need to on board with the system to maximise its full potential. The managers need to act and put procedure in place following reviews of the information collected.

The system without doubt holds many positive attributes which are beneficial to any fleet regardless of size or construction. The savings, performance and greater overall efficiency are hard to discount against. this is why I would highly recommend the system to anybody working within or looking to join the transport industry.

References

(Squarell Technology, 2018)

(Telematics.com , 2017)

(Transport, 2018)

(fraser, 2017)

(wikipedia, 2017)

(NIBC, 2018 )

Bibliography

Telelmatics.com – https://www.telematics.com/telematics-and-the-law-what-the-boss-needs-to-know/

https://www.telematics.com/a-comprehensive-guide-to-fleet-tracking-systems/laws-concerning-the-usage-applications-installations-of-fleet-tracking-systems/

Verizonconnect.comwww.verizonconnect.com/resources/article/what-is-telematics/

Kunbus.com – https://www.kunbus.com/k-line.html

EE publishers.com – http://www.ee.co.za/article/telematics-technology-actually-work.html

Squarell marketing https://www.youtube.com/channel/UC96lmbD2Fi9xNrgtrefGxsg

Squarell.com- https://squarell.com/en/products/cancliq/

https://squarell.com/en/products/driver-awareness-panel/

https://squarell.com/en/products/flex/

tcognition.com – https://www.tcognition.com/blog/remote-telematics-solutions-overview/

Trade route solution.com – http://www.traderoutesolutions.ie/haulage.html

NIBC.CO.UK – http://hub.nibc.co.uk/Main.aspx

Review on How Europe Is Improving Air Traffic Management

Single European Sky: A review on how Europe is improving Air Traffic Management

Acronyms EC-European Commission

EU-European Union

ATM-Air Traffic Management

ATC-Air Traffic Control

EUR-Euros

SES-Single European Sky

IFR-Instrumental Flight Rules

Introduction The Single European Sky is an ambitious project impulse by the EU in 1999 to unify the ATM over the European Sky. It is the answer to the general dissatisfaction that passengers and airlines were having back then due to the levels of delays they were experiencing. This initiative taken by the EC is willing to transfer the competences of ATC to an organism dependent to it and not to the state members, as it occurs nowadays. The main goal is to design, regulate and manage the EU’s Airspace in order to improve safety, efficiency and capacity.

It can be stated that European Air Space is one of the busiest in the world. The current situation is defined as follows:

 Air Transport contributes to the European gross domestic product by 200 billion EUR.

 Air Transport employs 3.1 million people.

 Air Traffic Management costs 8 billion EUR per year.

 Air Traffic is growing by 5% each year.

 During peak periods, there can be 30.000 flights.

 Air Transportation accounts for the 2% of the total CO2 emissions.

 Air Transport delays reach high levels at some airports.

There is an estimation that the current European ATM System costs around 4 billion EUR divided as follows:

 2 billion EUR due to fragmentation of Air Traffic Management Fragmentation.

 1 billion EUR due to non-optimized flights.

 1 billion EUR due to delays.

It is widely known that reforming and modernizing air traffic control is not an easy task. In fact, it is more complex than the deregulation of airlines and airports. If no action had been taken back in the 2000s, the actual situation would have been way worse than what is today and costing more money to the European countries.

History and Context Until 1944, there were barely regulations regarding international air transport. After the Chicago Convention, which is far by now the most important convention regarding civil aviation, a new document was signed by the members present, which was the Convention on International Civil Aviation, where the International Civil Aviation Organization (ICAO) was founded and charged of managing and regulating international air travel. Its first article states that “Every state has complete and exclusive sovereignty over airspace above its territory”.

Therefore, before the European Union was formed, each country had its own sovereignty over the airspace above its territory. When it was formed, this situation remained stagnant and each member had the control of its airspace. During the last 20 years and due to the liberalization of aviation in the EU in 1987, there was a thrive on demand for flights, specially towards Southern Europe due to tourism. The EU never expected to have such an increase on traffic and the system was not ready to handle the amount of flights operated in the 1990s. There was an increase on passenger’s dissatisfaction because flights were always delayed by a few hours turning down meetings and flight connections. Therefore, the EC decided to act into the problem by creating the Single European Sky Program, which is right now under implementation.

Goals, Implementation Path, Current Status and Achievements The main goal of the Single European Sky is to update European ATM in order to meet the future capacity and safety needs. The main aim of the program is as follows:

Triple the capacity of European Airspace with the goal of reducing delays.

Increase in safety by having an overall control of the aircraft’s route from departure to arrival.

Reducing environmental impact by 15% due to route optimization.

Reduce the cost of ATM service to the users by 50%.

SES consists of two large packages of regulations as well as many supplemental rules. The first proposals were presented to the EC in 2001, but it was not until March 2014 when it was approved by the European Parliament and it started to be enforced. The first legislate package (SES-I) had the following objectives:

To improve safety and efficiency of air transport in Europe.

To increase in capacity to minimize delays.

To enhance Air Navigation Services (ANS) and reduce fragmentation of ATM.

The first set did not meet the expectances that had set the program to improve the performance of ATM in Europe. Thus, a second package was adopted in 2009 after being discussed all parties (EC, EU Transport Ministers and EUROCONTROL). It was eventually approved by the European Parliament in late 2009. The second legislative package (SES-II) had the following objectives:

To ensure the effectiveness of the new service offered and implementing the network manager (EUROCONTROL).

To establish a single legal framework to develop homogenized safety rules. In order to fulfill this goal, the European Aviation Safety Agency (EASA) was created.

To implement new technologies to introduce new operational procedures and increase flight safety.

To improve airport management to increase capacity.

The amendments brought by the second package were as follow:

SES-II

Functional Airspace Blocks

Performance

Network Manager

Regulation

Route design between all airports under its jurisdiction to improve efficiency of airspace.

Eliminate state boundaries across EU members.

Based on operation requirements.

Improve aircraft routing to improve efficiency and reduce CO2 Emissions.

Unify operation regulations between all State Members.

Even though many steps have been taken to improve the sky’s management in Europe, ATM is still fragmented in Europe. The current organization is based on national boundaries and there are 67 airspace blocks impacting negatively in terms of safety, capacity and cost. It is as follows:

One of the implementations brought by the second legislative package was “The Functional Airspace Blocks”. This system is based on operational requirements and borderless between State Members. It wills to raise cooperation between Air Navigation Services Providers and National Service Providers. Working cooperatively, the goal of defragmenting the airspace with the positive effect on the increase in operational efficiency can be met. This implementation is expected to be complete by 2020, but delays are expected due to the complexity and regulations behind it. The final status will be as follow:

In order to make these changes possible, there had to be a technological improvement, and the Single European Sky ATM Research was in charge of this task. Even though part of the SES Program has been implemented, they are in continuous research in order to upgrade the European ATM whenever possible, mostly related to the growth of aircraft movements, but as always ensuring the maximum safety at the lowest possible cost for the consumer.

Comparison between the management of ATM between Europe and the United States of America Nowadays, if we were to compare European ATM to American ATM, it could be stated that the former has a 50% lower performance and a 95% higher cost than the latter. In addition, the volume of flights controlled by American ATC is twice than by their colleagues in Europe. By focusing on IFR Flights, which actually are the ones that impact to travelers, US controls 60% more flights than Europe with less facilities and personnel.

By analyzing the differences between US and European control, the following differences pop up:

Europe

 37 ANSPs[1]

 63 ACC[2]

 260 APPs[3]

 38% more employees

United States

 1 ANSP1

 20 ARTCC[4]

 162 TRACONs[5]

Even though the United States area is similar to Europe area, ATM[6] costs much more due to the organization it has. This over cost is mainly caused by the higher number of en-route centers and processing data centers. Besides, there are many restricted and segregated areas which no allow overflying at any time of day impacting negatively on the operations.

Conclusion After the recovery from the world economic crisis, there is an estimation that air traffic will increase by a 6% each year in Europe, with the customer’s expectance of having a better experience. The European Union is acting to guarantee that SES is fully operational by 2020.

Mainly, the SES’ idea is to move from a national level to an EU level, but many questions regarding its feasibility may arise and it will never be identical to the American one due to countries willing to control their airspace. Even though it is still divided into several national air traffic control, there has been a paramount improvement since the 1990s. A close approach to the US model will ideal, and that is the main will of this program.

Every actor of the program should understand the advantages of a quick implementation. On the one hand, the system will have a better performance with fewer employees reducing operation’s cost. On the other hand, cooperation between parties must continue to assure the proper implementation of the program. There is a general agreement in that SES is not delivering the expected results, mainly due to the institutional part.

In short, the Single European Sky turned to be one of the most ambitious programs regarding transportation in the European Union. Future works, such as improvement in avionics, crew training or communication infrastructures, should be focus on improving efficiency and costs to safeguard European sky.

References “Single European Sky.” NATS, www.nats.aero/about-us/ses/single-european-sky/

“Single European Sky”. Eurocontrol, 24 Nov. 2016, www.eurocontrol.int/dossiers/single-european-sky.

“A Blueprint for the Single European Sky.” International Air Transport Association, Idem, www.iata.org/pressroom/pr/Documents/blueprint-single-european-sky.pdf.

Lawless, Christopher. “Bounding the Vision of a Single European Sky.” The Geographical Journal, vol. 180, no. 1, 2013, pp. 76–82., rgs-ibg-onlinelibrary-wiley-com.ezproxy.libproxy.db.erau.edu/doi/abs/10.1111/geoj.12038.

Baumgartner, Marc, and Matthias Finger. “The Single European Sky Gridlock: A Difficult 10 Year Reform Process.” Utilities Policy, vol. 31, Dec. 2014, pp. 289–301., www.sciencedirect.com/science/article/pii/S0957178714000162?via=ihub.

“ESA and SESAR Deployment Manager Work Toward Single European Sky. “Satellite Today 23 July 2018. Business Insights: Essentials. Web. 30 Sept. 2018.

“‘Single European Sky’.” Airports International Jan.-Feb. 2004: 5. Business Insights: Essentials. Web. 30 Sept. 2018.

N.A. van Antwerpen, “The Single European Sky”,2002, 27 Air and Space Law, Issue 2, pp. 90–134

[1] Air Navigation Service Provider

[2] Area Control Center

[3] Approach Control Unit

[4] Air Route Traffic Control Centre

[5] Terminal Radar Approach Control Facilities

[6] Air Traffic Management

Use of Internet of Things for Large-scale Shipping Ports

The operations of large-scale shipping ports can be improved through the use of Internet of Things,

Big data, and analytics: Explain how these technologies can be used in the enterprise architecture of

A large-scale port.

Abstract: In this report, technologies and concepts are explained and summarized under the headings of Internet of Things, Big Data, Analytics, Enterprise Architecture and Large-scale ports. These technical advancements and concepts are explained using definitions, statistics, rational for use and examples of how they are implemented and functioning in today’s enterprise architecture of large-scale ports. A keen focus is directed at how the operations of these ports is improved by the technological headings stated above. Moving on, these concepts are correlated with headings of popular current topic discussions and real-world functioning examples of systems implemented and functioning in major ports around the world today.

Keywords: Internet of Things, Big Data, Analytics, Enterprise Architecture, Large-Scale Ports

1. INTRODUCTION

Ports all over the world have developed through phases of innovation. Some of the development stages that ports go through are informationalized, digital and most recently intelligent ports. With the advancements in technologies related to The Internet of Things (IoT), Big Data and Analytics, the formation of intelligent ports is possible.

For example, we see ports like Rotterdam joining forces with the super tech company IBM to transform the biggest port in Europe to an IoT digital operation. As the largest port in Europe, the Port of Rotterdam handles over 461 million tonnes of cargo and more than 140,000 vessels annually. The digital transformation involves applying sensors for over 42km across land and sea. (Campfens, 2018)

This major transformation could/would not happen without IoT, Big data and Analytics. These sensors are spread accross a 42km radius from the City of Rotterdam into the North Sea. The sensors gather multiple data streams which include water (hydro) and weather (meteo) data about tides and currents, temperature, wind speed and direction, water levels, berth availability and visibility. (Campfens, 2018)

This is just one instance example of how technologies can be used in the enterprise architecture of a large-scale port.

This report produces many more functioning examples in detail of how these technologies are been utilized today, based on the concepts and motives for this review.

1.1 Internet of Things – IoT

The term Internet of Things was invented approximately in 1999, initially to promote Radio-frequency identification technology (RFID). The new buzz acronym (IoT) then took off in 2010 and hit the market in 2014 as the next big tech advancement. (Lueth, 2018)

The IoT concept essentially displays billions of internet enabled devices around the world that collect and share data with each other. Wireless networks are the backbone to the IoT architecture and with fibre power fast connections it can just get better, without wireless networks IoT would not be possible. Devices that were once dumb can now have digital intelligence and become useful within the wireless network spectrum. (Ranger, 2018)

1.2 Big Data

Data has been exponentially increasing in the last decade, it is increasing in every facet of our lives. On the internet alone, take Google, Amazon, Microsoft and Facebook for example. It is closely estimated that they alone store at least 1,200 petabytes between them. That is 1.2 million terabytes (one terabyte is 1,000 gigabytes). Yet this is only a tiny minuscule subset of the data population that resides in the world. But where is all of this data been stored? And what is been done it analytically to make value of it? (Mitchell, 2018)

In theory, big data is a term used to represent a large amount of data structured or unstructured, that is so large it is difficult to process it using the traditional methods of database technology and software techniques. In most enterprise scenarios, the volume of data is too big or it moves too fast, or it exceeds current processing capacity. (Beal, 2018)

1.3 Analytics

Analytics is the discovery, interpretation, and communication of meaningful patterns in data. It is common among organisations for example to apply analytical methods to their business data to describe, predict and improve business performance. (Knight, 2018)

Big data and analytics have an important relationship with each other. With the huge amounts of data been generated, analytics is more prevalent, more manipulation and analysis can be done with this data. Predictions can be made analytically from this data, organisations can strategically use the now analysed data for forecasting and profitization techniques. (Knight, 2018)

1.4 Large Scale Ports

A port is a maritime commercial facility which may comprise of one or more wharves where ships may dock to load and discharge passengers and/or cargo.

Currently, statistically speaking Asia shows the greatest growth in port development having some of the biggest in the world. The biggest and busiest ports in the world are ranked by there cargo tonnage and volume of container shipment. (Underwriting, 2018)

As of April 2018 the top 3 busiest ports in the world are, please see: Table 1, Appendix A.

1.5 Enterprise Architecture

According to TOGAF (The Open Group Architecture Framework) enterprise architecture is a formal description of a system or a detailed plan of the system at component level to guide its implementation. The structure of components, their inter-relationships and the principles and guidelines governing their design and evolution over time. (Opengroup, 2018)

According to the ISO (International Organization for Standardization) enterprise architecture is the fundamental organization of a system, embodied in its components, their relationships to each other and the environment, and the principles governing its design and evolution. (ISO, 2018)

An enterprise architecture is broken down into the following layers: please see Fig. 1, Appendix B.

2. HOW TECHNOLOGY IS MAKING PORTS MORE EFFICIENT

Although some shipping ports could be considered functioning in the Stone Age when it comes to operations, there have been a number of technological advancements in ports. We have seen the introduction of facets like sensor technology and drones in the present day and in the future we expect to see (AI) artificial intelligence and nanotechnologies to emerge accordingly to meet the demand. (Scott, 2018)

2.1 TEUbooker – Port of Rotterdam

TEUbooker is a platform for facilitating the booking of container transports. This idea was born in 2015, which on the tech timeline could be considered a long time ago. However, it was born as a result of not being able to book container transports online within the port of Rotterdam. Everyday there are many rail and barge movements that still have unused capacity, leaving a niche to capitalize on. Using this capacity TEUbooker creates a huge amount of free space for exchanging containers. The platform simply finds free space on a paid order and sells that space to another customer. (TEUbooker, 2018)

TEUbooker’s algorithm optimises the booking of containers, by searching for space on existing barges and matching a new order to see if there is a match with an existing one, which in turn lowers the cost by adding an order to an existing one. The resulting output is that costs get lowered as they are ultimetly now shared, space is maximised and costs minimized leaving everyone happy. (TEUbooker, 2018)

Additionally there is also personalised dashboard software for users to use for tracking and monitoring the cargo. The user will no longer have to look for available space, TEUbooker assigns containers directly to participating operators on the basis of their capacity and schedules. The system will do all of the work, efficiently. (Swarttouw, 2018)

2.2 Infrastructure

Sensors help port component workers like terminal operators to track, operate and maintain physical infrastructure that they manage. Sensors are embedded throughout the port and transmit real-time data about operating conditions. These sensors eliminate the need for scheduled inspections and provide data that can be used to take preventative maintenance for the important infrastructure. (Riedl, Delenclos and Rasmussen, 2018)

2.3 Cargo Handling

Monitoring systems improve the port efficiency by viewing performance status of cargo machinery, operations can be completed at full performance and properly maintained as needed. A container terminal in the Port of Valencia in Spain uses this tech. They use “Black Boxes” to gather this data in real-time. This data can now be used to raise red flags or identify busy or relaxed times to maximise on. An estimated 10% could now be saved by minimizing energy use and maximizing on idle time. (Riedl, Delenclos and Rasmussen, 2018)

2.4 Intermodal Traffic

Traffic handling can be complex when ports are congested with traffic, this can essentially slow down operations if not managed efficiently.

The port of Singapore is testing a GPS traffic monitoring system that tracks the movements of trucks, with this system it notifies terminals when vehicles are approaching certain areas and provides directions on where to go, and specific instructions on how to approach a particular area. (Riedl, Delenclos and Rasmussen, 2018)

2.5 Customs and Collections

Managing paperwork and authenticating port shipments can also be done more efficiently. Work like handling cargo information and payments, trade licenses and permits can be time consuming. Some European ports like Antwerp and Rotterdam are experimenting with blockchain technology making encrypted secure data and away from paper based records. This saves huge amounts of money on labour and processing costs. (Riedl, Delenclos and Rasmussen, 2018)

2.6 Safety and Security

Advancements in security risk are vast, ports can use surveillance systems that use advanced video analytics to predict and detect breaches by pattern recognition and movement which automatically work to notify authorities and security personal. Biometrics like eye scanning and finger print authentication are more common. Senor networks can tell someone driving a piece of machinery to stay in between the lines if they cross for some reason. (Riedl, Delenclos and Rasmussen, 2018)

3. THE BIG DATA REVOLUTION

Currently the world is experiencing a data revolution “data deluge”. In previous years, much smaller amounts of analogue data was produced and available through a limited number of channels. Today a massive amount of data is regularly being generated and flowing from many sources through different channels in today’s digital age.

What creates the data deluge is the speed and frequency which the data is being emitted and transmitted, plus the rise in the number of sources in which the data emanates from. The figure in Appendix C Fig. 2, shows the market size based on monetary value expectations in billons forecasted for from present day to the year 2026. (Letouzé, 2018)

3.1 Big Data Exploitation in Container Terminals

Analysing all of this exponentially generated Big Data can bring value to a ports operations and efficiency. The most widely used piece of software used within a container terminal is the TOS, terminal operating system.

This piece of software handles from documentation to planning, to operations, to billing other business processes. This in turn creates a huge amount of data.

This data along with all of the other data like sensors being generated in the port is not being used to gain business value.

With the use of analytics, the data is a useful tool for analysing past operational data and can be used for making educated future predictions. This can help to reduce risks and costs by prediction based on factual data. (Jung, 2018)

3.2 Big Data Exploitation – Stages

In order to create value from the data, the data must go through a logical sequence of phases, please see Fig. 3, Appendix D.

Phase 1: The data plus the system will generate information. For example, GPS sensor is installed in a yard truck to gather location data in the formats of time stamp, sensor ID, and send these values to big data storage, using the terminal’s Wi-Fi network. (Jung, 2018)

Phase 2: The now gathered information from the previous stage plus the experience will generate knowledge. For example, one decides in which area (in relative location; e.g., 1A-31) a vehicle (in absolute location; e.g., 34.5678, 75.3454) is located and if it is the location for the task at hand, based on the location data for the yard truck that is acquired stage 1. (Jung, 2018)

Phase 3: The generated knowledge plus intuition will create wisdom. For example, when traffic is heavy on the road leading to a destination, information is provided to help a motorist avoid crowded roads and take a less-congested one. Or, work orders are delivered to ensure speedier performance by a yard truck depending on yard status. (Jung, 2018)

Phase 4: With the now wisdom plus imagination we can have a creation. For example, by simulating work implementation prior to the arrival of a container ship, one can predict the number of cranes and trucks that has to be allotted to tasks, operators to be assigned to the yard, and the severity of congestion at the gate. (Jung, 2018)

4. INTELLIGENT PORTS – IoT

Intelligent ports are a service system for port transportation based on modern electronic information technology. This service system feature set is to provide an umbrella of information services for port components which are based upon collection, processing, release, exchange, analysis and usage for the relevant information. Intelligent ports cannot function without IoT integration, the Internet of Things poses efficient data sharing and stability of port services. (Dong et al., 2013)

IoT is the foundation technology for any intelligent port. “Sensor” technology allows port components to obtain the ability of perception. “RFID” technology allows them to speak. “M2M” can let them exchange. Lastly IoT lets all of the objects in the world interconnect. (Dong et al., 2013)

With this system in place, handling equipment, ships, containers, vehicles, and instruments, which are widely distributed in the global ports are connected to the “NET”. (Dong et al., 2013)

IoT by collecting business data essentially can eliminate manual collection errors, improve the collection efficiency and deliver instantly to every corner of the earth through the internet. (Dong et al., 2013)

The most common applications of IoT in ports at the moment are container RFID, electronic seals, port equipment condition monitoring, engineering equipment asset management, wireless automatic meter reading. (Dong et al., 2013)

Please see: Fig 4, Appendix E.

The goal for the Port of Rotterdam is to host autonomous ships by 2025. The port has paired with IBM to for a digital transformation. (Dong et al., 2013) Part of the initiative has already implemented:

4.1 IBM – Ship Shape 3D Printing

The port believes that quality industrial spare parts should always be available when they are needed and at a competitive price. The first 3D printing of its kind in the port industry. IBM cognitive IoT technology uses a robotic welding arm to apply high-quality metal layer-by-layer to create ship components such as propellers. In traditional manufacturing, this process can take 6-8 weeks, but with IBM Ship-Shape it roughly equates to a fractional 200 hours. (Campfens and Dekker, 2018)

4.2 Gemalto – IoT Solutions

Gemalto a futuristic company specializing in IoT and other cutting edge technologies is a leader in digital security. The company has created a solution that is enabling M2M connectivity for an innovative Internet-of-Things solution that monitors dynamic ocean conditions to optimize safety and efficiency in Brazilian ports. (Jung, 2018)

SISMO, this system is a real-time weather-oceanographic information system that will monitor waves, currents, water depth, temperature and salinity to improve navigation safety, streamline ship traffic and increase port productivity. (Jung, 2018)

Port workers in Sao Paulo have been using SISMO since 2013 which transmits current, level, tide, temperature, wind speed/direction and visibility data directly to their smartphones. (Tepper, 2018)

With that detailed dashboard, pilots can manoeuvre and dock precisely in nearly any conditions. Harbourmasters use the same data to fine-tune the loading of each vessel, optimizing the load for the available draft. (Tepper, 2018)

5. ANALYTICS IN PORTS – PORT OF ROTTERDAM

Ports all over the world have been collaborating with technology companies all over the world to improve port efficiency with time and money for their shipping clients. Any of these technologies in turn generate large amounts of data and will have to be shared with other port stakeholders.

5.1 Aquatic Drones

Inspections of ships in ports can be a long drawn out and time consuming process, which costs a lot of money. Aquatic Drones, a Dutch maritime company has created a small autonomous vehicle that provides data/information about the ship and port conditions below the waterline. These water drones essentially increase inspection speed which in turn saves time and money, while generating large amounts of data. This system is currently successfully working out of the port of Rotterdam. (Demaitre, 2018)

Please see: Fig 5, Appendix F for the aquatic drone in operation.

5.2 IBM – Weather Predictions

Relevant and accurate predicted data from the weather and water levels give companies the best times to bring their ships into a port.

Low fuel consumption is obtained when water is calm and will make for cost efficiency. The port of Rotterdam in Europe, partnered with IBM’s weather company for the use of their data. The port can now access large amounts of accurate data and can make strategic decisions with analytical tools based on this data. With the use of IoT sensors, augmented intelligence and smart weather data, the port can provide accurate water and weather data updates in real-time and predict the best times/conditions for entering or exiting the port. (Campfens and Dekker, 2018)

REFERENCES

Lueth, K. (2018). Why it is called Internet of Things: Definition, history, disambiguation. [online] Iot-analytics.com. Available at: https://iot-analytics.com/internet-of-things-definition/ [Accessed 20 Nov. 2018].

Ranger, S. (2018). What is the IoT? Everything you need to know about the Internet of Things right now | ZDNet. [online] ZDNet. Available at: https://www.zdnet.com/article/what-is-the-internet-of-things-everything-you-need-to-know-about-the-iot-right-now/ [Accessed 20 Nov. 2018].

Mitchell, G. (2018). How much data is on the internet?. [online] Science Focus – BBC Focus Magazine. Available at: https://www.sciencefocus.com/future-technology/how-much-data-is-on-the-internet/ [Accessed 20 Nov. 2018].

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Underwriting, F. (2018). Busiest Shipping Ports In The World. [online] News.falveycargounderwriting.com. Available at: http://news.falveycargounderwriting.com/10-busiest-shipping-ports [Accessed 20 Nov. 2018].

opengroup (2018). TOGAF® | The Open Group South Africa. [online] Opengroup.co.za. Available at: http://opengroup.co.za/togaf [Accessed 26 Nov. 2018].

ISO (2018). ISO/IEC 42010:2007. [online] ISO. Available at: https://www.iso.org/standard/45991.html [Accessed 26 Nov. 2018].

TEUbooker (2018). [online] Available at: https://www.teubooker.com/about [Accessed 20 Nov. 2018].

Swarttouw, F. (2018). TEUbooker launches online container transport booking portal. [online] Port of Rotterdam. Available at: https://www.portofrotterdam.com/en/news-and-press-releases/teubooker-launches-online-container-transport-booking-portal [Accessed 20 Nov. 2018].

Letouzé, E. (2018). Big Data for Development: Challenges