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SCMP Reporter

CARGONET, an electronic document handling and information service developed for the trade and transport sectors of Hong Kong and southern China, will be launched in July.

   CargoNet's electronic data interchange (EDI) service is being tested at selected pilot installations.

  The service will allow freight forwarders, consolidators, shipping lines, airlines and container terminals to meet the needs of shippers and consignees.

  The test phase will involve the use of more than 30 commercial documents, such as purchase orders, booking requests, confirmations, invoices, shipping orders, bills of lading and arrival notices.

  Shareholders of CargoNet's Hong Kong-based operating company, Transport Community Network, include Hongkong International Terminals (HIT), Kenwa Communications, Global Logistics Systems, the Hongkong Association of Freight Forwarding Agents, Cathay Pacific Airways, Japan Airlines and Korean Airlines.

  The HK$50 million venture is also supported by Hongkong Bank, freight forwarder ASG (HK), Maersk Line, Everich Shipping, Sea-Land Service and Thyssen Haniel Logistics (HK).

  Richard Pearson, CargoNet chairman and HIT's deputy managing director, said: 'We saw the need to build an EDI web linking all the players in the trade and transport community.'   This would be highly complementary to efforts enabling trade-related government departments to accept and issue electronic documents later this year, he said.

  'Hong Kong cannot afford to be left behind in the automation of document handling for global trade.'   The territory generates more than 250 million documents a year at a cost of over HK$77 billion, equivalent to five per cent of its total trade.

  'By making the exchange of these documents more efficient, CargoNet will make a solid contribution to keeping the economies of Hong Kong and southern China competitive,' Mr Pearson said.

  The CargoNet electronic messaging service is based on a central message handling system (CMHS), with links to EDI networks worldwide.

  This will enable shippers and consignees to communicate locally with their freight forwarders and shipping lines, and with customers worldwide.

  Freight forwarders will be able to make electronic bookings for space on ships and aircraft while transport operators will be able to produce electronic bills of lading and manifests.

  The system will also be linked with banks so that letters of credit and invoices can be drawn up, transmitted and received electronically, resulting in faster payments.

  'The paperless electronic interchange of documents brings benefits of speed, accuracy and efficiency,' said Lloyd Sanford, general manager of CargoNet.

  'It also offers the advantages of lower staffing levels, lower inventory and warehousing costs, and cheaper international telecommunications,' he said.

  'We want to become the local leader in providing a highly efficient and profitable electronic messaging network for the trade and transport community.'   CargoNet would do this by delivering cost savings and sales advantages that enabled all participants to be more effective in world markets.

  CargoNet would link all key trading partners in a dedicated community network, with advantages for every partner in the chain.

  Its high performance CMHS will operate 24 hours a day, seven days a week, with robust access, data security and message track-ing.

  It will be supported by a dedicated help desk and a variety of value-added services and transport related services.

  Subscribers will be able to access the CargoNet service with equipment based on a personal computer with Windows, a modem and a network card.

  CargoNet has developed a software package for end-users that makes it easy to send and receive electronic communications.

  CargoNet plans to extend the financial network links and connect to government networks to perform tasks such as remitting payments, arranging insurance and automatically requesting and receiving government licences.

  The CargoNet CMHS is based on the 1988 CCITT X.400 messaging standard, providing X.435, a complete message audit capability with specialised reporting.

  Local users can cal up the CargoNet CMHS on a local telephone line or via the local X.25 packet switched data network.

  The hub is connected, over dedicated digital links, with major international networks.



CargoNet set for big launch