APEC TRANSPORTATION WORKING GROUP 18TH MEETING
Miyazaki, Japan
October 16 - 20, 2000
________________________________________________________________________
________________________________________________________________________
Agenda Item 4
TPTWG18/ITF/4/1
Intermodal Task Force Meeting
DRAFT
(Last Revised September 25, 2000)
DISCUSSION PAPER
Development of a Future Action Program
for
THE INTERMODAL TASK FORCE
2
‘
Development of a Future Action Program’
INTRODUCTION
At the 17th meeting of the APEC Transportation Working Group (TPT-WG), the Plenary noted that the
Intermodal Task Force (ITF) will consider its future work program at TPT-WG/18 on the basis
of a joint discussion paper to be prepared by a subgroup consisting of Australia, Canada,
People’s Republic of China and the United States.
It was acknowledged by the Plenary that this discussion paper should explore the possibility of
combining the future activities of the ITF with those of other TPT-WG expert and project groups, for
example, the ITS, Port Experts Group, Electronic Commerce Group and the Maritime Initiative (MI). It
was further recognized that the ITF should take into account the discussion paper to be prepared by
Australia for ITF and MI consideration on the possible future integration of the work of the MI with
the work of the ITF.
This Discussion Paper is intended to serve as a think piece for further discussions at next meeting of
the ITF which will be held in conjunction with TPT-WG/18 in Miyazaki, Japan, October 16 - 20, 2000.
It does not represent collective endorsement by individual co-sponsors of the paper nor necessarily that
of any other member economy. It is a basis from which will evolve the ‘Future Action Program’ for the
Intermodal task Force.
PART A. - OUTLINING THE CONTEXT
1. BACKGROUND
In August 1994, the TPT-WG commissioned the Congestion Points Study: Best Practices Manual and
Technical Report to identify and promote beneficial transportation improvements for APEC regional
development up to the year 2000 and beyond. While the intermodal aspect of the transportation system
was referred to in the document, it was felt that it was not adequately addressed. Consequently, at the
2nd APEC Transportation Ministers’ meeting in June 1997, Ministers directed that an Intermodal Task
Force (ITF) be established to provide “guidelines, standards, and provisional options associated with an
integrated transportation system.”
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2. APEC INTERMODAL TASK FORCE
At its founding meeting in August 1997, the ITF set out a Mission Statement, Goals and Objectives,
Structure, and a detailed Action Program. These are outlined in the following narrative.
MISSION STATEMENT
 The mission of the APEC Transportation Working Group’s Intermodal Task Force is to
contribute to and facilitate the implementation of an efficient, integrated intermodal
transportation system in the Asia Pacific Region.
Principles




Build upon existing work and best practices;
Involve all stakeholders;
Establish criteria for evaluation and monitoring of programs and initiatives; and
Create a forum for the exchange of information and integration of public and private planning
processes.
GOALS AND OBJECTIVES
 Building upon the findings of the APEC Congestion Points Study: to develop guidelines;
harmonized standards; and alternative approaches for improving intermodal transportation
systems within and among APEC economies.
 To encourage, where applicable, APEC-wide implementation of best intermodal practices
covering infrastructure, operational, institutional and regulatory issues.
 In coordination with APEC and other international fora, to develop and maintain a
comprehensive intermodal transportation database for all APEC member economies detailing
the relevant authorities and regulatory requirements, including transport operating permits and
customs procedures, impacting on the efficiency of intermodal transport.
 To develop a framework which fosters integrated intermodal transport planning within and
among APEC economies.
 To exchange information on, and promote the use of existing and new practices and
technologies which impact positively on intermodal transportation in the Asia Pacific region.
 To foster economic and technical cooperation directed to developing the skills needed to
design, manage and operate a safe and efficient intermodal transportation system within and
among APEC economies.
APEC INTERMODAL TASK FORCE STRUCTURE
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 Membership is open to all APEC member economies, both public and private sector
participants.
 The Task Force will have a chair and two vice-chairs, to serve through calendar year 1999.
NOTE: The U.S. continues to serve as Chair and Canada as Vice-Chair. Thailand served as
Vice-Chair until the end of 1998.
 The Task Force will meet in conjunction with the regular meetings of the full Transportation
Working Group, whenever possible.
DETAILED ACTION PROGRAM (Eight High Priority Tasks in bold)
Objective 1
 Identify key findings from the Congestion Points Study (1); and
 Identify intermodal obstacles and potential solutions (2).
Objective 2
 Prepare inventory of best intermodal practices; and
 Establish intermodal pilot project program (3).
Objective 3
 Identify, obtain, and link data bases; and
 Survey and consolidate relevant regulatory information from APEC economies on intermodal
systems.
Objective 4
 Develop model of region’s intermodal transportation system; and
 Using APEC meetings, conduct forums addressing integrated intermodal transportation
planning (4).
Objective 5
 Create web site to exchange information on best practices and technologies (5);
 Include regular reporting on advances at ITF meetings; and
 Conduct seminar at working group meeting on intermodal transportation.
Objective 6
 Identify skills needed (6);
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 Identify forums to develop skills and implement personnel exchange program among
economies (7); and
 Request Third Ministerial Youth Forum to focus on intermodal transportation skills (8).
3. CURRENT STATUS OF WORK ON (8) HIGH PRIORITY TASKS
The work undertaken to date by members of the ITF has focused primarily on undertaking and
completing those tasks of the Action Program that were initially accorded ‘high priority’ status. The
following provides a status report on the progress of this work and also identifies the lead economy(s)
for each of the high priority tasks.
Objective #1
Item: Identify key findings from the Congestion Points Study (1) Canada/Japan
Action: Findings and conclusions pertaining to intermodal transportation consolidated in
separate discussion papers on intermodal freight transport (Japan) and intermodal passenger
transport (Canada) and distributed to all member economies. Task Completed.
Item: Identify intermodal obstacles and potential solutions (2) Canada/Japan
Action: Final Reports entitled: “Seamless Passenger Flow Survey Results and Recommended
Best Practices”; and, “Common Recognition Concerning Intermodal Cargo Transport”
approved at TPT-WG/17 and subsequently posted on TPT-WG web site. Task Completed.
Objective #2
Item: Establish intermodal pilot project program (3) United States
Action: Several pilot projects have been identified and progress is being monitored, including
the Thailand Rail Corridor Efficiency project. At TPT-WG/17, the Plenary approved the final
report of the Transportation Shipping Harmonization and Integration Planning Systems
(TSHIPS) project. Members were provided CD ROM copies of the report and urged to test the
methodology and report back to the ITF on the results of the application. Task Ongoing.
Objective #3
No High Priority tasks identified under this objective.
Objective #4
Item: Using APEC meetings, conduct forums addressing integrated, intermodal transportation
planning (4) United States
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Action: Interim meeting held in Vancouver, August 1998 and presentations made and
discussions on integrated intermodal transportation planning. TILF funding approved for
Intermodal Transportation Symposium which is scheduled to be held in conjunction with
TPT-WG/18. Task Ongoing.
Objective #5
Item: Create web site to exchange information on best practices and technologies (5)
Australia/Canada
Action: Intermodal home page established on the TPT web site. Task Completed.
Objective #6
Item: Identify needed intermodal skills and develop required training programs (6) Canada
Action:. Draft Final Report entitled: Identification of Needed Intermodal Skills and
Development of Required Training Programs to be submitted at TPT-WG/18. Following
endorsement of this Phase I report by Plenary, project proposal for Phase II will be submitted to
the Human Resources and Development Steering Committee in consideration for APEC
funding. Task Ongoing.
Item: Identify fora to develop skills and implement personnel exchange program among
economies (7) Canada/United States
Action: Awaiting recommendations from report under high priority task #6. Task Ongoing.
Item: Organize Third Ministerial Youth Forum to focus on intermodal transportation skills (8)
Canada
Action: Canada to initiate discussions with host economy (Peru) at TPT-WG/18 on the
recommended Youth Forum on Intermodal Transportation. Task Ongoing.
4. ADDITIONAL WORK ACCOMPLISHED BY THE ITF UNDER ITS GOALS AND
OBJECTIVES
Action: Co-sponsored with the Satellite Navigation and Communications (SN&C) Advisory
Committee the ‘Forum on Intermodalism and Satellite-Based Transportation Technologies”
held in Singapore, 5 - 7 May 1999. Task Completed.
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PART B. - DEFINING THE FRAMEWORK OF OPTIONS
The potential options for the future Action Program of the ITF ranges from actions that would merely
complete the High Priority tasks that have already been identified to actions that would expand the
mandate of the Task Force to encompass all TPT-WG activities that involve more than one mode of
transportation. Three possible options within this overall framework are presented and discussed
below. They are not intended to be exhaustive and there are several others that may warrant
consideration by ITF members and/or the More Competitive Transportation Industry (including
infrastructure) Steering Committee.
1. OPTION I - ENHANCING THE STATUS QUO
As reported in Part A of this paper, when the ITF developed its original Work Program, 6 Goals and
Objectives were identified with specific Tasks identified within those Objectives; 8 of those Tasks
were afforded “High Priority” status and work on them has either been completed or is ongoing. This
still leaves 6 “Medium” or “Low” priority tasks that have yet to be formally addressed:
Objective 2
 Prepare inventory of best intermodal practices
Objective 3
 Identify, obtain, and link data bases
 Survey and consolidate relevant regulatory information from APEC economies on intermodal
systems.
Objective 4
 Develop model of region’s intermodal transportation system
Objective 5
 Include regular reporting on advances at ITF meetings
 Conduct seminar at working group meeting on intermodal transportation
Some of the aforementioned Tasks have been informally addressed. A short progress report on each of
these tasks follows:

Prepare inventory of best intermodal practices: the best intermodal practices identified in the
surveys undertaken by Japan (intermodal freight) and by Canada (intermodal passenger) were taken
from the Congestion Points Study - Phase III, Best Practices Manual and Technical Report and
from each of the economy survey inputs and documented in the Survey Final Reports now posted
on the TPT-WG web site under Publications.
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
Identify, obtain, and link data bases: the Final report of the Transportation Shipping
Harmonization and Integration Systems (TSHIPS) project has been posted on the OECD web site.
In addition, The ITF has been successful in getting ‘Guest Status’ accorded to the International
Multimodal Transportation Association for the purposes of sharing data, information and ideas
between the two organizations.

Survey and consolidate relevant regulatory information from APEC economies on
intermodal systems: both the freight and passenger intermodal surveys noted above attempted to
identify in member economies Regulatory Impediments and Potential Solutions, particularly in the
areas of security, customs clearance and the environment. The TPT Electronic Commerce Group
has undertaken the ‘Paperless Trading Demonstration Project’ which will also examine ways of
reducing regulatory trade barriers.

Develop model of region’s intermodal transportation system: no specific work on this task has
been reported to date.

Include regular reporting on advances at ITF meetings: regular reporting of such activities has
been included as a lead-off agenda item of the ITF meetings and relevant findings submitted to the
More Competitive Transportation Industry Steering Committee and to the TPT-WG Plenary.

Conduct Seminar at Working Group meeting on intermodal transportation: a seminar
entitled: Integrated Logistics Management for Asia Pacific Growth, was held at an Interim Meeting
of the ITF on August 5 -7, 1998 in Vancouver, B.C., Canada and all members of the TPT-WG were
invited to participate. A second such seminar has received APEC funding and is to be held in
conjunction with TPT-WG/19 in Brunei.
It is now up to the ITF to decide which of the aforementioned tasks are still relevant and if the ITF
should continue to include them as part of its Work Program
2. OPTION II - TAKING ON NEW CHALLENGES
At the last meeting of the ITF, which was held in conjunction with TPT-WG/17, participants were
invited to put forth suggested new activities for the ITF to consider as part of its future Action
Program. The following is a list of suggested activities:

Harmonization of Multimodal Regulations such as Liability, Hazardous
Materials

Data Standards

Passenger concerns including conflicts with freight movement

Air Cargo issues
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
Opportunities for technology applications such as smart cards

Electronic Commerce

Standardization of container sizes

Demonstration project on end-to-end container tracing and tracking

Further development of intermodal project benefit assessment tools

Logistics and supply chain management initiatives
3. OPTION III - INTEGRATING ACTIVITIES OF OTHER EXPERT GROUPS
A focus on transport logistics, appropriate technologies and integrated supply chain systems is both
consistent with and challenges the current ITF work program. Under this option, it is proposed that
opportunities be explored for joint work with other TPT-WG expert and project groups such as the
ITS, Port Experts Group, Electronic Commerce Group, and Maritime Initiative (MI). However, in
acknowledging the synergies between the ITF work program and that of other expert groups of the
TPT-WG, measures should also be taken to learn from the experience of transport logistics work being
undertaken in other forums particularly ASEAN and ESCAP.
The Plenary, at TPT-WG/17, directed that this discussion paper explore the possibility of combining
the future activities of the ITF with those of other TPT-WG Expert Groups mentioned above so as to
avoid any duplication of work. It was further recognized that the ITF should take into account the
discussion paper to be prepared by Australia for ITF and MI consideration on the possible future
integration of the work of the MI with the work of the ITF. Since this discussion paper will be
presented at the TPT-WG/18, any proposed ITF/MI integration by Australia will not be discussed
herein.
Clearly the Plenary seeks a focused discussion around: 1) the integration of only multi-modal activities
of other Expert/Work Groups with those of the ITF; or 2) the full merging of other Expert/Groups with
the ITF. The point of demarcation between 1) and 2) being whether or not the other Expert/Group
would continue to have activities to undertake that are modal specific otherwise there would be no
need for that Group to continue to exist. For example, if the MI's sole planned activities for the future
are to examine trade in services liberalization (WTO context) then a full merger of the MI with the ITF
would make sense. On the other hand, if the Transportation Security Initiative plans to develop an
Action Program that includes activities involving more than one mode of transportation as well as
projects involving say only air transportation then 1) above would be the preferred course of action, i.e.
merge multi-modal activities with those of the ITF while keeping a Transportation Security Initiative to
undertake an Action Program which involves modal specific activities.
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In this analysis it must be noted that the more broadly we define intermodalism, the more likely we are
to find each of these TPT-WG expert and project groups having an intermodal project, initiative, and/or
theme that they are pursuing. This is not to imply that any identified intermodal work should be
reassigned to the ITF, but rather to carefully evaluate which group is best suited to successfully address
the issue given their respective missions and resources. The Plenary may even wish allow or even
encourage dual tracks as a recognition that one group alone should not be solely responsible for
addressing the issue since they may be approaching the subject from different angles.
With respect to combining the work of the ITF with other TPT-WG Expert Groups, an examination of
their mission and agendas is needed in order to properly evaluate their work with that of the ITF. The
following is a summation of the ITS, Port Experts Group, and Electronic Commerce Group current
work program as of TPT-WG/17:
ITS
The ITS Expert Group has 4 stated Objectives:
(1) To identify ITS standards requirements which are APEC priorities
(2) To facilitate the establishment of ITS standards by ISO which are APEC priorities.
(3) To promote the universal use amongst all APEC Economies of ITS standards established by ISO.
(4) To share information among APEC Economies regarding ITS developments.
At TPT-WG/17, in response to concerns of limited resources and possible overlap, the ITS Expert
Group discussed whether or not the ITS Experts Group should continue to operate as an independent
group. They agreed to remain as a separate group but examined the opportunity for joint efforts with
other APEC TPT Groups. They discussed an opportunity to develop a high impact presentation with
the Intermodal Task Force and the Electronic Commerce Group was identified. This would be
presented at the Minister's Meeting in Peru and would discuss the use of ITS in improving trade
corridors.
ITS is an essential enabler of efficient intermodal transportation and rightfully should be a focused
activity. The distinction can be drawn between the ITS and the ITF in that the former concentrates on
establishing a common communication protocol for the exchange of information whereas the latter is
more focused on then using those protocols for information exchange and operational efficiency.
Port Experts Group
The major objectives of the Port Experts Group are to improve expertise through exchange of
information and experiences among economies; to identify common issues and to formulate actions;
and to improve capabilities and efficiencies of ports in the APEC region.
The Group has 6 themes to work in order to improve the capacity and efficiency of the ports in APEC
region. 6 themes and Theme Coordinators are as follows;
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Theme 1: Port Data Base,
Theme 2: Regional Port Development Strategy,
Theme 3: Port Administration, Management and Operation,
Theme 4: Environmental Consideration,
Theme 5: Technical Standards and Technology Development, and
Theme 6: Natural Disasters and Damage Prevention Measures.
At the 7th meeting held in Hong Kong November 1999, Australia presented 5 new themes as follows;
(1) Port investment
(2) Port and inter-modal interface
(3) Port uptake of electronic commerce
(4) Port performance benchmarking and measurement
(5) Sub-Committee for Custom Procedures
Of the eleven themes, Port and inter-modal interface seems most closely aligned with the ITF mission.
At TPT-WG/17, Thailand presented the new project proposal numbered TPTWG17/SC/PEG/3/5. All
the economies in the Port Experts Group were requested to send their comments to the Chair by the
end of April 2000 based on which Thailand will prepare a revised proposal for the next Miyazaki
meeting. The proposed Objectives are:
(1) To collect data and information on systems of port administration, management and
operation, and of air - rail - road - sea links,
(2) To clarify common recognition of improvement of port efficiency and inter-modal
transport system,
(3) To clarify common issues and to formulate action programs for the improvement of
efficiency of port and inter-modal linkage.
The proposed expected output stated:
a Common recognition of the need for improvement of port and inter - modal transport
system in the region ;
b Common issues of problems of port and inter-modal interface and the solutions, and
c Action programs for joint development and improvement of systems of inter-modal
transport.
To the extent that this project focuses on the port environment, it is well within the oversight of the
Port Experts Group. On the other hand, where the project focuses more on the intermodal linkages
between the port, maritime carriers and the inland linkages, the ITF may be a more appropriate venue
for addressing those issues.
Electronic Commerce Group
The Electronic Commerce Group aims to promote and facilitate the uptake of electronic commerce
among businesses, including SME’s in the APEC region which are involved in transportation and
related trading activities.
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At the TPT-WG/17 meeting, the Electronic Commerce Group considered the following papers:
1.
Progress Report on the APEC Paperless Trading Initiative (TPTWG17/SC/EC/1/1)
2.
APEC Paperless Trading Demonstration Project Proposal (TILF funding) (TPTWG17/SC/EC/2/1)
3.
Electronic Port Manifest Project Proposal (Port Experts Group) (TPTWG17/SC/PEG/)
4. Progress Report on Phase 1 of the Program to Assist the Implementation of Electronic Commerce
for Commercial Messages (TPTWG17/SC/EC/5/1)
5. Progress Report on the Pilot Electronic Commerce Training in Maritime Transport
(TPTWG17/SC/EC/3/1)
Summary
In evaluating whether the ITF should take on new challenges or be combined with other Expert
Working Groups, a major consideration has to be the availability of sufficient resources to undertake
any new activities within the ITF. To date the work undertaken on the eight High Priority Tasks of the
ITF's initial Action Program has essentially been led and undertaken by 4 APEC economies. At
looking at the future Action Program a realistic assessment has to be made of what can be
accomplished. For example, should the Plenary choose to merge other Expert Groups with the ITF
there should be a contingency that those economies that participated actively in the other Group(s)
continue to do so within the ITF after the merger.
This also highlights the downside of merging only certain activities of other Groups with the ITF and in
that there will likely be no additional resources contributing to ITF activities. Those economies that had
previously participated in the (merging) Group no doubt will continue to do so with regards to its
modal specific initiatives thus leaving the ITF with no new resources to undertake additional tasks.
With the exception of the possible inclusion of the MI into the ITF, it may not be appropriate at this
time to consider other organizational restructuring until after the ITF develops its revised Action Plan
at TPT-18. It is recommended that upon completion of a revised Action Plan, that Plan then be
submitted to the More Competitive Transportation Industry Steering Committee for their consideration
and/or resolution. This should also serve notice on the other Expert Groups to forward to the ITF any
overlapping agenda items where the ITF would be the more appropriate structure for responsibility and
oversight of that issue.
PART C. DEVELOPMENT OF FUTURE ACTION PROGRAM
1. ANALYSIS OF OPTIONS
Option I–Enhancing the Status Quo, highlighted 6 original Tasks that have yet to be formally
completed by the ITF. Option II–Taking on New Challenges, identified and discussed ten potential
work areas that were suggested by the ITF participants at TPT-WG/17 in Singapore. Option III-
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Integrating Activities of Other Expert Groups, discussed how the ITF can and should work with other
Expert Groups within the TPT and also with other fora external to APEC. In addition, Australia will
be distributing a paper prior to TPT-WG/18 entitled: Incorporation of Maritime Initiative into the
Intermodal Task Force. The recommendations of this report will need to be considered prior to coming
to any conclusions in the context of this Discussion Paper on the ‘Future Action Program’ for the ITF.
The ITF has been an extremely useful tool in promoting the intermodal agenda of the TPT. It is
proposed that the ITF continue as a TPT organizational unit to carry on its work in intermodalism
and, if anything, expand its role in light of the rapid advances being made in such areas as ECommerce, ITS, and increased trade volumes. This then leads us with determining how best to
achieve this goal.
In order for the ITF to effectively move forward with a revised work agenda, that agenda must be
well balanced and achievable. By well balanced, there should be a mix between policy analysis
focusing on studies, institutional issues, etc., and actual projects that result in tangible benefits to
the APEC community. These efforts must also be within the realm of achievable in order to
maintain credibility and obtain the necessary resources needed to pursue the agenda.
The following is a list of the Initiatives, Tasks, or Themes that were identified in Part B along with a
brief description of that issue and one or more suggested activities.
1. Harmonization of Multimodal regulations and standards (including standardization of
container sizes)
Each economy develops rules, regulations, operational practices, institutional oversight, and other
factors which affect the flow of people and goods between other economies. Sometimes these
factors are designed to expressly enhance this flow while at other times, they may cause
bottlenecks or congestion points that impede this flow. Oftentimes this impedance may be the
result of actions (private and/or public sector) by an economy that fails to take into account the
“ripple” effect such actions have on the flow of people or goods beyond their economy.
For example, if an economy were to impose reporting requirements for international intermodal
freight movements that are significantly different from those required by most other economies,
operators must change their internal systems, sometimes at considerable cost, to meet those
requirements and may delay movement of the goods while waiting for the “paperwork” to catchup. This can lead to congestion, inefficient equipment utilization and have a “ripple” effect in
economies that may not even be interacting with the economy that imposed the restriction.
It has been suggested that the ITF can play a pivotal rule in fostering harmonization of these
issues. One possible approach would be to take the Final Reports entitled: Seamless Passenger
Flow Survey Results and Recommended Best Practices; and, Common Recognition Concerning
Intermodal Cargo Transport approved at TPT-WG/17 and review the results for any potential
areas where the ITF can work to harmonize conflicting regulations.
There are many international organizations that work at developing standards in everything from
communications to container design. These international organizations at times overlap
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responsibilities and as a result, provide conflicting standards. In other instances, it may be that because
of a lack of a standard, the private sector and even whole economies are financially challenged to adopt
new or existing standards because of the costs. For example, because most rail lines were built before
the development of the double-stack train, the rail infrastructure retro fit can become cost prohibitive
and therefore fail to realize the over 40% increase in efficiency of double-stack operations.
One suggested project would be to determine within the APEC economies the container sizes in use
today, what is projected for the next 10 years and the ability of the various economies to accommodate
those containers through their land side connections.
With respect to rules of practice, it has been suggested that the development of codes of practice,
guidelines for the harmonization of standards and quality assurance systems applicable to freight
logistics would aim to:
-
-
Develop common codes of practice for handling of perishable products and an
associated accreditation system to address the problem of substandard logistics
operators in the cargo chain.
Prepare product specific ‘cool chain’ packaging and icing guidelines according to
cargo total transit time.
Establish quality assurance systems to ensure an integrated approach from harvest and
packaging to transit conditions.
2. Data standards
For the purpose of this discussion, Data Standards are defined as those elements which allow
transportation stakeholders to exchange information in a consistent and accurate manner.
Whether the information exchange concerns equipment interchange or commodity descriptions,
without a common data set the information can easily be misinterpreted and cause delays,
misroutings, inefficiencies, etc. It is therefore essential that the stakeholders develop and use a
common data set language throughout the APEC region.
Development of an APEC Intermodal Data Standard would complement the efforts of the ECommerce Expert Group and help to establish a protocol with non-APEC economies towards a
goal of a global standard dataset.
3. Passenger concerns including conflicts with freight movement
Passenger and freight interfaces are a source of both frustration and opportunity. Truck
movements on highways that share the same right of way with passenger vehicles are a constant
source of safety concerns and potential congestion, particularly in urban environments. Many
economies must try to balance added road capacity to handle the ever increasing traffic demands
with protecting the environment, enhancing community livability standards, and ensuring safety,
all within the limits of available resources. Intermodalism is a concept that has been employed
both in freight and passenger operations to address these complex issues. Efficient freight
intermodal operators can shift significant volumes of truck traffic to an economy’s rail or
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maritime system. Passenger intermodal transport can likewise use multiple modes of
transportation seamlessly from origin to destination.
An important consideration that each economy must face is how they develop an effective policy
for dealing with passenger and freight interfaces. A survey could be conducted of APEC
economies to make this determination which then can be shared for best practices.
4. Air Cargo issues
Air cargo, in terms of value of goods transported, accounts for the largest share of the
international transportation market. It is also the prime enabler of the global supply chain utilizing
Just-In-Time (JIT) inventory and Demand-based or “Pull” Logistics. Yet from an intermodal
standpoint, little focus has been given to these issues. With exponential world population growth
and the concentration of mega populations with significant airport expansion constraints, demand
for air cargo intermodal connections will become critical. A proactive approach in intermodal
planning for air cargo is essential.
Even with this growth projection in air cargo, some economies may not have a specific focus on
air cargo and its need to interact with ground connectors which may not be ready to accommodate
this growth. A proposed project would be to develop an APEC air cargo growth projection and its
impact on land side connectors.
5. Opportunities for technology applications such as smart cards
Technological advances are occurring throughout every facet of business. ITS or Intelligent
Transportation Systems is a term that has been used to describe those technology applications that
have particular relevance to transportation. While some such applications may be specifically
designed for transportation, e.g. automatic braking systems, some technology developed for other
purposes are readily adapted for ITS. Cell phone technology is already being used for equipment
tracking as well as Global Positioning Satellites (GPS).
Smart Card technology, where a plastic credit-card sized card (or smaller) is embedded with a
computer processor chip, is being deployed in many economies’ in such applications as mass
transit and vehicle tolling systems. Smart Card technology also has freight applications by
providing both tracking and inventory information while in-transit. For example, a card attached
to a pair of shoes could provide information to a smart card on the pallet which in turn would
provide information to the container which in turn would provide information to the power unit
(truck, train, ship) – all in real time. Smart Cards are also beginning to be used as a means to track
all parties in the cargo chain of custody, e.g. cargo handlers, drivers, etc.
A proposed project would be to use Smart Card technology in an end-to-end container
demonstration projected suggested in 8. Demonstration project on end-to-end container tracing
and tracking.
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6. Electronic Commerce
Business has traditionally stratified itself into discrete specialties, such as manufacturing, wholesaling,
retailing and purchasing, with transportation as the link connecting these elements. These business
practices that have evolved slowly over many decades are now changing at a pace that is mindboggling. Transportation providers are being challenged to adapt to the initiatives of others and become
innovative to stay ahead of market trends and to provide services that will preserve or grow market
share in a dynamic environment.
More outsourcing, better cooperation and consolidation between shippers, more substantial flows over
longer distances, and a more flexible organization of transport will also create more opportunities for
inter-modal transport.
Electronic commerce is used in many industries and the public sector to achieve greater efficiencies.
Transport logistics industries also employ new technologies, including electronic commerce and ITS,
which are becoming integral parts of a total transport distribution system. An interesting emerging
phenomenon is that as information and communication systems speed up they generate demand by
consumers for faster deliveries that simultaneously require the development of efficient logistics and
distribution systems.
There is also the question of the appropriate level of e-commerce in providing logistics solutions given
varying levels of development among APEC economies. Capacity building among APEC economies,
especially at government levels, is a common goal and the ITF could look to develop projects that
would assist in progressing the growth of capacity in the region to utilize both logistics and electronic
commerce solutions in the transport industry.
One possible stream of work would involve a review of supply chains and their e-commerce
components to identify blockages/congestion points in the supply chain caused by e-commerce or
paperless trading issues. The work could then move to focusing on those aspects which are amenable
to solution through government level activity and which are amenable to agreement among APEC
partners. This effort could also be incorporated with the suggested initiative under 9. Logistics and
supply chain management initiatives.
7. Demonstration project on end-to-end container tracing and tracking
It is estimated that there are over 10 million containers in the global container fleet. While an
individual transportation carrier (steamship line, railway, etc.) employs various technologies to trace
and track containers (with degrees of accuracy ranging from low to high), there are often “black holes”
where the container is being transported by a party who is not tied into the information network. Many
containers (except some special application containers) are not equipped with transponders now, and it
is dependent on the carrier to provide this information. Intermodalism means that there will be more
than one mode involved in transportation and it is essential for carriers to effectively communicate not
only with each other but with all parties in the logistics chain, the most important of whom is the
shipper.
An APEC-ITF sponsored project on end-to-end container tracing and tracking would be a way to
demonstrate the value of in-transit visibility throughout the APEC economies.
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8. Further development of intermodal project benefit assessment tools
At TPT-WG/17, the Plenary approved the final report of the Transportation Shipping
Harmonization and Integration Planning Systems (TSHIPS) project. Members were provided CD
ROM copies of the report and urged to test the methodology and report back to the ITF on the
results of the application. TSHIPS and other such intermodal project benefit assessment tools can
provide an economy with the type of information it needs in order to develop a cost/benefit
analysis of intermodal projects.
A possible project for consideration would be to develop a more comprehensive follow-on benefit
assessment tool that would consider trade flow, operational, environmental, community standards
that an economy could use in developing its cost/benefit analysis.
9. Logistics and supply chain management initiatives
Many economies’ efforts to address transportation tend to focus on transportation providers
(maritime, rail, trucking, air, pipeline) and not those for whom the transportation is being
performed, i.e. the shippers. Intermodalism requires transportation to operate as a system, yet
intermodal transportation is only a subset of the overall global supply chain. More effort needs to
be devoted to look at the overall global supply chain network and how all the stakeholders
interact. With E-Commerce enabling instance communication and decision making ability,
manufacturing and assembly points can literally change overnight with profound effects on
existing traffic lanes and trade corridors. The private sector is leading the way for logistics and
supply chain management initiatives yet it is incumbent for economies to be part of this process as
well or risk the diminishment of their transportation infrastructure investment or to make illinformed decisions on future investments.
A project proposal for initial consideration at the next TPT-WG meeting could be developed to
demonstrate efficient supply chains. The nomination of specific case studies could also be sought at
this meeting for approval at the following TPT-WG meeting. A pilot study may be appropriate to
demonstrate the supply chain case study research method. A consultant study would be required for
the supply chain case studies and identification of core themes for future work.
This Theme can also provide the umbrella for a demonstration project on end-to-end container
tracing and tracking (8. Demonstration project on end-to-end container tracing and tracking). In order
to get stakeholder (both government and private sector) “buy-in” for improvements in the supply
chain, it becomes paramount that a sensible business case is made that will ultimately result in a
sustainable activity. For example, the private sector will not invest in installing transponders on
their containers unless they can reclaim that investment through cost reductions in better
equipment utilization and/or revenue enhancement through compensated value added service. An
end-to-end container tracing and tracking project would provide valuable feedback on the impact
this real-time knowledge would have on the supply chain.
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10. Intermodal performance measurement and benchmarking in cooperation with the Ports
Expert Group. (Monitoring and evaluation)
Performance measurement means developing appropriate indicators for a sector or process within an
overall system and periodically measuring those indicators against a benchmark. By establishing a
method of identifying and calculating performance of various processes, performance measures provide
information about how long a process takes and/or how much it costs. Development of comparable
baseline data on costs by mode and lengths of haul, with the objective of obtaining a better comparative
description of systems for shipments by rail, truck, ocean, and short-haul ship, can lead to more fact
based decision making. After performance measures are developed, benchmarking involves comparing
performance measures between similar processes to determine which is more efficient, or to evaluate if
recent changes did provide the anticipated benefits.
The development of performance indicators along the supply chain can identify inadequacies and
critical modal interchanges which need improvement. This can be achieved through identifying
means by which freight flows can be better balanced to maximize utilization of available
infrastructure capacity. Aspects of monitoring and evaluation include: access to better real time
information systems; strategic location of warehousing and distribution centers; maximizing backloading; and, achieving an effective utilization of rail to road in capital cities.
Performance measurement and benchmarking can provide useful insights for decisions made by
transportation companies and shippers. In addition, measurement can help governments in
determining the effect of investments on intermodal system efficiency.
Once data is developed the logical next step becomes…now that we have the information…how do we
use it? A proposed project would be the development of an analytical tool that an economy could use to
identify current and projected intermodal congestion points and bottlenecks and evaluate the
cost/benefit of various solutions based upon reliable facts.
The ITF could consider looking at those parts of the supply chain which would benefit from
analysis through the use of performance measures and benchmarking. Additionally, the ITF could
look at developing an end-to-end business process map that would delineate all the physical and
informational exchange steps involved in an intermodal move between or amongst APEC
economies.
11. Training and accreditation
In January 2000, APEC awarded a contract to researchers at the University of Denver, Colorado,
and the University of Calgary, in Alberta, Canada, to identify needed intermodal skills and to
analyze the degree to which educational and training programs were supplying such skills to the
workforce within APEC’s member economies. ( See Objective #6 Identify needed intermodal
skills and develop required training programs).
Information was then gathered regarding educational programs currently in place in the APEC member
economies in order to determine to what degree they address these needs. Workshops were designed to
obtain additional and detailed information concerning skills and educational programs. Phase I of the
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report concludes that many of the disconnected sources for skills acquisition which are in place across
many of the APEC member economies cannot generally offer intermodal knowledge and develop
intermodal insights for all positions in the workforce. Its priority recommendations are to:
1. Continue Assessments
2. Analyze delivery mechanisms
3. Identify potential economy for pilot project
In addition to this report which will be presented at TPT-18, it has also been suggested that an APECwide training directory of transport logistics and supply/cool chain courses is proposed for inclusion in
the Transport Information Directory which will complement the information in the ‘Transport Linking
Asia’ database on the ASEAN/CER web site. This information could be used as the basis for
developing further APEC based training in this area.
There is also a proposal for interactive freight logistics workshops being considered in ASEAN/CER
which may also be able to be expanded to other APEC economies through the ITF or which could be
built upon to deliver enhanced training and accreditation outcomes in this area.
Summary
It is important to note that this section does not attempt to endorse or disparage any Initiative, Task, or
Theme that has been suggested for the ITF. Rather, every attempt has been made to tie together all
suggested Initiatives, Tasks, or Themes into major categories where the ITF membership can review
them in a logical and common architecture. When viewed in this format, the ITF membership may
indeed have further suggestions for either consolidating further or offer new Initiatives, Tasks, or
Themes at TPT-18 not yet brought forward.
2. SETTING THE ACTION PROGRAM
The first action that the ITF must consider is whether or not the ITF should continue. With substantial
completion of its High Priority Work Program, the question has been raised as to the ITF’s future. This
was both a correct and timely question in that many successful organizations often check their work
against their mission – sort of a “self-benchmarking”. In the case of the ITF, there has indeed been a
strong interest shown in both its continued existence and development of a reinvigorated work
program. Nonetheless, the ITF membership must determine its own fate and decide if it is to continue,
what should be its future work. (The TPT-WG may consider having the ITF subsumed or otherwise be
combined with other TPT-WG Expert Groups which may impact on the ITF structure but this would
not affect the need for accomplishing the work items discussed in this paper.)
Assuming that the ITF membership votes affirmatively on its continued existence, the ITF should then
modify and/or agree upon, and then endorse the ITF Mission, Structure, and Goals and Objectives.
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Then the ITF should decide upon the list of Tasks that will make up the new Work or Action Program.
As a working model, the ITF can start with the Themes presented in Section 1 of Part C:
1. Harmonization of Multimodal regulations and standards (including standardization
of container sizes)
2. Data standards
3. Passenger concerns including conflicts with freight movement
4. Air Cargo issues
5. Opportunities for technology applications such as smart cards
6. Electronic Commerce
7. Demonstration project on end-to-end container tracing and tracking
8. Further development of intermodal project benefit assessment tools
9. Logistics and supply chain management initiatives
10. Intermodal performance measurement and benchmarking in cooperation with
the Ports Expert Group. (Monitoring and evaluation)
11. Training and accreditation
Once agreement is reached on these Themes, the next step is to agree on specific Tasks that need to be
accomplished for each of these Themes. The table on the following pages summarizes what has been
suggested to date:
Themes
1. Harmonization of Multimodal
regulations and standards
(including standardization of
container sizes)
TASKS
Review the Final Reports entitled: Seamless Passenger
Flow Survey Results and Recommended Best Practices;
and, Common Recognition Concerning Intermodal Cargo
Transport approved at TPT-WG/17 for any potential areas
where the ITF can work to harmonize conflicting
regulations.
Determine within the APEC economies the container sizes in use
today, what is projected for the next 10 years and the ability of
the various economies to accommodate those containers through
their land side connections.
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Development of codes of practice, guidelines for the
harmonization of standards and quality assurance systems
applicable to freight logistics.
2. Data standards
Development of an APEC Intermodal Data Standard would
complement the efforts of the E-Commerce Expert Group
and help to establish a protocol with non-APEC economies
towards a goal of a global standard data set.
3. Passenger concerns
including conflicts with
freight movement
An important consideration that each economy must face is
how they develop an effective policy for dealing with
passenger and freight interfaces. A survey could be
conducted of APEC economies to make this determination
which then can be shared for best practices.
4. Air Cargo issues
A proposed project would be to develop an APEC air cargo
growth projection and its impact on land side connectors.
5. Opportunities for
technology applications such
as smart cards
A proposed project would be to use Smart Card technology
in an end-to-end container demonstration projected
suggested in 8. Demonstration project on end-to-end
container tracing and tracking.
6. Electronic Commerce
Review of supply chains and their e-commerce components to
identify blockages/congestion points in the supply chain caused
by e-commerce or paperless trading issues. This effort could
also be incorporated with the suggested initiative under 9.
Logistics and supply chain management initiatives.
Develop projects that would assist in progressing the growth of
capacity in the region to utilize both logistics and electronic
commerce solutions in the transport industry.
7. Demonstration project on
end-to-end container tracing
and tracking
An APEC-ITF sponsored project on end-to-end container tracing
and tracking would be a way to demonstrate the value of intransit visibility throughout the APEC economies.
8. Further development of
intermodal project benefit
assessment tools
A possible project for consideration would be to develop a
more comprehensive follow-on benefit assessment tool that
would consider trade flow, operational, environmental,
community standards that an economy could use in
developing its cost/benefit analysis.
22
9. Logistics and supply chain
management initiatives
Conduct a pilot study to demonstrate efficient supply chains and
research methods.
10. Intermodal performance
measurement and
benchmarking in cooperation
with the Ports Expert Group
(Monitoring and evaluation)
Identify those parts of the supply chain which would benefit
from analysis through the use of performance measures and
benchmarking.
11. Training and accreditation
Develop an end-to-end business process map that would
delineate all the physical and informational exchange steps
involved in an intermodal move between or amongst APEC
economies.
Continue to support original Objective #6 Identify needed
intermodal skills and develop required training
programs through endorsement of Phase II Study:
Identification of Needed Intermodal Skills and
Development of Required Training Programs
Develop and submit APEC-wide training directory of transport
logistics and supply/cool chain courses for inclusion in the
Transport Information Directory.
Conduct an interactive freight logistics workshop in
ASEAN/CER.
After agreement is reached on the tasks, the next step would be to prioritize them, solicit lead and colead economies responsible for completing the Task, and to set target completion dates.
3. IMPLEMENTING THE ACTION PROGRAM
This paper has thus far examined the genesis, initial work program, accomplishments to date, current
work, suggested new work themes, analysis of those themes, and specific work tasks that the ITF can
undertake within the framework of a new Action Program. It is now up to the ITF at TPT-WG/18 to
discuss these issues, modify as needed, and then submit the Action Plan to the TPT-WG for approval.