# Advancing Intermodal Cargo Information System Deployments Across Modes and Regions

#### Technical Memorandum #2:

###### Technology Applications

## ![](media/image1.png)

## 

## ***submitted to the***

## **FHWA Office of Freight Management & Operations**

## 

####### **For Cooperative Agreement NO. DTFH61-01-X-00033**

## 

## ***by the***

## **ATA FOUNDATION**

####### ***in conjunction with the***

####### **Chicago Area Transportation Study**

####### **&**

### Port Authority of Tacoma

######### DRAFT

# Advancing Intermodal Cargo Information System 

# Deployments Across Modes and Regions

##### Technical Memorandum #2\--DRAFT

**[Table of Contents]{.underline}**

1.0 Introduction 1

1.1 Purpose of Technical Memorandum 1

1.2 Organization of Technical Memorandum 1

2.0 Intermodal Port Technology Applications 2

2.1 Data Exchange Technology 2

2.  Terminal Freight and Equipment Tracking 3

3.  Port Information Management Systems 4

4.  Inbound Port Technology Transaction Steps 4

3.0 Rail Container Tracking Technology and Services 6

1.  Rail Container Tracking Technology 6

2.  NetREDI 6

4.0 Drayage Industry Technology Applications 9

4.1 Drayage Industry Tracking Technology 9

4.2 Drayage Industry Information Systems 11

4.3 Drayage Industry Electronic Data Communications 12

5.0 Conclusions and Next Steps 14

Attachment A -- Outbound Drayage Technology Transaction Steps

**[List of Figures]{.underline}**

Figure 1- NetREDI Demand Screen 8

Figure 2- GPS/Wireless Drayage Tracking Technology 10

1.  **Introduction**

Transportation systems provide mobility for the national and
international economy. Modern freight movement is increasingly
encompassing multiple modes involving several transfer points in the
distribution process. The commercial requirements being placed on the
intermodal freight transport industry are rapidly increasing while new
infrastructure expansions by themselves will not be sufficient to ease
the pressure that will face intermodal operators in the coming years.

Efficient and secure Intermodal freight movement requires not only cargo
transfer, but also the corresponding information transfer between the
various transportation modes.

Sophisticated applications are required to maximize the productivity of
intermodal operations both at the terminal, on the rails, or on the road
and to provide an increase in overall intermodal capacity. These
advanced technology applications may include integrated data management
systems, smart card data transfer systems, Internet-based real-time
notification systems, and wireless data transfer.

A system capitalizing on all or some of these applications could improve
container transfers at their multiple switchovers, providing tangible
benefits to both the public and private sectors, including faster
transit times, reduction in transfer times, lower costs, improved
communication between modes, reduced road congestion and possibly
improved safety.

1.  **Purpose of Technical Memorandum**

This Technical Memorandum presents research and analysis on current
technologies and systems utilized to support business transactions
within and across cargo modes. This document aims to provide a direct
relationship between Technical Memorandum 1 findings and representative
technology-based delivery mechanisms that could be employed across the
supply chain.

**1.2 Organization of Technical Memorandum**

# 

Section 2 presents a review and analysis of advanced technology
applications utilized at intermodal ports to move data and information
internally and externally to their intermodal partners.

Section 3 presents a review and analysis of the NetREDI system utilized
by the railroads to provide real-time tracking access to their customers
and intermodal partners and rail line cargo tracking technologies used
to gather this data.

Section 4 presents a review and analysis of advanced technology
applications utilized at internally at dray companies, including
communications with vehicles on the road, and externally with their
intermodal partners.

Section 5 presents conclusions and considers future project
opportunities.

**2.0 Intermodal Port Technology Applications**

The information management goal at ports is primarily focused on
accurately capturing information and effectively communicating that
information to both internal and external information users. There are a
multitude of technology options that have been embraced by ports to
improve their information flow efficiency and accuracy.

**2.1 Data Exchange Technologies**

The movement of data and information is as crucial to cargo transport as
the movement of the cargo itself. Seamless information flow allows
quicker cargo movement from origin to end destination. Electronic
transference of data and information can lead to substantial
time-savings, safety improvements and efficiency gains over traditional
data transfer methods such as phone, fax or driver-provided paperwork
upon cargo transfer/delivery. Such systems include:

-   *Extranets* have been created by layering internal business
    applications onto the Internet or Intranet for use by customers or
    business partners. Authorized users can electronically access common
    information from any location. The electronic sharing of information
    can result in significant paperwork reduction and allows business
    partners more flexibility in collaborating on such issues as
    planning for maintaining inventory levels and determining
    anticipated future freight needs for shippers.

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-   *Electronic Data Interchange* (EDI) enables the transfer of cargo
    data and business information from one mode to the next in standard
    electronic formats called transaction sets. EDI enables capabilities
    such as automation of billing procedures, routine data transfers
    between databases, freight tracking functions, viewing of bills of
    lading prior to actual physical delivery, and obtaining estimated
    freight arrival times.

> EDI transactions have traditionally relied on proprietary Value-Added
> Networks. These private networks often charge the users of the VAN by
> the amount of data transmitted per transaction. Large amounts of
> transmitted data could represent a substantial cost to a company. EDI
> transactions conducted via the Internet are nearly free; therefore,
> many traditional VAN users are migrating towards Internet-enabled
> transactions. The lower costs have reduced barriers to conducting
> business electronically for smaller businesses/modal partners.[^1]

-   The *Internet* is being used increasingly by companies for customer
    service functions rather than traditional phone/fax activities
    handled by customer service representatives. Depending on the
    versatility and sophistication of the Internet site and its
    integration with various "back office" functions, customers can use
    the Internet to manage bookings, inquire on equipment availability,
    and track freight locations in real-time, or check invoice status.

**2.2 Terminal Freight and Equipment Tracking**

A number of terminals are utilizing modern cargo handling and equipment
tracking technologies to improve efficiency and create additional
capacity. These various technological solutions present the capability
to track, identify, and monitor cargo and equipment in real time.
Real-time equipment and cargo visibility allows for more efficient and
reliable operations. Manpower and equipment utilization can be scheduled
and deployed in relatively short order.

*Automated Equipment Identification* (AEI) technologies are being used
in terminal yards to identify and track equipment and loads. AEI
technologies include radio frequency (RF) tags, smart cards, and
satellite-based equipment/cargo tracking. These are described in the
following:

-   *RF tags* utilize radio signals to establish real time data exchange
    between the RF tag and the tag reader. Data that is usually
    transmitted includes the rail car number that can then be checked
    against train composition information in the Port Management System.

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-   *Smart cards* are being implemented for managing the entry and exit
    of vehicles within the terminal yard. These wallet-sized cards with
    integrated circuits have the ability to securely store and process
    information regarding the driver or the cargo.

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-   *Satellite-Based Technologies* provide the location of
    cargo/equipment to within meters. Many of systems rely on the Global
    Positioning System (GPS) to triangulate the position of equipment
    tagged with a transponder. GPS transponders are self-contained,
    integrated units with the batteries and antenna contained within a
    compact sealed unit.

Used in few locations, primarily due to cost, a GPS transponder is
attached to a straddle lifter where it transmits its ID to a series of
satellites that relay the transmission to a ground station. The ground
station determines the asset\'s position and forwards it to the
operations center for delivery to the customer. Using wireless
communications, the operator of the straddle lifter then notes the
position of containers in a yard on a mobile data terminal. This
information is used to quickly locate the container at a future time.

3.  **Port Management Information Systems**

A Port Management Information System (PMIS) is an overall system suite
integrating various software subsystems that performs all the
information gathering, manipulation, storage, retrieval and transmission
to decision makers all data needed to manage terminal operations. This
is accomplished through electronically generated information reports
that are integrated from data gathered from the various storage
databases.

PMIS are used for the dissemination of crucial information to terminal
personnel and for automating most of the data/information collection and
consolidation efforts at the terminal. PMIS information can be shared
worldwide via Internet or private virtual networks.

PMIS can be comprised of a number of subsystems or modules to organize
the information flow into functional management components. The
following provides examples of common modules or components:

-   *Logistics Module*: controls port's physical operational flow of
    ships, cargo and personnel. It should be noted that the Port of
    Tacoma ITOS system does not include this module.

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-   Physical Assets *Module*: maintains a database of the terminal's
    assets and their corresponding location, and schedules maintenance
    of port facilities and equipment. In the Port of Tacoma, the
    functions conducted by a physical assets module are managed by the
    port's ITOS maintenance module.

**2.4 Inbound** **Port Technology Transaction Steps**

The transactional information flows for cargo arriving at the Port of
Tacoma via steamship and outbound from the port via rail are described
in the following transactional steps:

1.  Steamship lines forward EDI manifest data/information to the port
    and U.S. Customs in advance of physical cargo arrival. This allows
    for timely customs clearance and efficient deployment of port
    personnel and equipment. This information is automatically
    transferred into the port's information system.

2.  Terminal personnel utilize *Automated Equipment Identification*
    (AEI) technologies to locate an inventory of rail car equipment.
    Personnel and equipment logistics are managed via the Port
    Management Information System.

3.  A train loading plan is developed using the Port Management
    Information System (ITOS). Containers are loaded based on rail car
    capacity and assigned destination. Following train loading, the load
    plan versus what is on the train is visually verified. A clerk then
    generates the EDI message from ITOS and sends it to the railroad.
    This message contains details about steamship line name, routing
    information and cargo weight.

4.  At any point, container tracking is available to customers/modal
    partners via the Internet.

**3.0 Rail Container Tracking Technology and Services**

The rail lines have embraced EDI technology and conduct a large amount
of EDI transactions with their larger trading partners. These trading
partners are usually identified as shippers, ocean cargo carriers,
ports, some large drayage operators and intermediary product
receivers/wholesalers.

There are a host of EDI services utilized by these partners such as
electronic payments and viewable bill of lading information in advance
of physical freight delivery. Here the focus will be narrowed to EDI
tracking applications available to not only large trading partners, but
to partners/customers of any size. The following sections will focus on
how the rail lines initially capture railcar/container location and then
how external users access this EDI based tracking information via the
Internet.

**3.1 Rail Container Tracking**

The rail industry has invested heavily in *Automatic Equipment
Identification* (AEI) technology to capture railcar arrivals,
departures, and passing points en route. The demand for the rail lines
to provide asset location data has increased as more customers
incorporate asset location reporting into their supply chain management
systems.[^2] The data captured from this technology has dramatically
improved asset location capability.

AEI is a valuable tracking tool when the container is on a train, but
once off-loaded, a physical check may be required to locate a container
within a rail yard unless additional technologies such as GPS and yard
management/mapping systems are used.

**3.2 NetREDI**

This cargo tracking application (located at the NetREDI web site)
utilizes the rail industry\'s central computer applications to obtain
shipment position data from over 300 railroads in North America. Most
customer location requests are accurate to within a couple of hours of
their actual position. NetREDI has many user features that allow the
customer to self- track their rail shipments. These include:

-   Shipments can be traced on NetREDI one at a time or en mass. The
    system allows the submission of single or multi shipment location
    status. The tracking or "trace" list form is shown in figure 1. The
    data entry to NetRedi also allows the entry of equipment ID through
    cut and paste utilities, obviating the need to retype equipment
    ID\'s.

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-   Shipment tracing requests may be stored for future use to facilitate
    the tracing of the same shipments several times over the course of
    hours or days. There is also the capability to trace the same
    containers week after week.

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-   NetREDI allows the customers to view any of their previously
    submitted trace responses or print a copy for their records. The
    tracing data can be saved on an individual computer\'s hard disk,
    and then imported to the customer's other software or system
    applications. NetREDI output is available to the customer in the
    following formats:

> Blank format - Location
>
> A format - Location with SPLC
>
> B format - Train
>
> C format - Train with SPLC
>
> D format - Destination
>
> E format - Destination with SPLC
>
> F format - Flatcar
>
> G format - Flatcar with SPLC
>
> H format - ETA
>
> I format - ETA with SPLC
>
> Text Format - Event Translation
>
> W format - Scale Weight

**Figure 1 NetREDI Demand Trace Screen**[^3]

+-------------------+----------------------------------+---------------+
| Top of Form       |                                  |               |
|                   |                                  |               |
| **Enter Equipment |                                  |               |
| to be Traced**    |                                  |               |
|                   |                                  |               |
| Bottom of Form    |                                  |               |
+-------------------+----------------------------------+---------------+
| Enter as:         |                                  |               |
| ABCD123456,234567 |                                  |               |
| ***or***          |                                  |               |
| ABCD200100-200400 |                                  |               |
| ***or*** ABCD     |                                  |               |
| 123456 ABCD       |                                  |               |
| 234567 ***or***   |                                  |               |
| A                 |                                  |               |
| BCD,123456,234567 |                                  |               |
| ***or*** each on  |                                  |               |
| a new line        |                                  |               |
| ***or*** any      |                                  |               |
| combination       |                                  |               |
+-------------------+----------------------------------+---------------+
|                   |                                  |               |
+-------------------+----------------------------------+---------------+
| **Name:**         |                                  |               |
|    ![](           |                                  |               |
| media/image2.wmf) |                                  |               |
+-------------------+----------------------------------+---------------+
|                   |                                  |               |
+-------------------+----------------------------------+---------------+
| **Format:**       |                                  |               |
+-------------------+----------------------------------+---------------+
|                   |                                  |               |
+-------------------+----------------------------------+---------------+
| **Equipment       | **Show Only Events:**            | **Response    |
| Status:**         |                                  | Option:**     |
|                   |                                  | [Hel          |
|                   |                                  | p](http://reg |
|                   |                                  | istration.rai |
|                   |                                  | lnetredi.com/ |
|                   |                                  | .gifs/page9.h |
|                   |                                  | tm#InputPage) |
+-------------------+----------------------------------+---------------+
| > ![](medi        |                                  | >             |
| a/image3.wmf)Both |                                  |  ![](media/im |
| >                 |                                  | age6.wmf)Last |
| > ![](            |                                  | > Event       |
| media/image4.wmf) |                                  |               |
| Loaded![](media/i |                                  |               |
| mage5.wmf)Empties |                                  |               |
+-------------------+----------------------------------+---------------+
| **Current Sort    |                                  |               |
| Order is:**       |                                  |               |
| *Equipment ID     |                                  |               |
| (Des)*            |                                  |               |
+-------------------+----------------------------------+---------------+
|                   |                                  |               |
+-------------------+----------------------------------+---------------+
| **Output          | ![](media/image7.wmf)Browser     |               |
| Format:**         |                                  |               |
|                   | ![](media/image8.wmf)File        |               |
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|                   | ![](media/image9.wmf)Spread      |               |
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|                   | ![](media/image10.wmf)File(Comma |               |
|                   | Delimited)                       |               |
+-------------------+----------------------------------+---------------+
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+-------------------+----------------------------------+---------------+
|    ![](m          |                                  |               |
| edia/image11.wmf) |                                  |               |
+-------------------+----------------------------------+---------------+

**4.0 Drayage Industry Technology Applications**

The drayage industry is comprised of mostly small- to mid-sized
companies that are under pressure to embrace technology solutions as
much as the larger enterprises, specifically the ports and rail lines --
although their financial resources are much more constrained. Larger
drayage companies do exhibit many advanced technological traits
(sophisticated, integrated in-house computer systems, EDI capability and
fully functional Internet based tracking applications), but many small
and mid sized drayage operators have yet to capitalize on available
technological solutions to improve their business.

**4.1 Drayage Industry Tracking Technology**

The drayage industry extends across the technological tracking
continuum. Some drayage companies are extremely automated while others
rely on approximation and strict voice communications in meeting their
customer's tracking requests.

Some customers can electronically track containers/shipments through the
ship/train interface with accuracy, but there is a lack of consistency
in the availability of information on the location of
containers/shipments from dock to rail terminal or rail terminal to the
unloading point. Even customers who track electronically may use one or
a combination of technologies/systems to achieve their particular
chassis/container locating goals.

Tracking systems are usually utilized to fulfill shipper requests to
provide date location on container movements either at the beginning,
midpoint or end of the freight's movement. Such systems can provide
customers the ability to track multiple containers with the same drayage
operator in a single transaction.

Tracking systems also provide the dray company with valuable information
on driver movements, enabling them to more effectively route and
schedule drivers.

One method of chassis/container tracking for drayage operations can be
accomplished effectively using a combination of GPS technology and
wireless network technology. The customer then may receive updates
typically via the Internet, or the customer may opt to access
information forwarded to other wireless devices in the field.

This combination of satellite and terrestrial based technologies builds
a tracking system that works well both in urban and rural areas. GPS
covers rural areas very effectively and is augmented in urban areas by
the salient feature that wireless communications requires no direct line
of sight to function effectively as does GPS. This is the option of
choice for larger drayage companies with more resources to invest in
tracking technology or companies with longer pick up/delivery routes
that encounter a combination of urban and rural terrain.

Figure 2 illustrates a typical application of these technologies
commonly used by the larger drayage companies.

**Figure 2**

**Vehicle/Cargo Tracking Systems**

> ![](media/image12.png){width="0.7388888888888889in"
> height="0.9041666666666667in"}
> ![](media/image13.wmf){width="0.7388888888888889in"
> height="0.91875in"}

######## GPS Satellite Customer Vehicle Wireless Network

**Customer PC** **Central Data Center**

The systems operate in the following manner:

1.  Tracking system utilizes the Global Positioning System (GPS) to
    pinpoint vehicle location.

2.  A unit mounted in the vehicle that includes a GPS receiver collects
    information from the satellites on a periodic basis and utilizes
    this information to calculate the vehicle's position, direction,
    velocity, and time.

3.  The GPS receiver in the vehicle transmits this information to a data
    center via a wireless network.

4.  The customer logs on to the Internet where a visual display of the
    vehicle's location and progress is displayed on a representative
    map.

More expensive GPS-based tracking systems are not the only method for
drayage-based chassis locating. Less expensive cellular technology may
be a more realistically priced option for many smaller operators.
Cellular technology (which may use triangulation or mobile proximity)
opens the door for tracking solutions for many small to mid size firms
that do not have the resources or the need at this time for a full
fledged GPS/wireless communication system.

This is another important reason that cell systems have dray
applications: the technology inherent with cellular systems allows for
position determination in dense urban environments or under loading dock
roofs where GPS does not penetrate as effectively because of line of
sight limitations. In these urban locations, where much of the
intermodal drayage transfer takes place, relatively commonplace cellular
phones or pagers can locate vehicles using existing wireless network
infrastructures. This data is then centrally collected and then can be
accessed by the operators and customers via the Internet.

**4.2 Drayage Industry Information Systems**

Drayage Industry Information Systems run the gamut from simple
paper-based systems to robust, multi-module software applications that
provide both the dray company and their customers with accurate,
up-to-the-minute information on a variety of inquiries. Smaller drayage
operators with only a few drivers will not likely spend the time or
resources needed to fully integrate a complicated software system to aid
in the running of their operation. Their level of computer usage may be
limited to a spreadsheet and an email account.

Larger operators, who have adopted integrated technology solutions,
often continue traditional procedures (fax, phone or physical
information delivery). Sophisticated systems are duplicated with
paper-based, manual systems that mimic many of the duties the electronic
system performs more efficiently and accurately.

Larger drayage operators assimilate data/information from multiple,
task-specific software modules based on functionality. Dispatching,
Human Resources, and Billing generally have their own modules. The
usefulness of the advanced information systems used by some of the
larger drayage companies is the ability to efficiently move
data/information between modules to create useful reports for both
internal and external system users. External data gathered from drivers
en route from GPS systems, on board computers or digital phones is
routed into this system to provide up to the minute access on freight
location, driver availability and chassis/container deployment.

The following describes the functions of these modules:

[Dispatch]{.underline}

-   Track and record driver check in calls, origins, destinations, and
    estimated time of arrivals.

-   Provide quick access to pending/available loads sorted according to
    your specific criteria.

-   Handle multiple stops and drivers, split trips, and review specific
    container data.

-   Provide information such as current locations and status for all
    drivers and equipment.

-   Handle all aspects of trailer and equipment tracking.

[Freight Billing]{.underline}

-   Automatically create bills from the data entered into the dispatch
    module.

-   Produce timely and accurate freight bills, significantly shortening
    the time it takes to receive payment.

-   Allows for alterations and additions to freight bill information
    after its initial creation.

While more resource laden, large-scale operations can afford in-house
computer software applications, cost has driven some technologically
savvy drayage operators, including small companies, to begin to utilize
the Internet to access certain advanced software/system applications.
Application Service Providers (ASPs) enable small drayage operators to
"rent" certain programs or participate in system packages such as
Enterprise Resource Planning (ERP) applications for a fee. Typical ASP
drayage applications tend to focus on single functionality rather than
complete system solutions. These applications may include: on line
chassis tracking, database management applications, and electronic funds
transfer.

The monthly flat fee covers the hardware, software licenses and network
infrastructure to run the system applications. The fee also includes
technical personnel required to support, manage, and maintain the
systems at a contractually agreed service level. ASP customers can rent
services on a per-user, per-transaction, or per-month basis.

The Internet distribution of software/system applications benefit from
economies of scale by letting multiple authorized users share the same
software product licenses. Subscription pricing means that a drayage
operator has no up front investment but pays only for those transactions
needed to run their business. It also allows a company to have
predictable costs for selected applications, more easily upgrade to new
applications, and add new system capacity as demand warrants.

**4.3 Drayage Industry Electronic Data Communications**

EDI data communications that are widely utilized by ports and rail lines
have found less utilization from drayage companies. EDI capability has
traditionally been seen in the larger drayage operators, who can invest
in either traditional EDI through a fixed line value added network or
through a newer web enabled EDI connection, while cost has prohibited
EDI participation by smaller drayage operators. The drayage companies
that have utilized EDI typically transmit three transaction set types
with their EDI partners, including:

-   EDI 214 \~ Electronic Proof of Delivery Status

-   EDI 210 \~ Electronic Invoicing

-   EDI 204 \~ Electronic Load Tendering (Bill of Lading)

Smaller drayage companies with fewer resources increasingly are using
the internet to electronically communicate with customers, albeit these
communications generally take the form of email in non-standardized
formats. These smaller companies have found economical solutions to
container tracking, load-finding, and scheduling through internet-based
services.

These solutions, along with wireless communications allow the drayage
companies to maximize their driver/equipment utilization and to provide
higher levels of customer service for both inbound and outbound
container moves.

On a related note, the Tacoma-Chicago Research Team is concurrently
analyzing outbound cargo and data flows to support future initiatives to
connect west coast transactions with east coast destinations (SEE
ATTACHMENT 1).

**5.0 Conclusions and Next Steps**

New technologies have clearly simplified the availability of certain
applications such as location tracking, communications with trading
partners, inventory updates, equipment requests and electronic payments
to name just a few. Some of these applications are relatively
inexpensive, while other applications can be more costly. Cost of
installing technology is not the only consideration; there is the cost
of upkeep both in terms of hardware/software upgrading and the training
of staff on new technology.

Smaller drayage companies do not have the resources to invest in new
technology applications as do the ports or rail lines. A well-conceived
system to enable complete and integrated data/information from
Port-Rail-Drayage must address this cost component. With that caveat in
mind, some features that an intermodal data transfer system should
contain to satisfy all stakeholders include:

-   Internet accessibility with an intuitive user display

-   Common data platforms for the various functional data being
    transmitted

-   Data transfer must be highly or completely automated (little or no
    manual interference, no repetition of data entry) and move data from
    one intermodal database to another

-   Low cost to enable rapid and wide spread Intermodal adoption rate

-   Functionality; the system must address only core data/information
    transfer functions (container tracking, bill of lading, invoicing,
    etc.)

-   System must be based on an open platform to allow integration with
    all other software platforms. Companies must be able to extract this
    data to be used functionally in their other applications.

This document works in conjunction with Technical Memorandum #1 \--
which classifies Intermodal business processes, and the Institutional
Issues Working Paper -- which focuses on institutional issues related to
current technologies and potential barriers for implementation of an
enhanced data exchange system. The three reports will provide the basis
for the preliminary System Architecture. Follow-on work products
include:

-   *Market Research and Performance Analysis Plan* will identify the
    potential market participants and related transactions that a test
    system would address. Industry Reviews with intermodal users will
    aid the identification of possible test system users and useful test
    system features.

-   *System Blueprint* will identify the probable functional and
    technical component system architecture for an enhanced data
    exchange test system.

All of these documents together will establish the technological
framework and implementation plan to launch an operational test system
in Phase II of this project.

**Attachment A**

**Outbound Drayage Technology Transaction Steps**

[^1]: Simon, Michael, "Developments in Port IT", Institute for
    International Research (IIR) conference for Container Handling,
    August 21, 1999

[^2]: Thompson, Keith, "Tracking freight cars: AEI data tags and
    readers", <http://www.cyberspace.org/~snowolf/rail/aei.html>

[^3]: "NetREDI Demand Trace Demo",
    <http://registration.railnetredi.com/.gifs/page9.htm#InputPage>