Until quite recently, all the flow of documents at ports as well as work planning were carried out in paper (natural) form. In addition to the fact that this information exchange system is morally out-of-date, it is also extremely affected by human factor, as evidenced by numerous mass media publications, various ratings and reports of international Organizations. Development of information technologies enables us to change totally the existing situation and to move to a whole new level of operation of cargo traffic, to increase the volumes and to raise the image of our State in the international field. 1. General information on the issue

2. Port Community Concept Port Community System is meant for integration of all the participants of transport and freight processes at port into a single information space suitable for reporting of data and access to data that is used in the framework of technological process at port using means of technological protection in a state-approved format.

State of information flow in port community without the use of the Port Community System Freight Forwarder Customs Consignor Sea Carrier Overland Carrier Stevedore Port Authorities Consignee Port services Maritime Agency

Optimization of information flow using the Port Community System Freight Forwarder Customs Consignor Sea Carrier Stevedore Port Authorities Consignee Port services Maritime Agency Port Community System

Aim of the System – minimization of the document flow during technological operations at port, optimization of technological procedures, cutting time of all the operations by reporting of the latest, real-world and legitimate information to all the participants of transport and freight process. The system includes: - Regulatory authorities (Customs, Border Services, etc.) - Administration of the Port - Stevedoring Companies - Agents - Freight Forwarders - Ukrzaliznytsya

3. Projects at European Ports 3.1. Marseille - Gyptis – Port de Marseille cargo community system 3.2. Antwerp - APIS – Antwerp Port Information system - SEAGHA – PCS of the Port of Antwerp 3.3. Hamburg - PRISE – Port River Information System Elbe 3.4. Rotterdam - Port Infolink 3.5. Klaipeda – the former Soviet Union, there is much in common in business processes -KIPIS – Klaipeda Port Freight and Goods Information System

4. Project implementation On May 22 the port of Odessa together with the State Customs Service of Ukraine signed the process scheme of the first work stage of the Port Community System. This order unites the existing experience on free practice, security badge, automated access control system, electronic planning and a new project of an electronic order for containers issue. The first stage of the Port Community includes almost all the processes from the moment of arrival of import cargo in container to its departure from the port. Only processes of customs documents execution and risk analysis remain not covered. Currently they can be carried out only in the State Customs Service of Ukraine System according to the legislation in force. On October 8, 2012 the first electronic order was registered in the System by PLASKE JSC Currently about 450 containers were registered in the system.

All the Regulatory authorities, liner agents and container terminals are involved as a separate work place. 90% of Freight Forwarding Companies are involved. From to training workshops were carried out in which 154 Freight Forwarding Companies 13 Liner Agents took part; LineNumber of containers Admiral Container Lines Inc3 American President Line11 ARKAS Line17 CMA-CGM43 China Shipping Container Lines 7 Evergreen Marine Corporation13 Hapag-Lloyd AG45 Hyundai Merchant Marine Ltd12 MAERSK LINE49 Mitsui O.S.K. Lines6 Mediterranean Shipping Company107 CSAV Norasia17 NYK-LINE6 OOCL (Europe) Limited11 ZIM Integrated Shipping Services Ltd89

4. Behavior of an electronic order execution Containers quantity

5. Challenges Instability of electronic digital key work; Low activity of participants (lines, stevedoring companies, freight forwarders) LINER AGENTS remain weak. Over a period of 9 months since the work specification was submitted, Stevedoring Companies work on systems integration that would allow e-documents executing massively unfortunately has been still in process, and Liner Agents' work hasnt been started yet. In this regard we had to divide the first stage of implementation into several steps and to coordinate a temporary execution procedure (TP) provided for the project concept, confirmed by the IWG On December 20, TP is developed taking into account the necessity to meet the following criteria: 1. Independence from readiness of SC and Liner Agents; 2. Maintenance of the effective procedure; 3. Options of TP that accelerates the process of containers handling; 4. Increase of control of departure of loaded containers from the territory of the port