Originally launch in 1993 with support by EDI Malaysia (EDIM), the Port Klang Community System (PKCS) interfaces with the Sistem Maklumat Kastam (Customs Information System) and EDIM's DagangNet network. This facilitates faster cargo movement through simplified document procedures, among other objectives.

The major players from the maritime community are Customs, the port authority, port operators, shipping companies, forwarding agents and hauliers. Secondary players include the banks that complete the payment loop for the physical logistics chain. According to Yong Voon Choon, head of EDIM's integrated business services, shipping lines can now use PKCS to submit electronic manifests to Customs, KPA (as the free zone authority) and port operators. "To date, about 98 per cent of the manifests are submitted electronically," he explains.

There are two types of declaration: Customs declarations (import, export and bonded) and free zone declarations (import, re-export, transhipment and value-adding). These declarations are submitted by the forwarding agents.

"Duty payments using the EFT (Electronic Funds Transfer) facility are also done electronically through the use of smart cards and other security devices between the forwarding agents and banks," says Yong. About 96 per cent of the import declarations and 98 per cent of the export declarations are now submitted electronically to Customs, while EFT usage is close to 98 per cent and free zone declarations are 100 per cent electronic.

"Currently, we are at the tail-end of PKCS implementation. The last phase will involve the hauliers, with the PKA now looking into RFD (request for delivery) implementation. Piloting is expected by year-end," says Yong.

Three Major Challenges
Yong describes the three biggest challenges EDIM faced in setting up the PKCS EDI as "firstly, the achievement of consensus within the community players; secondly, simultaneous handling of semi-computerised and manual procedures; and thirdly, reluctance to change". EIDM initiated the electronic supplier system (supply chain management, or SCM) in 1996 by linking the suppliers, manufacturers and banks. Its primary objective was to integrate the PKCS users with suppliers/manufacturers to complement and complete the information flow, physical goods flow and financial settlement.

However, because of the Asian regional economic crisis in mid-1997, SCM was put on low priority, even though some large manufacturers were already connected to PKCS. "We are currently working closely with the Federation of Malaysian Manufacturers Association to re-initiate the SCM'" comments Yong. EDIM also has a firm commitment to smaller businesses, and is keen to ensure that they are not driven out of business because of electronic trading. To this end, Telekom Malaysia and other organisations are holding road shows throughout Malaysia to promote the concept of e-commerce among small and medium-scale businesses.

"We have set up Kedai EDI (EDI Shop) to facilitate small and medium enterprises (SMEs) transmitting electronic documents to the relevant authorities at Port Klang," explains Yong. "This has boosted the awareness and understanding of e-commerce. We believe there are fewer challenges in web-based EDI, except on security issues. " Yong firmly believes that the development of port/airport-related web-based EDI systems will benefit businesses within the Klang Valley area and eventually throughout Malaysia. "Our DagangNet EDI (electronic connectivity, to exchange various documents with various parties. Essentially, it promoted inter-connectivity and inter-operability, irrespective of the locations of business."

Feedback from local trade and industry concerning the use of EDI suggests that "slowly but surely" businesses are beginning to realise the strategic use of e-commerce in terms of where businesses can value add, reuse and exchange information along the supply chain.