The company's maiden project, the Port Klang Community System (PKCS), has transformed operations at Malaysian's major port, Port Klang, with its introduction of electronic transactions.

PKCS connects all players in the maritime fraternity, including port operators, freight forwarders, forwarding and shipping agents, Customs, banks, and the port authority, via an integrated computer system.

It is estimated that more than RM100mil is saved annually on labour, time and paper costs. Today, 98% of exports and 96% of import transactions are processed using the Sistem Maklumat Kastam-Dagang Net Interface, the critical component in PKCS's trade facilitation initiative.

Cargo clearance time has been reduced by 40% and Customs processing which used to take three to four days, now takes only half a day.

"The PKCS has raised IT literacy in Port Klang. In 1994, only 30% of freight forwarders and shipping agents used computers in their businesses. Today, statistics show that 99% of these companies (that is 600 companies) in Port Klang use the PKCS daily," said Dagang Net CEO Hazree M.Turee.

"This has increased efficiency and productivity and equipped Port Klang with the competitive edge needed to become a regional transhipment hub."

Today sophisticated port planning computer systems have replaced the manual method of planning for ship arrival, berthing and container yard storage where tally clerks had to calculate the number of containers and record its location.

NorthPort in Port Klang uses an interactive system called Client-Access which allows users to enquire about vessel and container movement within the port and terminal. IT has allowed the port to handle larger volumes of containers through various forms of computer-aided optimisation in berth, ship and yard planning. Through its website (www.northport.com.my), NorthPort is also able to provide real-time shipment status on the Internet.

Malaysia's newest port, Port of Tanjung Pelepas (PTP) takes pride in being a cyberport. Its Integrated Terminal Port Management Information System has been designed to assist in ship and yard planning, while its automated gate system helps to regulate the flow of containers.

All PTP employees from the quay crane operator and prime mover driver to the planner are connected to the system which ensures accurate and constant flow of information from one party to another.

"There is a continuous need to improve and integrate third party information flow in the port and shipping operations. The faster and more accurate the flow, the more efficient the process will be," said PTP CEO Mohd Sidik Shaik Osman.

Navigation of ships is another area which has been given a boost by IT.

The Vessel Traffic Management System (VTMS) uses IT to track and monitor vessel movement along the Straits of Malacca and ships going in and out of Port Klang. The VTMS has helped in the effective management of shipping traffic and boosted the safety of waterways.

Another IT development in vessel navigation is the Electronic Navigational Chart (ENC) available in CD-ROM format. The database contains all chart information needed for safe navigation, covering 350 nautical miles from Langkawi to Port Klang. Implemented by the Royal Malaysian Navy Hydrographic Department, this electronic chart has become a modern navigational aid for mariners.

Although the ENC will not completely replace conventional navigational tools such as the sextant, compass and star-finding aids, it gives up-to-date and accurate information for ships to navigate safely.

Last September, the Peninsular Malaysia Marine Department introduced a system whereby all ships calling at local ports could obtain electronic port clearance instead of getting it done manually. Without port clearance from the department, ship cannot come into or leave a port.

Users need a computer with Internet access and the ability to operate Microsoft Internet Explorer Version 5.0 for clearance to be done online. This move saves time and money, and increase efficiency.

Perhaps the most significant area in which IT has made an impact is in the logistics sector. The past year has seen a proliferation of dotcom companies which claim to offer solutions for logistics. Among the services offered are tracking and tracing of shipment through the Internet and online booking of container space on board ships.