The DTTN System is an information infrastructure intended to facilitate trade and enhance the efficiency and productivity of the logistics sector. It seeks to provide a neutral, open and secure e-platform to connect players along the supply chain, both in the region and globally. Its core functionalities are electronic message routing and transformation services, which involve the receipt of business messages from senders, transformation of message formats and character encoding from one standard to another, and the delivery of the processed messages to the recipient.

As an electronic document conversion engine for the supply chain, it fills a gap in the information flow by enabling connection among vertical and stand-alone information systems without replacing or changing them. By focusing on basic message routing and transformation functions, the DTTN System will not compete with service providers in the provision of value-added services such as solutions for multi-modal integration, distribution and transportation management, or inventory management.

Functionally, DTTN is:

A Super Electronic Document Conversion Engine
DTTN supports "any-to-any" transformation of data formats and communication protocols. Via DTTN, a simple Excel spreadsheet can easily be converted to a more complicated data format such as EDIFACT or XML.

A Mega Electronic Data Store
It stores relevant data, including the documents transacted and comprehensive audit trails, online for 2 years and offline for 7 years

An e-Business Enabler for the Entire Supply Chain
It connects all parties along the supply chain from buyers all the way through to forwarders, carriers, banks and government.

In short, DTTN plays these three major roles in the trade and logistics communities:

1. It offers a neutral e-platform to facilitate information flow and service integration both in the region (including the PRD region) and globally;
2. It provides a stable and reliable environment and a technology platform for the exploration, development and delivery of innovative value-added services; and
3. It acts as a catalyst to promote electronic business adoption, especially by SMEs.

According to a locally commissioned consultancy report, the estimated tangible benefit of DTTN to the industry over a 17-year period is approximately HK$11.8 billion; and the conservatively estimated annual savings from operational efficiency improvement to the industry is around HK$1.3 billion.

In summary, the DTTN System is expected to generate major benefits through these factors:

• Significant savings in terms of the reduction of paperwork, shorter processing time and removal of the need for data re-entry, resulting in improved overall effectiveness and efficiency in the logistics industry;
• Promotion of a change away from the traditional paper-based transactions, and adoption of information technology and e-commerce by enterprises. The value of the DTTN System will be especially significant to SMEs that do not have the expertise and financial resources to develop their own e-commerce systems from scratch;
• Encouragement for the logistics industry to compete in the provision of high quality, more reliable and efficient services to enhance their competitiveness in the global market;
• New business opportunities for service providers to build new value-added services thereby collectively further consolidating Hong Kong's position as the hub of the Asian logistics industry; and
• Assisting the logistics industry in coping with changes in technology and processes arising from global trade trends and developments.

Industry participation in and acceptance of the DTTN System are imperatives in ensuring its success; while neutrality and non-exclusivity of this industry-wide information infrastructure are critical success factors in securing industry support and participation, especially those of the SMEs. These considerations explain the incorporation of the Digital Trade and Transportation Network Limited (DTTNCo) as a separate corporate entity to launch and operate DTTN services, and the industry demand for Government to become a DTTNCo shareholder. The industry considers such public and private cooperation to be the most effective way to ensure the neutrality of the DTTN System and the services to be provided by DTTNCo.

The LogsCouncil accepts the importance of the DTTN System as an information infrastructure crucial to Hong Kong's long-term economic competitiveness, and therefore fully supports its continuous growth and development. The logistics industry is anxious for the launch of DTTN services so that Hong Kong can reap its full benefits.

As an international logistics hub at the doorstep of Southern China, Hong Kong is uniquely positioned to develop an e-infrastructure that facilitates information flow within the supply chain and promotes regional integration. The DTTN is our response to this opportunity, and will enable Hong Kong to climb further up the value chain. We believe all participants using this common platform, particularly logistics SMEs, will benefit.

With the objective of accelerating the adoption of e-logistics among the local SMEs, the LogsCouncil is working actively with different training institutions to design and conduct training courses on e-logistics by leveraging on the Continuous Education Fund. Practitioners in the industry are encouraged to register for these courses. We believe that these training and education programmes will help SMEs appreciate the technologies that are now available to them and thus gain an understanding of the benefits to be obtained by the implementation of e-logistics through the community DTTN platform.