DEPARTMENT OF EDUCATION AND TRAINING

DUY TÂN UNIVERSITY

SOUTHSTAR MANAGEMENT INSTITUTE
------

PROJECT: Optimizing Da Nang Port Logistics Information

Systems: A Case Study Analysis

Class: SCM 355D

Mentor: ALFARO LUIS ALFREDO & BUI DUC ANH
Member:
Nguyen Huynh Thuy An 27214753175
Nguyen Viet Hai 27202145676
Le Cao Luy Na 27204702148
Pham Tran Thien Thanh 27204701994
Nguyen Thi Thanh Thuy 27204703036
Nguyen Hoang My Linh 27214736642
Luu Nguyen Gia Linh 27202849809

Da Nang, Wednesday, May 8, 2024

TABLE OF CONTENTS
I. Literature Review:........................................................................................3
II. Case Study Selection.................................................................................4
1.Location:........................................................................................................4
1.1 Limitations:...............................................................................................4
1.2 Fix:...........................................................................................................4
2.Size:................................................................................................................5
2.1 Limitations:...............................................................................................5
2.2 Fix:...........................................................................................................5
3. Complexity of Da Nang seaport:................................................................5
3.1 Limitations:...............................................................................................5
3.2 Fix:...........................................................................................................5
III. Data Collection..........................................................................................6
IV. Analysis of Current Systems:...................................................................7
V. Optimization Strategies:..............................................................................8
VI. Cost-Benefit Analysis:...............................................................................9
VII. Recommendations and Conclusion:......................................................11
 I. Literature Review:
Vietnam currently has 3 ports listed among the world's top 50 container ports in terms
of throughput (Ho Chi Minh City, Hai Phong, and Cai Mep - Thi Vai). Specifically, in 2022,
Vietnam had 3 seaports ranked among the top 50 seaports with the highest container
throughput in the world, with Ho Chi Minh City Port ranking 22nd, Hai Phong Port ranking
28th, and Cai Mep - Thi Vai Port ranking 32nd. The reality shows that the majority of
Vietnam's import and export goods are transported by sea. The Vietnamese seaport system
has accommodated the world's largest tonnage vessels, attracting 40 major shipping lines
worldwide to operate.
Importance: Vietnamese port logistics information systems play a crucial role in facilitating
efficient and effective management of port operations, enhancing supply chain visibility, and
improving overall logistics performance. These systems serve as a backbone for information
exchange and coordination among various stakeholders involved in port activities, including
port authorities, shipping lines, freight forwarders, customs officials, and terminal operators.
By providing real-time data on vessel schedules, cargo movements, inventory levels, and
transportation status, port logistics information systems enable better decision-making,
resource allocation, and risk management, leading to cost savings and service enhancements
across the maritime supply chain.
Emerging Trends in the Vietnamese Maritime Industry: Several emerging trends are shaping
the Vietnamese maritime industry and influencing the development of port logistics
information systems:
1. Digitalization and Automation: Increasing adoption of digital technologies, such as
IoT, big data analytics, AI, and blockchain, is driving the digital transformation and
automation of port operations and logistics processes.
2. E-commerce Growth: Rapid growth in e-commerce and online retailing is driving
demand for efficient last-mile delivery solutions and integrated logistics services, leading
to greater collaboration and information sharing among supply chain partners.
3.Green Logistics and Sustainability: Growing emphasis on environmental sustainability,
energy efficiency, and carbon footprint reduction is driving the adoption of green logistics
practices and clean energy solutions in port operations and maritime transportation.
4. Port Modernization and Expansion: Investments in port modernization, infrastructure
development and capacity expansion are aimed at enhancing port efficiency,
competitiveness and connectivity to support growing trade volumes and economic
 development.
II. Case Study Selection
1.Location:
1.1 Limitations:
- Road access: Although the port has a good road transport system, connectivity to
main roads and highways needs to be improved to optimize the transportation of
goods from the port to the surrounding areas other.
- Developing the area around the port: Da Nang Port needs a more developed logistics
area to support logistics activities, especially in the context of the port expanding and
upgrading.
1.2 Fix:
- Upgrading the transportation system: Invest in upgrading and expanding roads
connecting directly to the port, especially highways and major roads to minimize
transportation time and enhance accessibility weigh.

- Logistics area development: Build and develop industrial and logistics parks around
the port to create favorable conditions for the storage and distribution of goods, as well as
provide support services for operations import and export.

- Digital transformation and electronic ports: Continue to promote digital

transformation and electronic port development to optimize working processes, minimize
waiting time and enhance paperless communication capabilities.

- Improve port management: Apply modern port management systems to improve

working processes, reduce errors and increase operational efficiency.

2.Size:
2.1 Limitations:
- Container yard size: Da Nang Port has a total yard area of 21.87 hectares, but to meet the
increasing demand of the market, the port needs to expand the container yard area.

- Ability to receive ships: Currently, the port has the ability to receive general cargo ships of
up to 70,000 DWT, container ships of up to 4,000 TEUS and passenger ships of up to
170,000 GRT. To become an international gateway port, the port needs to be upgraded to be
able to receive ships with larger tonnage.

2.2 Fix:
- Expanding area: Da Nang Port has set an expansion roadmap, including the construction of
a 20ha Depot area in Hoa Nhon and a container yard behind TS4 wharf.

- Upgrading infrastructure: To receive ships with larger tonnage, the port needs to invest in
upgrading wharves and purchasing modern loading and unloading equipment.

- Digital transformation: Da Nang Port has been conducting digital transformation to improve
operational efficiency and quickly resolve procedures in delivery and receipt of goods.

- Green port development: The port has an investment plan to upgrade to become a "Green
port", minimizing environmental impact and enhancing sustainability.

3. Complexity of Da Nang seaport:

3.1 Limitations:
- Management and operation: Must manage a large amount of information and daily
activities, from receiving ships, loading and unloading goods to managing warehouses and
logistics.

- Technology and equipment: Maintaining and updating technology and equipment is

necessary to ensure productivity and safety during port operations.

3.2 Fix:
- Upgrading the management system: Applying advanced information technology solutions to
improve management and operating processes, helping to minimize errors and increase
operational efficiency.

- Investment in technology and equipment: Continue to invest in the QCC crane system at the
wharf, the RTG crane at the yard and the technical logistics system to improve the
productivity of loading and unloading goods through the Port.

- Digital transformation: Promote digital transformation in businesses, apply information

technology in production activities, and quickly resolve procedures in delivery and receipt.

- Human resource development: Focus on training and developing human resources to meet
increasingly high and complex job requirements.
 III. Data Collection
The terminal operating system (TOS) is a digital platform that helps track and manage
all the supply chain operations at the cargo ports and terminals. TOSs help coordinate all the
terminal logistics elements (including vessels, trucks, cranes, trains, and port staff), track
cargo movement, optimize asset usage, and analyze data to support decision-making. The
General Terminal Operation System (GTOS) at Da Nang Port is a comprehensive software
solution designed to streamline and optimize various aspects of port management and
operations. With 22 subsystems, GTOS encompasses a wide range of functionalities to
enhance efficiency, productivity, and transparency throughout the port's operations.
Previously, when container trucks arrived at the gates of Da Nang Port, drivers had to
present paper documents to port staff for inspection. Port personnel would then manually
check information, verify vehicle registration, weight capacity, and other details before
inputting data into the CATOS software system. After CATOS processed the order, port staff
would print out container coordinate slips to hand over to the drivers. This direct prolonged
the cargo handling process. So, Da Nang Port focused on researching and implementing an
automated container gate system, known as Autogate. This initiative involved the application
of various technological solutions, including container code recognition using ACCR
algorithms combined with artificial intelligence (AI), recognition of tractor and trailer license
plates, automatic control of barrier opening and closing, electronic scale weight reading, and
the use of Robotic Process Automation (RPA) to execute commands and send information to
drivers' mobile phone apps. All container information is stored on the website for customer or
shipping line inquiries, while port staff monitor the automated process at the Autogate. The
operation of the Autogate has minimized waiting times, reduced costs for customers,
enhanced objectivity, transparency of information, and minimized errors. It has also
facilitated smooth coordination between departments, significantly improving operational
efficiency.
Besides, as a pioneer seaport in digital transformation, the Da Nang Port has achieved
many successes when applying Electronic Port software (ePORT) being a pioneer in digital
transformation with the implementation of electronic delivery orders, electronic customs
clearance, electronic invoices and electronic payments through Momo Wallet and Automatic
Container Gate (Auto Gate). Recently, the port has researched and successfully applied
industrial signal transmission and reception equipment for tractors - eTractor.
Unlike traditional vehicle mounted computers (VMC) which come with a hefty price tag, the
eTractor offers a cost-effective alternative without compromising on performance and
durability. By integrating advanced technologies such as automatic identification, artificial
intelligence and process automation, GTOS helps Da Nang port optimize its operations from
ship scheduling to cargo management and pay. This not only improves operational
performance but also enhances reliability and customer and partner satisfaction.
IV. Analysis of Current Systems:
Strengths:
- Systems like Catos and GTOS can provide accurate data on container port activities and
overall management, enabling management to make decisions based on reliable information.
- The ePort system can display information about vessels, cargo, and port services in real-
time, enhancing real-time understanding and management.
- Both Catos and GTOS have the ability to automate processes such as cargo handling,
schedule management, and document management, increasing efficiency and reducing
human errors.
- Both ePort and GTOS systems can interact with stakeholders such as shippers, carriers, and
management agencies through user-friendly interfaces and remote access features.
Weaknesses:
- Adaptability Issues: Some systems like GTOS may face difficulties in adapting to new
requirements or changes from users or the business environment.

- Implementing and maintaining systems like Data Center with new technology platforms
may require significant investments and high maintenance costs.
- Complex systems like GTOS require highly skilled human resources, demanding
considerable time and resources for user training and support.
Opportunities:
- Improve the integration and flexibility of information systems to quickly respond to new
requirements and changes in the business environment.
- Strengthen security measures to ensure the safety of critical data and prevent potential
cyberattacks.
- Enhance the performance and efficiency of information systems through the use of newer
and more advanced technologies, as well as optimization of processes and standardization of
data.
Threats:
- There may be difficulties in integrating GTOS with other systems like Catos or other cargo
management systems, leading to fragmented information and data management challenges.
- The use of existing information systems may pose cybersecurity risks, especially when
processing and storing sensitive information about cargo and port activities.
V. Optimization Strategies:
To enhance the information system at Da Nang port, a comprehensive optimization strategy
should be developed as follows.
1. Process Redesign:
- Conduct a thorough analysis of existing processes to identify inefficiencies.
- Implement lean methodologies to streamline operations and reduce waste.
2. System Integration:
- Implement an Enterprise Resource Planning (ERP) system to centralize data
management and facilitate real-time decision-making.
- Utilize Application Programming Interfaces (APIs) to connect disparate systems and
enable interoperability.
3. Data Analytics:
- Establish Key Performance Indicators (KPIs) and dashboards to monitor performance
and track progress towards strategic objectives.
- Utilize predictive analytics to forecast demand, optimize resource allocation, and
improve scheduling.
4. Cloud-Based Solutions:
- Leverage cloud infrastructure for storage, processing, and analysis of data, enabling
cost-effective solutions for large-scale computing requirements.
- Implement Software as a Service (SaaS) solutions for specific functions such as fleet
management, supply chain visibility, and customer relationship management.
 5. Internet of Things (IoT):
- Deploy IoT sensors and devices throughout the port to collect real-time data on
various parameters such as cargo location, container status, and environmental
conditions.
- Use IoT data to optimize resource utilization, improve asset tracking, and enhance
safety and security.
- Integrate IoT data with existing systems for holistic visibility and decision support.
6. Blockchain Technology:
- Explore the use of blockchain for secure and transparent record-keeping in areas such
as supply chain management, customs clearance, and documentation.
- Enhance data integrity and auditability by leveraging blockchain for immutable
transaction records and cryptographic security.
7. Training and Change Management:
- Provide comprehensive training programs to ensure that staff are proficient in using
new technologies and systems.
- Establish feedback mechanisms to solicit input from users and stakeholders,
facilitating iterative refinement of processes and systems.

Reuse code

APIs act as intermediaries

that allow software
API (Application components to
Programming Extend features easily
Interface) communicate with each
other, helping to increase
efficiency and save time
in application
Connect different applications
flexibly development.

VI. Cost-Benefit Analysis:

To conduct a cost-benefit analysis of the proposed optimization strategies for the Da
Nang Port's information systems, we'll need to evaluate the financial implications and
potential improvements across various aspects such as productivity, data accuracy, customer
satisfaction, and overall operational efficiency.
1. Process Redesign:
- Financial Implications: Initial investment in the analysis and implementation of lean
methodologies might incur costs, but the long-term savings from reduced waste and
streamlined operations could outweigh these.
- Improvements: Increased efficiency, reduced operational costs, minimized errors, and
enhanced reliability of processes.
2. System Integration:
- Financial Implications: Initial investment in ERP implementation and API development
might be significant, but centralized data management and interoperability could lead to long-
term cost savings and improved decision-making.
- Improvements: Real-time access to data, better decision-making, reduced duplication of
efforts, improved collaboration among departments.
3. Data Analytics:
- Financial Implications: Investment in analytics tools and training might be required, but the
ability to monitor KPIs and utilize predictive analytics could lead to significant cost savings
through optimized resource allocation and improved efficiency.
- Improvements: Enhanced decision-making, better resource allocation, improved
forecasting accuracy, and proactive problem-solving.
4. Cloud-Based Solutions:
- Financial Implications: Transitioning to cloud infrastructure and adopting SaaS solutions
might involve initial costs, but the scalability and cost-effectiveness of cloud computing
could result in long-term savings.
- Improvements: Reduced IT infrastructure costs, improved accessibility to data, enhanced
scalability, and flexibility.
5. Internet of Things (IoT):
- Financial Implications: Initial investment in IoT infrastructure and sensors may be required,
but real-time data collection and optimization of resource utilization could lead to significant
cost savings and operational efficiencies.
- Improvements: Real-time monitoring, improved asset tracking, enhanced safety and
security, and optimized resource utilization.
6. Blockchain Technology:
- Financial Implications: Initial investment in blockchain implementation and integration
might be significant, but the enhanced data integrity, security, and transparency could lead to
long-term cost savings, especially in areas such as customs clearance and documentation.
- Improvements: Secure and transparent record-keeping, reduced administrative costs,
minimized fraud, and improved compliance.
7. Training and Change Management:
- Financial Implications: Investment in comprehensive training programs might be required,
but proficient staff and effective change management could lead to faster adoption of new
technologies and processes, ultimately resulting in improved productivity and customer
satisfaction.
- Improvements: Proficient staff, smoother transition to new systems, increased user
satisfaction, and continuous improvement through feedback mechanisms.
VII. Recommendations and Conclusion:
The port's information systems play a crucial role in ensuring smooth operations and
efficient management. Based on the analysis and cost-benefit analysis, the following
recommendations are suggested for optimizing the port's information systems:

Recommendations Benefit Challenge Implementation

consideration

1. Implement a By implementing a robust the conducting a

robust cybersecurity strategy, the continuously comprehensive risk
cybersecurit port can protect its evolving nature assessment to identify
y strategy to information systems from of cyber potential
protect potential cyber attacks. threats, the vulnerabilities,
against The potential benefits of need for investing in advanced
cyber implementing a robust ongoing cybersecurity
attacks. cybersecurity strategy monitoring and technologies and tools,
include protecting updates to regularly updating
sensitive data, minimizing security security protocols and
the risk of disruption to measures, and systems, and providing
port operations, and the need to regular training and
maintaining the integrity ensure that all education to all port
and reliability ofthe employees are workers on
information systems trained and cybersecurity
aware of awareness and best
 cybersecurity practices
best practices.

2. Integrate smart technology and IoT the need for conducting a feasibility
smart devices can enhance significant study to assess the cost
technology operational efficiency, investment in and benefits of
and IoT improve cargo tracking infrastructure integrating smart
devices to and management, and and technology, technology and IoT
optimize enable real-time data the potential for devices, developing a
port analysis for better compatibility clear implementation
operations decision-making. The issues between plan and timeline,
potential benefits of different ensuring compatibility
integrating smart systems and and interoperability
technology and IoT devices, and the between different
devices include improved concern for systems and devices,
supply chain visibility, cybersecurity implementing robust
reduced downtime and vulnerabilities cybersecurity measures
delays, enhanced asset in IoT devices. for IoT devices, and
tracking and management, providing training and
and increased operational support to port
efficiency personnel on the use
and management of
smart technology and
IoT devices

In conclusion, Vietnamese port logistics information systems play a critical role in supporting
the efficient and competitive operation of ports and enhancing the overall performance of the
maritime supply chain. However, they face various challenges related to infrastructure,
interoperability, data quality, cybersecurity, and regulatory barriers. Emerging trends such as
digitalization, e-commerce growth, sustainability, port modernization, and supply chain
resilience are shaping the future development of port logistics information systems and the
Vietnamese maritime industry. Addressing these challenges and leveraging these trends will
be essential for realizing the full potential of port logistics information systems in Vietnam.