IT seen as transport industry fix

Information technology could provide solutions to problems unearthed during the independent truckers’ strike, transport industry officials argued yesterday. Sharing information on cargo and available trucks by clients, transportation firms, brokers and drivers could reduce the number of empty-handed drivers and enhance transparency in shipping fees and transactions, they said. In a cargo terminal in Yangjae-dong, southern Seoul, a number of brokers had set up their offices side-by-side. On wooden beds in the offices lay truck drivers waiting for cargo deliveries. The truckers sleep and wait for days until the brokers obtain deliveries after paying off large transportation firms. “If data on cargo and available trucks were shared on the Internet, deliveries could automatically find their way to empty trucks,” said a truck driver, who gave his name as Mr. Kim. “But transportation firms are reluctant do so,” because they would lose commissions, he said. Brokers transfer contracted deliveries to other brokers if they cannot find enough trucks or drivers, and charge fees for such transfers. It is usually the first step in a series of multi-tiered subcontracts. “To resolve the backwardness of the shipping and transportation system, cargo information systems [electronic logistics] already developed by businesses need to be used more efficiently,” a transportation industry official said. SK Corp.’s synthetic resin factory in Ulsan has already set up a Web site which offers cargo, shipment and order information to four transportation firms, enabling these firms to file immediate deliveries. The transportation firms are collaborating with 40 other firms in Ulsan to manage the Internet site (www.netruck.co.kr) in partnership with SK Netruck. The cooperative effort has so far reduced empty trucks by 20 percent and increased profits. Under the system, shipping fees are kept crystal clear. The fees are divided into commissions for brokers and actual fares for drivers. “All processes are managed transparently. Transportation firms can reduce costs and truckers are satisfied,” said Cho Do-hyeon, a senior official at SK Netruck. The government selected KT Corp. as a developer of an advanced logistics information system in 1998. SK Netruck followed suit by using its mobile communications network, while other start-ups jumped into Internet logistics information services. However, only a few thousand of KT’s logistics information systems are now being used around the country. An industry official said companies that placed orders, transportation firms and brokers were reluctant to adopt the system out of fear their revenue sources would be revealed. “Disclosing cargo information makes multi-level subcontracts impossible,” the industry official said. “It is problematic that many companies routinely provide shipping jobs to ex-company officials or relatives of company owners.” Other industry officials said the government should provide businesses that use logistics information systems with benefits, such as tax breaks. by Lee Young-lyoul