Impact of a radio-frequency identification system and information interchange on clearance processes for cargo at border posts

Abstract

Background: Improved operational efficiency is important to role players in cross-border logistics and trade corridors. Cargo owners and cargo forwarders have been particularly concerned about long delays in the processing and clearing of cargo at border posts. Field studies suggest that these delays are due to a combination of factors, such as a lack of optimum system configurations and non-optimised human-dependent operations, which make the operations prone to corruption and other malpractices.

Objectives: This article presents possible strategies for improving some of the operations in this sector. The research hinges on two key questions: (1) what is the impact of information interchange between stakeholders on the cargo transit time and (2) how will cargo transit time be impacted upon by automatic identification of cargo and the status of cargo seals on arriving vehicles at the border?

Method: The use of information communication systems enabled by automatic identification systems (incorporating radio-frequency identification technology) is suggested.

Results: Results obtained by the described simulation model indicate that improvements of up to 82% with regard to transit time are possible using these techniques.

Conclusion: The findings therefore demonstrate how operations at border posts can be improved through the use of appropriate technology and configuration of the operations.