On-time departure rate up. Less congestion. RFID changes ferry travel.

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1 On-time departure rate up. Less congestion. RFID changes ferry travel. Singapore is a key international hub and Singapore Cruise Centre Pte Ltd which manages 4 terminals, decided to improve its IT systems as part of extensive services upgrading programme starting with its ferry terminals. Part of the project was to introduce a new passenger management system that makes use of NEC s RFID technology. The system has simplified boarding procedures, enabled real-time monitoring of passenger status, brought new efficiency to operations, improved customer service levels and reduced costs as well. Mr. Cheong Teow Cheng President, Singapore Cruise Centre Pte Ltd. Business environment, challenges, purpose of installation Smoother, more comfortable ferry travel. Urgent need to adapt to increasing passenger load. Singapore Cruise Centre Private Limited owns 3 ferry and 1 cruise terminal in the country, and handles more than 6 arrivals every 20 minutes at the ferry terminals. Over the course of the year, over 6 million ferry passengers go through its doors. During rush times, it is not uncommon to see long queues forming at the ticket vendors, baggage handlers, entrances, immigration desks and boarding gates. Previously, each voyage, the passenger is issued a disposable paper ticket, requiring large numbers of staff to man the check-in counters and control boarding and disembarkation. Creating passenger baggage records was another cumbersome process that often was impossible to complete by the scheduled departure time. The ferry terminals needed to simplify overly complex immigration control procedures as well. If a ferry is late in departing because of the need to confirm that all passengers have boarded or taken all their luggage, service levels is compromised and revenue losses will result. In this age of increasing terrorist threats, this is needed to address the security concerns of the passengers as part of their service delivery.

Outline of system Multiple use tickets capable of large-volume data storage RFID structure When SCCPL embarked on a complete overhaul of its IT systems, they chose to work with NEC to implement the

2 Outline of system Multiple use tickets capable of large-volume data storage RFID structure When SCCPL embarked on a complete overhaul of its IT systems, they chose to work with NEC to implement the first NEC s SPOS (Sea Passenger Terminal Operating System) in Asia. The RFID system is responsible for everything from passenger ticketing to boarding confirmation. Each passenger is issued an RFID card. The RFID tag allows it to be used over and over a large number of times. It also has a built-in memory chip where it retains the passenger s personal information. The whereabouts of all passengers and baggage are tracked each time they pass through the various stages of check-points where a boarding card reader/writer has been installed. This allows officials to identify passengers who board under false identities or who have checked-in their luggage but did not board the vessels. Impact Greater passenger comfort. Cost savings. Shorter times to departure, reduced HR costs. Installation of the RFID system has had dramatic effects for the company. President Cheong began by explaining the impact on the management side: We now have an on-time departure rate for our ships of 99.95%. While creating baggage claim tags and baggage lists used to be a time-consuming process, the operator can now print them out by

3 using the information kept in the RFID, which has helped to improve the on-time departure rate. President Cheong says there have also been some time savings: Using RFID technology allows us to accurately monitor at all times which passengers have boarded and which ones have completed immigration procedures. We know where passengers are at every stage of the process from ticket issuing to boarding. It used to be that staff would walk around trying to identify who was missing. Now if we have someone who has not boarded or not completed immigration procedures, we can announce their names over the PA system, and lets them know where they should be. This helps us to save time. There has been an enormous impact on security as well. By strengthening immigration control procedures, We have become able to identify baggage and connect it with its owner. For example, if we find that a ferry passenger has failed to board, we can identify his or her baggage, no matter how small it is, and take it off the ship. This is an effective means of combating terrorism. President Cheong also says that the system has reduced the ferry operators and its staffing costs: Clearly, we have been able to save on manpower. The boarding process is quicker and more efficient, and there is less need for human involvement. All of this translates into cost savings. Payrolls are climbing ever higher, and it is wonderful that we can use technology to cover some of the things that used to be done by humans. Furthermore, there is the fact that the RFID tag can be realized. We used to print out boarding passes on paper, and they had to be thrown away after they were used. The RFID boarding card is great for the environment. It also has a built-in memory chip that enables us to save customer information, something that is vital for our business, and that is another key benefit, says President Cheong. Outlook for the future Once it spreads to neighboring countries, ferry travel will be much smoother. Extending the system to other ports of call President Cheong is confident that passengers would enjoy even greater convenience if similar systems were introduced at other ports of call. Perhaps that day will come in the not too distant future. Indonesian Port, for instance, has sent its people to view the system at ferry terminals operated by Singapore Cruise Centre Private Limited. Our ferries travel to Indonesia. The country has its own immigration control system and the port procedures apparently still require a great deal of time. If they were to introduce the same system as ours, they would certainly see a sharp leap in their work efficiency. Indeed, having a common system that is suited to the needs and circumstances of individual countries would result in much more comfort and convenience for ferry passengers throughout the entire voyage.

4 Expectations for NEC President Cheong gives NEC high marks for operational efficiency and passenger convenience of the new system: NEC responded very professionally and responsibly to all of our requests throughout the process. He has great expectations for the future as well: We will have an open mind about installing any new technologies that they developed if they are solutions that will achieve greater efficiency and convenience. President Cheong declares flatly that technology is a tool for advancement. If NEC develops any new solution, we will examine it very closely as something that could improve our future as well, he says enthusiastically.

5 Key points in system structure This system utilizes RFID, as proposed by NEC alone. Ordinary barcode systems may be able to do the same operations, but when the future is included in the overall picture, NEC is convinced that RFID will be able to better provide solutions for various issues. Tomohiro Yagi NEC ASIA Chief Executive Officer This system, incorporating RFID, may totally transform ferry terminal operations. NEC presented a working prototype and ROI calculations. The project began by identifying what the operational challenges that SCC faced as it examined new systems was. Strengthening security has been an urgent issue since 9/11, but the fact of the matter is that ships cannot be as accurately scheduled as airplanes, and this has served as a constraint. NEC proposed the use of a new technology called RFID that is able to monitor the human environment in real time. We were confident that this system would not only help ferries stick to their schedules but also improve security management. Prior to this, RFID had never been used with ordinary consumers, and this was our first attempt at applying it to something commercial use like a boarding tag. It was also the first time for NEC to take on a large project such as this involving the use of approximately 4 million* tickets a year. * Some 6 million passengers use the ferry terminals, but RFID tickets have yet to be implemented for some routes (used by approximately 2 million passengers). The project was a competitive tender, but all of the other bidders proposed barcode systems. We decided to propose reusable RFID, which can be used for a long time, because the costs can be saved in long term and it provides a total, integrated solution by real-time management. The other factor in our selection was probably that we were the only ones who were able to show a working prototype at the presentation stage. It was still an early unit, but we were able to show them the real thing. Another reason in our success was that we presented the customer with ROI calculations. This more clearly communicated to them what we were aiming for. At the same time, they were able to see that over the long term it was not nearly as expensive an investment as they thought it would be, that they could achieve the efficiency gains and that they would also save on costs. Reusable boarding pass can also monitor passenger movement. For the passenger, the process begins with the issuing of a boarding pass at the counter. Passenger identity is verified at this stage before they move to the immigration area. Once the immigration screening is complete, the passenger

6 immigration screening is complete, the passenger is able to move to the pier. When the ship arrives, passengers progress into the boarding area and finally take their place on the ship. RFID is thermally printed with the name of the vessel and the destination. The information is heated to 120 C again, it is erased. In other words, the RFID component is rewritable it can be used over and over again. Conventional paper tickets cost 3 cents each, but must be disposed of after they are used. This system results in a significant savings on boarding pass issuing costs by using the RFID tag repeatedly. Another important point is that the whereabouts of all passengers are known at all checkpoints. We instantaneously know which passengers are where. The RFID system tracks passengers at all checkpoints, providing an instantaneous picture of who is where. RFID, with its limitless potential, further broadens business chances We believe there are significant business opportunities for this technology anytime that real-time monitoring or safety becomes important issues. For example, Singapore will be building 2 large casinos within the next couple of years. It should be possible to apply RFID throughout their operations. For instance, one of the casinos will contain a Universal Studios park. The Universal Studios Japan in Osaka already makes use of NEC s solutions to create a reservation system for popular attractions. From the customer s perspective, they have come to Singapore for their holiday and want to enjoy as much entertainment as possible during a limited period of time. They want maximum performance and appreciate the convenience. RFID can provide the basis for a CRM solution. There is not that much difference between the component technologies underlying a conventional barcode system and our RFID system. Looking at near-term costs alone, barcodes might have been a good choice, but we wanted a proposal that took the future into account. Obviously, real-time management and secure management were chief concerns, but we also looked at operating costs, environmental factors and rewritability. All of this provides added value that to us made RFID a superior choice. In other words, we were confident that we could differentiate ourselves by offering a total solution. There were many challenges that had to be overcome, but our basic attitude is to "never give up" and "never inconvenience the customer." One of our strengths is that we compete on full solutions rather than individual components.

7 Customer Profile Company: Head office: Began operations: President: Outline: Singapore Cruise Centre Private Limited (SCCPL) Singapore B1991 Mr. Cheong Teow Cheng A wholly-owned subsidiary of Hazeltree Investment ( a Temasek Holdings company). SCCPL operates the largest ferry and cruise terminal in Asia. Its routes extend to neighboring countries and serves as an international hub for both local and overseas people. URL:

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