Economic Value of Inland Port: The

Perspective of Transport Information System

Kamal Imran Mohd Sharif, Alieff Iqmal Arman
School of Technology Management and Logistics, Universiti Utara Malaysia, 06010 UUM Sintok, Kedah, Malaysia

kamalimran@uum.edu.my, alieff_iqmal_arma@stml.uum.edu.my

INTRODUCTION
Over the years, we have look that the global international trade has significantly growth on
the supply chain activities. The trade activities have contributed the rapid growth of the
national economy. Moreover, trade or logistic has become a major activity in managing the
flow of the supply chain from the origin to the destination point. For this article, we look on
the inland port and the economic value based on the perspectives of transport information
system around the world. An inland port is a specialised centre or location built to support the
intermodal transportation network. It is becoming especially prominent in local, national, and
international transportation networks around the world. Thus, in this paper, we want to relate
on the usage of transport information system and how their impact on the economic growth
of the inland port. Furthermore, this paper will show a classification and a comprehensive
type of transport information systems technologies applied in inland port.

LITERATURE REVIEW
To most of the inland ports, increasing terminal throughput and thereby productivity has
become a challenge, particularly as larger container ships put pressure on port operations.
Throughput can be improved by purchasing more effective intermodal equipment and
possibly expanding terminal facilities. Inland ports emerged in a number of locations around
the world, specifically in regions where the expansion of inland freight delivery necessitated
a massification of flows. Inland ports add value to global supply chains and can contribute to
making transportation trade corridors more efficient by allowing for better service levels,
value-added assembly/processing of imports, and lower overall supply chain costs (Jolanda
Prozzi, Russell Henk, John McCray and Rob Harrison, 2002). According to Kusumal
Ruamsok, Dawn Russel, Violeta Rosso and Gunnar Stefansson (2013), inland port around the
world has boosted the growth of the transportation and logistics sectors in the global
economy by stimulating logistics activities and demand for supporting infrastructure.
According to Nizamuddin, Adam Saifudin, Mohd Hasnizan, Ahmad Yusni and Ruzelan
(2019), there are five available inland ports in our country which is:

I. Nilai Inland Ports – Provide the logistic services activity to the Central Region.
II. Ipoh Cargo Terminal - Imports and exports are made easier for Kinta Valley
businesses, and imports from Port Klang are distributed.
 III. Batu Pahat Container Terminal – The barge feeder terminal that connecting to
Pasir Gudang industrial zone to the Selangor Port Klang.
IV. Tebedu Inland Port – Facilitating from the Malaysia and Indonesia between
Sarawak and Kalimantan region.
V. Segamat Inland Port – Provides the feeder rail link between South and Central
region which is from Port Klang Selangor to Johor.

Based on the tasks listed above, inland ports in Malaysia have become increasingly important
to facilitate the province's trade by allowing goods to be transported and distributed from
seaports to their final destinations. Malaysia's rising trade and container traffic has prompted
seaports to expand their capacities and facilities in order to keep up with the nation's
economic development.

Many inland ports have implemented the change toward the advancement technology and the
system with the emerge of Internet of Thing (European Federation of Inland Ports, 2017).
The federation believe that the transition of the technology on the transport information
system will boosts the efficiency of the inland port with the cost-effective manner. According
to FAL (2012), the transport information system is associated with the infrastructure, freight
and the port operation to provides better logistic services. Transport information systems
have become critical to ports' competitiveness, enabling communication and decision-making
in order to improve visibility, performance, reliability, and protection in port operations under
a variety of conditions (Leonard and Stefan, 2017).

ROLES OF INLAND PORT

Inland ports are part of a specialised centre or location built to accommodate the intermodal
transportation network. The ports appeared in a variety of locations around the world,
especially where the growth of inland freight distribution facilitated a massification of
flows.It has now become a vital part of local, national, and international transportation
systems around the world. Nizamuddin et. al. (2019), an inland port provides facilities and
consolidation of goods, as well as maintenance for road and railway cargo carriers and
customs clearance services, in conjunction with its purpose. In addition, as a freight
distribution centre, every type of inland port plays an important role in the freight
transportation system. Inland port also have becoming the crucial role in contributing the
international trade in line with the sea port or airport cargo. This also facilitate as a gateway
to the international trade by giving access to the manufacturer and producers from the inland
to seaport. Other than that, the infrastructure of the inland port has become important to the
logistic activity from the foreland to the hinterland.

An inland port offers facilities for the handling and temporary storage of containers, as well
as general and/or bulk cargo that enters or exits the inland port through any mode of
transportation, including roads, railways, inland waterways, and airports. Full customs-related
services and other related services, such as necessary cargo export and import inspections,
should be established in a port terminal to facilitate freight movement from the seaport to the
inland and vice versa. The concept of an inland port is based on a seaport that is directly
linked by rail to inland intermodal terminals where containers can be handled in the same
way that they would be in a seaport. However, according to Jean Paul Rodrigue and Antoine
Fremont (2010), they have a few the criteria and roles of the inland transport around the
world that need to be highlighted here such as.

I. Containerization

The handling of containers, both maritime and domestic, is the primary function
of an inland port, but other intermodal operations, such as swap bodies, also play a
important roles. Consolidation, deconsolidation, transloading, and light
manufacturing are examples of added value activities.

II. Dedicated Link

The high-capacity corridor must link an inland port to a port terminal. Truck
shuttle services may be used, but dedicated rail or barge connections are the great
option.

III. Massification

In order to achieve economies of scale in logistic activity distribution, an inland

port must be able to accommodate greater volumes at lower unit costs. Direct
services from the maritime terminal, on the other hand, are a better choice.
Massification and a dedicated link are driving significant.

In Malaysia, inland ports act as vital role to depressurize the increasing number of the freight
container at the major seaport. The container can be placed on the inland port to avoid the
congested at the seaport with the arise of the vessels. For example, from Port Klang can link
with the inland port in Nilai for the storage of the container. Therefore, inland port in
Malaysia provides the link between the international border in the Sarawak and Kalimantan,
Indonesia.

ECONOMIC VALUE OF INLAND PORT ON THE TRANSPORT INFORMATION

SYSTEM PERSPECTIVES

Inland port is the crucial factor in the contribution of the nation economy development. They
serve as a connection between the supply chain activities with the international trade to
adding an economic value. For this paper, we want to look from the transport information
system perspectives. Transport information system is dedicated to facilitating end to end the
process of the logistic management in the inland port. Good transportation system
management are needed for the inland port to gain efficiencies and economic value. To
improve process of management of the container in the inland port, transportation
information systems can give benefit to reduce any delay. They collect, store, and distribute
data about freight, traffic, and vehicle operating variables, allowing human resource and
equipment management to improve the container management in the inland port. They have
many benefit on the emerging of the transport information system toward the inland port
management. In addition, they are several concept of the advancement of technology on the
transport information system to the management of the inland port such as;

I) Radio Frequency Identification (RFID) in the inland port

Provides a real time identification to the movement of the freight in the port.
Cashless transaction such as tax, tariff and custom duty can be payable via the
RFID tag on the freight container. The freight container also can easily be tracked,
and all of the information will be stored on the tag. With this tag, all of the process
in the port will be automation process.

II) Traffic Management System

The advancement of the automated cargo traffic in the port. Giving a real time
access on the movement of the cargo vehicles throughout the port. The traffic can
be controlled to avoid congested issues. A scheduled time will be given to all
cargo vehicles before their arrive at the inland port.

III) Automated Identification System

This technology is used for the security on the inland port. The identification of
the people when their enter at the port will be access in real time for the
inspection.

Transport information systems have become critical to ports' competitiveness, improving

efficiency and decision-making in order to improve visibility, performance, reliability, and
protection in port operations under a variety of conditions to the inland port. We can now see
how digitalization and integration, supported by the implementation of fabrication
information technology and transport information systems have resulted in a high level of
automation and streamlining in port procedures, especially in port facilities. All of this kind
of technology is to focus on the increasing of the economic value of inland port even in
Malaysia or other countries. It will optimize the inland operation management or freight
processes. From the transportation information system perspectives, the usage of the system
technology can help to added economic value to the inland port operation management. Many
benefits can we get so it can increase the inland port performance and the growth of the
national economy.

CONCLUSION

Regarding to the transport information systems and enabling technologies are an integral and
necessary component of port operations, allowing for the collection, sharing, review, and
dissemination of critical data among various port operators. The objective of this paper is to
explain the perspectives of the transport information system toward the economic value of the
inland port. The fact that many economic values that derived with the transport information
system technology. Regarding to the perspectives, the advantages and economic value to the
inland port which is:

I) Sustainable and gain efficiency throughout the modes of transportation including

rail and multimodal.
II) Achieving the maximum capacity of the distribution of freight container in the
inland port.
III) Combine import, export and all supply chain activities in same location or inland
port.
IV) Shorter turnaround time to the inland port from the seaport.

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