Essay: An Evaluation Of The Impact Of A Port Community System On The Logistics Supply Chain Of Mauritius

ABSTRACT
A Port Community System, also known as PCS, is ‘a neutral and open electronic platform enabling intelligent and secure exchange of information between public and private stakeholders in order to improve the competitive position of the sea and air ports’; optimises, and automates port and logistics efficient processes through a single submission of data and connecting transport and logistics chain’, (European Port Community Systems Association, EPCSA). The Port Community System of Mauritius, also known as the Cargo Community System (CCS), is being implemented since 2008 by the public-private company called Mauritius Cargo Community Services Ltd (MACCS) appointed by the Government of the Republic of Mauritius to build and manage a national CCS, in view of improving the logistics supply chain operations of the country pertaining to cargo movements. Its vision is to develop Mauritius as a regional trade and transport hub sustained by a World Customs Organisation SAFE Framework of standards. The company’s mission statement ‘Sharpening the Competitive Edge of Mauritius’ reflects that vision with objectives; to enable the cargo community and Customs Authorities to facilitate and secure global trade; to increase Mauritius’ competitiveness by providing Cargo Community Systems and related services; and to implement a World Customs Organisations SAFE Framework of Standards to secure the international supply chain. The research focuses on part of the logistics community of Mauritius as target group, which involves as end users; The Importers, Exporters, The Shipping Lines, The Freight Forwarders, The Customs House Brokers, The Container Freight Stations and the Airlines. This dissertation assesses the effect of such a system on the logistics supply chain and the end users of the PCS, and on how far the project is meeting its objectives. This academic writing also evaluates the degree of acceptance of the system by the logistics community of Mauritius, while determining if and how the system has transformed the operations of the logistic supply chain, to cope with the increasing complexity of the latter and the increasing volume of cargo entering, leaving or transiting through the country.

List of Acronyms

ACI Advance Cargo Information
AGV Automated Guided Vehicle
ASI American Systems Inc
API Advance Passenger Information
APICS American Production and Inventory Control Society
CCS Cargo Community System
CSI Container Security Initiative
C-TPAT Customs-Trade Partnership Against Terrorism
EDI Electronic Data Interchange
FIRST Freight Information Real- Time System Transport
IRN Import Release Notice
IOIS Inter-Organisation Information System
ISD Information System Development
LPI Logistics Performance Index
MACCS Mauritius Cargo Community Services Ltd
PCS Port Community System
TAS Temporary Access for Scanning
TEU Twenty-foot Equivalent Unit
WCO World Customs Organisation
WTO World Trade Organisation

1.0 INTRODUCTION
1.1 Introduction to the study
‘Ports are potential bottlenecks in Global Supply Chain’ (Hercules Haralambides, 2008). Consequently, the Global Supply Chain embraces the interconnection of the local supply chains in all countries in the world, which means each country has a potential bottleneck with the presence of a port. A bottleneck is defined as ‘a condition that restricts the free movement of traffic, creating a point of congestion where demand exceeds capacity for a given length of time’ (Elyse Golob, 2008). With the increasing logistics transactions that are taking place in Mauritius, it was vital to eliminate the bottleneck brought about by its maritime sea and air ports, in order to avoid refraining of its economic growth. However, bottleneck was not the only main matter. Other areas of improvement included transparency, visibility and security over the logistic supply chain; compliance with World Customs Organisation norms and standard; and the improvement of the countries’ product competitiveness worldwide. In this optic, countries with considerable economic growth rate such as Singapore, United States, Hong Kong and China, have adopted a common strategy for addressing this problem; The Port Community System (PCS). The PCS of Mauritius is called the Cargo Community System (CCS) and this study relates to its impact on the Mauritian Logistics Supply Chain and the latter’s operational performance and efficiency.

1.1.1 Globalisation and International Trade
‘Globalisation refers to the growing interdependence of countries resulting from the increasing integration of trade, finance, people, and ideas in one global marketplace (World Bank, 1996). It started after World War II and experienced a considerable acceleration in the mid-1980s because of two main factors; technological advances and liberalisation of trade. Liberalisation of trade has in turn revolutionised International Trade, also known as Global Trade, which encompasses the exchange of capital, goods and services across international borders or territories. Statistics have shown that the amount of external trade activities for a developing country like Mauritius generally increases over the years, due to globalisation. Greater volumes of exports and imports are being observed over time, implying increase in the physical movement of goods across boundaries such as sea and air ports. Rise in transportation of goods brings about more cross border verification and therefore adds complexity in the control of cargos and Customs’ excise duties. The cascading effect described above resulted in the need for a centralised system which would address the complexity problem emerging from globalisation and international trade. The table below displays the external trade statistics for Mauritius from the year 2007 to the year 2012. The combination of the exports and imports followed a general upward trend as illustrated in the figure that follows.

Table 1: External Trade Statistics for Mauritius.
(In Million Rupees)
Year Total Export Total Import Grand Total
2007 69,708 121,037 190,745
2008 67,970 132,165 200,135
2009 61,681 118,444 180,125
2010 69,550 134,882 204,432
2011 73,586 147,815 221,401
2012 79,658 160,996 240,654

Fig 1: Trend of External Trade Statistics for Mauritius

1.2 Background Information
‘Logistics is the process of planning, implementing, and controlling procedures for the efficient and effective transportation and storage of goods and services, and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements and in conformity with nature’ (The Council of Supply Chain Management Professionals, 2006). The interaction of all the companies contributing to this complete process forms a chain termed, the ‘Logistics Supply Chain’. The latter includes the Customs Authority, the Ports Authorities, the Container Freight Stations Warehouses, the Freight Forwarders, the Customs Brokers, the Shipping Lines, the Air Lines and Agents, the Importers and the Exporters. The logistics supply chain process was manual and somehow inefficient years ago while the Customs was exerting a punitive role over the logistics community instead of acting as a Trade facilitator. Furthermore, there was no visibility over the whole chain with respect to the status of the cargos. Containers remained days at the terminal because of the long clearing process. Transhipment, which is the transit of containers through Mauritius to other countries, took two days or more, making the port of Mauritius not competitive from an international point of view. To obtain Customs clearance of cargos, logistics operators had to physically attend the Customs premises, queue up with a considerable amount of documents over hours. There was no visibility of where has a specific cargo reached, or when is it expected to arrive, hence no information over the supply chain by the Authorities to help them perform the required risk management.

1.2.1 The MACCS Ltd
The Mauritius Cargo Community Services Ltd (MACCS) is a public-private company which was appointed by the government of Mauritius to build and manage the national Cargo Community System (CCS) (MACCS web site, 2014). The MACCS was incorporated in January 2008 with a view to address the three nationwide objectives below;
1. The improvement of Mauritian products’ competitiveness on the global scale.
2. The development of Mauritius as a regional trade and transport hub for the region.
3. The implementation of a World Customs Organisation SAFE Framework of Standards to secure the international supply chain.
International wise, the main motivation behind such a project emerged from the tightening of port security by the United State (US) Customs after the September 2001 World Trade Centre terrorist attacks in the US. The ’24 hour rule’ was implemented following those incidents, whereby US Customs need to be fully informed on shipments of goods, 24 hours before they depart from the port of origin. It is indeed essential to note that Mauritius is a signatory of the World Customs Organisation (WCO) SAFE Framework Standards ratified agreement and has the duty and responsibility to comply with its regulations. The framework aims at securing and facilitating global trade by providing advance electronic cargo information in the form of Electronic Data Interchange (EDI), and by using risk management to address potential security threats. The Government of Mauritius is duly represented by the State Investment Corporation Ltd (SIC), the Mauritius Ports Authority (MPA) and the Cargo Handling Corporation Ltd (CHCL). The Importers, Exporters, Freight Forwarders, Shipping Lines and Customs House Brokers have omnipresence through the different bodies which are; the Mauritius Chamber of Commerce and Industry (MCCI), the Mauritius Export Association (MEXA), the Customs House Brokers Association (CHBA), the Association of Mauritius Shipping Agents (APAMM) and the Professional Association of freight Forwarders (APT).

Fig 2: Shareholders of the MACCS

1.2.2 Electronic Data Interchange
Electronic Data Interchange (EDI) is ‘the computer-to-computer exchange of business documents using standard formats’ (Teschler, 1991). It is the automatic interchange of information in pre-defined and consented electronic format between the logistics stakeholders such as the Customs, the CHCL, the MNS and the MACCS. According to Teschler, the use of EDI has as advantages; the sustainability of low prices in competitive markets, the tightening of inventory controls, the elimination of delays and the reduction of administrative tasks. The continuous emphasis on customer-driven needs, the awareness of industries on the advantages of EDI in the marketplace and the understanding by management that EDI is a whole method of approaching business are the major factors that stimulates the use of EDI today. The mode of transfer of information within and around the CCS architecture is actually through the EDI technique.

1.2.5 The CCS
The Cargo Community System (CCS) of Mauritius is a Port Community System adapted to the local environment of the country. The latter links major stakeholders to the MACCS Ltd, namely the MRA Customs, the Cargo Handling Corporation (CHCL), the Mauritius Network Services Ltd (MNS), the Mauritius Port Authority (MPA) and the Air Ground Handling Agents (GHA). They are called the users of the CCS and form an integral and interactive part of the PCS. The CCS is built on robust and cutting edge servers, telecommunication equipment and software supported by a team of highly skilled IT Engineers to ensure the continuous operation of the system. Moreover, the system is duplicated to a secondary backup site called a Disaster Recovery site as a measure of precaution against disastrous and cataclysmic events such as fire, tsunami, earth quake and flood. A simplified setup of the CCS illustrates the flow of information between the parties to provide a common service to the community, for the community.

The end-users of the CCS however include the Importers, the Exporters, the Shipping Lines, the Freight Forwarders, the Customs House Brokers, the Bunkering Agents, the Customer Freight Stations and the Airlines. They form the beginning of the Logistics Supply Chain by inputting the first information into the web based CCS system. The information in the form of electronic documents is then worked upon by the users of the structure which are the Customs, the CHCL, the MNS and the GHAs. For example, a document called Master Manifest is keyed into the CCS by shipping lines for submission of details about the content of a ship, 24 hours prior to the departure of the vessel from its port of origin. The Freight Forwarders and Customs House Brokers then input more detailed information in the House Manifest document into the CCS. The two documents are sent to the Customs, through the MNS for checking, validation and reconciliation in the form of a Customs Declaration (CUSDEC). The end result is returned back to the CCS in the form of a Customs Response (CUSRES), which in turn is interpreted by the CCS and communicated to the end users in terms of Customs Clearance and other similar forms. The CCS is at the centre of the community, acting as an interpreter and a centralised platform linking all the stakeholders by means of real time Electronic Data Interchange.

Fig 3: The CCS Operations Architecture

1.2.6 Logistics Economic Performance – The Logistics Performance Index (LPI)
At a point in time, the Government of Mauritius and the private stakeholders of the logistics community decided to bring a paradigm shift to the cargo industry, by implementing and regulating the SAFE Framework in compliance with the World Trade Organisation. An additional motive behind this decision was to make the ports more competitive vis-??-vis international ones, especially within the region. This would have a direct bearing on the country’s economy since, the more we export, the more is the inflow of exchange currencies, the better is the circular flow of money, and healthier is the county’s economic situation. One of the major contributors to this drastic change would be a Port Community System. The benefits foreseen from such a system were of national and international proportions. The main paybacks of the system were cantered around an international key performance indicator (KPI), the Logistics Performance Index (LPI), which is the weighted average from 1 to 5, of the country scores on the six key dimensions. The LPI is assigned by the World Bank and relates to; efficiency of the clearance process, that is speed, simplicity and predictability of formalities by border control agencies, including Customs; quality of trade and transport related infrastructure such as ports and information technology; ease of arranging competitively priced shipments; competence and quality of logistics services; ability to track and trace consignments; and timeliness of shipments in reaching destination within the scheduled or expected delivery time.

1.3 Problem definition
Port Community Systems in the world exist for more than 35 years, starting from the late 70s in Germany, France and UK (EPCSA, 2013). The Port Community system of Mauritius, the Cargo Community System was incorporated in 2008, based on the French CCS model, after a strategic partnership with SOGET SA of Le Havre, France. SOGET is the leading Port Community System operator in France and is the inventor and sole provider of the PCS called SOGET AP+ which has proven its efficiency and reliability in the great ports of Le Havre, Caen, Calais, Dieppe, Fecamp, Honfleur, Ile De France, La Rochelle, Nantes, Rouen, Cotonou, Pointe-a-Pitre and Jakarta. A PCS, if well implemented brings about considerable positive changes, not only to the logistic supply chain but also to the economy of a country. This study aims at assessing the bearing of the CCS on the Logistics Supply Chain and the evaluation of the system’s implementation against success or failure. The research is intended to determine whether the objectives of the project have been met and possibly fill gap to theories on the subject.

1.4 Significance of the study
Five years after the start of the implementation of this globa project, the time has come to gauge, monitor and adjust such a project against theories, factual evidences from other similar projects in other countries and obviously against initial objectives set right from its start. The stakeholders shall be aware of the drastic changes that occurred, if any, within the Logistics Supply Chain over the past five years, which will be ascertained through this study. Management and shareholders of the CCS project shall acquire formal evidence of the completion of their mission and realisation of their vision after their massive investment in this unique endeavour. Finally, this study will help acquire additional knowledge on the over whole influence of a Port Community System on a country’s logistics operations and economy. The completion of this study shall also broaden my understanding of the business and its main existence, while bringing management knowledge to those concerned.

1.5 Objectives of the study
The benefits of Port Community Systems are based on theories, until proven true. They are not accomplished facts by default, meaning that it is not necessarily true that all the paybacks predicted accompanied the implementation of this Inter-organisation System. This statement drives the reason behind this study and leads the way to its objectives as follow:
1. To study how far the CCS project is meeting its objectives of;
a. Improving the competitiveness of Mauritian products.
b. Developing Mauritius as a regional trade and transport hub.
c. Implementing a World Customs Organisation SAFE Framework of Standards to secure the international supply chain.

2. To investigate the expected benefits of the CCS to the logistics stakeholders in terms of;

a. Reduction in dwell time.
b. Reduction in paper work.
c. Acceleration of the logistics operational processes.
d. Availability of real time information over the supply chain.
e. Reduction of delays in cargo movements

3. To determine whether the logistics community has experienced business growth with the introduction of the CCS system.

1.6 Research Questions
The research questions address the research objectives and are thus as follow;
1. Is the CCS project meeting its objectives of;
d. Improving the competitiveness of Mauritian products?
e. Developing Mauritius as a regional trade and transport hub?
f. Implementing a World Customs Organisation SAFE Framework of Standards to secure the international supply chain?

2. Are the expected benefits of the CCS to the logistics stakeholders ascertained?

3. Has logistics community has experienced business growth with the introduction of the CCS system?

1.7 Hypotheses
Based on the objectives and research questions, the hypotheses are formulated as follow:

HYPOTHESIS I:
H0: The CCS has not improved the competitiveness of the Mauritian products.
HA: The CCS has improved the competitiveness of the Mauritian products.

HYPOTHESIS II:
H0: The CCS has not helped Mauritius to develop as a Regional Trade and Transport Hub.
HA: The CCS has helped Mauritius to develop as a Regional Trade and Transport Hub.

HYPOTHESIS III:
H0: The CCS has not helped provide a World Customs Organisation SAFE Framework of standards to secure the international supply chain.
HA: The CCS has helped provide a World Customs Organisation SAFE Framework of standards to secure the international supply chain.

HYPOTHESIS IV:
H0: The expected benefits of the CCS are ascertained.
HA: The expected benefits of the CCS are not ascertained.
HYPOTHESIS V:
H0: The logistics community has experienced business growth with the introduction of the CCS system.
HA: The logistics community has not experienced business growth with the implementation of the CCS.

1.8 Structure of report
The report consists of five chapters. Chapter 1, the Introduction, provides an insight to the study whereby explaining the reason for implementing a Port Community System in Mauritius. It establishes the context by providing background information on the company operating the Cargo Community System (CCS), Electronic Data Interchange information format and The Logistics Performance Index. The chapter also defines the problem and significance of the study, introduces its objectives, defines the questions addressed in this research and formulates the hypotheses for a quantitative analysis. Chapter 2, Literature Review comprises of secondary data which act as a starting point and basement for the collection and analysis of primary data. It aims at covering every dimensions of the research, setting the ground for further findings based on previous researches. Chapter 3, Methodology details the steps undertaken to obtain primary data such as; determining the target population, the sampling size, the research instrument used, the data collection method, and some pre-research testing. Chapter 4 consists of the analysis of the primary data and the findings behind, which give rise to discussions integrated in the same chapter. The report ends with Chapter 5, recommendation and conclusion followed by a list of references.

2.0 LITERATURE REVIEW
2.1 Introduction
A Port Community System links the different actors of the logistic community and acts as a Risk Management platform for regulatory bodies like the Customs and the Mauritius Ports Authority. It is an Inter-Organisation Information System, namely a Business-to-Government one that sits in between the key players of the Logistics Supply Chain to enforce the World Customs Organisation SAFE Framework around the world. The success or failure of a Port Community System depends on many factors ranging from its acquisition to the complete satisfaction of the different Stakeholders that form the Logistics Supply Chain. The success of such a system plays a fundamental role in positioning Mauritius as a competitive regional trade hub in the region and providing at the same time, considerable benefits to the local business processes and the local logistics conglomerate.

2.2 The Port Community System
A Port Community System (PCS) is, ‘a neutral and open electronic platform enabling intelligent and secure exchange of information between public and private stakeholders in order to improve the competitive position of the sea and air ports’; optimises, and automates port and logistics efficient processes through a single submission of data and connecting transport and logistics chain’ (European Port Community Systems Association, EPCSA). It is an electronic platform shared by firms within the same sector, which connects the different systems utilised by the various organisations that forms a seaport, airport or inland port community. The most studied Port Community System in researches is the PORTNET in the Port of Singapore because of its complexity and high level of automation of its operations and processes. The latter handles a throughput of 29,800,000 (Data World Bank, 2012) twenty-foot equivalent units (TEUs) or simply containers yearly. However, the busiest port in the world is the Port of China with some 32,500,000 (Data World Bank, 2012) TEUs yearly. The Port of Hamburg, with its PCS called Data Communications System (Dakosy) and Container Authorisation System (COAST) is in turn the second busiest port in Europe with 9,000,000 (Data World Bank, 2012) TEUs yearly; the leader in Europe being the Port of Rotterdam with some 12,000,000 (Data World Bank, 2012) TEUs yearly. Surprisingly, the busiest port in the United States, the Port of Los Angeles handles only 7,900,000 (Data World Bank, 2012) TEUs yearly. These figures reflect the degree of economic activity that is taking place in the different countries, China being the biggest economic power.

One of the aims of a PCS is to provide Advance Cargo Information (ACI), defined by the World Customs Organisation as the advance electronic Customs data prior to the reception of cargo within the maritime realm. Analogically, Advance Passenger Information (API) is provided by the PCS in the aerial context. As per the World Customs Organisation, it involves the seizure of the passengers’ biographic data and other flight details by carrier prior to the airplane departure and the transmission of the details electronically to the Border Control Agencies in the country of destination. With large volume of tourists incoming, it is more and more vital to adopt effective risk management framework to avoid incidents similar to those of the World Trade Centre in 2001 in the United States.

2.3 Risk Management
‘A risk is the product of the probability of an event happening, and its consequences’ (Project Management Institute, 2008). Border Control Agencies such as the Customs and the MPA make use of risk management to identify, assess, control and in some cases mitigate risks associated with people and cargo movements. The risk level rises as the probability of occurrence increases with the level of impact. It is easier to predict and manage risks which occur the more often because they are said to be visible. The challenge arises when a risk has a relatively high impact but is unpredictable, that is the risk has a very low probability of occurrence. The figure below illustrates this thinking. Risk Management is defined as the act or practice of dealing with risk (PMI, 2008). Risk management involves planning for the risk, assessing risk issues by identifying and analysing risk, developing risk handling or risk management strategies, and monitoring the risk to be aware of how and when they change. Real time information is vital to be able to perform efficient risk management because a risk event can occur at any time. The Port Community System is a powerful tool for border control agencies to deal with risk as it provides considerable valuable advanced and instant evidences.

Fig 4: Risk as a function of its components (Probability & Impact)

2.4 Information System (IS)
Information System (IS) has transformed businesses the last decades as the use of internet for connectivity increases. Information System has become the ‘foundation for conducting business’ (Laudon & Laudon, 2012). Organisations can difficultly survive or even exist without extensive of Information Technology (IT). A set of interrelated components (people, hardware, software, communication networks) that collect (input), manipulate (processes), and distribute (output) information and provide a feedback mechanism (control) to achieve a purpose forms an Information System (Laudon & Laudon, 2012). According to Laudon & Laudon, business firms invest heavily in information systems to achieve six strategic business objectives which are; to achieve operational excellence; to generate new products, services, and business models; to attain customer and supplier intimacy; to improve decision making; to increase competitive advantage and, for survival. The CCS is an Information system that can help achieve operational excellence, improve decision making relative to risk management and sharpen the competitive edge of Mauritian products. There exist different types of information system but the Management Information System (MIS), the Decision Support System (DSS) and the Executive Support System (ESS) are of particular interest in the actual context. The CCS can fit these categories of system as and when required by; producing information on a periodic basis to middle management, using combined internal and external data to help higher manager in taking more informed decisions, and delivering summarised critical information to top management for strategic decision making respectively. The CCS is an Information System also classified as an Inter-organisation Information System.

2.5 Inter-organisation Information System and Business to Government (B2G)
The economic situation of a country is not the matter of the government only. As such, Governments are introducing programs seeking to transform Business to Government exchange to lighten the administrative burden of organisations. Business to Government fosters a win-win situation where the government acts as a business facilitator while the private organisation turns out to be the promoter. Inter-organisation Systems usually sit in between the two entities, catering for the exchange of information between and within the two domains. ‘An Inter-organisation Information System (IOIS) is a collection of IT resources, including communications networks, hardware, IT applications, standards for data transmission, and human skills and experiences. It provides a framework for electronic cooperation between businesses by allowing the processing, sharing and communication of information (Haiwook, 2001). IOIS is an extranet used by both ends of the supply chain, that is, with customers to give visibility of data and interaction with company employees and with business partners such as suppliers and logistic companies. The concept of B2G and IOIS is essential is this study since the CCS brings about substantial information exchange among the government and private stakeholders, and forms an integral part of the World Customs Organisation SAFE Framework.

2.6 The World Customs Organisation SAFE Framework
Customs control was associated to national security threats before the terrorist attacks of 11th September 2001 and did not focus highly on policy priorities of the World Customs Organisation (WCO). The WCO started to focus much more of its work on securing the supply chain after this major event, whereby introducing several US Customs programs such as the Container Security Initiative (CSI), the Customs-Trade Partnership Against Terrorism (C-TPAT) and regulations such as the ’24-Hour Rule’. On the 26th of June 2002, during the G8 summit at Kananaskis in Canada, the G8 issued a statement called Cooperative G8 Action on Transport Security, which addressed several policy steps in response to the 11th September tragedy on container security, aviation security, maritime security, and land transportation. The statement said:
‘Work expeditiously, in cooperation with relevant international organizations to develop and implement an improved global container security regime to identify and examine high-risk containers and ensure their in-transit integrity; develop, in collaboration with interested non-G8 countries, pilot projects that model an integrated container security regime; implement expeditiously, by 2005 wherever possible, common standards for electronic customs reporting, and work in the WCO to encourage the implementation of the same common standards by non-G8 countries; and begin work expeditiously within the G8 and the WCO to require advance electronic information pertaining to containers, including their location and transit, as early as possible in the trade chain (G8, 2002)’.
In June 2002, a resolution that noted ‘the increased global concern with respect to acts of international terrorism’ (WCO, 2002) was adopted by the WCO, which also established a task force to develop instruments on securing and facilitating global trade. In an effort to raise the technical work of the WCO task force on security and facilitation to a prominent political level, the WCO established a High Level Strategic Group comprised of twelve WCO members. From June 2004 and April 2007, the group met seven times and developed the WCO Framework of Standards, a set of voluntary standards to which most WCO members have committed to pursue adherence, to secure and facilitate global trade, which the WCO council adopted in June 2005, (Ireland, 2009).

2.7 Acquisition of Information System
The Port Community System gained more importance following the ratification of the SAFE Framework because as an Information System, it is a major tool and a key puzzle in the application of the framework. The acquisition of the CCS was a milestone of the project and a key contributor of its success or failure. Proper planning must be done before buying an off the shelf software, contracting a supplier for a customised software package, or developing the application in-house. A defined software acquisition and supplier management process is vital to guarantee that all steps in the procurement process are followed. Clearly defined goals and objectives furthermore, help aligning the business needs with the acquisition’s mission. The software acquisition and supplier management model below describes the seven steps involved towards acquiring an Information System, (Hunt & Westfall, 2003).

Fig 5: Software acquisition and supplier management model

The table below gives an explanation on the different steps.
Table 2: Software acquisition and supplier management model
Planning the acquisition The roles are assigned, business needs are described and the acquisition plan is documented. Stakeholders plan an important role in defining what the software needs to do. The acquisition team has the responsibility of understanding each stakeholder’s motives.
Defining the software product Provide for the software requirements.
Determining the acquisition approach Basically the main choices for acquiring IS are off the shelf (also known as Commercial Off the shelf (COTS)) applications, bespoken application developed in-house or by a software company and end-user systems (Bocij et al., 2008).
Identify and evaluate potential suppliers At this stage selected potential suppliers are evaluated by performing thorough examination of their capabilities, quality systems and products.
Define contract requirements In this step, the contents of the contract or agreement are defined. A well written contract helps in minimizing misunderstandings and fosters a good relationship between the acquirer and the supplier. Hunt and Westfall argue that when the contract is explicit and duties and responsibilities of the parties are clearly define, the hostility that arises from quibbling over performance obligations can be avoided usually.
Selection of a supplier To select a supplier, the results of the supplier evaluation made earlier are judged against specific selection criteria. Also, potential risks associated with each supplier are identified and analysed. A cost/benefit analysis is also conducted and finally the supplier is selected.
Negotiate and award contract This is the final step whereby the contract is negotiated and awarded to the preferred supplier.

2.8 Failure of Information System
Although good software acquisition and supplier management practices are being adopted, this does not guarantee the success of the system, neither that of the project into which it will be used. Information systems may still fail due to some reasons described in this section. Information Systems fail if; ‘development of operation ceases, leaving supporters dissatisfied with the extent to which the system has served their interest’, (Sauer, 1993). There is a general consensus in the literature that a huge number of IS projects fail, although there are some successful cases of IS development projects. Almost half of all Information Systems fail (Lyytinen & Hirschhein, 1997). A report by the Standish Group revealed that only 28% of Information System Development (ISD) projects are seen as a success while budget and schedule overruns persist, (Fowler & Horan, 2007). The Standish Group in turn defines failure as one which has been cancelled or exceeded its budget and did not meet its delivery and business objectives. The determination of Information System’s failure or success is not cantered only around technical quality but encompasses the social, economic and political setting within which it operates. There exist four types of Information System failures (Lyytinen & Hirscheim, 1987), which are:
1. Correspondence failure ‘ Mismatch between the system’s objectives and user’s needs.
2. Process failure ‘ System cannot be implemented within the budget and time allocated resulting in an unworkable system.
3. Interaction failure ‘ Little or no usage of the system by users.
4. Expectation failure ‘ System fails to meet s specific stakeholders group’s expectation.
The failure or success of the CCS as an Information system is the concern of the logistics community, also known as the stakeholders. The CCS has encountered several difficulties at its implementation phase, more precisely; all the forecasted Go-Live dates were not respected. In fact, the main problems encountered by MACCS during the implementation of the Ocean phase were significant delays as depicted in the table below and costs overrun. This was partly due to the fact that system requirements provided by MRA Customs kept on changing.

Table 3: Project Status for Ocean Phase of the CCS as at May 2013

Source: Review on the Deployment of the Mauritian CCS (Presentation done for MEXA Investment by the CEO of MACCS)

2.9 Stakeholder Theory
Strategic management deals a lot with Stakeholder theory. Stakeholders Theory is concerned about viewing an organisation as consisting of a wide range of stakeholders, who have their own interests and goals, that need to be strategically managed (Freeman, 1984). Freeman further defines stakeholders as;
‘any group or individual who can affect or is affected by the achievement of the firm’s objectives’.
The figure below describes Freeman’s original stakeholder model framework, illustrating the relationship between the different internal and external actors relative to the organisation. In the context of the CCS project, the MACCS Ltd is the firm; the competitors are Port Community Systems providers in the Sub-Saharian African region; the customers are the importers, the exporters, the shipping lines, the freight forwarders, the cusotms house brokers, the container freight stations, the air lines and the bunkuring agents; some of the shareholders are the Government, the MEXA and the MCCA; and civil society includes the consumers. The stakeholders involved in the logistics business processes form the Logistics Supply Chain.

Fig 6: The original stakeholder model.

2.10 The Logistics Supply Chain
‘Logistics’ was the term used by business prior to the term ‘Supply Chain Management’ which arose in the late 1980’s and started to be widely used in the 1990’s. ‘A supply chain consists of all stages involved, directly or indirectly, in fulfilling a customer request. The supply chain not only includes the manufacturer and suppliers, but also transporters, warehouses, retailers, and customers themselves, (Chopra & Meindl, 2001). Nowadays, a combination of both is used, especially in the trade industry, called ‘Logistics Supply Chain’. There exists however differences between the concepts of Supply Chain Management and the traditional concept of Logistics. Logistics typically refers to activities that occur within the boundaries of a single organisation and supply chains refer to networks of companies that work together and coordinate their actions to deliver a product to market. Logistics Supply Chain is a combination of both. The American Production and Inventory Control Society (APICS) also known as the Association for Operations Management, states that supply and logistics is a system of organisation, people, technology, activities, information, and resources involved in moving a product from the point-of ‘origin (the supplier) to the point-of-consumption (the customer). Effective running of the supply chain leads to better products and services delivery and eventually foster the firm’s, country’s competitive advantage vis-??-vis competitors.

2.11 Competitive Advantage
‘A competitive advantage is an advantage gained over competitors by offering customers greater value, either through lower prices or by providing additional benefits and services that justify similar, or possibly higher prices’, (Barone, 2003). The essence of competitive advantage relative to this research is the ability for Mauritius to act as a regional trade hub, attracting international trades including but not limited to container and fuel transhipments. The Mauritian ports have got to have a competitive edge over African ports and to achieve that goal; they need to be modern and highly efficient while being able to react to the five competitive forces as described by Michael Porter. Porter’s competitive forces model contends that much of the success or failure of a business depends on its ability to respond to its external environment, consisting of the competitors, the substitute products, the customers, the suppliers and the new market entrants (Laudon & Laudon, 2012).

2.12 Expected benefits of the PCS
Having such a system in a country is of national economic level and importance because it aims at reducing inefficiencies in the port business processes. The need for a PCS arises because of the requirement of providing real time critical information due to facilitation of the smooth flow of electronic data; the obligation to integrate and achieve compliance with national and international directives, norms and standards; the opportunity of improving the competitive edge of the country; the security must of introducing visibility over the supply chain; and the common benefit of the port community in terms of reduction in dwell time, reduction in paper work, automation and acceleration of processes, and reduction of delays in cargo movements.

2.12.1 Compliance with national and international directives, norms and standards
One of the goals of the World Customs Organisation (WCO) is to promote information exchange between all stakeholders. Through the means of PCS, WCO foresee a greater connectivity and more harmonious interaction between private sector, government agencies, member administrations, international organizations and other related stakeholders. The common framework is based upon the exchange of information in the form of Electronic Data Interchange. A WCO report in 2009 revealed that ‘excess chain security policy is essential to facilitate international trade; foster calm, productive and equitable international relations; enable beneficial allocation of scarce resources; and prevent excessive spending that merely achieves diminishing marginal utility or less security’ (Robert Ireland, 2009). This approach of rigorous security policy has brought about precise definitions of terms, consideration of probability of high risks, and the application of risk assessment principles to customs controls. However, in 2006, 100% scanning of cargo containers with no risk assessment appeared in the US as a competing alternative to the SAFE Framework and its principle of risk Assessment (Robert Ireland, 2009). Time will determine which option will ultimately prevail, or if a new political context will bring another option to the fore.

2.12.2 Reduction in paper work
The amount of benefit of a PCS is proportional to the number of logistic agents connected to the system. It is exponential and follows a network effect. That is, the more there are stakeholders, the greater the benefits obtained. One of them is the considerable reduction in paperwork. This is explained by the fact that information is entered into the system only once, preventing errors and multiple entries through electronic means. However, although IOS are supposed to reduce paper work, a previous research revealed that in the case of the Mauritian CCS, it was found that the introduction of Import Release Notice (IRN) and Temporary Access for Scanning (TAS) contributed to an increase in paper work, but helps in enhancing security in the compound of CHCL (Peerboccus, 2013).

2.12.3 Reduction in dwell time
The dwell time is a key performance indicator of a port operational performance. It is the time taken by a cargo while staying at the same position or process stage. For example, it is the time a container remains in the container terminal, calculated from the time the container is stacked until the time it is de-stacked for loading on a delivery vehicle. The dwell indicates the port operational fluidity and capacity utilisation. In 2011, the Kenya Trade Network Agency (KENTRADE) was set as one of its main objective to reduce the cargo dwell time from 10 days to 3 days at port, 5 days to 1 day at airport and 2 days to 1 hour at borders (MacWilliam, David Cal, 2013). The PCS of Benin at the Cotonou port helped reduced the dwell time for containers (Import) from 39 days to 6 days and that of containers (Transit) from 46 days to 8 days (Elie Sawaya, 2013). Dwell time is to some extent dependent on the different stakeholders’ role in the Port Community System. The faster they would react, the more dwell time would be reduced. Technical dependency problems, such as a stakeholder relying on another stakeholder to complete a phase in a particular process may not improve dwell time, and the former stakeholder has no control other the time taken by the other stakeholder to actually complete its part of the process.

2.12.4 Automation and acceleration of processes
In 2012, Singapore invested some $3.5 in its port terminal Automated Guided Vehicle (AGV) to be better positioned to welcome the container vessels of tomorrow (Tan Chong Meng, CEO, PSA Group). This investment would have been in vain without the support of its existing Port Community System, PORTNET. The substantial level of automation in the port contributed in its 23nd election at the Asian Freight and Supply Chain Awards and ‘Container Terminal of the Year’ for the 5th time at the 2011 Supply Chain Asia Logistics Awards (Eugene Tay, 2012). History has shown that automation lead to fastening of tasks completion times, and at the same time removed human errors from the processes. The strategy of the PSA group to invest in automation technologies maintained The Port of Singapore’s status as the world’s largest transhipment hub (Tan Chong Meng, CEO, PSA Group). Mr Lam Yi Young, the Maritime Port Authority of Singapore (MPA) Chief Executive argued, ‘MPA is committed to fostering an innovative culture within our maritime cluster. One of our key strategies is to invest in maritime research and development technology capabilities, such as the AGV project, to optimise our port operations and IT integration. Through innovations and investment in technologies, the Port of Singapore will continue to be well-equipped to meet the future operational needs and challenges’.

2.12.5 Reduction of delays in cargo movements
Chris Mitchell, EDS Australia managing director in his endeavour to prove the viability of a PCS to allow future growth at the Port of Melbourne argued that ‘The Port of Valencia improved the time to process a container by 50-60% in the last five years and provided savings across its port community’. With an actual capacity of 2,000,000 containers annually, almost 40% of Australia’s international container trade, he further declared that the Port of Melbourne will be able to achieve major improvements in efficiency, cost and reducing delays in cargo movements. The 12 month pilot phase would involve 10 different organisations, including the Port Authority, shipping and freight companies as well as importers and exporters. The aim would be to integrate information and documentation in key areas such as berth booking, container statues, trade directory, hazardous cargo and ship arrivals and departures. The system would enable participants to be the first to trial improved services to offer their customers, helping them to be more competitive, win cargo and earn customer loyalty by improving their processes (Information Technology Business, 2008). Working alongside Victoria Government and the Port Community, EDS Australia has partnered with the Spanish to introduce the system to other ports around the world, after successful introduction in Australia.

2.12.6 Visibility over the supply chain
Visibility over the supply chain is, ‘providing the right information to the right member of the supply chain at the right time’ (Christoper and Lee, 2004). It permits early analysis and identification and most importantly, response to risk (Van Baalen et Al., 2008). Such a benefit is powerful for authorities such as Customs or Port Authority in the context of risk management pertaining to cargo. Visibility over the supply chain increases logistics efficiency (Rice and Spayd, 2005). In November 2000, Americas Systems Inc (ASI) of New Jersey was allocated the contract to build and manage a Port Community System for the Port Authority of New York in view of providing real time critical information for port users. The president of ASI Inc, Mr Richard M. Larrabee said: ‘This system will facilitate the safe, efficient, and seamless movement of freight throughout the New York-New Jersey region’ (Business Wire, 2000).

2.12.7 Improving the competitive edge of the country
A container port plays as major role in impelling the comparative and competitive advantages of its user hinterlands. By improving the efficiency and competitiveness of a port, a PCS influence the competitive advantage of products and services from the country. The logistics community behind a Port Community System is not the only entity to benefit from the advantages that such a system provides. The effect is felt also amongst the public, which is usually the consumer. A more efficient port decreases the cost of doing logistics transactions whereby decreasing the cost of imports and exports, which in turn decreases the final cost of internal products (Lam, Jasmine Siu Lee; Yap, Wei Yim, 2011). In this optic, the mission statement of the CCS is to ‘Sharpen the competitive edge of Mauritius’.

2.12.8 Providing real time critical information due to facilitation of the smooth flow of electronic data
The Port of New York and New Jersey received its first real time information pertaining to the status of arrival of cargo at terminals, traffic at or around port complexes, and arrival of ships in 2001. It was indeed the first of its kind in America. Freight Information Real-Time System Transport (FIRST) is the PCS implemented and operated by American Systems Inc (ASI) resulting from a $1.9 million contract with the Port Authority. ‘Truckers will also have access to live camera views of port traffic conditions to check on traffic congestion and can obtain directions on how to get to any of our terminals’ (Larrabee, 2001). The European Port Community System Association (EPCSA) declared also that: ‘The functionality of a Port Community System aimed at eliminating unnecessary paperwork which can clog up cargo handling. Using electronic data exchange, the PCS is an effective real-time information system; fast, focused, flexible and multi-faceted, it aims to improve efficiency at all stages of the process of manifesting, through vessel discharge and loading, Customs clearance, port health formalities and delivery in and out of the terminal’.

3.0 RESEARCH METHODOLOGY
3.1 Introduction
3.1.1 Definition of Research
Most professions consist of research. ‘More than a set of skills, it is a way of thinking, examining critically the various aspects of your professional work. It is a habit of questioning what you do, and a systematic examination of the observed information to find answers with a view to instituting appropriate changes for a more effective professional service (Kumar, 2005). The research process is undertaken within a framework of set philosophies or approaches, makes use of procedures, methods and techniques that have proven their validity and reliability, and is intended to be unbiased and objective.

3.1.2 Objectives and Types of Research
Answers to questions are discovered through the application of scientific procedures. The main aim of research is to discover theories and facts which have not been found yet, or to ascertain established findings with an intention to improve or consolidate them. The general objectives of research are; (Kumar, 2005)
1. To familiarise with a phenomenon or to achieve insights into it.
2. To portray accurately the characteristics of a particular individual, situation or a group.
3. To determine the frequency with which something occurs or with which it is associated with something else.
4. To test a hypothesis of a causal relationship variables.
There exists different kinds of research but the one which relate to this report is the Descriptive type. In descriptive research, surveys and fact-finding enquiries of different kinds are employed as goal, to provide a depiction of the state of affairs as it exists at present. Descriptive research is closely linked to Quantitative Research, which is based on the quantitative measurement of some characteristics and is applicable to phenomena that can be expressed in terms of quantities such as statistics parameters like standard deviation, mean, regression coefficient, correlation coefficient, p-value and cronbach’s alpha. The section Research Methodology consists of the research design, the sampling method, the data collection procedures, the research instrumentation, the validity and reliability, and the analysis of primary data. The section provides the plan of action that will be undertaken to address the different hypotheses which emerges from the research questions.

3.1.3 Research Philosophy
Research method and research methodology are two distinct concepts (Wahyuni, 2012). For instance, a methodology is ‘an approach to process of the research, encompassing a body of methods’, a research method is ‘a technique for collecting and /or analysing data’ (Collis & Hussey, 2009). What underpins the choice of a methodology is a philosophical stance with respect to the objective and place of research in general, and this research in particular. A research philosophy is a belief about how data about a phenomenon should be collected and analysed (Levin, 1988). Two research philosophies which are often contrasted are positivism and interpretivism (Hughes & Sharrock, 1997).

3.1.3.1 Positivism versus Interprevitism
Positivism and interpretivism can be differentiated from three perspectives (Chen & Hirschheim, 2004). From and ontological perspective, positivists have an objective belief that reality exists separately from human experiences while interpretivists have a more subjective meaning of reality in that it is constructed and reconstructed through human and social interaction (Burrell & Morgan, 1979). Epistemologically, positivist research is mostly based on deductive theorising, where propositions are generated to be tested, with empirical verification then sought. In contrast, interpretivists argue that scientific knowledge should be obtained through the understanding of human and social interaction through which the subjective meaning of the reality is constructed rather than through hypothetic-deductive reasoning (Walsham, 1995). Lastly, from the methodological perspective, positivists argue that, to test hypothetic-deductive theory, research should take a value-free position and make use of objective measurement to collect research evidence. The typical quantitative ethod used by positivists is the survey instrument. Interpretivists, on the other hand claim that researches should engage themselves in the social setting under investigation in order to understand the meaning embedded in human and social interaction and learn how the latter occurs from the participants’ perspective.

3.1.3.2 Information System research philosophy
Positivism has been the dominant paradigm in Information System (IS) research in early 1990’s (Walsham, 1995). However, interpretivism is nowadays seen as a well-established research paradigm in IS research since adopting this philosophy helps researchers to be more interpretive and inductive. (Walsham, 2006). Despite the merit and innovation of the interpretivism philosophy, positivism is used in this research since this method is the most appropriate to test hypotheses against theories, bearing in mind that this research is an evaluation of the impact of a Port Community System on the logistics supply chain of Mauritius, with an evaluation for success or failure of the Mauritian CCS.

3.1 Research Design
As a framework used for collecting and analysing data, research design acts also as an outline that will be followed to carry out the study. In this research, descriptive design will be used since the research questions and thus the hypotheses will test the relationship between the PCS and other variables such as dwell time, movement of cargo and the other research variables. Part of the study will analyse business growth of companies in relation to the system, making this research type suitable. More specifically, cross-sectional descriptive design will be used whereby collection of information from a given sample will be done only once.

3.2 Population and Sample
3.2.1 Target Population
A population is any entire collection of people, animals, plants or things from which we may collect data. The latter is the entire group for which interest is raised, that is desired to be described or drawn conclusions about. A sample is part of the population, a slice of it containing all the characteristics of the population, if the sample is drawn randomly (Statistics Glossary). In determining the population and population sample relative to this research, a proven systematic approached was used. To eliminate biasness and in an effort to represent a true population, the targeted population encompassed the whole logistics supply chain community end users pertaining to sea transactions which includes the Importers, the Exporters, Shipping Lines, the Freight Forwarders, the Customs house Brokers and the Container Freight Stations. The table below shows these groups of companies which are the most involved in the utilisation of the CCS.

Table 4: The population
Type of Stakeholders Number of company
Importers 240
Shipping Lines 26
Freight Forwarders 102
Customs House Brokers 108
Container Freight Stations 10
Total Population 486

3.2.2 Sampling Method
A sample is defined as a ‘subgroup of a population’ (Frey et Al. 125), a representative ‘taste’ of a group (Berinstein 17). The sample should be ‘representative in the sense that each sampled unit will represent the characteristics of a known number of units in the population’ (Lohr 3). The port community consists of different homogeneous subgroups. Hence, stratified sampling will be used whereby each subgroup will be sampled through simple random sampling by selecting individual elements randomly within the homogeneous strata. Since the subgroups are distinct, this sampling method will allow separate conclusions on each of them.

3.2.3 Sampling Size
The sampling size in a stratified sampling must be chosen systematically. First, the whole population size is identified as amounting to 486. The sample size is determined using the Slovin Formula. The sampling error may be defined as ‘the error that results from taking one sample instead of examining the whole population (Lohr 15). The sampling error or the level of precision used in this study will be +/- 5%. Based on the specified sampling error, the sample size of the study will therefore be 214. The sample size represents 44% of the population size and this logic is followed in the sampling table that follows;

Table 5: The sample
Type of Stakeholders Number of company
Importers 106
Shipping Lines 11
Freight Forwarders 45
Customs House Brokers 48
Container Freight Stations 4
Total Population 214

The acceptable number of returned questionnaire is thus 128, 60% of the sample size.

3.3 The Research Instrument
A survey questionnaire was designed and sent to respondents as the research instrument for this study. The questionnaire aimed at capturing primary data from the sample and facilitated its analysis. The questionnaire consisted mostly of closed-ended questions and some open-ended questions. The closed-ended questions included scales questions which makes use of the likert scaled approach. In some cases, dichotomous questions were used to capture the clear cut association between two one-dimensional variables. The open-ended questions allowed respondents to freely express their ideas which helped to provide recommendations. The questionnaire contained no more than 20 questions since emphasis was put on quality instead of quantity of the questions. The questions were asked in a pre-defined logical order so as to promote the interest of the respondents and to ensure the optimum quality of the answers in terms of biasness.

The questionnaire consisted of 4 sections as described below:
Section 1 provides for a demographic representation of the different groups involved and consists of general introductive questions.

Section 2 assessed whether the Mauritius PCS is meeting its initial objectives such as; improving the competitiveness of Mauritian products and developing Mauritius as a regional trade and transport hub. This section addressed hypotheses I, II and III.

Section 3 evaluated the benefits that the PCS has brought to the logistics community during the last five years and was related to hypotheses IV.

Section 4 determined whether logistics community experienced business growth with the implementation of the CCS.

3.4 Data Collection Method
‘It is a capital mistake to theorize before one has data’ (Sir Arthur Conan Doyle as Sherlock Holmes). Having data might still not be sufficient. All data collection method should go through a rigorous and systematic design and execution that comprises of thorough planning, well considered development, effective piloting, weighed modification, deliberate implementation and execution and appropriate management and analysis. Several types of data collection method exist. The survey method will be used in this study because it can reach a large number of respondents, which is appropriate for the sample size chosen. It is capable of generating standardised, quantifiable, empirical data, as well as some qualitative data. Furthermore, a survey offers confidentiality and anonymity as compared to other forms of data collection such as observation, experimentation and interviews.

3.5 Questionnaire Design
The questionnaire was designed in such a way to make use of the maximum types of question possible as a mean for a homogeneous, unbiased survey. The different kinds of questions include; nominal, for example gender question; ordinal, that is an ordered scale; likert scale and categorical questions, that is true or false, yes or no. This approach finds its usefulness when dealing with the several specific tests that exists and that are appropriate for each specific type of question defined in the questionnaire. The questionnaire was designed as follows;

Table 6: The survey questionnaire.
Academic survey based on: An Evaluation of the Impact of a Port Community System (The CCS-AP+) on the Logistics Supply Chain of Mauritius. All the information given in this survey will be treated as strictly confidential and is intended for academic study only. The identity of the person filling this form will also be kept strictly confidential. Answers Indicators
Section 1:
Qu 1: For the demographic aspect of this research, please indicate your gender. Female Female
Male Male

Qu 2: In the Logistic Supply Chain, which business do you work for? Importers Importers
Freight Forwarders Freight Forwarders
Shipping Lines Shipping Lines
Customs House Brokers Customs House Brokers
Customs Freight Stations Customs Freight Stations
Other Other

Qu 3: Do you use the CCS in your daily operations? Yes 1
No 2

Qu 4: For how many years have you been working with the CCS? 0 0
1 1
2 2
3 3
4 4
5 5
6 6
Section 2:
Qu 5: The international competiveness of the Mauritian products depends on a highly efficient port? Strongly agree 1
Agree 2
Neutral 3
Disagree 4
Strongly disagree 5

Qu 6: One of the goals of the CCS is to improve the competitiveness of Mauritian products internationally. Have you experienced an increase in your export transactions if any? Yes 1
No 2
Not Applicable 3

Qu 7: A Port Community System like the CCS increases the efficiency of a port. TRUE 1
FALSE 2

Qu 8: How far do you agree that the CCS has helped Mauritius to develop into a Regional Trade and Transport Hub? Strongly agree 1
Agree 2
Neutral 3
Disagree 4
Strongly disagree 5

Qu 9: To what extent do you agree that the CCS has helped track and trace logistics transactions in a timely manner, fostering more security at all levels of the supply chain than it was 6 years ago. Strongly agree 1
Agree 2
Neutral 3
Disagree 4
Strongly disagree 5

Qu 10: The World Customs Organisation SAFE Framework of Standards helps secure the international supply chain. Does a Port Community System (The CCS) form part of the WCO SAFE Framework? Yes 1
No 2
Section 3:
Qu 11: Dwell time is the time taken by a cargo while staying at the same position or process stage. To what extent do you agree that the CCS has helped reduce dwell time for cargo movements? Strongly agree 1
Agree 2
Neutral 3
Disagree 4
Strongly disagree 5

Qu 12: The CCS has helped reducing paper works in your organisation? Strongly agree 1
Agree 2
Neutral 3
Disagree 4
Strongly disagree 5

Qu 13: Are transactions now being done faster thus reducing lead time? Yes 1
No 2

Qu 14: Does the CCS provide real time information to you relative to cargo movements over the logistics supply chain? Yes 1
No 2

Qu 15: The CCS has decreased the cost of doing business in Mauritius since all transactions are now being done online reducing physical displacement and paperwork? Strongly agree 1
Agree 2
Neutral 3
Disagree 4
Strongly disagree 5

Section 4:
Qu 16: All other factors kept constant, business in the logistics sector increases when the logistics supply chain is more efficient. TRUE 1
FALSE 2

Qu 17: The CCS has contributed to the business growth that is to the increasing number of daily logistics transactions of your company, how far do you agree? Strongly agree 1
Agree 2
Neutral 3
Disagree 4
Strongly disagree 5

Qu 18: Please rate your level of satisfaction with the CCS. Very Satisfied 1
Satisfied 2
Neutral 3
Dissatisfied 4
Very Dissatisfied 5

Qu 19: How would you qualify the status of the CCS project based on the information given above? Success 1
Failure 2

Qu 20: If you have any comment/s relative to the CCS, please type your comment/s in the space below. Free text

Thank you for your time in completing this survey.

3.6 Validity and Reliability
It was important to ensure validity of the information obtained during this study, that is making sure the observations reflects the true features measured. To guarantee a true representation of population, the recommended sampling error of 5% was used, only fully answered questionnaires was analysed and respondents were asked to express their own unbiased objective opinion as far as possible. Reliability, which concerns the degree of consistency of the information, was taken into account as described later.

3.6.1 Pre Testing for validity of data
Pre testing or Pilot testing was used before the start of the survey to get rid of confusing parts or errors in the questionnaire, to correct inaccuracy in the general format of the latter and logical flow of the questions. Pre testing was performed by sending the questionnaire to some respondents representing 10% of the sample size. Respondents were allowed to comment on questionnaire and propose new ideas. The staffs of MACCS Ltd, who are the expert in using and administering the system was also included in the pilot test as they were in a better situation to advise how the questions should be set. The improvement in quality of the survey questionnaire was substantial. Many ambiguities were removed with most of the questions being re-formulated for simplicity while keeping their accuracy and targeted goals.

3.6.2 Reliability of Data
‘Coefficient alpha’ was used in this study to check for internal consistency of the collected data during both the pilot phase and the main analysis phase. The acceptable level of Cronbach’s alpha depended on the variables being measured but was generally considered as being 0.7. For a unidirectional measurement, an acceptable level of 0.7 or more was used for this research. An inferior level would qualify the measurement as multidimensional, thus not acceptable.

The coefficient alpha test performed on the pilot response revealed a value for Cronbach’s alpha of 0.702 as described in the table below. This indicates that the questionnaire answers are reliable to 70.2 %, which is acceptable.

Table 7: Pilot test reliability result

Reliability Statistics
Cronbach’s Alpha Cronbach’s Alpha Based on Standardized Items N of Items
.702 .851 19

3.7 Data Analysis and Interpretation
After collecting the primary data through online questionnaires analysis was performed systematically, following well established test such as Ch-square, correlation, regression, T-test, ANOVA, frequencies, mean and standard deviation tests. These allowed defining relationship or association, difference and characteristics of and in between the answers to the questions. Frequency, mean, percentage and standard deviation were employed as parameters for descriptive statistics analysis, whereas inferential statistics consisted of regression analysis, correlation analysis, chi square test, T-test and ANOVA test. Both descriptive and inferential analyses were employed.

To evaluate the degree of significance, Significant Tests were carried out and to validate the trueness of hypotheses, Hypothesis Tests were performed.

The indicator of significance utilised was the P-value, its conditions being described below;
P-value less than 0.05 = statistical significance.
P-value greater than 0.05 = no significance.

The indicator applied for testing hypotheses was also the P-value, with the following conditions;
P-value less or equal to 0.05 = reject Null hypothesis (H0)
P-value greater than 0.05 = do not reject Null hypothesis (H0)

3.8 ETHICAL CONSIDERATIONS
The Chief Executive Officer of MACCS has agreed in carrying this study on the company’s core business and all findings will be kept secret, not disclosed to the logistics community or any unauthorised recipient. Answers of respondents remained and will remain anonymous and secret during and after the study respectively. This declaration was included on the questionnaire so that the respondents were aware of the secrecy before they started to respond to any question.

3.9 LIMITATION OF THE STUDY
The PCS project of Mauritius consists of two major area of development, namely air and sea. At the time this research was carried out, the whole project was 75% completed with an average percentage completion of 90% for sea and only 10% for air. As such, only the sea area has been considered in this study. Furthermore, the Export phase had not yet started and exporters have been excluded in the population sampling.

4.0 RESULTS AND DISCUSSION
4.1 Introduction
This chapter comprises of the analysis of the primary data collected through a survey questionnaire, aiming at capturing information from the population in order to draw conclusions. The analysis has been carried out systematically as per the research methodology and in a chronological order with respect to the previous formulated hypotheses. Part of the analysis focused on answering all the research questions set beforehand while the other part was meant to explore untargeted results through further investigation of the primary data to generate new knowledge. The over whole survey response rate was 64%, that is 136 respondents out of a sample size of 214, which is above the threshold level of 60% and is thus acceptable.

4.2 Introductory analysis and findings
The logistics supply chain community was found to be composed of a majority of male as compared to female, aligning with the fact that logistics operations, some years ago was a harsh and tedious job which involved constant movements to and from the different stakeholders such as the Customs Authority. This is described in figure 6. With the advancement of information technology and gender equality, women are slowly closing the gap. Figure 8 revealed that the mainstream of the respondents were the Freight Forwarders with a response rate of 50%. The highest sample proportion, the Importers had a response rate of 16%. 9% of The Shipping Lines, 12% of the Customs House Brokers, 2% of the Customs Freight Stations responded to the survey. 11% of the responses came from none of the sample groups, possibly exporters. To assess the level of biasness of the responses, it was empirical to determine which proportion of the sample was working on the CCS in their daily operations. As a result, 80% of the participants were interacting with the system on a day to day basis, making this survey at least 80% unbiased as described in figure 9. To ensure a reasonable level of maturity and quality of the answers and therefore of the primary data, an analysis of the level of exposure with the CCS showed that most of the end users had at least 2 years’ experience with the system. While still a considerable amount had 4 to 6 years of exposure to the CCS, only a few had less than 1 year exposure to the latter. This is illustrated in figure 10. These preliminary studies indicate a high response rate and a deep interest from the sample to the study, and reflect an appreciable level of rightness of the survey.

Fig 7: Demographic aspect.

Fig 8: Proportion of respondents.

Fig 9: Use of CCS by the logistics community.

Fig 10: Number of years of experience with the CCS.

4.3 International competitiveness of Mauritian products
4.3.1 The CCS and the operational efficiency of the sea port.
Before assessing whether the CCS has any bearing on the competitiveness of the Mauritian product on an international basis, it was important to determine if the CCS has increased the operational efficiency of the sea port through a descriptive statistic frequency test. From table 8, a value of 89.7% was observed for the answer ‘Yes’, against a value of 10.3% for the answer ‘No’. The results therefore indicate that the CCS has increased the operational the efficiency of the port. This finding acts as basis to the following section which relies on the fact that the CCS has indeed increased the operational efficiency of the port, while assessing the association between the international competitiveness of the Mauritian products and the efficiency of the port, hence the CCS.

Table 8: The CCS and the operational efficiency of the port.
Qu7
Frequency Percent Valid Percent Cumulative Percent
Valid 1 (Yes) 122 89.7 89.7 89.7
2 (No) 14 10.3 10.3 100.0
Total 136 100.0 100.0

To study the association between the CCS and the international competiveness of Mauritian products internationally, a regression test was carried out between question 5 and question 6. Table 9 shows a regression coefficient; R of 0.099 which indicates very little relationship between the two variables. A value of 0.010 for R Square was observed. This represents a variation of only 1% of the dependent parameter (The international competiveness of Mauritian products) with respect to a change in the independent parameter (A highly efficient port through the CCS). A p-value of 0.251 which is more than the threshold value of 0.05 indicates that the result is statistically insignificant, thus accepting the null hypothesis.

Table 9: Model Summary ‘ CCS against International competitiveness of Mauritian products.
Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .099a .010 .002 .714
a. Predictors: (Constant), Qu6

Table 10: Coefficients ‘ CCS against International competitiveness of Mauritian products.
Coefficientsa
Model Unstandardized Coefficients Standardized Coefficients t Sig.
B Std. Error Beta
1 (Constant) 1.516 .164 9.268 .000
Qu6 .090 .078 .099 1.154 .251
a. Dependent Variable: Qu5

The above results were cross checked by means of a Correlation Spearman One Tail Test. A correlation coefficient of 0.123 was obtained, showing a weak positive relationship between the two variables.

Table 11: Correlations – CCS against International competitiveness of Mauritian products.

Correlations
Qu5 Qu6
Spearman’s rho Qu5 Correlation Coefficient 1.000 .123
Sig. (1-tailed) . .077
N 136 136
Qu6 Correlation Coefficient .123 1.000
Sig. (1-tailed) .077 .
N 136 136

4.4 Mauritius as a Regional Trade and Transport Hub
To the question ‘How far do you agree that the CCS has helped Mauritius to develop into a Regional Trade and Transport Hub’, the results in figure 11 were obtained. From table 13, the majority with a valid percent of 57.4% was observed for those who agreed. 17.6% strongly agreed, 20.6% were neutral, 4.4% strongly disagreed, while no one disagreed. Table 12 indicates a mode of 2 (Agree), a skewness of 1.316 which indicates the responses are very oriented towards a ‘Strongly agree’ than a ‘Strongly disagree’. A value of 0.871 for the standard deviation shows that the data are widely spread around the mean of 2.16. This indicates that the opinions are diverged. The over whole results ascertain that the CCS has helped Mauritius to develop as a Regional Trade and Transport Hub.

Fig 11: Mauritius as a Regional and Transport Hub.

Table 12: Statistics ‘ Mauritius as a Regional Trade and Transport Hub.
Statistics
Qu8
N Valid 136
Missing 0
Mean 2.16
Median 2.00
Mode 2
Std. Deviation .871
Variance .759
Skewness 1.316
Std. Error of Skewness .208
Sum 294

Table 13: Frequencies – Mauritius as a Regional Trade and Transport Hub.
Qu8
Frequency Percent Valid Percent Cumulative Percent
Valid 1 24 17.6 17.6 17.6
2 78 57.4 57.4 75.0
3 28 20.6 20.6 95.6
5 6 4.4 4.4 100.0
Total 136 100.0 100.0

4.5 Compliance to WCO SAFE Framework
Figure 12 depicts the responses to the question whether the CCS has helped track and trace logistics transactions in a timely manner, fostering more security at all levels of the supply chain than it was 6 years ago. 57.4% of the respondents agreed to this fact, 23.5% strongly agreed, 14.7% were neutral, 4.4% disagreed, while no one strongly disagreed. Table 14 indicates a mode of 2 (Agree), a skewness of 0.641 which indicates the responses are fairly oriented towards a ‘Strongly agree’ than a ‘Strongly disagree’. A value of 0.750 for the standard deviation shows that the data are widely spread around the mean of 2.0. From table 16, 86.8% of the respondents ascertained that the CCS does form part of the WCO SAFE Framework. The results of the regression test carried out to find out the relationship between the WCO SAFE Framework and the CCS are illustrated in tables 17 and 18. A regression coefficient of 0.232 which designates a moderate relationship between the two variables was observed. A value of 0.054 for R Square was also observed. This represents a variation of 5% of the dependent parameter (The WCO SAFE Framework) with respect to a change in the independent parameter (The CCS). A p-value of 0.05 which is equal to the threshold value of 0.05 specifies that the result is statistically significant, thus rejecting the null hypothesis. To confirm the above results, a Correlation Spearman One Tail test was performed and the results are displayed in table 19. A correlation coefficient of 0.232 showed a moderate positive correlation between the WCO SAFE Framework and the CCS. The overall results helped deduced that the CCS has indeed helped provide a WCO SAFE Framework of standards to secure the international supply chain.

Fig 12: Security through track and trace.

Table 14: Statistics ‘ Security through track and trace.
Statistics
Qu9
N Valid 136
Missing 0
Mean 2.00
Median 2.00
Mode 2
Std. Deviation .750
Variance .563
Skewness .641
Std. Error of Skewness .208
Sum 272
Table 15: Frequencies ‘ Security through trace and trace.
Qu9
Frequency Percent Valid Percent Cumulative Percent
Valid 1 32 23.5 23.5 23.5
2 78 57.4 57.4 80.9
3 20 14.7 14.7 95.6
4 6 4.4 4.4 100.0
Total 136 100.0 100.0

Table 16: Frequencies ‘ The CCS and the WCO SAFE Framework.

Qu10
Frequency Percent Valid Percent Cumulative Percent
Valid 1 118 86.8 86.8 86.8
2 18 13.2 13.2 100.0
Total 136 100.0 100.0

Table 17: Model Summary ‘ The CCS and the WCO SAFE Framework.
Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .232a .054 .047 .332
a. Predictors: (Constant), Qu9

Table 18: Coefficients ‘ The CCS and the WCO SAFE Framework.
Coefficientsa
Model Unstandardized Coefficients Standardized Coefficients t Sig.
B Std. Error Beta
1 (Constant) .922 .081 11.335 .000
Qu9 .105 .038 .232 2.764 .005
a. Dependent Variable: Qu10

Table 19: Correlations ‘ The CCS and the WCO SAFE Framework.
Correlations
Qu9 Qu10
Spearman’s rho Qu9 Correlation Coefficient 1.000 .232**
Sig. (1-tailed) . .003
N 136 136
Qu10 Correlation Coefficient .232** 1.000
Sig. (1-tailed) .003 .
N 136 136
**. Correlation is significant at the 0.01 level (1-tailed).

4.6 Benefits of the Mauritian PCS
4.6.1 Paper work related to logistics operations
A descriptive statistic test gave the results in tables 20 and 21 for the question ‘has paper work related to your logistics tasks been reduced following the implementation of the CCS’. A valid percent of 55.9% was obtained representing the majority of the respondents who agreed with statement. 19.1% strongly agreed, 10.3% were neutral, 11.8% disagreed and 2.9% strongly disagreed. A mode of 2 (Agree) and a skewness of 0.996 indicates the responses are very leaning towards a ‘Strongly agree’ than a ‘Strongly disagree’ answer. A value of 0.991 for the standard deviation shows that the data very are widely spread around the mean of 2.24. This directs that the beliefs on the subject are much differed. However, the results as a whole tell that the CCS has reduced paper work in the logistics operation following its implementation.

Table 20: Statistics ‘ Paper work
Statistics
Qu12
N Valid 136
Missing 0
Mean 2.24
Median 2.00
Mode 2
Std. Deviation .991
Variance .981
Skewness .996
Std. Error of Skewness .208
Sum 304

Table 21: Frequencies ‘ Paper work
Qu12
Frequency Percent Valid Percent Cumulative Percent
Valid 1 26 19.1 19.1 19.1
2 76 55.9 55.9 75.0
3 14 10.3 10.3 85.3
4 16 11.8 11.8 97.1
5 4 2.9 2.9 100.0
Total 136 100.0 100.0

4.6.2 Dwell time
The outcomes in table 22 and 23 emerged from the question ‘to what extent do you agree that the CCS has helped reduce dwell time for cargo movements’. 50% of the respondents agreed to that the CCS has reduced the dwell time for cargo movements. 17.6 % strongly agreed, 25% were neutral, 5.9% disagreed and 1.5% strongly disagreed. A mode of 2 (Agree) was observed and a skewness of 0.648 shows that the responses are more tilted towards a ‘Strongly agree’ than a ‘Strongly disagree’ answer. The value of 0.863 for the standard deviation points out the widely spread of the data around the mean of 2.24. Here again, although the majority agreed, the perception of other were broadly departed. The final result led to the fact that the CCS has decreased the dwell time relative to movements of cargos.

Table 22: Dwell time relative to CCS
Statistics
Qu11
N Valid 136
Missing 0
Mean 2.24
Median 2.00
Mode 2
Std. Deviation .863
Variance .744
Skewness .648
Std. Error of Skewness .208
Sum 304

Table 23: Frequencies ‘ Dwell time relative to CCS

Qu11
Frequency Percent Valid Percent Cumulative Percent
Valid 1 24 17.6 17.6 17.6
2 68 50.0 50.0 67.6
3 34 25.0 25.0 92.6
4 8 5.9 5.9 98.5
5 2 1.5 1.5 100.0
Total 136 100.0 100.0

4.6.3 Logistics operations processes
As a test to determine if the CCS has brought about acceleration in the logistics operations processes, a descriptive statistics frequency test was performed. Table 24 clearly depicts the findings obtained. 88.2% of the logistics community confirmed the CCS did accelerate the processes of their logistics operations.

Table 24: Frequencies ‘ Acceleration of logistics operations processes.
Qu13
Frequency Percent Valid Percent Cumulative Percent
Valid 1 120 88.2 88.2 88.2
2 16 11.8 11.8 100.0
Total 136 100.0 100.0

4.6.4 Visibility over the logistics supply chain
Tables 25 and 26 demonstrate that 57.4% of the sampled population agreed that the CCS has helped track and trace logistics transaction in a timely manner. 23.5% strongly agreed, 14.7% were neutral, 4.4% disagreed and no respondent disagreed. A mode of 2 (Agree) was obtained, a skewness of 0.641 showed that the responses sloped more towards a ‘Strongly agree’ than a ‘Strongly disagree’ answer. A value of 0.75 for the standard deviation indicates a widespread of the data around the mean of 2.0. The findings bring about the fact that CCS has provided visibility over the logistics supply chain by acting as a platform to track and trace transactions.

Table 25: Statistics ‘ Visibility over the logistics supply chain.

Statistics
Qu9
N Valid 136
Missing 0
Mean 2.00
Median 2.00
Mode 2
Std. Deviation .750
Variance .563
Skewness .641
Std. Error of Skewness .208

Table 26: Frequencies – Visibility over the logistics supply chain.

Qu9
Frequency Percent Valid Percent Cumulative Percent
Valid 1 32 23.5 23.5 23.5
2 78 57.4 57.4 80.9
3 20 14.7 14.7 95.6
4 6 4.4 4.4 100.0
Total 136 100.0 100.0

4.6.5 Real time information pertaining to cargo movements
89.7% of the respondents agreed that the CCS provides real time information relative to movements of cargos over the logistics supply chain, as shown in table 27.

Table 27: Frequencies ‘ Real time information.
Qu14
Frequency Percent Valid Percent Cumulative Percent
Valid 1 122 89.7 89.7 89.7
2 14 10.3 10.3 100.0
Total 136 100.0 100.0

4.7 Business growth and the CCS
In evaluating for any dependency and significance between the dependent variable business growth and the independent variable logistics supply chain efficiency, a regression analysis was performed. Based on the output in the table above, the result revealed a correlation coefficient of .247, indicating a moderate positive association between business growth and logistics supply chain efficiency. The variation in business growth is accounted by 6.1% change in logistics supply chain efficiency. The result also revealed a p-value of 0.04, which is less than the significant level of 0.05, which indicate that the result is statistically significant. The null hypothesis is therefore rejected, that is the logistics community has experienced business growth with the introduction of the CCS.

Table 28: Model Summary ‘ Business growth and the CCS.
Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .247a .061 .054 .922
a. Predictors: (Constant), Qu16

Table 29: Regression Coefficient ‘ Business growth and the CCS.
Coefficientsa
Model Unstandardized Coefficients Standardized Coefficients t Sig.
B Std. Error Beta
1 (Constant) 1.616 .335 4.829 .000
Qu16 .892 .303 .247 2.945 .004
a. Dependent Variable: Qu17

4.8 Additional findings
4.8.1 Cost of doing business
A descriptive statistic test revealed that the CCS has decreased the cost of doing business of at least 67.6% of the logistics community. Tables 30 and 31 exhibit the fallouts. With a skewness of 0.644, this discovery is much more inclined towards a ‘Strongly agree’ than a ‘Strongly disagree’ answer. The result is supported by a mode of 2.0 (Agree). A standard deviation of 0.896 indicates the wide spread data around the mean of 2.24, therefore illustrating a fairly swerved view among the logistics community.

Table 30: Statistics ‘ Cost of doing business.
Statistics
Qu15
N Valid 136
Missing 0
Mean 2.24
Median 2.00
Mode 2
Std. Deviation .896
Variance .803
Skewness .644
Std. Error of Skewness .208
Sum 304

Table 31: Frequencies – Cost of doing business.
Qu15
Frequency Percent Valid Percent Cumulative Percent
Valid 1 26 19.1 19.1 19.1
2 66 48.5 48.5 67.6
3 32 23.5 23.5 91.2
4 10 7.4 7.4 98.5
5 2 1.5 1.5 100.0
Total 136 100.0 100.0

4.8.2 Status of the CCS project
An empirical finding was observed through the descriptive statistic test of the question ‘how would you qualify the status of the CCS project’? 91.2% argued that the CCS project is a success at the present stage of implementation. This is illustrated in table 32.

Table 32: Frequencies ‘ Status of the CCS project.

Qu19
Frequency Percent Valid Percent Cumulative Percent
Valid 1 124 91.2 91.2 91.2
2 12 8.8 8.8 100.0
Total 136 100.0 100.0

4.8.3 The profound concerns of the Logistics Community
A study of the reactions to the free text question of ‘if you have any comment/s relative to the CCS’ revealed considerable discoveries. Part of the logistics community believes that the CCS is a great tool but more improvements need to be done to make it even more efficient as compared to a worldwide Port Community System. The CCS is believed not to be confidential enough, following an incident where some freight forwarders could see the confidential information of shipping lines. It must be given more time to prove its efficacy over both the medium and long run because Mauritius is a small scale market which does not allow for imminent proof of changes brought by the system. The project will be supported by the logistics community because though reluctant at the start, they have realized now that the CCS is a valuable tool to the community, for the community. The CCS has converged and interoperated with the major stakeholders’ system platforms such as the NAVIS for CHCL, the CMS for the Customs and the TradeNet for the MNS. Furthermore, entries into the system have been simplified for the end users through the implementation of interface programs, thus avoiding manual and double entry. However, the logistics community is claiming more integration of the CCS into their day to day business operations because in some cases, other software is still being used to perform entries related to the CCS operation. Although the findings indicate that paper work has been reduced by the CCS, part of the logistics community maintained that more have to be done to reduce paper work further, for example eliminating the printing of IRN for submission to the CHCL. A great contribution to the over whole satisfaction of logistics community with the system is been proven to be the outstanding customer support team that exists at the MACCS Ltd. One of the aspirations of the logistics community is that the CCS one day becomes a one stop shop linking all the logistics stakeholders, the government and the members of the public seamlessly, for a well-organized consumer society.

5.0 RECOMMENDATION AND CONCLUSION

This study aimed at finding the effects and consequences that a Port Community System, that is the Cargo Community System (CCS) has on the Logistics Supply Chain of Mauritius, commonly called ‘The Logistics Community’. Both the Government of Mauritius and the private sector have made massive investments in this project and it was legitimate to assess the success or failure of the first and unique system of its kind in the Indian Ocean. The research questions that laid the foundation of this investigation were effectively answered, as a result of the profound interest of the community in giving their feedback on the CCS.

A more efficient port decreases the cost of doing logistics transactions thereby decreasing the cost of imports and exports, which in turn decreases the final cost of internal products (Lam, Jasmine Siu Lee, Yap, Wei Yim, 2011). Even though outcomes revealed that the CCS has decreased the cost of doing logistics business in Mauritius, it was however not proven that the CCS has helped improved the competitiveness of Mauritian products. This is because the international competitiveness of Mauritian products depends on much more economic and political parameters than just the CCS. The inquiries showed that Mauritius is slowly being developed as a Regional Trade and Transport Hub by the help of the CCS. Such a transformation however takes time to complete as the regional market is not consequent enough as compared to the Asian, Europe and American regions. Mauritius holds actually only 417,000 TEUs per years (Data World Bank, 2014).

The research also revealed that logistics transactions are safer nowadays as prior to the implementation of the CCS. The CCS has helped secure the Logistics Supply Chain and International Trade at the same time, promoting and contributing to the realisation of the World Customs Organisation SAFE Framework of standards. The investigation confirmed that the CCS, as an Inter-organisation information system, has helped reduce paper work through the exchange of information in the form of EDI. Dwell time has decreased and logistics operations processes has been accelerated. Visibility over the supply chain with the ability to track and trace real time cargo movements has increased through the CCS, whereby allowing the Customs Authority to perform more effective risk management. An interesting finding is the capability of the CCS to foster the efficiency of the sea port and the Logistics Supply Chain. These findings are backed up by the factual evidence from the World Bank, which allocated an overall International Score Card for Mauritius’ Logistics Performance Index (LPI) of 2.82 in 2012, as compared to 2.72 in 2010 and 2.13 in 2007.

The study has proven that the CCS has in fact helped reduced the cost of doing business in the logistics domain due to the fact that less costly physical movements are involved in the processes now. The automation of part of the processes has reduced human interactions, thus limiting the risk of briberies, which was very common in this sector. The logistics community confirmed that the system has helped their businesses experience business growth following the reduction in cost of doing business and accelerated transactions and processes. The logistics community has seen and felt their day to day business operations transformed with the presence of the CCS, the Port Community System of Mauritius. Despite some of the expected benefits not being achieved, the logistics community qualifies the actual status of this major project as, a success.

As recommendations, further soundings should be performed after the implementation of the Sea Export and Air CCS phases, the latter addressing airport related transactions. The airport holds as much transactions as the sea port and the real time factor is a critical parameter of how the CCS could possibly improve airport operations. The assessment of the system should be done periodically to ensure the system is always meeting the demands and expectations of the community, as the way of doing business is constantly changing with time. The CCS has sat in between the Customs Authority, the Mauritius Ports Authority, the Cargo Handling Corporation, the logistics community, and shortly the Airlines and Ground Handling agents. This being said, the system has the potential of becoming a one stop shop for all these stakeholders, considerably improving this sector of the Mauritian economy. Further research could be focused on how this can be achieved.

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