Shipment tracking system moves ahead at SmartPort

By Jason Shaad
The Kansas Business Journal

September 1 , 2006

Local transportation officials authorized financing for the next step in developing software that can track shipments through many carriers.

On Aug. 29, the Mid-America Regional Council approved a $530,000 agreement with Electronic Data Systems Corp., based in Plano, Texas, to continue developing technology for the Kansas City SmartPort Intelligent Transportation Systems Integration Project.

The technology will allow multiple businesses to control and track shipments on a common platform.

"This step is pivotal to implement the real meat of the project," said Chris Gutierrez, president of Kansas City SmartPort, which is overseeing the development of the technology. "Only two companies have the technology and capacity to do this. EDS is one of them."

So far, SmartPort and EDS have tested ways to monitor the secure transport of goods through various carriers. Now, they will develop a system that integrates those test results into a database that will make the supply chain more visible.

Dean Kothmann, client industry executive for EDS, said only the government has a system that can track a shipment through multiple carriers. For businesses, once a shipment leaves the company's tracking system, it's in somebody else's hands.

SmartPort's data clearinghouse will accept the various tracking systems from companies and allow them to monitor the supply chain. The system will save time and money, Kothmann said. It also will improve businesses' ability to negotiate international shipments because participating companies can show foreign governments that goods are secure throughout the shipping process.

Kothmann said the current phase of financing will go to developing a more comprehensive prototype. With continued financing, the technology should be available by late 2007 or 2008, he said.

Michael Zachary, director of port planning and logistics at the Port of Tacoma in Washington, said the ports of Seattle and Tacoma have received more than $100 million to study the security of supply chains entering the country. The best solution for improving security is a more visible supply chain, he said, which SmartPort is addressing.

SmartPort used about $750,000 from the U.S. Department of Transportation in the first two development phases, Gutierrez said. The department has earmarked an additional $4 million for the project during the next three years. SmartPort will match that with in-kind payments, Gutierrez said.

jshaad@bizjournals.com | 816-421-5900