Port of Seattle Taps IBM as Its E-business Technology Consultant

Agreement will raise the stakes in competition among ports

The Port of Seattle has named IBM as its technology consultant to help integrate e-business strategy and technology across both the Seaport and Seattle-Tacoma International Airport.

As seaports across the country vie for the largest pieces of the roughly $740 billion in cargo that moves annually through U.S. ports, and as airports try to handle increasing service expectations of airline customers, the Port of Seattle will work with IBM on everything from information architecture that supports new services, to developing and implementing Web-based products.

"The creation of this relationship represents a major step forward in our e-business initiative," said M.R. Dinsmore, Port of Seattle Chief Executive Officer. "We have great confidence that IBM is the best technology provider for our needs, and look forward to a strong working relationship that will make Seattle the recognized global leader among seaports and airports for customer-focused e-business solutions."

The scope of IBM's work will be to assist the Port with:

Establishing project oversight for the full breadth of the Port's e-business activities
Assembling a joint Port/IBM team to make decisions on e-business technologies that the Port of Seattle will deploy
Delivering five initial pilot projects to jump-start the Port's transformation into e-business

"These days, business strategy and technology are inherently linked," said Cynthia Mitchell, U.S. Public Sector Executive for IBM Global Services. "It's hard to do one without the other. This is a great example of someone having a vision about where they want to be in the future, taking the proactive steps to get there now, and using technology as the competitive differentiator."

The initial $2 million consulting contract takes effect August 20. Additional contracts may be negotiated as the Port's e-business initiative continues. As part of the contract, IBM will provide a team of eight consultants. The level of technical support will vary depending on the evolving needs of the Port.

To support this effort, Port of Seattle Commissioners on June 26 authorized $10.7 million to cover software, hardware and implementation costs. The five pilot projects are scheduled for completion by January 2002.

The Port of Seattle completed the first phase of its e-business initiative in April. This phase developed the Port's vision and strategy, assessed existing technology, and broadly defined infrastructure needs. The Port also defined its first pilot projects, including internal expense reporting, construction document management to support the $3 billion capital improvement program at Seattle-Tacoma International Airport, an on-line parking payment system at the airport, and on-line reservations systems for various Port facilities and services.

The on-line reservation system for Port facilities such as Bell Harbor Marina will mean greater convenience and service to the Port's customers by allowing boat operators to make reservations and pay for moorage over the Internet, at any time that is convenient to them. Marina staff will spend less time manually entering reservations and more time serving customers at the marina.

"These pilot projects provide clear benefits, and also represent customer, community and employee areas of service. We believe we can implement them relatively quickly, and in the process learn more about e-business technology to help guide our priorities for the next projects we take on," said Kottayam V. Natarajan, Jr., Director of E-Business Development for the Port of Seattle.

"Development of e-business is a key part of our overall strategy of offering leading-edge products and keeping the Port competitive in the world economy," said Seattle Port Commission Chair Clare Nordquist.

During an April 19 presentation to Port Commissioners on e-business initiative progress, Port executives demonstrated recent successes such as an electronic construction bid system that saves an estimated $430,000 annually in duplication and mailing expenses, and an e-procurement system that reduces related work by as much as 3,500 hours per year.

"These successes show the potential of e-business applications, and our staff's ability to recognize and seize opportunities," said Dinsmore. "Working with a technology leader like IBM, which has been a driving force in the use of global e-applications, can lead us to greater productivity as we combine our strengths and experience. Greater productivity will translate to more convenience and service for our customers, community and employees."