Savi Technology, Inc., a leading provider of active Radio Frequency Identification (Rfid) supply chain solutions, and Hutchison Port Holdings (Hph), a leading port developer and operator, today jointly announced the formation of a new company to build and operate an active Rfid-based information network to track and manage containerized ocean cargo.
The company, called Savi Networks Llc, will build the network by installing active Rfid equipment and software in participating ports around the world to provide users with information on the identity, location and status of their ocean cargo containers as they pass through such ports. Shippers, logistics service providers and transportation companies will be able to connect to the network by installing compatible equipment at their own locations to further improve the efficiency, effectiveness and security of global supply chains.
The new company will be initially capitalized with an investment of Us$50 million from the joint-venture partners. Savi Technology will hold a 51 percent interest in Savi Networks, and Hph will hold the remaining 49 percent interest. Savi will take the lead in operating the joint venture and contribute a license to the software to operate the network, and Hph will provide access to its port facilities.
Savi Networks will seek to establish relationships with additional port partners to further extend the network, as well as with providers of complementary technologies and services to the global supply chain.
“Savi is excited about entering into this agreement with Hph, which as one of the world's largest port operators has the knowledge, experience and vision to understand the needs of the global shipping community,” said Vic Verma, Savi's President and Chief Executive Officer.
“Global concerns about supply chain efficiency, effectiveness and security continue to grow, and must be addressed with new and better ways to manage cargo,” said John Meredith, Hph Group Managing Director. “We look forward to working with Savi and other global port operators, carriers and service providers to build this new network.”
It is expected that Savi Networks will function much like a telecommunications network service provider. Savi Networks will own and operate the network's core infrastructure and will provide information services, to be called SaviTrak(tm), on a per-container trip basis. The new company expects to offer customers a family of active Rfid tags, including data rich, visibility and sensor tags, based on Iso 18000-7 standards. These tags would be affixed to containers, transforming them into “smart containers” able to communicate with the network, which will enable users to receive information on location, security and environmental conditions, such as temperature, humidity and light, as well as the container's contents.
Concurrent with the formation of Savi Networks, Hph also has made a Us$50 million investment in privately held Infolink Systems, Inc., the parent of Savi Technology, which will provide Hph with slightly less than 10 percent of Infolink on a fully diluted basis.
For more information about Savi Technoogy, visit www.savi.com
For more information about Hutchison Port Holdings (Hph), visit http://www.hph.com.hk