Digitalization for Enhanced Efficiency
Leveraging Data for Smart Ports
Top Takeaways
• Deployment of emerging technologies to digitalize operations — integrating advanced technologies and datadriven approaches to remake traditional processes — has been a key element in the rising prominence of many ports in Asia, Africa and South America.
• While the importance of digitization is universally understood, resources and planning are not equally dispersed. The initiatives often include obstacles such as incompatible software systems, cybersecurity threats and internal resistance to change.
• AD Ports Group offers a case study in the successful implementation of digitalization, applying key criteria to defining progress toward efficiency, sustainability and competitiveness.
Competition for shipping container traffic is intensifying as new trade agreements and alliances, geopolitical strife, supply chain constraints and the growing economic power of developing markets alters long-established maritime routes.
Legacy ports, whose trading status may date back centuries or even millennia, can no longer rely on their name and location. Ports in Asia, Africa and South America overtook their more storied rivals to dominate the upper echelons of the World Bank’s Container Port Performance Index 2022, its most recent release.
Key to the success of many of the ports has been the deployment of emerging technologies to digitalize operations in order to become so-called smart ports. Some of the key benefits of digitalization include:
• Enhanced efficiency
• Optimized operations
• More effective asset utilizations
• Greater transparency
• Improved customer experience
• Reduced costs
“Our sector cannot live without investment in technology,” said Ross Thompson, chief strategy and growth officer of Abu Dhabi’s AD Ports Group, which operates six commercial ports in the United Arab Emirates and two in Egypt, plus 15 terminals in Spain and terminals in Pakistan, Jordan and the Republic of the Congo.
“The level of technological change that’s coming at this industry is beyond comprehension,” Thompson said. “It’s technically [possible] now from a hardware viewpoint, from an asset viewpoint, to manufacture in China and deliver to the UAE, to your door, without any human intervention whatsoever.”
This transformation is not just a trend but a necessity, as customers demand faster, more efficient and environmentally sustainable operations. Digitalization in ports involves the integration of advanced technologies and data-driven approaches to remake traditional port operations.
Legislation is also pushing ports to become technologically smarter. As of Jan. 1, 2024, ports worldwide must operate Maritime Single Windows (MSWs) for the electronic exchange of mandatory information regarding ships’ arrivals, stays and departures. Yet, a substantial number of ports are ill prepared to meet this new requirement and will be at a competitive disadvantage to more forward-thinking rivals.
“Undoubtedly, digitalization increases productivity in port management and operations processes, which allows us to be more competitive,” said Capt. Ammar Mubarak Al Shaiba, CEO of AD Ports Group’s Maritime & Shipping Cluster, one of five within the group. The other clusters are digital, logistics, ports, and economic cities and free zones.
“Port customers and stakeholders value most the following: greater transparency, reliability, greater operational efficiency and productivity. All this cannot be achieved without digitalization,” Al Shaiba said.
For example, vessel turnaround times will shorten, thereby reducing end-to-end delivery durations as trucks spend less time waiting in port.
Information recorded by sensors and devices can be processed in real time and on a massive scale using big data technology, allowing multiple statistics to be stored, shared, analyzed and acted upon.
Examples of typical port-data sources include warehouses, ships and dockyards, which each provide various information points such as expenses, fuel costs, wages, insurance and transit times.
Irregular data sources span the likes of weather reports, traffic updates and unexpected maintenance outages, and come in myriad forms. Digital logistics platforms can receive and analyze this information to provide real-time visibility on cargo tracking and management, streamlining the flow of goods.
One industrial deployment of big data is the concept of digital twins, which are digital replicas of a physical asset, typically composed of a set of variables that when
combined and processed can describe and predict the behavior of the real version and ultimately enable better decisions.
“When applied to ports, big data and digital-twin technology is set to transform a wide range of operations,” said Dr. Noura Al Dhaheri, CEO of AD Ports Group’s Digital Cluster and Maqta Gateway, the company’s digital arm and fully owned subsidiary. “This technology can store different streams of information from ports, logistics, sensors and positioning networks; and process that information in real time, which allows ports to create multidimensional models that help optimize port supply chains, reducing delays and congestion at the facilities and increasing the efficiency of the different stakeholders involved.”
Such predictive analytics, for example, help in anticipating equipment failures, thereby reducing downtime and maintenance costs.
“When applied to ports, big data and digital twin technology is set to transform a wide range of operations.”
The process of digitalization can be daunting and involves overcoming numerous obstacles such as incompatible software systems, cybersecurity threats, a lack of resources and internal resistance to change.
“The challenges are huge,” said Al Shaiba. “There are no doubts that the knowledge and the need to digitize is universal, however, neither resources nor planning are equally dispersed.”
A crucial element of AD Ports Group’s digitalization is its hybrid cloud architecture, which enables the company to respond faster to digital demands, control costs and provide more competitive pricing to its customers.
AD Ports Group defines its concept of a smart port as one that is digitally enabled, delivering enhanced operational efficiency, safety and sustainability through the use of data-driven solutions and innovative technologies, such as internet of things (IoT), blockchain and artificial intelligence (AI), along with the aforementioned digital twins and big data.
AD Ports Group applies the following key criteria to determine the extent to which its ports’ facilities have become truly smart:
• Equipment automation — use of technology to automate machinery and equipment, optimize port operations, reduce manual intervention and enhance efficiency.
• Data generation and capture — collection, recording and monitoring of real-time data from various port activities to provide an accurate view of operations.
• Advanced analytics converting data into actionable insights — leveraging sophisticated algorithms and models to analyze the captured data, deriving insights, predicting trends and making informed decisions for improved port management.
“As shipping becomes more cyber-dependent, the security of those systems becomes of even greater importance,” said Julian Skyrme, commercial director at AD Ports Group.
“So, the challenge now becomes not just how do you protect your physical port from security risks, but also defenses against cyberattacks. That goes hand-in-hand with the way that most ports are developing into digitalization. That’s one of the considerations ports need to factor in the next five years.”
Digitalization requires sharing data across multiple stakeholders, which can increase the risk of data breaches and cyberattacks, Al Dhaheri noted.
Abu Dhabi’s Khalifa Port rose to third in the World Bank’s Container Port Performance Index 2022 rankings. This status reflects the success of its long-term strategic planning and implementation. In 2012, the port launched the Middle East’s first semi-automated container terminal, introducing automated ship-to-shore cranes and remotecontrolled gantry cranes in innovations that reduced manual labor needs.
With 42 automated stacking cranes, aerial drones, a 360-degree sensory system and automated terminal operations, Khalifa Port lays claim to being among the world’s most technologically advanced. The port is also the Middle East’s first to use autonomous trucks.
“As shipping becomes more cyber-dependent, the security of those systems becomes of even greater importance.”
“Increasing investments in cutting-edge technology for use in the trade community is one of our key priorities,” Al Shaiba said.
Digitalization also helps reduce ports’ carbon footprints and has broader environmental impact.
“We believe that digital transformation can be shaped to accelerate the transition of business toward sustainable operations,” said Al Dhaheri, under whose leadership, Maqta Gateway, launched the Middle East’s first purpose-built port community system, mPCS.
“AD Ports Group and Maqta Gateway have invested significantly in technology and world-class infrastructure,” she said.
This system has contributed significantly to the company’s sustainability initiatives, Al Dhaheri said. According to in-house estimates, mPCS has eliminated the need for 138 million physical visits to its facilities, thereby reducing potential carbon dioxide emissions by approximately 1 million tonnes as of October 2023.
“We’re committed to enabling our ports [to] achieve net-zero carbon emissions by leveraging [the] latest technologies that enable smarter port operations,” she said.
Maqta Gateway’s system is enhancing operations at more than 27 terminals globally. AD Ports Group’s container throughput rose 13% year over year in 2023.
“The only way that ports can achieve their targets in decarbonization is through breakthrough technologies,” Al Shaiba said.
AD Ports Group’s digital innovations through Maqta Gateway have increased the efficiency and productivity of its maritime business, fostering transparency and access to real-time information.
For example, its average ship turnaround time for 2023 was 0.66 days as of November, 12% lower than the 0.75 days achieved in 2022. That is also significantly faster than the United Nations Conference on Trade Development (UNCTAD) median global vessel turnaround measurement of 1.04 days.
“The only way that ports can achieve their targets in decarbonization is through breakthrough technologies.”
“From enhanced terminal operating systems and robotic maintenance to autonomous vehicles and IoT, our continuous efforts to digitalize and enhance operational efficiencies at our ports are a key contributor to the increase in container throughput,” Al Dhaheri said.
Increasing investments in cutting-edge technology for use in the trade community is a key priority for AD Ports Group, which launched a first-of-its-kind innovation lab in the Middle East. The lab specializes in artificial intelligence, cybersecurity and robotics.
“Our future plans are geared toward making our ports smarter, where ports, stakeholders, and objects [infrastructure, vehicles, devices] are connected bringing intelligence, interactivity, mobility and automation,” Al Dhaheri said.
“At one end, we will continue to add more features and functionalities to our Port Community System that leverage [the] latest technologies, including AI and IoT; while at the other end we will continue to invest in [the] digitalization of maritime and hinterland operations.”
In the UAE, AD Ports Group has implemented a state-of-the-art vessel traffic management information system (VTMIS) at Khalifa Port, Zayed Port, Free Port, Musaffah Port and Al Dhafra Port.
“The system is used to ensure the integration and interconnection of all assets in a port and maritime environment, integrating tools such as radar, CCTV, radios, meteorological systems, radio direction finders and towers,” Al Shaiba said. “This provides port operators with access to real-time information and improves vessel-to-vessel and vessel-to-shore communication.”
Abu Dhabi’s government mandated AD Ports Group to develop an Advanced Trade & Logistics Platform (ATLP), which Al Dhaheri described as an innovative, single-window solution designed to unify trade and logistics services across the emirate, including sea, land, air, industrial and free zones.
ATLP is developed and operated by the AD Ports Group subsidiary Maqta Gateway, under the supervision of Abu Dhabi’s economic development department.
Since its launch in 2020, the platform has handled more than 150 million transactions. It processes all maritime cross-border operations. Adoption rates are also increasing for trade by air and land as well as through economic zones, Al Dhaheri said.
Maqta Gateway in April 2023 bought TTEK, a developer of border-control solutions and customs systems, for $26.7 million. At the time of the acquisition, AD Ports Group said it would expand the capabilities of Maqta Gateway by utilizing TTEK’s disruptive technologies.
“TTEK’s solutions merge deductive and inductive analytics with predictive modeling to form a powerful machine learning platform for customs, immigration, policing and border agencies,” AD Ports Group said in a statement announcing its acquisition.
TTEK uses more than 1.5 million risk indicators and AI predictive modeling to establish more reliable border security controls, the statement said.
Digitalization is foundational to becoming a smart port. AD Ports Group offers a case study in the successful implementation of digitalization, showcasing how disruptive technologies enhance efficiency, sustainability and competitiveness.
About AD Ports Group
Established in 2006, AD Ports Group today serves as one of the world’s premier facilitators of logistics, industry, and trade, as well as a bridge linking Abu Dhabi to the world. Listed on the Abu Dhabi Securities Exchange (ADX: ADPORTS), AD Ports Group’s vertically integrated business approach has proven instrumental in driving the emirate’s economic development over the past decade.
Operating several clusters including Digital, Economic Cities & Free Zones, Logistics, Maritime & Shipping, and Ports, AD Ports Group’s portfolio comprises 27 terminals, with a presence in over 40 countries, and more than 550 square kilometres of economic zones within KEZAD Group, the largest integrated trade, logistics, and industrial business grouping in the Middle East.
AD Ports Group is rated A+ by S&P and A+ Outlook Stable by Fitch.
adportsgroup.com
About Journal of Commerce
The Journal of Commerce, part of S&P Global, provides daily authoritative analysis of international containerized transportation and logistics offered on a subscription basis and organizes industry-leading annual conferences, including TPM, that provide immersive information and networking experiences. Information produced by a team of specialized subject matter expert journalists supports tactical and strategic decision making among corporate logistics teams and senior management at container shipping lines, logistics firms, truckers, railroads, marine terminals, port authorities, truckers and others participating along endto-end international supply chains.
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