UNLOCKING TRADE POTENTIAL

Ports and Terminals

Since its launch in 2016, Maqta Gateway, the digital arm of AD Ports Group in Abu Dhabi, has been on a mission to transform port communities through innovation and usher in a new era of digitalized trade and logistics.

Among the many tech-based offerings it has developed and operates is the Gulf Cooperation Council’s first digitalized port community system, a mobile app that enables real-time updates on the status of shipments as they reach their destination and a blockchain solution for global logistics dubbed Silsal, or “chain” in Arabic.

Blockchain, widely used by cryptocurrencies, is a decentralized ledger that can offer a single contact point for all stakeholders involved in a project. Information is stored in so-called blocks and linked together using secure cryptography.

Silsal, the first of its kind in Abu Dhabi, allows importers and exporters to track and manage in real-time all data related to the movement of cargo and documents, saving time by cutting the need for paperwork, conference calls and physical visits.

“Technology is a crucial driver for the future of the shipping, logistics and trade industry, and blockchain is a key step in the digitalization of trade,” said Dr. Noura Al Dhaheri, CEO of Maqta Gateway, shortly after the launch of Silsal.

“Not only have we introduced our own blockchain offering, but we have also invented our own form of digital identity. This will eliminate the need for access through passwords, which can often be a security risk.”

During the pandemic, AD Ports Group deployed a blockchain-based system – called mUnity – to manage the distribution of Covid-19 vaccines.

The technology, custom-built by Maqta Gateway, was able to track and trace vaccine sourcing, storage, shipment and all related data at every stage

BY SIMON WEST

of the vaccine journey, from manufacturing to arrival at vaccination centers in the UAE.

Eyeing Opportunity

The well-worn trope of shipping and logistics being slow to embrace the switch from manual to digital is now looking worn-out. The industry is shaking off its reputation as a “dinosaur” (as one executive recently told Breakbulk) and starting to see technology as an opportunity rather than a threat.

“We see change happening in the industry,” said Jason Berman, chief commercial officer at London-based port services provider, S5 Agency World. “More people with tech experience are entering the industry, whether they are in the middle of their careers or just starting out, and they will drive the transition into more and more areas.

“Technology development is also helping, and implementation costs are coming down. The software as a service solution we offer requires no hardware investment by our clients. But this has only recently become a viable solution for shipping because of developments in the wider tech industry in the past ten or fifteen years, such as cloud infrastructure and satellite technology.”

Digital technology in the form of hub solutions – centralized data platforms that team members can access anywhere in the world – is a particularly exciting development at ports and terminals, he said.

This type of technology eliminates operating silos across businesses and standardizes operational and financial processes, saving companies time and money.

The upheaval of Covid19, meanwhile, has forced the industry to think and act in a more decentralized way, with many digitalization and automation processes that had been slowly evolving over previous years being catalyzed by the pandemic.

According to Berman, while the deployment of digital solutions in the Middle East and Africa, or MEA, region has sometimes lagged behind other parts of the world – Europe and North America in particular – it is now moving in the right direction.

“We see colleagues who have previously been working around the world returning to markets in the Persian Gulf and India and creating new businesses to deliver the kinds of process efficiencies in our industry that they have experienced while working elsewhere,” Berman said.

Drones Success In Oman

At Sohar Port and Freezone in Oman the use of underwater drones and artificial intelligence to inspect marine infrastructure and analyze data is enhancing productivity and streamlining operations.

The complex, managed by Sohar Industrial Port Company, a joint venture between state-controlled logistics group Asyad and the Port of Rotterdam, has been using the technology as part of its essential monitoring system for more than two years.

The drones are employed to provide realtime surveillance of all Sohar’s underwater assets, often accessing areas to detect cracks and corrosion in infrastructure deemed dangerous or beyond the reach of manned submersibles, such as jetties, bridges and the underside of vessels.

Ghaith Al Darmaki, chief technology officer at Asyad Group, told Breakbulk.

“The technology even allows for algorithm-based analysis of changes to the infrastructure, which leads to greater preventative maintenance and problem-solving to be carried out at the complex.”

Al Darmaki Asyad Group

Images captured by the drones are then analyzed by Sohar’s operations team using artificial intelligence algorithms, a method that can be deployed to predict future damage to infrastructure and likely equipment needs.

“Our drones have proven efficient and capable of reaching areas humans cannot, while also offering a new perspective of the entire complex,”

Sohar, the sultanate’s largest deep-sea port and industrial complex, which last year handled nearly 1.3 million tonnes of breakbulk cargo, has also begun using drones for aerial surveillance of port infrastructure such as docks and ship-collision barriers, cargo deliveries to rural areas and stock-counting and scanning in warehouses.

In recent warehouse trials managed by Asyad’s tech team, an inventory drone equipped with a long-range laser scanner, HD camera and onboard software took just 2.6 seconds to scan a pallet and generate a report that was shared wirelessly with a base station.

The drone conducted its scans with over 99.7 percent accuracy and could operate continuously for up to 30 minutes between battery changes. “Drones and AI show the impact that cutting-edge technology can have on our industry to drive efficiency,” Darmaki said.

Machine Learning Possibilities

Dennis Dreier, IT director and senior consultant in IT strategy and digitalization at Hamburg Port Consulting, or HPC, said machine learning – a subset of artificial intelligence that enables computer systems to “learn” from experience – has huge potential to transform the industry.

“Nowadays, machine learning is mainly used to solve rather small problems in a well-defined scope. With increasing digitalization and data generation, we could imagine a vision where IT solutions are fully interconnected in a port,” he said.

“The port then becomes a smart eco-system of IT systems that follow a common data standard. From there, new opportunities will arise such as developing digital twins that are used to test strategic plans in real-time and draw conclusions for data-driven decisions shaping the future.”

Elsewhere in the region, the Port of Kribi in Cameroon, West Africa, has designed and implemented its own community hub, dubbed the Port Information System, or PIS, set up for an integrated and computerized management of all operations at Kribi.

The system, launched in 2020, is deployed to manage ship calls at the port, process information at the harbor master’s office and monitor cargo movements, port security, performance indicators and billing data.

“The PIS has greatly influenced the operations of the port of Kribi (resulting in) improved efficiency, accountability, facilitation of data exchange, reduction of delays in the clearance of goods, integration and compliance with international standards,” said Michael Wilfried, director at the Port Authority of Kribi.

Kribi is also working on a Geographic Information System, or GIS, which will collect, store, analyze and visualize geographic data at the port, a tracking app that will allow users to keep tabs on cargo movements and the introduction of digital payments.

Challenges For Operators

The transition to digital, though, can be fraught with difficulties.

Wilfried pointed to internal challenges such as ensuring all staff have sufficient technical knowledge of a port’s digital solutions, and external challenges such as poor internet services, power outages that cripple operations and cyber threats.

According to Wilfried, African port authorities are in a battle to continually assess, identify and manage risks to mitigate and prepare for potential cyber-attacks.

“The risk of intrusion is a threat that most African ports are not prepared for,” he said.

HPC’s Dreier said winning buy-in from stakeholders was key to successful implementation.

“I am particularly curious about blockchain technology, as it can be a base for secure and transparent operations.

“While this technology has become mature for being applied, change management is also required to gain acceptance by stakeholders and potential users. This is actually a good example that technology by itself does not make change. The changes happen by adapting the way of working and the mindset behind it.” BB

Simon West is senior reporter at Breakbulk.

Dennis Dreier will be moderating the panel session “End-to-End Logistics: Artificial and Business Intelligence Driving Efficiency in Ports,” taking place on Tuesday Feb. 14 at Breakbulk Middle East.

BY THOMAS TIMLEN