UNLOCKING DIGITALISATION
A DIGITAL CALL FOR ACTION Multiple factors are pushing digitalisation to the fore – the ports sector has its pioneers but IAPH for one believes more can be done
8 The introduction of 5G can help achieve the greater digital integration of standardised data in the port environment
COVID-19 has slowed and disrupted trade globally, so with a number of industry organisations announcing a “call to action” for greater use of digitalisation and smart technology, can ports take the necessary steps forward? In an industry where cost pressures, increased regulation and stricter environmental standards are more manifest than ever before, the incentives for ports to exploit digital technologies such as geospatial technology, artificial intelligence, automation and connected devices have never been stronger. The position is nicely summarised by Ted Muttiah, Chief Commercial Officer, South Asia Gateway Terminals (SAGT), Sri Lanka. Interestingly, SAGT recently confirmed it is adopting the Blockchain Technology by collaborating with TradeLens, a digital platform jointly developed by A.P. Moller - Maersk and IBM. Muttiah underlines, “Digitisation and digitalisation offer all stakeholders to the supply chain significant operational cost efficiencies.” There is clearly a need across the industry to see greater use of digital processes. Table 1 summarises the aims and objectives of three major industry bodies which aim to exploit digital processes in order to boost port and supply chain performance in general. The work of these three organisations suns up to a significant extent what can be achieved at a practical level and the ensuing benefits. These groups are involved in the movement of cargo on an unrivalled worldwide scale, so offer a truly collective expectation of what can be achieved. Looking at these initiatives in more detail, the non-profit Digital Container Shipping Association (DCSA) wants to use further digitalisation of container shipping technology standards to achieve its Industry Blueprint (IBP). The organisation has recently published its connectivity standards for shipping containers, which includes radio standards for gateways on vessels, land, at event locations and in handheld devices via an Internet of Things (IoT) interface. According to the DCSA, with these new standards shipping lines and supply chain partners can ensure shippers and
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beneficial cargo owners have an “uninterrupted flow of information regarding the whereabouts of containers and their contents at any point along the container journey.” There are three planned IoT releases which will cover connectivity requirements for reefer and dry containers and RFID registration of containers. PORT SECTOR, PLAYING CATCH-UP? So, there are clear initiatives underway to promote digitalisation in the supply chain but in the view of the International Association of Ports and Harbours (IAPH) the port industry still has some ground to make-up compared to other players in the supply chain to secure the benefits of digitalisation. IAPH suggests in a collaborative June 2020 paper, “Accelerating Digitalisation of Maritime Trade and Logistics – A Call to Action,*” that: “The COVID-19 crisis has painfully demonstrated the heterogeneous landscape that currently exists across ports worldwide. There is a need to accelerate the pace of digitalisation” So, the COVID-19 pandemic is at least in part, a catalyst to a more pro-active approach to harnessing the powers of digitalisation, with typical hallmarks of this being a stronger focus on smart port developments and better port–to–port integration and communication, as data and information sharing becomes more common. A recent survey by Haven Inc. (a a leading supplier of Transport Management gement System (TMS) solutions for international ational shippers and beneficial cargo owners) ners) also confirms that the coronavirus virus pandemic is actually a catalystt for shipping digitalisation, with many stakeholders in the logistics supply pply chain choosing to abandon manual nual processes and instead target greater ater use of automated solutions to drive uture. cargo growth and build for the future.
8 Ed Dawson: “Processes in ports and shipping are antiquated” – COVID-19 has contributed to showing there is a new way: digitalisation
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