8 minute read
Call for Action
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
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
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 leading 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 catalyst for t for shipping digitalisation, with many 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 drive cargo growth and build for the future. uture.
8 The introduction
of 5G can help achieve the greater digital integration of standardised data in the port environment
8 Ed Dawson:
“Processes in ports and shipping are antiquated” – COVID-19 has contributed to showing there is a new way: digitalisation
Organisation Role Activity Progress & Objectives Targeted Key Contact
IPSCA – 46 members in 50 countries, over 50 billion electronic messages annually covering 500 million TEU and 10 billion cargo tonnes Supports electronic communications platforms from Port Community Systems . Best Port Community Systems put in place through delivery of e-services and pro-active port communities Richard Morton, Secretary General
DCSA - independent group established in 2019 by leading global container shipping lines (MSC, Maersk Line, CMA CGM, Hapag-Lloyd, ONE, Evergreen, Yangming, HMM, Zim) Enable carriers to bring innovative solutions to market by introducing technology and frameworks Delivering The Industry Blueprint (IBP) - all processes commonly used in container shipping are mapped out and validated by carriers and publishing IoT connectivity standards Thomas Bagge, CEO & Statutory Director
IAPH - global alliance of 180 ports (and 140+ port-related businesses) in 90 countries, handling over 60% of the world’s seaborne trade and nearly 80% of the world’s container traffic. A non-profit and non-governmental organization (NGO). Promoting interests of ports worldwide through member relationships, collaboration and information-sharing to advance sustainable practices and improve how ports serve maritime industries Accelerating digitalisation through nine priorities to establish smart ports and standardised processes and data exchanges* Dr. Patrick Verhoeven, Managing Director, Policy & Strategy
*= in conjunction with BIMCO, International Cargo Handling Coordination Association (ICHCA), International Chamber of Shipping (ICS), International Harbour Masters’ Association (IHMA), International Maritime Pilots Association (IMPA), IPCSA, International Ship Suppliers’ Association (ISSA), Federation of National Associations of Ship Brokers and Agents (FONASBA) and PROTECT Group
The survey shows that 35 per cent of respondents believe the use of manual processes causes delays, 30 per cent state obtaining quotations takes too long and 20 per cent express the view that booking processes are cumbersome.
These statistics are supported by the IAPH. Patrick Verhoeven, Managing Director, Policy and Strategy, IAPH, states: “Exchanging paper by hand and relying on person-toperson interaction simply doesn’t cut the mustard anymore, neither from a safety nor efficiency standpoint.”
Ed Dawson, Associate at WSP’s UK-based Maritime Group, further notes: “There is no doubt that many processes in the port and shipping industry are antiquated and have always been done a certain way. Many want to see greater use of digitalisation and the global business lockdowns have highlighted that time and cost savings are possible by heavily reliant on paperwork.”
This view is endorsed by the Haven Inc survey, with a high proportion of those canvassed expecting to upgrade towards a greater use of digitalisation. As Figure 1 shows, 42 per cent are expecting to upgrade systems through investment in digitalisation of their international shipment processes, with 37 per cent looking to upgrade in one-to-three years and 12 per cent doing so in three-to-five years. In fact, only eight percent have no plans to make any investment in the next five years.
Brad Klaus, Chief Executive Officer of Haven Inc., elaborates: “With so many people working from home during the pandemic, companies have found new ways to trade and this has opened their eyes to digital solutions. From a management point of view, once you see the benefits, it’s hard to go back to manual systems and mountains of paper. The survey proves that the current pandemic has shown it is possible to streamline processes using technology.”
The lack of standardisation and the wide gap that still exists between different ports is still a concern. As IAPH notes: “Some port communities have seized the opportunities of the fourth industrial revolution and developed into fullyfledged ‘smart ports’, many others have barely grasped the essentials of digitalisation and continue to struggle with a larger reliance on personal interaction and paper-based transactions as the norms for shipboard, ship-port interface and port-hinterland based exchanges.”
NEED FOR DATA SHARING
Dawson at WSP points to one challenge that must be addressed. “There is a clear need for stronger focus on data sharing activities within a port setting. This is being driven by demands for optimal port operations through real time stepping away from traditional management processes
navigation, digital twinning, and automation.”
Modern ports are consumers and providers of information but there must be a greater digital integration of (standardised) data. The introduction of 5G can reportedly help, by enabling use of multiple data streams to improve all asset situational awareness; but even so challenges remains.
Dawson sums up what is needed: “The smart port of tomorrow that wants to integrate into the new supply chain dynamic will need an integrated and seamless technology base that will reduce total cost of the supply chain through optimal asset utilisation, lower inventory costs through efficient cargo management and visibility of the entire value chain from manufacture to end user. But this needs to be a collaborative effort and an understanding that future supply chains will be based more on data than knowledge.”
PORT SECTOR INITATIVES
Many ports are working on digital initiatives. The following represents a cross-section of some projects underway: 5 Valencia (Spain) - firm commitment to Digital Transformation to promote new digital business models and connectivity, positioning the port as ValenciaSmartPort. 5 Hamburg (Germany) - conducted tests with 5G, sensors on ships transmit movement and environmental data in real time, linked traffic lights to mobile network to control traffic in port. Targeting more intelligent IoT-supply chain. 5 Amsterdam (Holland) – new Digital Port Programme, with data availability making port transparent for users. Now trialing new monitoring system exploring drone usage. 5 Rotterdam (Netherlands) – digitalisation initiatives focus on better control and management of port/infrastructure and improved efficiency of logistics processes. 5 Montreal (Canada) - using Artificial Intelligence (AI) for new predictive tools to optimise port logistics and enable operational planning in order to positively impact transit times for containerised cargo in the supply chain, especially rail freight. 5 Los Angeles (USA) – launched a US Terminal Efficiency
Incentive Programme where 90 per cent of ocean carriers feed data into a “Port Optimiser” to better plan cargo flows through terminals. Future focus on end-to-end supply chain data integration with Blockchain.
8 Table 1: Aims
