bachelor’s degree and higher at specific ports, 2018

Zhejiang Ocean University, Guangdong Ocean University, Qingdao Ocean Shipping Mariners College, and Tianjin Maritime College.

Skills can also be acquired through vocational training. In 2015, both the MoT and the Ministry of Education sought to expand vocational training programs, releasing a series of regulations and advisories, including the Opinions of the Ministry of Transport and the Ministry of Education on Developing Vocational Education in the Modern Transportation Sector (Ministry of Transport and Ministry of Education 2016). Part-time educational courses were made available to further enhance and upgrade workers’ skill sets. In addition to education and skills training, the MoT funds scientific research. At present, 26 industrial laboratories conduct research in water transport. In addition, maritime and logistics courses are supported by port cities, for example, at the University of Ningbo.

Port companies are labor intensive, requiring significant manpower and skilled workers. Port employees can be roughly classified into three types: production operators, technicians and engineers, and administrators. According to a 2018 analysis by the China Waterborne Transport Research Institute (WTI) on regular employees of 12 listed port companies in coastal areas, operational and technical workers account for, on average, about 72 percent of the total (figure 2.16). In this group, production operators represent a larger share than technical engineers (about 57 percent and 15 percent, respectively). The analysis also showed that, on average, about 31 percent of port employees hold at least a bachelor’s degree.

FIGURE 2.16

Proportion of operational and technical workers, and of staff with bachelor’s degree and higher at specific ports, 2018

100

90

Proportion of staff (%) 80

70

60

50

40

30

20 Average = 72%

Average = 31%

10

0 Qingdao PortNingbo-Zhoushan PortShanghai Port Dalian PortYingkou PortJinzhou Port Rizhao PortGuangzhou PortLianyun PortQinhuangdao PortTangshan Port Tianjin Port

Operational and technical workers Staff with bachelor’s degree and above

Sources: Analysis by China Waterborne Transport Research Institute (WTI), based on port group annual reports for 2019, as follows: Dalian Port Group 2020; Guangzhou Port Group 2020; Lianyun Port Group 2020; Ningbo-Zhoushan Port Group 2020; Qingdao Port Group 2020; Qinhuangdao Port Group 2020; Rizhao Port Group 2020; Shanghai International Port Group 2020; Tianjin Port Group 2020; Yingkou Port Group 2020.

Production operators can be recruited from colleges and universities, vocational and technical schools, or labor service companies. They do not usually need a degree; if they possess the necessary professional skills, they can be trained on the job. In contrast, most technicians and engineers generally hold a university degree because they perform skilled jobs that require specific technical or professional training.

Port companies in China regard training as an important way to increase operational efficiency, promote safety, improve quality, and cultivate talent. Many companies have established internal training centers equipped with modern multimedia training facilities. They offer off- and online training courses and ensure the continuity of their training programs.

The Shanghai Port Group and others also offer employee ownership plans to encourage employee loyalty and dedication. The group also provides equity incentives to professional managers to improve their motivation.

Digitalization initiatives

ICT is now an important part of all industries, including those connected to the port sector. Global trade competition has driven ports and logistics firms to invest in new technologies such as the Internet of Things, big data, cloud computing, and artificial intelligence (Karimpour and Karimpour 2018). The COVID-19 pandemic has further heightened interest in automation and digitalization. Proper use of these technologies can solve complex problems in multiple port domains and activities, optimizing processes and increasing ports’ resiliency as key enablers of global trade. Technology can also help the workforce make better decisions. Port authorities and governments can help ensure the coordinated development and integration of ICT systems throughout the port and logistics sector.

In China, ICT platforms began to be applied in ports in the 1980s, when the move toward an export-oriented economy led to a huge increase in the volume of imports and exports and of container shipments. To deal with growing demand, technologies were implemented to increase the efficiency of container transport. Several major ports, such as Guangzhou, Shanghai, and Tianjin, adopted computer applications and operating systems developed in other countries (for example, Japan, the Republic of Korea, and the United Kingdom) and used them to plan and implement container operations, including loading, unloading, storage, booking, and dispatch. At the same time, these ports installed information management systems to improve daily port operations. Local ICT companies also began to develop their own patented terminal operating systems, which were used in smaller ports.

These initial efforts to introduce ICT were carried out independently by individual ports, resulting in isolated systems. Data could not be shared across platforms owing to limited technology and weak communications infrastructure. The systems were used chiefly to digitize paperwork and replace manual data processing, with few other value-added services.

In 1984, the MoT set up a computer applications group to coordinate the construction of ICT systems for road and waterborne transport. In 1987, in response to the need to modernize the transport management system, it issued Overall Planning for Transport Economical Information Systems, which offered guidance on the unified planning and construction of transport ICT systems,

including those for ports (Zheng 1994). The challenge was the proliferation of unlinked individual systems that thwarted coordination of the entire system.

In the mid-1990s, rapid development of the national economy greatly increased demand for specialized terminals and transport facilities, which in turn led to increased demand for port informatics. ICT systems were developed that improved production and operational efficiency, and the use of ICT was extended from container terminals to bulk and oil terminals. Port information technology had five features during this period. The first was an emphasis on introducing electronic data interchange to automate, digitize, process, and transmit documents related to all aspects of container transport. Its development was promoted by the MoT, which carried out the International Container Transport Electronic Data Interchange (EDI) and Operation System and Demonstration Project in 1995 through centers at Ningbo, Qingdao, Shanghai, and Tianjin (Ministry of Transport 1995). Second, management information systems were developed in various specialized terminals. Individual ports built or modified these systems based on their individual needs, developing applications for dry bulk and reefer terminals, as well as oil and ore terminals. Software for advanced container terminal operations was also introduced to provide real-time control of on-site operations. Third, strong business management systems were applied in the areas of finance, human resources, procurement, and equipment management. Fourth, to achieve real-time control of field operations and uninterrupted communication of information, ports began to establish computer-server clusters with enough bandwidth to support advanced ICT systems. Finally, ports began to acquire and cultivate highly skilled professionals to continue the development and management of these ICT systems.

Until 2005, individual ports had been introducing ICT innovations independently, with new technologies adopted as needed, but with little integration. Regulations and advisories from the MoT—such as a framework for cataloging highway and waterway information resources in January 2007 (Ministry of Transport 2006) and the Eleventh Five-Year Development Plan for Highway and Waterway Traffic Informatization in May 2007 (Ministry of Transport 2007a)—decried the duplication of transport information systems and the lack of system compatibility, interconnectivity, and information sharing.

The 11th Five-Year Plan (2006–10) called for an enhancement of ports’ ability to collect dynamic traffic information, such as real-time ship movements at ports and in waterways and the remote monitoring of operations and special vessels (such as those carrying dangerous goods). The MoT also called for comprehensive information sharing between ports, customs, and hinterland transport modes, as well as between government, logistics service providers, and the industrial and commercial enterprises generating the cargo.

In response, China’s ports began to focus on creating unified management and operations centers, as well as logistics and e-commerce service platforms that featured information sharing and all-in-one services. Ports established integrated operating models that unified heretofore disparate units. Major ports also began to extend the coverage of ICT systems from terminal operations to logistics. New logistics and e-commerce platforms integrated transaction, logistics, and online payment functions. ICT systems for shipping agencies, freight forwarding companies, and container management services were also developed. By integrating these systems into a single platform, ports could