Digitalization Drives Change at Ports

By Malcolm Ramsay

Digitalization and virtual connectivity initiatives at ports are forecast to drive a wide range of improvements for breakbulk handling as authorities invest in new technologies over the next five years.

In the aftermath of the global pandemic, many port authorities are reassessing the digital solutions they offer and are looking to new enhancements in power monitoring, cyber security and logistics planning to ensure that breakbulk cargoes are handled in the most efficient manner.

“As we have learned with the pandemic and vaccine distribution, when supply chains stretch and surge, it is more important than ever – that ports and their users be able to identify where goods and passengers are and where they need to go,” an American Association of Port Authorities director told Breakbulk.


Communications infrastructure

While much of the world’s trade ground to a halt last year, as national lockdowns restricted travel, the resultant congestion in ports and cargo storage sites has illustrated the weak points of the global breakbulk transport industry.

A lack of capacity at key bottlenecks resulted in raised costs and great uncertainty for many operators, and while pressure is expected to ease going forward there remains a need to improve efficiency to prevent future blockages.

“Useful information about goods movements requires reliable communications infrastructure. The information technology that ports rely on is ‘the infrastructure of the infrastructure,’ and software, hardware and devices call for the same investment as docks, pilings and piers."

According to data from the World Economic Forum, out of US$9 trillion value of goods traded worldwide every year, about 20 percent, or US$1.8 trillion, is spent on administration. Hence efforts to digitize administration procedures offer significant upside, not only for ports but for the entire transport supply chain.

“Ports are investing in projects to modernize operations and increase efficiencies, including cyber security enhancements, while considering the next steps in information technology initiatives. AAPA believes that improved virtual connectivity informs physical connectivity which yields more efficient supply chains,” the organization stated.
 
As a result of the weaknesses exposed in supply chains by the Covid-19 pandemic, ports and carriers are increasingly partnering across the transport ecosystem to ensure the seamless digital transaction of goods and as end-to-end systems become more common place the need for breakbulk cargoes to be integrated will change from optional to obligatory.


Policy Recommendations
 
With this shift from ad-hoc development to industry-wide solutions, the AAPA has proposed a series of policy recommendations to the U.S. government regarding digitization. These include the use of technical and policy committees to progress development of the Port Community Systems, and reach agreement on PCS standards that are interoperable, scalable, secure, and have common standards.

A focus on creating a national framework for effective and enforceable data security is also a key priority for ports, especially when data is being used internationally for supply chains.
 
“The global competitiveness of U.S. ports means using technology to keep up with the operational efficiencies and customers’ ‘visibility’ that ports already using Port Community Systems have in Europe and Southeast Asia,” the AAPA said, noting the need to provide additional “national and international resources for increasing digitization of supply chains.”
 
Headquartered in Washington D.C., the AAPA represents more than 130 public port authorities in the U.S., Canada, the Caribbean and Latin America.

 
Kiel Invests in Smart Infrastructure

At the Port of Kiel in northern Germany, authorities recently launched an ambitious project in partnership with Siemens Smart Infrastructure to rollout a cloud-based power monitoring solution for its shore power system.

Designed to save more than 8,000 tonnes of CO2 per year, the new system will measure energy consumption at the port’s shore power operations building as well as at the Ostseekai and Schwedenkai connection points. Utilizing Siemens’s MindSphere, cloud-based Internet of Things system, the solution will store real-time data about electrical values and help to build a better understanding of consumption and downtime, allowing teams to better identify faults and plan maintenance routines better.

“With our shore power system, we are playing a pioneering role and making an active contribution to climate protection. By systematically recording the power data and storing it in the cloud, the system operator can now determine the efficiency of the systems at any time, i.e. how much energy is actually being drawn. This allows to quickly respond to any anomalies if necessary,” said Dirk Claus, managing director at the Port of Kiel.

With shore-side breakbulk handling requiring larger and larger lift-capcities to cope with the latest generation of industrial components the need to understand power management is increasingly important not only to limit costs but to reduce unnecessary transport.

“Accurate knowledge of energy flows is crucial in order to ensure that operations run smoothly from a technical point of view and are ecologically as well as economically sustainable – whether in industry or infrastructure. Our solution provides the Port of Kiel with an uncomplicated digital energy data management and makes the operation of its shore power system even more efficient,” said Andreas Matthé, CEO of electrical products at Siemens Smart Infrastructure.
 

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