The next generation of ports

Ports are the backbone of the Malaysian economy. The transhipment of goods at the port today is highly labour intensive. Over the last 10 years we have seen a development of larger vessels and faster cargo handling. The introduction of sea containers back in 1955 meant a revolution in goods transport. Because of the standard dimensions of the container, new ships, new terminals, new cranes, and new jobs were created. The container meant that cargo could move seamlessly between ships, trucks and trains. Intermodalism was born. Cargo handling techniques become more advanced and robotics are increasingly used. Handling speed of vessels and goods in ports are accelerating, resulting in shorter port turnaround times.

Today ports are physical hubs of containers, oil, gas, wood, iron ore, palm oil, etc. Ports of the future are logistics information hubs. The next revolution, a digitalisation of the commercial space, is a super internet where ships communicate with cranes, trains communicate with containers, weather stations communicate with pilot boats, trucks with entry gates, trucks with distribution centres, etc. All objects communicate with the super network.

According to a European study it has been estimated that by aligning the planning of the shipping line, terminal operator and transporter you could dramatically reduce lead-times throughout the port system and save an estimated EURO 80,000.- per vessel in a port. This means that there is a lot of potential to increase the quality, reliability, sustainability and efficiencies of our ports. This requires port participants to share existing information with a super network. Next to location data, you also require communication with a container through technologies such as GPS, sensors, and smart seals (important for customs). This can be combined with other information such as traffic and weather data.

In future people will still be needed in ports, but their job will change from operating physical activities to designing and managing logistics processes. Automated terminals are more predictable than people operated terminals, with less variability. Robots make fewer mistakes and damages than people do, and are more reliable. Therefore these ports will be more reliable and through economies of scale can operate at lower costs. This means that the new third industrial revolution will need high investments by countries in this new generation transportation and logistics infrastructure in order to become a logistics hub, which will create many new jobs. Because of its mechanised and automated nature, it is highly dependent on electricity. This requires the adoption of renewable energy, such as solar energy, in order to be sustainable. Key issues to address however are cyber crime and mobile reception of wireless networks.

The next era of shipping will see the introduction of ships that are unmanned, operated partly autonomously and partly by remote control. Rolls Royce is currently developing this new generation of vessels. The technology level needed has already reached maturity, which can make this a reality. Over the coming 30 years, you will see a gradually reduction in the number of crew in vessels and change of ship design. A pilot will be able operating the ship remotely to bring cargo vessels in and out of ports, supported by automatic mooring systems (without ropes). Remote control provides a better control environment to operate a vessel, providing a bird’s eye view around the ship instead of the current reality where much of the view is blocked by cargo and other blind spots.

Automation will be the key for the growth and competitive advantage of Malaysia as a hub port in Asia. The better people and smart systems work together, the more profitable the port business will be.