While advocates of digitalization predicted strong gains as
ports and the logistics chain realized the benefits of the new technologies, it
appears much of the advancement has been limited to the largest ports. While
digital technologies are being promoted as a tool to improve productivity,
reducing the movement of paper and even direct interaction in the age of COVID,
the majority of ports are yet to get the new technologies and the increasing
digital divide is creating new risks for shipping and logistics.
Of the 4,900 ports worldwide, the majority are yet to
introduce digital technologies even for the most basic of functions reports
Innovez-One, a provider of port management software. They report that 80
percent of ports continue to use manual, legacy solutions. Beyond not having
the capabilities to use digital technologies such as an eBill of Lading, they
report that ports are still relying on spreadsheets or even something as simple
as a whiteboard to manage critical marine services such as towage, pilotage,
and launch boats.
The digital divide becomes increasingly clear when looking
at the large, tier 1 ports with the profile and financial capabilities to
realize the benefits of digitalization, while many tier 2 and smaller ports
have not had the capabilities to incorporate digital technologies to replace
manual, paper-based processes. In addition to the inefficiencies, it creates a
higher potential for delays, late payments, increased fuel consumption and
emissions, reduced revenues, and even safety concerns stemming from a lack of
traceability
“The current dynamic reflects the often-messy reality of
port operations, which is a blend of high-tech digital and paper-based, manual
processes sitting side-by-side,” says David Yeo, CEO of Innovez-One. “This
causes issues in relation to interoperability, where systems are not talking to
each other properly, which is impeding effective execution. However, it also
highlights the fact that while global supply chains are becoming increasingly
automated, of which ports are an integral part, the majority of ports still
overwhelmingly rely on person-to-person systems.”
However, Yeo believes that this current dynamic does not
need to continue and that the vast majority of ports are unnecessarily missing
out on the opportunity to reap the benefits of digitalization, particularly
when affordable technology, with a fast return on investment, exists and is
readily available. Specifically, utilizing smart technology and AI models to
optimize and solve complex last-mile towage and pilotage challenges, and in
doing so, creating a fair and level playing field within the global ports’
marketplace.