The ensuing chaos from the pandemic has encouraged
investment from governments and cooperation between regions, although countries
remain of different paths depending on their infrastructure and willing to
spend.
During the second day of the Container Terminal Automation
Conference 2021 (CTAC), Matthew Wittemeier, Senior Manager International
Marketing and Customer Relations, Inform, said while larger terminals have
embraced smart technologies, there is a “digitalisation void” that threatens to
undermine supply chain connectivity in hinterland areas.
Wittemeier insisted said there is a “much better
understanding” of how optimisation can make operations more efficient than
there was a decade ago.
To that end, there has been a “paradigm shift” in how
terminals operate, as it has become easier to forecast short-term traffic but
much harder to know how much cargo will arrive weeks or months in advance.
This need for visibility has led to a “good appetite” for
digital solutions and the emergence of more start-ups to meet demand, according
to Wittemeier, who “envisions a healthy pipeline for the near future”.
The surge in volume combined with broader industry trends,
such as the deployment of larger mega-ships, and this had made ports increase
the size of container handling equipment fleets.
However, Wittemeier said hubs should instead focus on
optimisation and not physical assets, which allows for better efficiency across
a port’s operations.
Yesim Elhan-Kayalar, Advisor – Office of the Chief
Economist, Asian Development Bank, said the increase of e-commerce has changed
digitalisation from a “nice to have to a need to have” and that governments
have been forced to react.
“COVID-19 was a huge disruptor, but it has forced
authorities to view ports as critical gateways and they are much more likely to
invest in digital technologies than they were two years ago.”
The accessibility of mobile technology and e-commerce
platforms have allowed consumer demand to increase at a near unprecedented
level. Consequently, there has been ever greater pressure on supply chains and
congestion at ports.
Elhan-Kayakar said a result has been more regional
collaboration, particularly in Southeast Asia, and a “confluence of interests”
that could help economic growth.
“When you bring all ports on a loop, you can increase efficiencies
along routes,” she claimed, before saying that there has been “much more
planning for digitalisation” since the end of 2019.
The sudden need to work remotely has also contributed to
this and some parts of Asia were able to react quicker than others because the
work to digitalise had already begun, especially those with 5G networks in
place. Across the continent there has been a mix of homegrown digital solutions
and global partnerships, Elhan-Kayakar said.
While the major Asian ports, such as Shanghai, Busan and
Singapore, are still leading the way there has been more signs from developing
nations including Vietnam, Thailand and Sri Lanka. However, it is “difficult to
predict” how fast investment will take place in the long-term.
How investment reaches ports differs between countries and
regions, with the UK encouraging private investment, according to Richard
Ballantyne, Chief Executive, British Ports Association (BPA).
The UK Government’s freeport initiative, announced earlier
in 2021, is meant to encourage the creation of “clusters of innovation” that
“embraces digitalisation and automation” in the UK’s port sector, which is
“completely market-led”.
“Digitalisation can help [with congestion] and provide solutions,”
Ballantyne said, but warned the UK needs to build digital resilience to make
container traffic efficient and environmentally friendly.