How market and trade factors will change the role of digitalisation for ports
Interview originally published on Riviera Maritime Media by Rebecca Moore
Container port digitalisation will start playing a different role on the back of an increased need for resilience and to protect against cyber-security threats.
As PortXchange chief executive Sjoerd de Jager says when asked about challenges faced by ports, “The answer today differs quite a bit from last year’s. The trade wars that are emerging will hit global trade, as consumers will investigate buying domestic products. From an environmental point of view, this could be a good thing, as shipping is still a very polluting industry.”
Highlighting different geographic locations, he says, “Now, US container ports will miss the IRA-induced PIDP and CPP federal funding, so in terms of upgrading infrastructure that will hurt. In Europe, the drive will be towards resilience and business continuity, as the threat of (cyber) attacks increases with the uncertain situation in East Europe. Ports are critical infrastructure, and thus it is important to have data and network redundancy. Ports in Asia will have likely suffered from the trade wars, with shipping container imbalances, but might be most challenged by congestion, infrastructure limitations, and environmental regulations.”
On the back of such factors, he believes digitalisation will start playing a different role, with more of a focus on cyber security and resilience. He adds, “There is the case of digitalisation supported by improved operational planning, and with that a more efficient port operation, which also has a profound impact on the environmental footprint and will help solve the congestion and infrastructure limitations ports may face. Then there is the case where digitalisation is needed to make it easier for ports to measure and monitor their emissions, and to spend time on implementing their decarbonisation strategies.”
One of the challenges is data sharing. Mr de Jager expands, “Whether the driver is environmental or operational efficiency, many players remain focused on their own silo, and if there is willingness, it remains difficult to get the data in the right quality. This also relates to the operational process of how local players conduct their business – if you don’t plan ahead, because you don’t need to as ships are handled first come, first served, then sharing that planning has very little value for the others in a port. Same goes for environmental data – we see a lack of staffing and priority with many different port actors on this item (with a few positive exceptions) which makes this data collection a nightmare for port authority sustainability professionals.”
PortXchange is a member of the Blue Visby consortium. The Blue Visby Solution offers a new approach to mitigating the inefficiencies of the sail fast, then wait practice in shipping.
Blue Visby Solution has been proposed as an innovative approach to optimising ship speed, arrival times and port logistics. Highlighting the progression of Blue Visby, Mr de Jager says its latest trial supports the learnings the consortium has experienced and shared through whitepapers in container and bulk shipping. “I think that’s a first. And to my knowledge, the solution did not utilise terminal data, thereby circumventing the data-sharing conundrum. Finally, they are including the contracting side of things and working with an incentive-sharing system.”
Homing in on new developments for PortXchange, Mr de Jager says the company is working hard to expand support for ports with their footprint and data collection. It has just completed reports for Belfast Harbour for 2024.