Page 6 - LUA November - December 2023 for Magzter

COVER STORY

customs duties have been paid. These
factors speed up the import and export
process, reducing potential bottlenecks
and delays at borders.
When companies, countries and
regulators work together to digitalise
their supply chains, it brings down costs
and makes processes more organised,
transparent, and efficient. More IoT in ports
importantly, digitalisation builds trust
with foreign investors and breaks down The port of Hamburg is
barriers, empowering African traders on one of the busiest ports of
the global trading stage – and boosting the Europe and a large driver Thus, they are often very hesitant
region’s economies. for the regional economy to share information with a central
Being part of both larger transport with one-tenth of the total authority that has the ability to aggregate
and logistics (T&L) supply chains and in area of Hamburg City. and distribute the data amongst the
itself being a cluster of companies and Furthermore, it employs over stakeholders involved. In addition
businesses active in the T&L sector, ports 260 thousand people and the interaction with the surrounding
are in a unique position to fully grasp the generates over € 750 million environment, both ecological and social,
potential generated by these new high tech in yearly tax revenue for the adds an extra layer of complexity and
developments. city of Hamburg. The port opportunity to Smart Port development.
Within the wider T&L sector, Artificial Intelligence (AI) is making
companies have begun experimenting has opted for an IoT platform waves in Ports and Terminal Operations. AI
with a range of connectivity and data- to counter the expected is a key technology for smart ports and the
enabled technologies. In aggregate, these rise in traffic and increasing reason for port automation. In fact, without
technologies form the Internet of Things negative externalities (e.g. AI, smart ports could not exist. AI has
(IoT), which represents a convergence traffic congestion, pollution, already impacted global logistics companies
between the physical and digital worlds, and road safety) caused and will continue to impact the development
ultimately using data as a source of value. by the seaport’s activities. of the maritime and shipping industry.
These IoT technologies are being applied The platform is based on Even though some ports today are
in diverse settings, from last mile transport three pillars, Smart Port starting to come to terms with the
optimization to warehouse and transport infrastructure, intelligent importance and need for digitalization and
management systems. These developments traffic flows and intelligent IoT, there is still a long road ahead to get to
have been accelerated by decentralized trade flows. relatively mature Smart Port concepts
networks that rely on the rapid availability Connecting nations has created more
and analysis of information. versatility and cost-effective options for
Seaports are playing catch-up with and security risks and sustainability. traders, who ultimately need one-stop-
the large T&L players when it comes to Today’s technological and business model shops to improve their own livelihoods
developing insight driven solutions and innovations can be a driving force behind and reduce the cost of trade. Our facilities
IoT applications. The current landscape the Smart Port. across the globe are leaning towards this
offers some initial attempts at enhancing However, determining which one-stop-shop strategy, establishing more
value propositions through technologies technologies, how to implement them and and more packaging centres, storage
like automation but overall these projects the way in which they can support the facilities, and other services.
remain isolated. At the moment, ports in overall digital strategy of the port remains Transforming African ports and
Western Europe are leading the pack in the main challenge. terminals to fully digital and smart is a
these attempts. Although the Smart Port It stands to reason that ports are faced long process and the process will take a
and IoT initiatives are commendable, with a myriad of issues both technical while. However, with the right intent and
there is still a long way to go before we can and strategic. The diverse nature of a infusion of investments by global port
truly speak of fully integrated ports that port, with a wide variety of companies and terminal operators are opening routes
fully capitalize on the potential of IoT and and ecosystems, operating different kinds for African ports and terminal to be on
insight driven applications, in other words of equipment and requiring different par with the with ports and terminals
true “Smart Ports”. types of products and services creates a in Europe and the Americas. They are
Becoming a Smart Port means complicated environment with multiple creating facilities and working with
developing solutions to address the current stakeholders. In addition to heterogeneity governments to improve trade connections
and future challenges faced by seaports of data, a fear of transparency also remains between local and international customers,
including spatial constraints, pressure a major issue. Ports are typically comprised enhancing their competitiveness and
on productivity, fiscal limitations, safety of a cluster of competing companies. bringing prosperity to their people.

4 LUA NOVEMBER - DECEMBER 2023