Download Sue Terpilowski presentation

How will digitisation
change port
operations?
Sue Terpilowski OBE
March 2017
OpPORTunity - The role of a port today?
•
Ports have always been an inhomogeneous, but closely intertwined network of
shipping companies, terminals, ship brokers, freight forwarders, Port Authorities,
and other commercial companies in the port industry.
•
Processes have been similar for years or decades and are gradually being
optimized by IT, but never completely changed.
•
Digitalization will fundamentally change the value chains within global logistics
chains.
•
Transparency of information relevant to all processes of the supply chain. This
information must be integrated into a shared platform where it is analyzed in
order to identify optimization potentials.
•
Participation in the network of connected ports offers ports around the globe the
opportunity to jointly influence the ongoing transformation in ports worldwide.
Vision of the future 2060
4 generations of ports
1. The first generation port is a loading and unloading port (until the 1960s)
2. The second generation port is an industrial port (until 1980s)
3. The third generation port is a logistics / supply chain port (post 1980s)
4. Smart digital ports (now and the future) digitised port, a Port 4.0
Deliottes Chart
Leading people becoming interested/involved – everyone wants a piece
of the cake?
•
•
•
•
•
•
Google
Silicon Valley
Uber
Amazon
IBM
KPMG
How is it going to be paid for?
Ports and digital – 3 eco systems
Planning management
Port management
Cargo management
Currently
Currently
Currently
• Haven’t got the access to the
data to best manage terminal
operations for profitability
and efficiency.
• Cargo information
infrastructure isn’t at present
transparent
• VGM – no need to change
BoL, what is really in the box?
• Lack of operational
intelligence to provide the
‘smart’ analysis for decisionmaking processes.
• Lack of visibility for the
different stakeholders.
Insufficient and inaccurate
information for critical
container – what is in them,
the real weight.
• Container tracking is limited.
• Traffic and trade flows work
independent of each other
• Some earlier adopters but in
isolation of each other
Definition of Smart Port
Smart Port means:
• Developing port solutions to address the current and future challenges faced by
seaports including spatial constraints, pressure on productivity, fiscal limitations,
safety and security risks and sustainability.
• Developing supply chain solutions - extra services like savings in time, security,
traceability, etc. Improving these drivers for both sides is where the quick wins lie
for ports.
• A true smart port will need to take advantage of its position in the supply chain to
add value with the improved use of the data generated by the embedded IoT
infrastructure.
• A fully developed smart port can use it gained insights for new business model
generation.
Smart Ports today
• Today’s digital port solutions focus on efficiency improvements like traffic management systems,
improving flow throughout the port area, automation, reducing costs or digital invoicing (customs) by
improving lead time.
• Port authorities must rethink their orthodoxies about value creation and value capture.
•
High need for transparency and integrity control (right products, at the right time, place, quantity,
condition and at the right cost) along the supply chain
• End consumers are asking for detailed shipment tracking to have transparency in real time
• Business customers are asking for integrity control especially for sensitive goods
• Logistics companies need transparency of networks and assets being used for ongoing optimisation of
efficiency and network utilization
Ports and the supply chain the digital future?
Terminals
Shippers and cargo-owners
A global trade digital framework
• Terminals will have the
necessary information to
optimize performance,
storage, better handling and
to manage effectively
capacity, performance and
costs
• Will gain the data and have
application platforms giving
visibility and better control,
enabling them to plan and
manage stock levels and
production lines productively.
• Some earlier adopters but in
isolation of each other – at
present no one can see how
to make money from it
• Provide vital data to the
ecosystem
• New revenue streams
• Security and safety
improvements
• New clients of ports and
terminals
• SaaS entrants might make the
change
VISIBLE, SMART, CONNECTED CARGOES – DO PORTS HAVE A CHOICE?
“Maersk Line has over the past years equipped more than 270,000 refrigerated
containers or ‘reefers’ with Remote Container Management (RCM).
This technology allows us to track in real time the exact position of the container, its
temperature and humidity and potential off service. We went live operationally in Q3
2015 but are already seeing potential for the wealth of data available.
RCM enables greater visibility over cargo, and more importantly, a significant reduction
in damaged cargo.”
Vincent Clerc, Chief Commercial Officer, Maersk Line
IOT AND THE CONTAINER SUPPLY CHAIN TODAY – WHY DO IT?
Dumb, dark and disconnected” cargo and assets
Little real time visibility and control over cargo and assets are the rule No meaningful “hard” data for more real
time operations
Increasing business complexity
Regulatory, security and other issues increase the complexity of cargo and asset management Operational issues
such as trans-shipment resulting in longer transit times/more hand-offs Alliances/VSAs are resulting in higher cargo
and asset operational complexity and risk – 25 carriers and their shipper clients exposed to Hanjin collapse
Slow rate of industry technology adoption BCO adoption has been consistent but data is mostly defacto...dataloggers
Shipping lines starting to adapt to new technology and see commercial gains from it – Maersk is a leader though
ROI is the rule…
Maritime 4.0
• Maritime 4.0 (or interconnected maritime players, systems, and vehicles) is directed
towards shipping and ship building
• Modern vessel operation needs to make use of the massive data available to become more
efficient. This may result in a paradigm shift, e.g. intelligent voyage planning instead of highspeed journeys, and a reduction of operational costs an vessel turnaround times in seaports
• Smart shipping and Big Data are the most important elements of future shipping
• Benefits like improved fuel efficiency, reduced port stays or a better network design can be
achieved by collecting and analysing vessel data using flow meters, control and alarm
systems, sensors, or time stamps
• Antonymous ships the future?
Maritime 4.0 and Port 4.0
REALITY OF M2M IN CONTAINER SUPPLY CHAIN
Figures today:
Reefers – Approximately 300,000 of 1.5M reefers
Dry – Approximately 30,000 of 12M dry containers
Chassis – Limited adoption
Tanks – Approximately 5,000 out of 400,000
Maersk
Mediterranean Shipping Company (MSC) and CMA CGM
Invested in a cloud-based container monitoring system from Traxens that will include 4.5 million containers,
representing nearly a quarter of the world’s ocean vessel containers. The company will retrofit existing containers
with devices containing GPS and sensors that will relay data via cellular signals and their own proprietary mesh
network.
“Our business model puts shipping lines at the centre of deployment and shippers at the centre of usage,” says
Tim Baker, Traxens director of marketing and communications. “Shipping lines will soon order containers from the
manufacturers requesting that they be delivered in the ‘smart’ version.”
Customers will access data through smartphones, web browsers, ERP and TMS systems. The data will include GPS
coordinates, temperature, vibration, shocks, door openings, movement, internal temperature, humidity and air
pressure. “Users will have the option of buying data from these containers on a trip-by-trip/container-bycontainer basis,” says Baker. “Further down the road, we will have a simple web interface where any shipper can
subscribe to data from any single container on a single trip. We have some interesting challenges to rise to before
we get to that stage.”
Cyberlogite
SmartLink has set up its
connection with the customs in
nine EU countries of the UK,
Germany, France, Belgium, the
Netherlands, Greece, Spain, Italy,
and Portugal, and completed the
work of setting up its interface
with customer’s newly developed
shipping company operating
system. Thus, it is possible now
to file an EDI document created
in a customer’s system with
customs in Europe.
M2M/IOT IS GOOD FOR ALL STAKEHOLDERS
• Shipping lines want M2M/IoT data for greater operational
control/maintenance and repair data
• BCOs want box location and cargo temperature data
• Lessors want box location and potentially impact data
• OEMs want equipment performance/M&R data
• Freight forwarders/logistics/ gov’t entities want box location, security
status
• But who is going to pay for it?
• What part can ports play – when they hold vital data
and knowledge?
Hamburg Port Authority - smartPORT strategy
Port of Hamburg - smartPORT project was launched in 2015
The focus is on infrastructure, traffic flows and trade flows; HPA is developing the
concept step by step and aims to present it through concrete projects.
• Through digitalisation and automation, critical port logistic processes can be tracked
in real time
• Port infrastructure management across different transport carriers will be raised to a
new level
• The future port will have to become an Internet of Things: sensors, networks, and
fast, reliable processing of the data with the aid of in-memory computing, for
example, will provide an exact picture of logistic events at any time. In this way, Big
Data will create new planning guides and make port logistics more efficient
• Ports ‘think big, start small’ – the smart ports idea does not need to be implemented
all at once
SINGAPORE AND IBM
The future
But who is going to create
the open source platform?
Will BCO’s pay for it?
Is there a real commercial
need?
Will it be security – financial
Driven?
Thank you