By Kushal Rajveer, head of supply chain for Asia-Pacific, HERE Technologies
In the intricate web of global trade, ports emerge as pivotal nodes facilitating the movement of goods across borders. Ensuring the smooth functioning of port operations is not just a matter of economic significance but also a logistical necessity. The optimization of these operations demands precision, foresight, and increasingly, the integration of location technology.
According to the United Nations Conference on Trade and Development (UNCTAD), more than 80 percent of the volume of international trade in goods is carried by sea, and maritime trade is expected to grow two percent between 2024 and 2028, highlighting the critical role that ports will play in facilitating international trade.
The Asia-Pacific region boasts some of the busiest and most strategic ports globally. Singapore, often dubbed the Gateway to Asia, is one of the busiest ports globally, with container throughput reaching 38.8 million twenty-foot equivalent units (TEUs) in 2023. Similarly, Melbourne’s port handles around 3.2 million TEU annually and over 900 new motor vehicles per day on average, playing a vital role in Australia’s trade.
Kushal Rajveer, head of supply chain for Asia-Pacific, HERE Technologies. Photo credit: HERE Technologies
Maneuvering through troubled waters at port
As port volumes continue to grow, the need for efficient operations becomes increasingly critical for maintaining the competitiveness of these ports. Port operators grapple with the vastness of ports, safety concerns and communication gaps – all of which impact operational efficiency.
Within the port environment where countless of assets such as containers, vehicles, and even personnel are in constant motion, the lack of real-time monitoring will result in port operators struggling to track the location, status and condition of assets in real-time. This makes it challenging to optimize operations, allocate resources effectively, and respond promptly to disruptions or incidents. Limited real-time monitoring may also result in inaccuracies or delays in data collection and reporting, hindering the ability of port operators to make informed decisions and adapt quickly to changing conditions.
Another common challenge faced by port operators is insufficient data points to facilitate dynamic scheduling processes. Dynamic scheduling requires real-time data and insights to adjust operations in response to changing conditions, such as vessel arrivals, cargo volumes, and resource availability. Without enough data points to inform dynamic scheduling decisions, port operators may struggle to optimize the allocation of resources, leading to inefficiencies and increased costs.
Idle time becomes prevalent as resources remain underutilized or deployed inefficiently, resulting in a waste of valuable resources and potential revenue loss. Additionally, the lack of dynamic scheduling capabilities can exacerbate congestion within the port environment, further impeding operational efficiency and increasing the risk of delays.
Recognizing this, port authorities and logistics stakeholders are turning to technology – particularly location intelligence – to streamline operations and enhance productivity.
Navigating port perfection with location intelligence
Location intelligence offers a comprehensive approach to optimizing port operations. By harnessing real-time data, predictive analytics, and advanced mapping technologies, stakeholders can gain valuable insights into port activities, identify bottlenecks, and streamline operations.
To illustrate the potential impact, location technology has the capability to achieve a 10 percent increase in asset utilization and 15% reduction in asset turnaround time within the first year of implementation by delivering accurate real-time tracking and analytics. This could translate to a 20 percent increase in operational efficiency for ports within 18 months – thanks to technologies like IoT (Internet of Things) sensors and predictive analytics enabled by location technology to optimize resource allocation and minimize downtime.
One notable example is the use of location-based services by PSA Singapore (PSA). PSA is able to maximize truck resource utilization and eliminate operational inefficiencies for Singapore’s container trucking community via a cloud-based transport management solution, which include features like automated scheduling and asset pooling for truck drivers.
As a result, companies who have adopted this solution demonstrated about a 50 percent reduction in empty runs (trips by a transport vehicle without any freight loaded). PSA also reported an overall improvement in transit and waiting times, drivers’ well-being, operational efficiency, and reduction in carbon emissions.
Similarly, the Hamburg Port Authority leverages location data for its digital information boards (Dynamic Information on traffic Volumes in the Area of the port, DIVA) to provide truck drivers with traffic-relevant information to navigate them through the port. DIVA shows information on current travel times to key destinations such as cargo transfer points without the need for additional hardware in the road sections under consideration.
Customized mapping provided by location technology offers a tailored and detailed representation of the port layout – such as vessel locations, berth availability, cargo storage areas, infrastructure and assets. By integrating real-time data feeds and sensors, customized maps can provide up-to-date information on port activities, vessel movements, and cargo statuses, allowing port operators to monitor operations in real-time and respond promptly to changing conditions. Customized mapping solutions can support decision-making processes by providing visualizations and analytics tools that enable port operators to identify trends, patterns, and potential areas for improvement.
By providing actionable insights and real-time visibility, location intelligence solutions enable ports to adapt to changing conditions, optimize resource allocation, and maintain competitiveness in the global market.
Setting sail into the future
Emerging trends in technology are also reshaping port operations. The integration of IoT devices, artificial intelligence (AI), and blockchain offers new opportunities to enhance efficiency and sustainability. IoT sensors can provide real-time insights into container conditions, enabling proactive maintenance and reducing the risk of spoilage or damage.
According to HERE Technologies inaugural APAC on the move study, 29 percent of logistics firms surveyed in the region have plans to invest in AI and machine learning as they believe that these technologies will help them create lasting competitive advantage and improve customer satisfaction.
Location intelligence solutions hold immense potential for optimizing port operations and the broader logistics ecosystem. As technology continues to evolve, the adoption of location intelligence solutions will play an increasingly vital role in shaping the future of port operations, driving competitiveness and innovation on a global scale.
Photo credit: iStock/tuachanwatthana