Improving Economic Potential: Ideas for Developing & Managing Ports and Economic Zones through technology integration
Ports and economic zones serve as gateways to global trade. With the increasing demand for efficient and effective supply chains and logistics, the need to integrate technology in developing and managing ports and economic zones is even more critical.
Understanding how to better develop and manage ports and economic zones through technology integration can provide business and government leaders with valuable insights into potential investment opportunities. By understanding the economic potential of ports and economic zones, infrastructure developers and operators can identify regions and countries that offer attractive investment prospects and make informed decisions on where to allocate their resources. Furthermore, with technology integration, port and economic zone developers and operators can leverage modern tools to optimize operations, reduce costs, and enhance the efficiency of their investments in ports and economic zones. Overall, having a solid understanding of the proven practices for developing and managing ports and economic zones can help business owners and corporate executives maximize their economic potential and achieve their investment goals.
With technological advancements in this area, there is a need for a shift in the traditional ways of developing and managing ports and economic zones integrating technology.
As a business-oriented leader with over 30 years of leadership experience in diverse sectors, including on the Boards of infrastructure businesses, I witnessed firsthand the impact that ports and economic zones can have on the economic development of a region.
In this article, let’s look at some actionable ideas and examples of improving economic potential through technology integration.
So, why is the Economic Potential of ports & economic zones important for the hinterland and for the host Country?
Ports and economic zones play a critical role in the economic development of regions, hinterlands, and countries. As we know, they serve as gateways to global trade, facilitating the movement of goods, capital, and people.
We can measure the economic potential of ports and economic zones in terms of their contribution to GDP, employment, and trade.
Ports and economic zones facilitate the movement of goods, reduce transportation costs, and improve connectivity to the hinterland, leading to increased economic activity, job creation, and improved living standards. Here are a few examples and references:
· The Yangtze Economic Zone, the direct hinterland of the Port of Shanghai, contributes more than 40% of China’s GDP and 25% of the nation’s total import and export cargo.
· The Port of Rotterdam contributes over €45.6 billion or 6.2% of the added value of the Netherlands and creates direct and indirect employment for some 385,000 people in businesses throughout the Netherlands.
· The maritime industry is a crucial driver of Singapore’s economy and contributes about 7% of its GDP. It is a leading International Maritime Centre and supports over 170,000 jobs in Singapore.
· The Port of Los Angeles(POLA) and The Port of Long Beach(POLB), known as the San Pedro Bay Port Complex, generate about 951,000 jobs in Southern California (1 in 9) and over 2.7 million jobs throughout the USA.
· The Port of Sydney handles over $60 billion in international and domestic trade annually, contributes over $2.5 billion to New South Wales’s economy annually, and supports over 17 thousand jobs.
Ports and economic zones also significantly impact the economic development of a country by facilitating international trade, attracting foreign investment, and contributing to the development of strategic industries, which in turn helps increase economic activity, job creation, and improved living standards. Here are a few examples and references:
· Contribution to GDP Durban Port is South Africa’s main cargo and container port and contributes 2 % of the GDP of South Africa; The Port of Vancouver supports an estimated 44,800 full-time equivalents (FTEs) of employment and contributes $4.6 billion directly to Canada’s Gross Domestic Product (GDP).
· Trade In 2020, the amount of waterborne trade moving through the 11 California ports was worth $416 billion
· Foreign Investment The Shenzhen Special Economic Zone has received nearly $300 billion in FDI, and over 90,000 foreign enterprises have been established since economic reforms began in China.
Thus, investing in developing and managing ports and economic zones already yields significant economic benefits for the hinterland and the host country.
What are the technologies for Developing and Managing Ports and Economic Zones that can help improve their economic potential?
Developing and managing ports and economic zones require a broad range of technologies to optimize operations, reduce costs, and enhance efficiency. Each technology implementation integrates updated businesses and technology processes and is often a multi-partner and multi-year project. For a better understanding, let us look at these technologies under two broad categories: land-side and waterside.
Landside Technologies for Developing and Managing Ports and Economic Zones:
Landside technologies refer to the systems, equipment, and infrastructure used on the shoreside of ports and economic zones to manage and optimize operations. These technologies can improve supply chain efficiency, reduce congestion, and enhance security. Landside technologies include automation, data analytics, and connectivity solutions.
· Automation technologies can improve efficiency, reduce labour costs, and enhance safety. Automated container terminals can increase throughput, reduce waiting times, and minimize the risk of accidents. For example, The APMT Automated Container Terminal at the Port of Rotterdam has automated around 80% of crane movements, and the remaining manual operations are being performed remotely
· Data analytics technologies can help ports and economic zones make better decisions by providing insights into operational performance, demand patterns, and customer behaviour. For example, Maersk’s Remote Container Management System can provide real-time data on container conditions, location, and route history. The systems entail transmitting devices installed on their modern containers and network installations onboard all Maersk vessels.
· Connectivity solutions, such as Port Community Systems (PCS), can improve communication and data exchange between ports and businesses, reduce administrative burdens, and enhance supply chain visibility. PCS at the Port of Antwerp, for example, allows for the streamlined exchange of information and documents among port stakeholders and helps port users order maritime services or other port services
Let us look at some land-side transportation technologies essential for port and economic zone development and management.
Land Side Transportation Technologies include the equipment and infrastructure used to transport cargo to and from the port, including trucks, trains, and intermodal facilities. Let us see a few examples and references:
· Truck Management Systems like the Pro-Pass at the Port of Virginia provide real-time information on truck movements, reducing wait times and improving overall efficiency.
· Rail Networks like the Port of Long Beach (POLB) constructed Double Track Access project allow four terminals to simultaneously manage arriving and departing trains. Furthermore, as the POLB on-dock rail facility project is completed, it will enable direct rail connections to the port, reducing truck traffic and improving overall efficiency.
· Intermodal Facilities at the BNSF Intermodal Facility at the Port of Los Angeles enable efficient cargo transfers between trucks, trains, and ships, reducing transit times and costs.
By leveraging these technologies, ports and economic zones can optimize operations, reduce costs, and improve the customer experience.
Waterside Technologies for Developing and Managing Ports and Economic Zones:
Waterside technologies are equally essential for port efficiency and cargo handling, and they play a critical role in maximizing the economic potential of ports and economic zones. Waterside technologies include the equipment, systems, and infrastructure used to handle vessels, cargo, and other goods on the waterside of the port. Terminal equipment, navigation and communication systems, and environmental management technologies are a part of waterside technologies. Here are a few examples and references:
· Terminal Equipment: Hutchison Ports’ Hongkong International Terminals (HIT) Container Terminal (CT9) in Tsing Yi has fully automated container stacking, significantly improving efficiency and increasing port throughput turnaround times minimizing labour costs.
· Ship-to-Shore Cranes: Fully Automated STS Cranes at the Port of Shanghai enable efficient vessel loading and unloading, reducing turnaround times and improving overall efficiency.
· Vessel Traffic Management Systems: Port of Hamburg’s Vessel Traffic Service enable real-time monitoring and coordination of vessel movements, improving safety and reducing environmental impact.
· Navigation and Communication Systems: The port of Rotterdam has an advanced Traffic Control System: and provides continuous information about the current situation of the shipping traffic and improves vessel traffic flow. Implementing such systems can help enhance safety, reduce environmental impact, automatically guide ships to their berths and optimize vessel movements.
· Environmental Management Technologies: Alternative Maritime Power Systems at the Port of Los Angeles allows vessels to plug into the electric grid while docked, reducing emissions from onboard generators. Implementing such systems reduces emissions from container vessels docked at the Port of Los Angeles.
Terminal equipment, navigation and communication systems, and environmental management technologies are just some waterside technologies that can help maximize economic potential. By leveraging these technologies, ports and economic zones can increase throughput, enhance safety, reduce environmental impact, and improve the customer experience.
So, how do these technologies come together to improve the economic potential of the hinterland?
Integrating land-side and sea-side transportation technologies is essential for maximizing economic potential in ports and economic zones. By incorporating these technologies, cargo can move seamlessly from ship to truck or rail, reducing transit times and costs. As mentioned earlier in this article, each technology implementation requires integrating updated businesses and technology processes and is often a multi-partner and multi-year project. With examples and references, let us look at how some developers and managers of ports and economic zones have integrated some of these technologies to maximize economic potential.
· Automated Truck Appointment Systems like the one implemented by APM Terminals in several ports allow truck drivers to schedule their appointments in advance, reducing wait times and improving overall efficiency
· Automated Gate Systems: Port of Rotterdam’s Container Exchange Route allow trucks to move through the terminal quickly and efficiently, reducing congestion and improving overall efficiency
· Port Community Systems: Singapore’s Networked Trade Platform (NTP) enable real-time information sharing among all port community stakeholders, including shippers, carriers, and terminal operators, which helps to streamline operations and reduce delays
These are just a few examples of how some developers and managers of ports and economic zones have combined multiple technologies to maximize economic potential. In addition to these integrated transportation technologies, other information technologies, such as blockchain and artificial intelligence, can also enhance the management and operations of ports and economic zones. For example, we can use blockchain to improve supply chain transparency and security while using artificial intelligence to optimize cargo handling and vessel operations.
By leveraging these technologies, ports and economic zones can improve efficiency, reduce costs, enhance the customer experience, stay competitive and meet the demands of the modern global economy.
What are some of the initiatives that can assist Port Developers & Operators in supporting the integration of updated businesses and technology processes?
· Invest in Digital Infrastructure: The development of digital infrastructure is crucial in the integration of technology in ports and economic zones. Learnings from Pilot projects with the deployment of the Internet of Things(IoT), Artificial Intelligence(AI), and Big Data Analytics can help to optimize operations, enhance efficiency and implement larger automation projects.
· Enhance Data Management: Data is critical in developing and managing ports and economic zones. Effective data management can help identify improvement areas, optimize operations, and enhance efficiency. Adopting a centralized data management system that integrates data from different sources can help to improve decision-making.
· Promote Collaboration and Partnerships: Collaboration and partnerships are critical to the success of ports and economic zones. Integrating technologies can facilitate collaboration and partnerships between various stakeholders, including shippers, carriers, freight forwarders, and logistics service providers. For instance, the Port of Los Angeles has collaborated with multiple stakeholders to deploy a digital portal that facilitates information sharing and enhances transparency. The Hamburg Port Authority (HPA) collaborates with HERE Technologies to better manage truck traffic in the Port of Hamburg.
In conclusion, developing and managing ports and economic zones through technology integration is essential for maximizing their economic potential. Land-side technologies, such as automated truck appointment systems, and sea-side technologies, such as automated mooring systems and container tracking systems, can help cargo move seamlessly from ship to truck or rail, reducing transit times and costs.
Furthermore, integrating technologies such as automated gate systems, port community systems, and real-time cargo tracking systems can help to improve efficiency and reduce delays, supporting ports and economic zones to stay competitive and meet the demands of the modern global economy.
As a business and government leader from the port and economic zones sector, staying informed about the latest technologies and best practices for developing and managing ports and economic zones is crucial.
Integrating technology in port and economic zone management is not just a necessity but a tremendous opportunity for businesses to unlock their full economic potential. By investing in the latest technologies and adopting best practices, companies can achieve greater efficiency, reduce costs, and improve the customer experience. As we move towards a more interconnected global economy, these improvements will continue to be critical for the future of international trade and commerce.
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