the emergence of smart ports and their impactful …the emergence of smart ports and their impactful...

The Emergence of Smart Ports and

Their Impactful Implications

By : Dr. Hamid Reza Abaie,

General Director of ICT Department, PMO

[email protected]

Mehdi Rastegary ( E-MBA) Head of R&D, Sina Ports and Marine Services

[email protected]

Tehran, 24th & 25th January 2017

mailto:[email protected]





بما تعملون خبري ين آوتوا العل درجات والله ين آ منوا منك واله اله ( 11-اجملادهل)يرفع الله

Allah will exalt those who believe among you, and those who have knowledge, to high

ranks. Allah is Informed of what ye do.

PMO

The Emergence of Smart Ports and Their Impactful Implications

Ports and terminals are encountering myriads

of new challenges

• Ports and terminals are seen as the

underpinnings of maritime trade which

account for 90 percent of international trade in

global economy.

• Currently the ports sector is encountered with

many challenges, including: Ship size growth and cascading effects

Shipping market concentration and pressures from

alliances

Fierce regional competition between ports

The rising need for capacity developments

The upheaving need for improving the port

productivity

The transformations in supply and demand chains (

e,g. collaborative consumption, mass-customized

production, economic protectionism, etc.)

By : Dr. H.R. Abaie & M. Rastegary p.: 3 Tehran – 24th January 2016

PMO


Abaie,H.R., and Rastegary,M.(2016)


PMO


Contextual Implications in ports

It is essential to comprehend that:

• Ports are seen as asset-rich complexes and

their development is extremely capital-

intensive and time-consuming.. • Any port development project is seen as an

irreversible, sunk-cost investment.

• The terminals industry is a semi-manufacture

industry that relies on colossal fleets of

equipment, facilities, and resources.

• Nearly all ports perform by utilization of

maximally 60-70% of their resources.

• They are all affected deeply by their

customers, competitors, upstream and

downstream stakeholders, and the PESTEL

conditions.

• They are encountered by new cost-attracting

concerns like sustainability, security, etc.

The ports and terminals are in need of Transformative change.

As we will discuss Information Technology is one of the main Change agents.


PMO


The Continuum of Information Revolution in the beginning

of the third Millenium

• After revolutionizing the economy in the second half

of 20th Century, the Information Technology is

functioning as the key to the upgrade of human life and

economy to the next, higher levels.

• It is a fact that today, we have access to several

powerful, available, and affordable IT-based solutions

in business and economy.

• This has been gained due to several factors, including:

Developments in Data Processing, storage, and

sharing technologies.

Development of shared and distributed

infrastructure

Networks and networking Effects

By relying on the leverages of such IT-based solutions,

humanity will change more in the next 20 years than in the previous 300 years.


PMO


Former ICT impact on Ports and Terminals

• ICT has had very great impacts on

enhancements of ports and terminals.

• Among the IT-based solutions and systems

that have been used and/or developed in the

sector, we can point to:

Internet and World Wide Web

E-commerce ( and introduction of EDI)

Port Community Systems

Terminal Operations Systems

Traffic Control Systems

Security & Surveillance systems

Industrial Automation Systems

Simulation Software and Systems

Various Transaction Processing Systems

Yet, much greater waves of change are coming to transform the face of the industry.


PMO


Internet of Things

• IoT is seen as the infrastructure of the information

society

• In 2020, there will be over 50-billion connected devices

on earth (i.e. 6.6 devices per each living man).

• The emergence of IoT will embed and enhance

intelligence in every aspect of human life.

• It is estimated that IoT will generate a value equal to

4.6 trillion dollars for the public sector and 14.4 trillion

dollars for the private sector in this decade(Bradley,

Reberger, Dixit, & Gupta, 2013).

• Ports are among the most capable sectors for

engendering such value-added as they usually function

simultaneously as international trade gateways/hubs,

logistic platforms, and industrial clusters.

• IoT can also facilitate the developments of:

Big Data

Industrial Internet

Semantic Web

Machine Learning

Port Automation


http://www.itu.int/en/ITU-T/gsi/iot/Pages/default.aspx

PMO


Internet of Things

• IoT in ports is currently most underpinned on use of :

Various sensors

RFID

Wireless Sensor Networks

Network Communication Technology (includig

short-range communication and WAN

communications)

M2M

Terminal equipment

Handheld mobile terminal

• Hence, it seems that many other technologies will be

increasingly used in term of IoT in ports, including:

The wearables

The smart phones

And more and more smart equipment, vehicles and

appliances


https://www.researchgate.net/publication/261343481_Intelligent_ports_based_on_Internet_of_Things

PMO


Big Data

• It is estimated that currently, 2-quintillion bytes of

data is generated per day.

• By this trend, 90% of the data in the world today

has been generated in the past three years.

• This tremendous growth of data has developed

the ‘Big Data’ as large pools of data that can be

captured, communicated, aggregated, stored, and

analyzed.

• Most part of Big Data is comprised of an

incalculable amount of transactional data being

produced by companies, financial institutions, and

online intermediaries.

• This includes trillions of bytes of information

about buyers, suppliers, and operations of critical

interest to businesses and financial analysts.

• In the coming years, the Big Data will be among

the core factors of value creation in the global

economy.


https://www-01.ibm.com/software/data/bigdata/what-is-big-data.html



http://www.mckinsey.com/business-functions/digital-mckinsey/our-insights/big-data-the-next-frontier-for-innovation

https://www.uschamberfoundation.org/bhq/big-data-and-what-it-means

https://www.uschamberfoundation.org/bhq/big-data-and-what-it-means

PMO


Big Data

The ports can use Big Data to create value by:

• Making information more transparent and

usable at much higher frequency.

• Boosting their productivity by collecting

more accurate and detailed performance

information through creating and storing

more operational , technical maintenance,

and transactional data and their analysis for

making better management decisions and/or

forecasting

• better segmentation of customers and

providing more precisely tailored services.

• substantial improvement of decision-making

by sophisticated analytics

• Innovations and development of the next

generation of services.


PMO


Port Automation • Generally speaking, process automation has

been a long-practiced trend in the terminals

industry.

• Many processes have been automated in the

past decades including vessel planning, yard

planning. container checks, etc.

• In a more specific sense, automation of

container handling is emerging to enhance the

port productivity levels in response to recent

ship size developments.

• Currently around 30 container terminals are

automated by unmanning their yard handling

equipment or terminal transport vehicles

around the world.

• The automation cuts labor costs, and provides a

more predictable, consistent and stable

container handling performance.

• More focus is forming on intelligent algorithms

that can predict equipment behavior that

enables prevention of break downs and down

time.


PMO


Intelligent Port

• The resultant of increasing reliance of ports

on informatics, digitization, instrumentation

and automation of port has led to the rise of

intelligence in them.

• The intelligence can build the foundation to

more efficient dynamic info-centric

continuous improvement, in comparison to

the conventional PDCA cycle.

• This is how the high leaps of improvement

can be performed by raising the intelligence

of ports.

• The intelligence of the port can be used

wisely to transform it into a ‘Smart Port’.

Plan

Do

Check

Act Old,

Static Data

Collect

Analyze

Predict Optimize

Automate

Dynamic, Real-time

Information

Vitsounis,T. (2014)


PMO


Smart Port

• The Smart Port concept is the result of a

new systematic , and all-encompassing view

of port missions and functions.

• The intelligence factor is certainly used as a

great leverage to realize the needed

interactions and improvements.

• But it is essential to understand that Smart

Port is the new way of thinking and

conception, rather than a collection of costly

new technologies for vanity shows in a port.


PMO



Smart Port

• The Smart Port concerns: Providing an intelligent information infrastructure in the port and

reaping knowledge and wisdom from it

Boosting innovation to win the most possible with the least

available resources

Developing agility in port in response to the changeful business

environment

Optimal and maximal utilization of the existing capacities of the

port.

Optimal and futuristic design and development of the port

capacity

Due organization of port logistics processes to streamline and

attract the global trade flows to the port.

Strengthening the sharing and collaboration of the port with her

interested parties in order to increase the impact of the port in the

supply chains.

Integration of different Management areas to generate more value-

added

Acting responsibly and intelligently towards the betterment of the

environmental aspects and impacts of the port.

The Smart Port development relies heavily

on the intelligent Information Infrastructure and its advantages.

PMO


Smart Port

Concept

Energy Consumption

Operations

Environment

MED Maritime Integrated Project (2014)

PMO



Smart Port Concept

• The Smart Port incorporates:

Intelligent, green and integrated transport

Efficiency and competitiveness (through

technologies, automation and application of

tools as VSM)

Energy efficiency (including renewable

resources).

Driving force for the socio-economic

development of their city or region.

Being resource-efficient, respectful with the

environment, secure and seamless for the

benefit of citizens, the economy and society.

PMO


Environment


1.Berth Productivity

2.Infrastructure Productivity

3.Capacity for receiving Large vessels

4.Size and use of Max. Capacity

5.Technologic level

8. Lines calling at port

6.Level of Automation

7. Level of Intermodality

9. Quality, Safety and Security

1.Environmental

Management System

2. Waste Management

3. Water Management 4.Emission to Air

5. Noise Pollution

6.Leaks and Spills of

Polluting Substances at Sea

1.Total Consumption of Energy

2.Energy Consumption

by containers

3. Energy Consumption

by Internal Fleet

4. Energy Consumption by Offices

5. Energy Consumption by

Lighting in Terminal Area

8. Energy Management

7. Use of Renewables

6. Energy Consumption by Terminal

Equipment for handling containers

Energy Consumption

Operations

0

Smart Port Concept Areas and Criteria. MED Maritime Integrated Project (2014)

PMO


Conclusions

• In the recent years, the ports are

experiencing extreme pressures and

tensions to enhance their service levels.

• According to prevailing market trends,

the ports and terminals are most in need

of transformative change.

• The Information Technology can act as

one of the most effective change agent

in this regard.

• We discussed that in tandem with former

IT systems and technologies, disruptive

trends like IoT, Big Data, and Port

Automation will be revolutionizing the

industry in terms of few years.

• The capabilities of the growing

intelligence in ports are mostly oriented

to be used in development of ‘Smart

Ports’.


PMO


Conclusions

• Smart Port is a concept that concerns integration of

different management areas to engender the maximum

possible value-added from the minimum amount of

resources.

• The concept heavily relies on the backbone of modern

information infrastructures that facilitates generating

knowledge and wisdom, as well as prompt action in port-

related works.

• Currently the smart port concept is focused on operations,

environment, and energy consumption as its main area.

• The Smart Port concept is a new way of thinking that

recognizes the necessity and advantages of intellectual

development of ports ( with special focus on their IT-

based structural capitals).

• By some domestication, it can be effectively oriented to

function in terms of development of Islamic Republic of

Iran in the context of National Resistive Economy.

• PMO’s ICT Department and her affiliate researchers are

pursuing the preparation of models and plans of ‘Iranian

Smart Ports’.


PMO


Many thanks for your attention.


the emergence of smart ports and their impactful …the emergence of smart ports and their impactful...

Documents