This commentary appeared in the print edition of the Jan. 6, 2020, Journal of Commerce Annual Review and Outlook.
Since ultra-large container ships (ULCSs) emerged in the 2010s, port-related investment both for navigation and landside infrastructure has become essential to accommodate those ships and attract their cargo at a lower shipping cost via economy of scale advantages.
At the same time, peak problems have been generated among a wide range of ship sizes, which require different levels of terminal capacity — i.e., cranes, yards, gates, lanes, etc. Consequently, this mixed use of different-sized ships leads to inefficient operation of container terminals as well as container ports, an unsolvable problem for any single stakeholder alone.
Even in the container port operations, collaboration among shipping lines, terminal operators, trucking companies, and other stakeholders is essential to keep these peaks as flat as possible. As far as a global supply chain is concerned, there remain more and more stakeholders who need to collaborate with one another.
Smart port concepts, as well as “chain port” concepts, may enable container ports to maximize efficiency improvements by utilizing IT technology as a disruptor, which has been widely known to the stakeholders.
When digitization succeeds in achieving efficient container port operation, cyber security of the container ports should draw more attention of all stakeholders, so as to secure digitization of ports in the future. Otherwise, ports will need a huge infrastructure investment both for navigation and landside operations in the future.
The International Association of Ports and Harbors (IAPH) this year will focus on digitization of container ports under the World Port Sustainability Program as a priority program. The IAPH World Ports Conference 2020 will be held in Antwerp, March 17–19, providing a platform for dialogue among all kinds of stakeholders in the maritime and port industry. Registration is now open on www.worldportsconference.com. It would be highly appreciated if IAPH could contribute to resolving these crucial challenges.