Port operators are the unsung heroes of global e-commerce, responsible for ensuring goods are delivered to customers in time and at a high quality. The time-sensitive nature and carbon-inducing effect of port operations make the industry ripe for technological transformation. ABI Research recently evaluated the latest trends in port operations, including how each region is approaching digital transformation.
Market Overview
Global trade in goods fell by 5% in 2023, primarily due to high energy prices and inflation impacting manufactured goods. The trend is also influenced by populist regimes and reshoring efforts, which may further slow or stagnate the trade of physical goods. In contrast, global services trade grew by 9%, with goods’ share of global trade dropping from 77.8% in 2022 to 75.3% in 2023. Despite this overall decline, major global port operators largely reported an increase in throughput. Five of the top seven ports worldwide reported an increase in throughput in 2023, with China Merchants Ports and the MSC Group leading the way with +23.5% and +10% increases, respectively.
Ports worldwide are increasingly focused on energy transition and sustainability, with plans to invest in green energy services like shore power, clean fuels, and Electric Vehicle (EV) charging. The emphasis on decarbonizing operations aims to attract environmentally conscious companies and align with government sustainability agendas. Investment strategies vary between public and private ports, with publicly funded ports leaning toward sustainability and Capital Expenditure (CAPEX), while private ports are more focused on performance outcomes. Furthermore, automation is progressing in Asia-Pacific and Europe, but North America faces challenges, particularly with ongoing strike actions.
North America
U.S. ports, while lagging behind Asia and Europe, show an inclination to adopt new technologies. All 10 major U.S. ports utilize some automation to process cargo. Moreover, a survey from the American Association of Port Authorities (AAPA) found that more than US$50 billion will be spent on green infrastructure over the next 10 years.
The key focuses are electric equipment, electric infrastructure, and hydrogen infrastructure. The Port of Los Angeles and the Port of Long Beach, being two leading ports in the U.S., will set a precedent on the North American continent as they invest US$25 million in new charging infrastructure for trucks. The plan is for these two California-based ports to fully electrify equipment by 2030.
The Port of Corpus Christi in Texas is an intriguing case study as well. It is fully embracing green hydrogen, with planned projects including production and hydrogen derivatives from diverse feedstocks, hydrogen fuel cell bus manufacturing, hydrogen refueling stations, municipal transit projects, and freight mobility projects.
Despite these technological initiatives, unresolved labor strikes continue to prohibit the adoption of technological solutions.
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Europe
The green energy transition is in full swing in Europe, with ports focused on green shore power, energy management systems, and services that enhance sustainability. The Port of Valencia is a notable example, with the port constructing internal rail infrastructure, producing hydrogen, and adopting hybrid/electric vehicles. Also, as part of its “Valenciaport 2030 Zero Emissions” initiative, the port will be supplied with renewable energy from Endesa Energia.
Larger European ports are maturing in their use of automation, with autonomous cranes and Automated Guided Vehicle (AGV) deployments being common. For instance, the Port of Hamburg is beginning to receive its order of 116 Konecranes Gottwald AGVs. These deployments will ensure that the Watershofer Hafen container hub will have a completely electric and automated horizontal container transport system.
Asia-Pacific
Asia-Pacific is home to some of the most technologically advanced ports in the world. Automation and digital solutions are commonplace, with private 5G networks enabling mission-critical use cases. Telcos such as Nokia, Ericsson, and Huawei are quite active across the region.
The Port of Singapore and the Port of Busan personify the technological maturity of the Asia-Pacific region. The former’s PSA Tuas Port is well on its way to becoming the world's largest fully autonomous container terminal, currently spanning eight berths. Solace Systems’ technology powers the port’s Event-Driven Architecture (EDA) platform, which orchestrates and optimizes automated equipment and maintenance activities. Meanwhile, the Port of Busan used automated gantry cranes, AGVs, and simulation software to create its first fully automated container terminal.
Rest of the World
Latin America, the Middle East, and Africa lag behind in terms of port automation. However, there are standout cases in each region. In Latin America, Nokia provided the first private 5G port network on the continent for the Port of Santos. In the Middle East, the Jebel Ali Port runs one of the busiest ports in the world and operates one of the largest automated terminals in the world. It does so using automated quay cranes and automated rail-mounted gantry yard cranes.
Lastly, Africa’s port technology investments are heavily backed by China, which is a core focus of its Belt and Road Initiative (BRI). Africa’s transport system represents 16% of the BRI investments.
Key Companies
Conclusion
For a closer study of how the busiest ports in the world are leveraging digital technologies to enhance productivity, automate operations, and meet sustainability thresholds, download ABI Research’s Port Operations: Key Trends and Regional Technology Adoption report.
