The art of resilient terminal expansion

You may remember that I spoke recently of our investment in greener fuel for the shipping industry – and how our efforts to curb the sector’s emissions depend on two things: collaboration and digitalisation. Well, as it happens, these very same factors can address the world’s ongoing supply chain issues when integrated into modern-day port infrastructure.

My colleague John Woollacott spoke to Port Technology International this month about using greater connectivity and communication to strategically evolve our ports throughout the European region. A key challenge we are having to overcome, he points out, is how outdated terminals have become capacity pinch points as trade flows rise, exacerbating the disruption and delays we have experienced since the Covid-19 pandemic.

The straightforward solution, John says, is to increase port capacities to increase trade opportunities. When implemented well, this can expedite throughput, garner stable trade relations and even help our industry in its efforts to operate more sustainably.

However, ‘increasing port capacities’ isn’t a straightforward job. Physically expanding a port’s physical footprint takes time and money; what businesses and consumers need is immediate solutions with tangible benefits.

Fortunately, the two golden strategies of digitalisation and collaboration are helping us deliver faster solutions for customers ahead of our innovations being completed – and that’s not all...

Think smarter

Despite the spike in manufacturing and shipping disruption caused by China relaxing its Covid measures and the war in Ukraine, our ports in Europe performed well over the past year. Even while we’ve been carrying out significant works to expand them.

Our port in Antwerp is a good example of how we’ve achieved this. As part of a €200 million investment, we are working to increase the footprint of the site, which sits in a key geographic location for European trade. As part of this work, we have been integrating terminal operating software, thereby automating a lot of our basic, predictive processes – such as crate stacking and gate operation.

Doing this has been key to ensuring we can streamline our operations seamlessly once the building work is complete. However, it’s also delivering benefits today - so much so that we’ve boosted our throughput capacity here to 3.5 million containers (TEUs) annually.

In this instance, introducing digital solutions in a smart way has enabled our ports to deliver better services for customers before building work is complete. By harnessing technology that can accelerate and automate key elements of the workflow within our port, we have eased existing bottlenecks and avoided exacerbating those caused by construction. Further, automation on this scale has freed essential staff, creating greater capacity to work in other areas – such as handling specialised cargo or upskilling.

When used in this way, digitalising our ports can simplify processes, save costs and minimise errors – factors which all add up for companies looking to get greater value for money in their supply chains as the cost-of-living crisis sets in. Automation on this scale also helps us operate ports more sustainably, hitting carbon-cutting targets for us and our clients and builds resilience into the supply chain.

According to our recently launched Trade in Transition 2023 report, led by Economist Impact, 38% of companies surveyed in Europe are currently implementing Internet of Things (IoT) solutions to facilitate the tracking and monitoring of cargo, while another 34% are adopting digital platforms to enable direct business with customers or suppliers. 79% executives cite expansion in exports due to adoption of new technologies within their supply chain in the next 12 months, which is significant growth.

At Antwerp, the electric vehicles we’ve introduced as part of our site-wide automation have cut our carbon emissions by 51% since 2013. Similar port innovation in Southampton Gateway has led to relying solely on electric-driven vehicles instead of diesel ones, meaning we have an entire fleet that can be programmed to automate and expedite cargo throughput. So much so, in fact, that we’ve managed to boost our annual TEU throughput at Southampton to 3.7 million.

On the flip side, this transition to electric has further amplified the benefits of our new Southampton to London rail connection – an inter-port modal solution that takes up to 120 lorries off the roads and cuts carbon emissions by 80%. In fact, once the service of this train increases in frequency and our overall modernisation is complete, we could take as much as 300,000 trucks off UK roads every year – reflecting how much cargo we’ll be able to ship en-masse without the risk of road traffic delays.

When you consider the impact these terminals can have on an individual scale, you can quickly start to see the transformative effect that region-wide port expansion can have on the entire sector when it’s done right. However, to truly realise this for the continent, we must connect the dots as we expand our ports. And for that, collaboration is key.

Work better

Thinking of our ports beyond their traditional purpose can ensure their evolution benefits not just our supply chains but our communities too.

Digitalisation and electrification are already delivering fantastic results for our ports and the supply chains they serve. The technology we’re embracing in the initial stages of our transformations are enabling us to synchronise mainline moves with second moves – in other words, working in tandem with all elements of the supply chain thanks to the visibility our software is creating. Aided by sophisticated technology that can be automated based on these learnings, we’re creating greater stability and better value from these major supply chain hubs.

Yet we must also consider how these innovations can serve wider benefits if we are to make ports resilient and valuable for the long-term. And this is where the collaboration factor is key.

Through automisation, for example, we gain the power to predict and foresee disruption but also anticipate labour and skill shortages in our terminals. This knowledge can inform the communities in which we serve or enable us to invest in projects which fill those gaps, futureproofing the career opportunities of generations.

Such behaviour makes ports more than mere cargo handlers. Strategic expansion like ours is evolving them into entities that generate societal and economic impact, working better with governments to boost income sources rather than lose them due to human oversight. All this creates trust and stable foundations for when the physical work of our innovation is complete. Combined with improved multimodality with minimal impact on the environment, we will boost trade while benefiting communities in the locale too.

With our vision for Europe, I look forward to seeing these benefits come to life on a regional scale as we keep hitting milestones across the continent. The capability of our ports is paramount to our success – and implementing digitalised solutions and innovating with others in mind is how we will ensure they’re adapted in a robust way that will serve generations to come.