In the past few decades, the ports and shipping sector has undergone a significant transformation with increasing participation by private players. DP World, a key player in this space, is making strategic efforts to expand the Indian maritime commerce industry and is leveraging technology to enhance logistics efficiency. It is also focusing on streamlining operations, reducing expenses and improving customer satisfaction. The company currently manages about 93 million twenty-foot equivalent units (TEUs) of global capacity across over 70 countries.
At a recent India Infrastructure conference on “Smart Ports in India”, Devang Mankodi, senior vice president, Global Shared Services-India, DP World, shared his views on the issues faced by the ports and shipping sector, and the initiatives taken by the company to improve terminal productivity and the digital interface with shipping lines. He also highlighted key future trends in the maritime sector.
One of the major issues faced by exporters at ports is related to the movement of containers. Besides, retailers and wholesalers encounter challenges relating to longer lead times, increased turnaround time and inadequate supply chain management to meet consumer demand effectively. To improve the end-to-end experience for exporters and importers, DP World has set up free zones that are co-located with the ports. Currently, it operates free trade warehousing zones in Nhava Sheva and Chennai.
Other pain points for the port business are a lack of clarity on the cost of cargo transportation transit time and the exact location of cargo. To resolve these as well as reduce logistics costs, it is imperative to create the right infrastructure and the right digital ecosystem. If ports become more efficient and start connecting to the hinterland, it will be possible to cut down logistics costs as well as reduce intersection points.
Initiatives taken to enhance terminal productivity
DP World is committed to raising the bar of excellence in the maritime sector. The company wants to set industry standards for environmental responsibility and efficiency. The following initiatives show its continued dedication to growth and innovation.
In-house terminal operating system
DP World has developed its own terminal operating system, ZODIAC, for optimising planning and improving operational efficiency at gates, yards and vessel operations. The system has been implemented across all its terminals in India. With the terminal operating system in place, one can trace the exact location of the container and track it in real time. When a vessel is at the berth, the whole essence lies in how quickly one can turn it around, in order to save cost and drive efficiency. Currently, DP World is delivering a productivity level of around 30 moves an hour depending on the type of vessels across all its terminals. Going forward, the focus will be on improving the operating processes through digitalisation.
“It is imperative to create the right infrastructure and the right digital ecosystem in order to reduce the high logistics costs.”
Vehicle-mounted terminals (screens)
Vehicle-mounted terminals are digital display sets that receive tasks that are despatched by planning desks digitally to help the driver know where to go next and which container to pick up. These are mounted on all internal trucks of the terminal and help in tracking the trucks operating within the port premises. This optimises intra-terminal movement of trucks by providing drivers with real-time navigation. It enables efficient management of yard locations and cargo transportation, resulting in precise and well-coordinated logistics operations.
Remote reefer monitoring
This system tracks live temperatures of cargo, eliminates manual visits to reefer platforms and reduces operational costs. It enhances reliability and improves effectiveness in the handling of temperature-sensitive cargo.
Improvement in digital interface with shipping lines
The most important part is the interface with the external ecosystem. When a vessel is about to reach, the terminal starts exchanging information on electronic data interchange (EDI), making it efficient for the shipping lines to learn what the next steps in the process are. The EDI is environmentally friendly and provides faster and error-free data by using automated data entry and integrated communication systems. The real-time information and visibility features of the systems help improve customer experience. Besides, the government has developed a port community system which connects exporters and importers with the ports. This is an integrated platform where all the parties involved exchange information.
“IoT will be crucial in helping merchants get unparalleled control and real-time insight across the supply chain.”
Other initiatives
DP World is using artificial intelligence (AI) effectively in video analytics to reduce the risk within the terminals. AI-based systems identify and mitigate safety risks that may arise from pedestrian movement detection, wrong lane driving, tracking speed limits, vehicle stoppage/congestion, personal protective equipment usage, and compliance and security intrusions. These systems can be configured to identify various types of breaches. This provides auto intervention through public address systems and analyses the breaches to manage and introduce further improvements in safety and security on the ground. Further, gate automation – optical character recognition (OCR) technology – is being used to process transactions automatically and capture container damages using cameras. This technology helps in the elimination of manpower from gate lanes and provides error-free data.
To boost container handling efficiency at the terminals, the company has started operating cranes remotely from control towers. The remote crane operating station provides improved safety through a clear view of blind sections using high quality cameras. The system is ergonomically suitable for the operator, and one is not exposed to crane vibrations. The operator remains in a safe working zone and uses auto/semi-auto mode of operation to move cargo.
Another cutting-edge technology, BOXBAY, is poised to revolutionise port-level logistics by delivering unprecedented speed and efficiency. This fully automated process provides direct access to a particular container and eliminates unproductive moves. The technology is built around a new and intelligent high bay storage (HBS) system. It is a rack-like structure that offers unique advantages and is fully automated with each box stacked in an individual bay, and stacking cranes, two to each row of the structure, can pick any container without having to make too many moves.
To track real-time location of trucks, DP World is also using global positioning systems. This helps in improving fleet management and reduces idle time.
Assets and supply chain capabilities
The company introduced the first private container terminal in India with the signing of a concession agreement
with the Jawaharlal Nehru Port Trust for the development of the Nhava Sheva International Container Terminal (with 1.2 million TEUs installed capacity) in 1997. The concession for the Nhava Sheva International Gateway Terminal was for 2013 and it has an installed capacity of 0.9 million TEUs. Another container terminal in Mundra, with 1.2 million TEUs of installed capacity, commenced operations in 2003. The company also operates a terminal in Chennai (with 0.7 million TEU installed capacity) and a greenfield transshipment terminal in Cochin (0.8 million TEU installed capacity). Besides, it has signed a concession agreement with the Deendayal Port Authority to develop, operate and maintain the new 2.19 million TEUs per annum mega container terminal at Kandla in Gujarat.
Moreover, DP World operates nine cold chain locations, five container freight stations, three economic zones, 2 million square feet of contract logistics warehousing, seven multimodal inland terminals connected to the rail network, freight forwarding and an express cargo network across 13,000+ pin codes. The company is planning to operate up to 100 container trains by June 2024. With the development of dedicated freight corridors, there will be immense potential for quick cargo movement from inland locations to the ports. DP World currently handles 28 per cent of the export-import traffic in India.
Future trends
Over the next decade, consumers will demand highly personalised and customised offerings, which will change the dynamics of businesses. For example, by utilising internet of things (IoT) capabilities, tracking and administration will be easy. Thus, IoT will be crucial in helping merchants get unparalleled control and real-time insight across the supply chain, guaranteeing effective product transportation from point A to point B.
Going forward, it is extremely important to digitalise the supply chain, wherein the ports will play a major role because each and every export and import container will go through two ports (one for loading and the other for unloading). Further, these two ports have to take the ownership of sharing the information with the truck community, rail community or any other logistics mode that provides visibility and end-to-end solutions to customers. The industry at large is moving towards the broader trend of digital transformation by using new platforms and technologies that significantly enhance supply chain visibility and, therefore, efficiency.
