In a bid to diversify their portfolio and reduce business risks, Indian ports are exploring smart and sustainable solutions. Increased industrial activity has led to the introduction of a relatively new concept of smart port cities, where the smart technologies deployed include systems that support basic infrastructure such as tools for handling cargo, managing traffic, dealing with customs, assuring safety and monitoring energy use. The end goal of these smart technologies for port cities is to increase economic efficiency, along with reducing energy consumption and ensuring environmentally sustainable development.
SIPCs under Sagarmala
The government’s Sagarmalaprogramme is being undertaken to reduce logistics costs for international and domestic trade with minimal investments in infrastructure. It is an amalgamation of 513 projects, worth Rs 4.5 trillion, that have been categorised into port modernisation, connectivity, port-led industrialisation and coastal community development projects. The government has envisaged the development of smart industrial port cities (SIPCs) as a part of the port-led industrialisation component of Sagarmala. It also aims to increase coastal trade through the SIPCs. The rationale is to develop a smart city that is seamlessly integrated with port-related activities. Apart from boosting tourism and other economic activities, SIPCs also hold significant potential for increasing employment. The two ports being developed as SIPCs on an engineering, procurement and construction basis are Paradip port and Deendayal port (at Kandla). The project cost for the Pradip SIPC and the Kandla SIPC is estimated to be Rs 76 billion and Rs 111.47 billion respectively.
Work on the Kandla SIPC, the first-of-its-kind project in the country, started in 2017 with the aim of attracting private sector investments of over Rs 100 billion. With features such as smart utilities and a smart traffic system along with a command centre, the SIPC will be equipped to support a population of about 65,000. The proposed SIPC will be spread across two project sites together comprising an area of over 1,400 acres, with an urban township of 580 acres and an industrial zone of 850 acres. A furniture park has been developed across 100 acres. Louis Berger is the detailed engineering and design consultant. The key project components for the first site include housing, educational institutions, hospitals, hotels, commercial centres, integrated townships, optic fibre networks, 100 per cent water recycling, public Wi-Fi and green energy projects. The components for the second site comprise security surveillance cameras, a command control centre, networking infrastructure using information and communication technology (ICT), a smart traffic management system, Wi-Fi, solar-powered street lights, etc. In September 2019, the port authority invited bids for plots in the furniture park which has been ready for more than a year now. However, the tender did not receive an encouraging response from private players.
A major coastal trade handling facility on the east coast, Paradip port is another site that has been identified for development as a smart city. The project includes the construction of a multimodal logistics park (MMLP) by the Container Corporation of India, a 4 million tonne per annum pelletisation unit (177 acres) by Thriveni Earthmovers, a wood park and a dedicated food park for edible oils. The MMLP will have warehousing zones, container and bulk cargo terminals, inland container depots, container freight stations, and parking, mechanised handling and intermodal transfer facilities. In September 2019, the port authority had decided to segregate its cargo traffic from passenger traffic, for which a second exit road-cum-flyover will be constructed at a cost of Rs 1.06 billion. The construction of another bridge, adjacent to the old ATBK Bridge, is also envisaged, to ensure congestion-free movement to the Fishery Harbour Road and the port premises. Besides, works at the township are also under way. These include the development of parks, creek side and walking paths. Further, a state-of-the-art conference hall is nearing completion.
Emerging smart port technologies
The government has plans to develop a smart city around each of the 12 major ports, at an estimated cost of Rs 30 billion-Rs 40 billion each. These SIPCs are envisaged to be built in line with international standards, with advanced townships, special economic zones, etc. Besides, they will have international standards, ship-breaking and shipbuilding centres, as well as other ancillary facilities. The government has planned the development of port-led industry and townships along with green initiatives like wind and solar energy parks around the ports. The SIPCs will have unique features such as reduced consumption of conventional energy due to greater use of renewable sources, and smart, innovative and eco-friendly mobility solutions.
The increase in economic efficiency through the construction of intelligent infrastructure and the optimisation of cargo movement makes smart port cities distinct. They involve building synergies with smart cities and providing e-governance links, and developing facilities of international standards, special economic zones, and ship-breaking and shipbuilding centres. The driving force behind increased productivity at smart ports is technological innovations such as internet of things (IoT). Reportedly, the ultimate smart port would be completely automated with all devices connected via cloud-based IoT.
The different components of smart technologies benefit multiple stakeholders. The deployment of smart sensors helps port authorities and terminal operators in effectively operating and maintaining the physical infrastructure. Further, smart monitoring systems ensure operations at full capacity for port operators, resulting in increased volumes and improved productivity. Another smart tool used at smart port cities is the terminal appointment system which speeds up the movement of traffic and solves the problem of congestion. One of the most important tasks at ports is the maintenance of high levels of safety and surveillance for the facilities and assets. The adoption of smart security surveillance systems makes use of advanced video analytics systems for detection of intrusions on the basis of movement and pattern recognition and then alerts security personnel to potential threats. The use of smart port technologies cuts costs, raises efficiency and generates new data-based services and revenue streams, benefiting all the stakeholders involved.
Various ports across the world have implemented smart port technologies that can potentially be adopted at the smart ports envisaged in India. However, the selection of these technologies will vary from port to port depending upon its location, role in trade and level of competition from nearby ports. Other factors that influence a port’s needs include its size and level of maturity. The Port of Hamburg for instance has introduced a cloud-based information and communications technology (ICT) platform called smartPORT Logistics. It keeps track of the capacity utilisation rate, turnaround time, time spent in a truck and total distance driven by the truck. The port has deployed a wide range of connected initiatives to double its capacity by 2025 while simultaneously reducing operations and logistics costs. Another port that has incorporated a new model to provide technology-based services is Barcelona port. The model is based on its port community system, PORTIC, a service offered by the port authority to the port community to facilitate completion of formalities electronically. Further, Amsterdam port has also come up with a model of a smart green port based on ICT.
Conclusion
The use of digital, multi-stakeholder systems is a completely new area for Indian ports. While there is a lot to learn from the smart ports developed across the world, the decision of automation is a crucial one. Some ports have adopted one smart port technology at their facilities while others have adopted multiple technologies involving integration of data from a number of sources such as sensors and mobile devices. The government has begun the process of incorporating smart technologies in port operations by developing two SIPCs, with the ultimate aim of converting all 12 major ports into smart ports. This opens the gates for technology developers, operators and other stakeholders, providing huge potential for investment in the port sector.