Container Shipping - Automated Terminal Investments
To determine the key inefficiencies preventing port productivity, the risks and consequences associated with the inefficiencies at ports, the areas of terminal and port logistics that are being automated, the consequences and potential risks in balancing automated and un-automated tasks, and associated industry trends and data.
- The Markets and Markets research group estimates that the semi- and fully-automated container terminal market was worth $9.09 billion in 2018. The market is expected to grow at a CAGR of 3.7% to $10.89 billion in 2023.
- Automation in ports is targeted at reducing carbon emission, labor costs, and to introduce consistency in handling cargo.
- The per-year cost from inefficiencies is estimated at $17 billion.
- When a port is fully automated, labor requirements are reduced by 45%, the port has the potential to be fully operational for the fully 24 hours, seven days a week, and delays and errors due to human interventions are also reduced.
- Respondents to a McKinsey survey believe that semi- or fully-automated ports are expected in up to half of all greenfield port projects over the next five years, and over half of the respondents expect that 50% of the top 50 ports will automate during the same period.
- The McKinsey survey also demonstrated that respondents expect increases in productivity between 10% to 35% and a reduction in operational expenses by 25% to 55%.
- There hasn’t been a huge uptake in automating ports due to unions and exorbitant costs. In 2018, only 3% of ports worldwide were semi-or fully, automated.
- Aside from high capital costs to implement, some of the challenges faced by ports who have implemented automation include poor data quality, sourcing talent, and operational silos.
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