How Southeast Asia got on board with the green port

They’re the invisible hub of trade, often at a country’s fringes and unnoticed by busy city dwellers. The humble port is the beating heart of world trade and collectively moves an incredible 80% of all global merchandise.¹

Southeast Asia’s strategic position and long coastline give it an advantage in developing coastal trade routes that the world depends upon. This advantage has been further developed through innovation and technology, giving rise to six of the world’s ten most efficient ports.² Within Southeast Asia, Singapore’s favourable position and adoption of emerging technologies have earned the city-state a title far grander than its diminutive size: The maritime capital of the world.¹

Historically, economic growth has incurred pollution, and shipping is no different. Without intervention, emissions from shipping will increase by 130% in 2050², making it misaligned with many of its customers’ strive for sustainability. That’s why countries such as Singapore, Shanghai, Tokyo, and many more have joined the C40 Cities Green Ports Forum to deliver positive health and economic benefits for communities.³

These connected ports are decarbonising supply chains by creating green corridors, building ports as energy hubs and helping build capacity for a tech-enabled supply chain. By focusing on key moments in the chain, these globally connected ports are creating a sustainable supply chain and decarbonising at a rate far faster than they could alone.

Embedding sustainability into port operations reduces dependence on fossil fuels, raises resilience and makes a plan for unpredictability. Let’s look at the benefits of port operations from sustainability:

An agile response to sustainability

Shipping routes are vulnerable to geopolitical changes, port backlogs and weather delays - all of which will increase in the coming years thanks to impacts from climate change. For port operators, this means they need to increase the speed and predictability of stock movement to offset the operating costs for their customers. 

Digitising port operations by adding digital twin capacity analysis gives better predictability and precise forecasting through increased data points. Managing these points in cloud-based technology further allows companies to optimise internal processes and adapt faster to the changing business landscape.

Meet rising demands and prevent backlog

Shipping trade is predicted to increase by 2.4% annually, which is putting pressure on ports to operate longer, manage greater volumes and service more customers.⁴

When Singapore’s Tuas port is fully completed, it will move 65 million twenty-foot equivalent units (TEUs), almost double the current demand. To meet these demands and digitally transform operations for the long term, ports are deploying technologies such as robotics and network slicing.

Robotics and Automated Guided Vehicles (AGVs) do dangerous, heavy tasks that would otherwise present a risk for human workers. These robots have not removed human roles but have generated new job opportunities for the existing 500 workers.⁵

Network slicing is the technology that enables these autonomous operations by achieving the high speeds and low latency needed for mission-critical applications to run smoothly around the clock. Network slicing also gives port operators the higher performance assurance and increased security they need to embrace digitalisation fully. 

Reduce costs to absorb the ‘green premium’

As the demand for renewable energy and sustainable business practices increases, so does the cost. Until the availability of sustainable products and services catches up with demand, businesses can expect to pay a ‘green premium’ that will need to be offset with cost savings elsewhere. 

For ports, those deploying IoT are seeing these savings come from precise insights into stock movement that enable them to see where loss and theft are happening.

Digital twins are also bringing cost savings by simulating port operations and visualising more efficient methods of container movement and ship berthing. The Cai Mep–Thi Vai port in Vietnam uses a GIS-enabled digital twin to boost port capacity, reduce environmental impact, and reduce the number of accidents.⁶

Through the adoption of digital twins, network slicing, and cloud technology, Southeast Asian ports are progressing towards sustainability. During this transition, prioritising efficiency is crucial, contributing to Southeast Asia's strong reputation as a highly efficient shipping region.

Ready to talk tech-enabled sustainability? Contact us