| Written by Constance Stickler
From Docks to Data: The Case for Container Port Automation
Port Operations in Transition
The landscape of container terminal operations is undergoing a radical change. Amidst the transition, it includes a mix of traditional and automated processes.
In the past, tried-and-tested manual processes were relied upon to move goods around the globe. However, this is increasingly proving inadequate with rising trade volumes, changing customer expectations, and stricter environmental regulations.
Modern terminals are under pressure from several directions:
- Congestion is a frequent companion to operations, exacerbated by ever-larger container ships demanding ever-faster turnaround times.
- There is a labour shortage in key port regions, which is also aggravated by another factor: a significant wave of industry retirements and the difficulty of finding new staff for the hard work.
- Increased operation increases the risk of accidents, especially in busy, manually intensive environments.
- The demand for real-time data and transparency in the supply chain represents another complexity that many systems currently in use struggle with.
- Of course, operational efficiency must be balanced with environmental responsibility. Stakeholders demand sustainable practices; outdated, inefficient methods that produce unnecessary emissions are not acceptable.
Port automation can take many forms, from sophisticated container tracking and management systems to automated cranes and container handling equipment (CHE).
Semi-automated terminals rely on machine precision under human supervision, while fully automated terminals rely entirely on machines with minimal human intervention. Yet, both have a common goal: increased container throughput, fewer delays, fewer errors and improved sustainability.
Why Automation is Important Now
Port automation is no longer an abstract concept or future goal but an operational necessity. It is not about full automation, which is only the optimal solution in selected cases anyway.
Rather, it is about exploiting the technical possibilities to support human action as best as possible and to optimally use humans' and machines' respective advantages. This is the only way to meet global trade requirements and remain competitive.
Terminal operators must understand the role of automation in the broader operational context. It is not just about replacing manual processes with machines; workflows must be re-imagined entirely to achieve the necessary levels of performance and resilience.
Numerous ports have implemented automation projects in recent years, with significant improvements in efficiency, cost savings and safety. Terminals that still have a low level of automation must upgrade if they not only want to keep up with the times but also remain resilient in a disruptive world (see also: Terminal automation and what to look for).
Aligning Container Port Automation with Long-Term Terminal Goals
To achieve meaningful and sustainable results, container terminals must align automation implementation with overarching business objectives. This requires a clear understanding of the terminal's long-term goals, such as increasing operational efficiency, reducing environmental impact, improving safety or improving financial performance.
Knowing where you want to go is only one step along the way; you also need ways to measure the progress of your efforts. Enter KPIs: They provide quantifiable benchmarks that can be used to measure whether the desired effects are actually occurring.
Selecting the right indicators is essential to validating investments from day one and making data-driven adjustments when developments do not go as expected.
Identifying key performance indicators (KPIs) for success
Some key performance indicators (KPIs) are crucial to measuring progress, ensuring alignment with long-term goals, and demonstrating the value of the investment on the road to successful automation. They serve as a compass for the container terminals, guide decisions, and confirm the effectiveness of automation in achieving operational, financial, and sustainability goals. Key metrics include:
Operational Efficiency KPIs
- Container Throughput: Perhaps the most crucial indicator of all is measuring the TEUs (twenty-foot equivalent units) that pass through ports.
- Gross Crane Productivity (GCP): It measures the number of container movements per hour by a crane. This indicator should be collected for all CHE, especially those converted to automatic or affected by automation measures such as job promotion.
- Vessel Turnaround Time: Tracks the time a vessel spends at berth.
- Yard Utilisation Rate: Evaluates how effectively yard space is used.
- Truck Turnaround Time: Tracks the average time trucks spend in the terminal.
Financial Performance KPIs
- Cost per movement: Calculates the average cost of handling a container.
- Equipment maintenance cost: Tracks the expenditure on maintaining automated equipment compared to traditional equipment and shows savings from predictive maintenance systems.
- Return on investment (ROI): It measures the financial return on all automation measures combined relative to their costs. This long-term KPI is critical to justify the investment.
Sustainability KPIs
- Carbon emissions per movement: It reflects the environmental impact of terminal activities using this greenhouse gas.
- Energy consumption per TEU: Tracks the energy required to handle the containers.
- Waste reduction: It monitors the reduction of wasted resources, such as fuel or materials.
Safety and Human Resources KPIs
- Accident Rate: It measures the frequency of workplace accidents or near misses.
- Training Hours Per Employee: Tracks the time invested in training employees for new roles in an automated environment, ensuring a smooth workforce transition.
- Employee Retention Rate: Indicates job satisfaction and the terminal's ability to retain skilled employees as automation is rolled out.
Data and Systems Integration KPIs
- Data Accuracy Rate: It tracks the reliability of automated systems in gathering and processing information critical to real-time decision-making.
- System Downtime: Measures the frequency and duration of system outages, as consistent uptime is critical to business continuity.
- Integration Success Rate: It evaluates the smooth integration of automated systems into existing infrastructure and third-party platforms.
Balancing cost, efficiency, and sustainability
Container terminal operators often face the challenge of pursuing several goals simultaneously (see also: Known port automation challenges). They need to reduce operating costs, increase efficiency, and achieve sustainability goals. It can seem daunting to try to balance these priorities, but automation offers ways to integrate them all seamlessly.
Cost Management Without Compromising on Quality
Cost control is a top priority for companies. However, despite optimising expenses, a high level of service must be maintained.
As in other industries, attempts are made to transfer repetitive, heavy and dangerous manual work to machines while staff are assigned new, more strategic tasks.
Sustainability is not only related to the environment. Equipment handling is also made sustainable through predictive maintenance using sensors and analytics. Potential problems will be identified as early as possible to prevent them from escalating further.
In contrast to full automation, semi-automation also offers the advantage of being implemented in phases. This allows for adjustments during the ongoing project and scalable investments: it is adapted to the immediate operational requirements and thus minimises the financial burden.
The initial investment in automation measures is significant, yes, but the long-term savings in operating costs and the ability to handle higher freight volumes ensure a long-lasting positive return on investment (ROI) starting immediately after implementation.
Boosting Operational Efficiency
A port's success depends on its efficiency. Processes optimised through automation can reduce delays and increase throughput.
Automated cranes, yard equipment, and position detection systems (PDS) improve the speed and accuracy of container handling and yard management.
Technologies such as the Internet of Things (IoT) or artificial intelligence (AI) can be used for real-time analysis, which helps to resolve disruptions as quickly as possible or even prevent them from occurring in the first place through predictions.
The increased efficiency not only improves the level of service and, thus, customer satisfaction but also helps to handle fluctuating freight volumes, such as during peak seasons, without a proportional increase in costs or resources.
Sustainability as a Strategic Advantage
Sustainability in the sense of environmental protection is no longer optional. It is a decisive factor in complying with legal regulations, meeting customer expectations, and maintaining brand reputation.
Cultivating CO2 emissions is top of the list. Automation reduces fuel consumption by optimising equipment use and reducing idle times. This impacts vehicles still powered by fossil fuels and electrified vehicles whose energy must be obtained from fossil sources.
Ports prioritising sustainability beyond the legally required level are increasingly positioning themselves as attractive partners for environmentally conscious customers and stakeholders.
Finding the Balance
Balancing cost, efficiency, and sustainability requires a strategic mindset. Operators must evaluate where they can achieve quick wins and where long-term investments are needed.
Clear priorities need to be identified. Which areas best align with the terminal's immediate and long-term goals? Finding this focus helps prioritise automation initiatives.
Effective decision-making starts with data collection, and this process should begin as early as possible - ideally well before automation is introduced. By leveraging all available data sources, terminals can create a detailed baseline of their current operations. Comparison with industry benchmarks helps identify inefficiencies that automation measures can then address. Once implementation is complete, the systems take over automatic data collection and enable analysis and measurement of the success of the measures taken - from day one and in real-time.
A key aspect of being able to make sustainable decisions is stakeholder involvement. What are the industry trends - and other expectations of the port from shipping companies, logistics providers and regulators? If you include likely future developments in your automation considerations, you can anticipate them without having to react to them later.
If significant changes to operational processes are imminent, a modular approach is often recommended: the implementation of automation can be planned in phases, starting with the processes that have the biggest impact in relation to the cost.
Balancing cost, efficiency, and sustainability is about maximising value in all three areas without sacrificing one area for the other. Tailored automation offers terminals a unique opportunity to achieve this, as it offers measures whose outcomes usually serve all three goals simultaneously: operational and financial benefits as well as compliance with global sustainability standards.
Future-Proofing Terminal Operations
The container shipping industry is in a state of rapid development, characterised by changing trade patterns, technological advances, geopolitical events and increasing regulatory pressure. Container terminal operators must, therefore, develop strategies that address today's challenges and prepare them for tomorrow's uncertainties. To prepare port operations for the future, trends must be kept in mind, legal requirements must be met, and scalability must be ensured.
Anticipating industry trends and technological shifts
Two major trends in particular need to be kept an eye on: firstly, there are ever-larger ships and the associated increase in freight volumes, and secondly, the digitalisation offensive among most stakeholders, data-driven logistics and new technologies such as AI and blockchain.
The industry and customers expect seamless data and its integration into comprehensive platforms to handle the volume and complexity of today's logistics. Port operators must also invest in topics such as data analysis, predictability, and cybersecurity to remain competitive.
Preparing for regulatory and environmental requirements
Stricter regulations and sustainability targets require significant changes in port operations. The maritime sector is under increasing pressure to reduce its greenhouse gas emissions. It will be crucial for terminals near cities to take greater care to curb their noise, light and water pollution.
Container terminals are dangerous working environments. Transferring the riskiest tasks to machines helps to meet increasingly strict occupational safety standards. The importance of workplace safety is not yet the same everywhere in the world, but the implementation of international standards, especially by globally operating terminal operators, is expanding.
Scalability and adaptability of automated systems
One of the key benefits of automation is its scalability and adaptability. This allows terminals to grow and evolve with the industry's needs, prioritising areas with immediate impact on unique operational requirements or sudden changes in demand as needed.
Advanced systems can also be upgraded or expanded later with new technologies such as AI algorithms or next-generation IoT devices without the need for a complete overhaul - an adaptability that ensures terminals stay up to date without incurring excessive costs.
Future-proofing is about more than just responding to change – it's about creating a terminal that thrives in a dynamic and unpredictable environment. Automation provides a robust foundation for resilience. By investing in automation today, operators not only address current challenges but also ensure their terminal's relevance and competitiveness in an industry that is constantly facing change.
Risks of Falling Behind
Container logistics is a fast-moving and highly competitive industry, and failure to keep pace with automation trends can have serious consequences for terminal operators. The delay risks go beyond missed opportunities; they range from competitive disadvantage, customer churn, and operational inefficiencies to financial and reputational damage.
Competitive disadvantages and market positioning
As more and more terminals worldwide embrace automation, the gap is widening between the frontrunners and those still clinging to manual operations. Manual or minimally automated terminals can only handle smaller cargo volumes; they may struggle to attract shipping lines and logistics providers seeking speed and reliability.
Those who have to compete for limited shipping traffic - for example, as a result of a geopolitical event - must be able to demonstrate superior capabilities. Those who cannot do this negotiate from a much weaker position and may face severe losses.
Potential customer loss and operational inefficiencies
Automation represents modernity, reliability, and sustainability. A terminal that is perceived as technologically backward risks being viewed as outdated, which can damage its reputation and the trust of stakeholders. Time is money—inefficiencies have a direct impact on customer satisfaction and loyalty. Winning back old customers is more complex and expensive in the long run than the efforts to retain them.
Labour-intensive manual processes and their error rate lead to higher costs per move, which means higher prices with potentially subpar customer service. This makes it difficult to compete on value.
Financial and reputational costs of late adoption
The longer a terminal waits to implement semi-automation, the more expensive the transition may become due to the cost of hardware and software, workforce disruptions, loss of skilled talent, equipment replacement, and disruption during the transition.
Losses are also expected due to missed revenue opportunities, such as not winning high-profile contracts with major shipping lines or opportunities to handle new trade volumes, as well as fines, penalties, and operating restrictions for not meeting regulatory standards related to emissions and safety.
The domino effect of inaction multiplies the risk of falling behind each day without realising the benefits of automation. When customers churn, revenue and profits are reduced. This can mean there is not enough money left for investments. The gap between us and our competitors is widening - breaking this cycle is becoming increasingly difficult.
Leading the Change: A Call to Action
The evolution of container logistics is not a distant possibility - it is happening right now and is changing the way goods are transported. Terminal operators who seize the moment and invest in automation are laying the foundation for long-term success.
The risks of delay are clear - but so are the rewards of action. Automation is not just a financial investment; it is a strategic step on a tailored path to resilience.
The future of container terminals is being written today. Either you adapt to change - or you lead it.
FAQ
Why is Automation the Strategic Response to Workforce Evolution?
The evolution of work and the working environment has always been marked by significant milestones where machines transformed industries. From the mechanical loom of the Industrial Revolution to the assembly lines of the 20th century, automation has repeatedly demonstrated its ability to reduce the burden on human workers while increasing productivity. Container terminals are now at a similar point with their unique mix of physical labour and high-tech logistics.
Semi-automation, in particular, is not about completely replacing human labour but about improving the workplace and redefining roles to meet modern challenges. Machines are mainly used for repetitive activities and simple or dangerous work. By transferring these tasks to machines, the industry is creating safer, more engaging, sustainable workplaces.
And it's high time: waves of retirement are already on the horizon and will continue to do so in the coming years, drawing away a lot of experienced staff. In addition to the already precarious shortage of skilled workers, younger job seekers seek safer, less physically demanding, but more mentally challenging jobs. These are precisely the jobs that automation can create.
Takeaway
Container port automation is reshaping the logistics landscape, combining human expertise with machine precision to meet modern challenges. It increases productivity, mitigates and removes hazards, and helps achieve sustainability goals.
Those who delay adoption risk falling behind in international competition. The future of container terminals lies in using automation as a strategic advantage to remain competitive, resilient, and prepared for the evolving demands of global trade.
Delve deeper into one of our core topics: Port Automation
Author
Conny Stickler, Marketing Manager Logistics
Constance Stickler holds a master's degree in political science, German language and history. She spent most of her professional career as a project and marketing manager in different industries. Her passion is usability, and she's captivated by the potential of today's digital tools. They seem to unlock endless possibilities, each one more intriguing than the last. Constance writes about automation, sustainability and safety in maritime logistics.
