Modernizing ports through information technology and shipping containers

Advancements and Modernizations in Port Infrastructure and Operation: Changes in Information Technology and Shipping Containers

There have been a great many technological developments in the twentieth century, particularly in the latter half of the twentieth century (at least as far as the civilian world is concerned), and these have revolutionized the way in which business is conducted at almost every level and at every stop along the supply chain. From the sourcing and extraction of raw materials, through every step of the manufacturing process and even to the final sale of finished goods to consumers, newly or relatively recently developed technologies have come into play that render obsolete the way business was conducted even a few short decades ago. This is just as true for the shipping and transport industry as it is for the producers and consumers that dot the supply chain, and though they have shown something of a resistance to change if only based on the sheer size and scope of their operations and infrastructures, many major ports have undergone modernizing to make them more efficient and capable of handling the ever-increasing volume of global trade.

Increased computerization and the rapid growth of information technologies have played a major part in the progress of business and the modernization of ports. From planning to tracking and communication and even to the design of port layouts and mechanisms, information technology is a major part of port modernization. These applications are truly definitive of the current era of society, dubbed by many the "Computer Age."

Changes to shipping containers to increase their standardization across all modes of transport have also changed the ways in which ports can perform basic functions, and modernization can change what were once inhibitive factors into greatly increased efficiencies. The ability to quickly handle newer shipping containers and facilitate transfer from maritime vessels to truck and rail transport modes -- and vice versa -- is key to maintaining a port's competitiveness, and the ability to efficiently schedule and plan transport operations is also a part of this process. In this way, both information technology developments and changes to shipping containers and the devices used for moving containers at port sites have contributed to the modernization needs of the modern-day ports.

Information Technology

A recent study commissioned by the RAND corporation found that ports in the United States can expect the number of containers they process on a daily basis to increase nearly four-fold over the next two decades, and even if this projection is halved many ports will have to undergo adjustments to remain competitive (Hillestad et al. 2009). A major part of port congestion is the lack of support of existing infrastructure for land shipment to and away from ports -- that is, railways and highways are either not sufficient enough used efficiently enough to provide access to/from the port at the port's maximum cargo-moving capacity (Hillestad et al. 2009). Information technologies allow for more accurate communication of shipment location and can also be used to organize traffic allowing for maximum capacity. And the adoption of such technologies in major ports is already well underway (Hillestad et al. 2009).

The need for information technologies in creating systems that more efficiently move cargo through ports has been stressed by other scholars, as well. Integration of ports into the full system of cargo transport to a degree recently not envisioned as even possible is necessary to allow for continued growth of the global economy, according to Rezende (1999). The term "systems optimization" is a catchphrase for this scholar, and for other calls to action in the previous decade when ports were lagging far behind the rest of the supply chain infrastructure in becoming integrated with communications and information technology (Rezende 1999). Through the adoption of these technologies and greater integration with both private shipping companies and government entities, modernized ports are more able to effectively and efficiently direct and handle increased traffic and cargo loads.

The growing amount of traffic making its way through the world's ports is accompanied by greater warehousing and transportation infrastructure needs. As these warehouses and infrastructure elements are built, they create a greater need for up-to-date logistics planning on the part of port operators and private shippers, and information technologies are vital in providing planning systems that incorporate the rapidly changing infrastructure of today's world (USDOC 2008). Decisions influencing which ports of entry to utilize can change on a daily or even hourly basis depending on the distribution of warehousing capabilities, and creating communications network between ports and other transportation infrastructure elements to allow for more accurate decision making has been a major part of port modernization (USDOC 2008).

There are also even more far-reaching and long-term applications for the increased capabilities of information technologies in the ongoing modernization of the world's ports. As port and general infrastructure needs are projected to continue to grow, there is also a need to find new areas for construction and to determine the feasibility of port expansions, and many ports are beginning to utilize newer technologies in estimating costs, scopes, and impacts of port expansion products as part of a continuing modernization effort (IDB 2008). Such analysis is both more accurate and cheaper than previous methods of producing feasibility studies for similar projects, but ongoing technological development that assists in future projects is increasingly incorporated as an ongoing part of port operations, in order to keep modern ports continuously modern in their ability to deliver (IDB 2008).

The applications for information technology in port modernization are vast, covering almost every specific task involved in such modernization. From creating systems that utilize the port's current machinery, human resources, physical space, and infrastructure connections in the most efficient manner possible to analyzing new sites for future port expansions, the assistance of computerization and information and communication technologies have increased port capability tremendously in the past few decades. Such technologies also play a major role in ensuring that the day-to-day operations of many ports remain consistent and efficient, not only in planning these operations and directing port traffic, but also in the direct operation of the newer equipment at modernized ports.

Conclusion

Port modernization is not a finite effort with a set finish line at which point all necessary changes will have been made. Instead, it is an ongoing process that will continue to evolve as shipping methods grow ever more cost-effective for shipping companies and their clients alike. For now, however, there are key areas of modernization that are necessary elements of any major world port that hopes to remain competitive. A comprehensive application and integration of information technology and the infrastructure changes needed to handle large volumes of standardized shipping containers are key aspects of port success.