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Port AutomAtion
Navigating the Underwriting Risks
Why are ports automating?
2015
MSC Oscar TEU
19,224
2006
Emma Maersk TEU
15,500
1996
Regina Maersk TEU
7,100
1972
Tokyo Bay TEU
2,968
TEU = Twenty-foot Equivalent Unit, the unit used to define the capacity of a container ship.
Source: ABB; Maersk
Bigger ships require Better infra-structure
1956
SS Ideal X TEU
96
To transport the 19,224 TEU of MSC Oscar you would need:
1,100Boeing
747s
11,400Trucks
352,400 m
long trains
= 10
Of the 255 container vessels commissioned last year, 60 are over 18,000 TEU.
As larger vessels are introduced, there is a cascade effect, with smaller boats becoming feeders.
The average size of a cargo vessel on the Asia - Europe trade route is now around 14,000 TEU.
Source: JOC; ABB; Container Management Magazine
Bigger ships require Better infra-structure
Bigger ships require Better infra-structure
The Panama Canal expansion has more than doubled the size of ships able to pass through – from 5,000 TEU to 13,000 TEU.
Ports often need bigger quays and deeper berths to accommodate significantly larger ships.
Existing shoreside infrastructure in many ports is insufficient, e.g. cranes, storage, transportation.
Time is money
The cost per day in port for a 12,600 TEU vessel is around $60,000 dollars.
Cutting the time needed to unload and reload represents significant cost reductions.
By optimising equipment and capacity usage, automation can boost overall performance.
Source: Lloyd’s List
Increased competItIon
Source: Lloyd’s List
Softening growth in container trade means ports are competing for larger vessels.
European and Asian ports are leading the way in automating their operations.
Rotterdam World Gateway aims for 6,000 (container) moves per day.
What does automation look like?
Mooring systeMs
Automatic mooring systems can reduce mooring time, from 20 minutes to as little as 30 seconds,
as well as increase vessel stability in port.
Image: Cavotec
stacking and gantry cranes
Automated cranes allow expansion for stacking higher, wider and at greater speed.
vehicles Autonomously Guided Vehicles (AGVs) are being used to transport containers remotely.
Gates Automated gates register and direct cargo traffic more quickly.
Image: Portstrategy.com
Loading New SOLAS (Safety of Life at Sea) legislation requires verification of gross mass before containers are loaded.
Automated systems make it easier to ensure compliance.
Image: Maritime New Zealand
What are the benefits?
Improved effIcIency and safety
Better handling performance reduces time in port
(and for the journey overall).
Safer working environment as equipment is remotely controlled from an office.
Set working hours for
staff means less fatigue.
Operations can continue under darkness and in previously
prohibitive weather conditions.
Reduced eneRgy consumption
Shoreside electricity means ships can plug in whilst at berth rather than running auxiliary engines.
Most automated vehicles are battery powered,
reducing emissions in port.
What about the challenges?
Personnel
Source: Lloyd’s List; Port of Los Angeles
Different skill set required – shift from mariners to system managers.
Disputes with labour unions – estimated 40%-50% loss
in longshore jobs in Los Angeles as result of automation.
Technology
Terminal operating software needs to be fail-safe. An AGV being unable to identify a particular
container in a stack could have significant consequences.
As with the ships themselves, port management systems could
become potential targets for cyber attacks.
Source: Lloyd’s List
Costs
Source: Lloyd’s List
Cost of creating a world-class fully automated port estimated at
$400-$600M.
Maintenance costs are also significant as specialists are required.
Investment in infrastructure beyond the port is vital to avoid negative impact
on local communities.
Key questions for insurers:
Has the whole ship-to-gate functionality been considered when calculating risks?
Can shoreside infrastructure keep up with unload capacity?
Where are the key bottlenecks in the system overall and do you understand them?
How seriously would business be affected if something went wrong?
Has the equipment installed been chosen with regards to the local geography?
Do you understand the parties and contracts surrounding the operation of the terminals and
who is responsible for which functions?
© 2016 General Re Corporation | This presentation is intended to provide background information for our clients and professional staff. It is time sensitive and may need to be revised and updated periodically.
+44 207 426 6069
/in/sydoniewilliams
@sydoniewilliams
Sydonie Williams
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