Smart Port Management and Strategy

Smart ports are defined from a variety of perspectives. Smart ports are automated, logistics optimization, energy-efficient, the eco-friendly and innovative port through the innovation of information technologies such as the Internet of Things (IoT), big data, and artificial intelligence (AI). Smart ports are expanding their boundaries to the city in order to strengthen the connection. Furthermore, smart ports organically connect all related resources by acting as a hub for information flow to collect, process, analyze and share data. We need deep insight into the question of what the future be like. This chapter aims to answer two questions: what is a smart port, and how are they prepared to become a smart port? What is the strategy for the smartization of advanced ports? 

In order to build a smart port, the basic direction should be preceded. This chapter is related to the review of automated equipment introduced in smart ports. The subject of the review is STS (Ship to Shore), ARMGC (Automatic Rail Mounted Gantry Crane), and transfer equipment. Quay cranes (QCs) are equipment used to load/unload containers into/from ships on rails in the quayside area. QC types are divided into SHST (Single Hoist Single Trolley) and DHST (Dual Hoist Second Trolley). Depending on the number of pickup containers, they are also classified into twin and tandem. The work of QC is divided into work on the ship side and work on the AGV side. To overcome ship side handling, a remote control device is introduced in the 4th generation port. ARMGC is a crane for yard work and is divided into CATC (Cantilever Automatic Transfer Crane) and ASC (Automatic Stacking Crane). In the ASC type, crane work can only be done at the end of the block. Most automation terminals such as ECT, CTA, LBCT, and BNCT use ASC type. However, the recently evolved ACTs deploy cantilever-type cranes for loading and unloading operations. Yangshan port phase 4, APMT, and RWG of Rotterdam use a mixture of CATC and ASC types. The reason they have used CATC is to speed up the transshipment volume. Container transport equipment is classified into AGV (Automatic Guided Vehicle) and ALV (Automatic Lifting Vehicle). AGV is divided into diesel, electricity, and battery type according to the energy source. It is also classified according to whether it has a lifting function. Lifting AGVs are highly productive, so the 4th generation ports are introducing them.

The layout design of smart port is evolving. With the introduction of the 4th industrial revolution technology, the productivity of the ACT (Automated Container terminal) is surpassing that of the conventional method. In this chapter, the author focuses on designing the layout of ACT of a case terminal. ACT area is divided into QC (Quay Crane) Set Back, QC Rail span, AGV handling area under QC, AGV road and working area, WSTP (Water Side Transfer Point), CY Block, LSTP (Land Side Transfer Point), support facility and gate facility. The data required for the ACT design is the operation data of the neighboring terminals. The operation data include the container dwell time, max stacking height, CY utilization ratio, working days per year, peaking factor and the throughput by export, import, transshipment. Furthermore, it is necessary to seize the ratio of container by full, empty, reefer, oversize, dangerous container type, TEU conversion ratio and gate transit time, etc. Here, we propose three types of ACT such as Y type, L type and U type. The process of designing these drawings, formula and parameters will be described

 For futuristic planning of smart port, it is very important to measure terminal capacity considering service indicators such as ship waiting ratio, berth occupancy, yard occupancy, and truck turnaround time. The capacity of a port proposed by UNCTAD is divided into intrinsic capacity and proper capacity. The intrinsic capacity is calculated on the assumption that the unloading/loading of the ship is operated 24 hours a day for 365 days per year. On the other hand, for the proper port capacity, the utilization ratio of the quay crane, the berth occupancy, and the actual number of available workdays of berth as service level are considered in order to calculate appropriate port capacity. This chapter explains the basic mathematical theory required to calculate the proper capacity of smart port considering service level. The proper service of the berth is determined by the ship's waiting rate. Ship waiting ratio and berth occupancy have a positive relationship. Suppose there are 4 berths providing constant service in berth, 60% occupancy and 10% ship waiting ratio are calculated as an appropriate service level. The yard's capacity depends on the yard occupancy of 60% and the turnaround time within 30 minutes of the external truck. This value varies depending on the circumstances of the terminal.

Traditional port management is carried out in three stages: planning, implementation and evaluation. In recent years, port management techniques have gone through steps such as real-time data collection, description, prediction, diagnosis, and prescription to adapt to the rapidly changing business environment. This chapter tries to make port performance indicators to solve the current problem using real cases. These activities begin with port performance analysis. Firstly, performance indicators of the smart port will be proposed on the operational aspects that are relatively easy to measure. Operational indicators are composed of output, productivity, utilization and service indicators. Output (Production) indicators are measured ship throughput, berth throughput, yard throughput as the level of the business activity. Productivity indicators are measured ship productivity, crane productivity and yard productivity as the ratio of output to input. Utilization indicators refer to how intensively the terminal resources are used. They are measured berth occupancy, yard utilization, gate utilization, equipment utilization. Service indicators refer to customer satisfaction with terminal services to customers. They include ship turnaround time, truck turnaround time, container turnaround time, crane Intensity, and container dwell time. 

 Most existing capacity models are based on the use of simulation, mathematical programming or queueing network models. Empirical formulas are used to calculate the berth, yard and gate capacities for a year. This method has often been used because of its simple measures of port capacity. However, empirical measures of port capacity have been criticized due to the volatility that can change the input value arbitrarily for the measure of port capacity. Simulation models introduced in this chapter include berth, CY, gate and AGV operation. Berth simulation reproduces the process of ship call, waiting, berthing, unloading/loading, and departure of ships at the terminal through simulation. As a result of berth simulation, berth capacity, container throughput, the occupancy of berth, the number of calling ships, GBP, NBP, ship service time, the number of cranes per hour are derived. Yard simulation keeps containers brought in from the gate, railroad, the mother ship, and feeder ship for container dwell time. After a certain period of time, they are taken out to the mother ship, feeder ship, gate and railroad. As a result of the yard simulation, the capacity of the yard and occupancy by container type are derived. Gate simulation measures whether the number of designed gate lanes are appropriate, how many trucks are waiting at the gate and LSTP (Land Side Transfer Point), and what is the truck turnaround time. AGV simulation proposes which method is appropriate through the performance of Lift-AGV and non-Lift-AGV. It also measures the AGV's performance on the number of blocks, which are the number of containers transported by AGV for an hour

To implement a smart port, a digital platform should be established. The digital platform is the integrated software, database, hardware and communication used to streamline business operations. This chapter intends to review the informationsharing model and TOS (Terminal Operation System) for TOC (Terminal Operation Company). Information from external organizations is essential for smoothing the operation of the container terminal. The terminal operating system consists of a planning system, automatic control system (ACS), a management system and business support system and a business support package. The planning system includes berth planning, ship planning, yard planning, and resource planning plan. ACS has the objective to ensure efficient operations of the automated equipment and to maximize the productivity of the entire terminal. This includes the operation of QCs, AGVs, ARMGCs as well as the automated container yard. The objective comprises maximization of operation efficiency, minimization of empty travel of ARMGC, satisfying scheduled due time and spreading workload among blocks and among QCs. Subsequently, the different modules of the planning system and the Terminal Control System will be described. 

 Economic and Financial analysis can be done from two perspectives. The first point of view is that of the public sector, that is, the central government or the Port Authority. The second view is the terminal operation company (TOC). This chapter deals with whether the smart terminal has economic and financial feasibility in two respects. It is important to have economic and financial feasibility under what conditions from two perspectives. The process of economic analysis from the public point of view and the process of financial analysis from the private sector are different. As a result of economic analysis from the perspective of the public sector, the volume at the break-even is from about 570,000TEU of the five berths to 600,000TEU of two berths with a 2.96% discount ratio. As a result of financial analysis from the perspective of the private sector, the volume at the break-even is from about 603,000TEU of the five berths to 633,000TEU of two berths with a 4.5% discount ratio