China Merchants Group (CMG) is pushing a range of automation and digital technologies in its global network as part of a revamp to cut costs and raise efficiency.
The state-owned port services operator has already started making upgrades to the Port of Shezhen and Mawan, a terminal that used to handle break bulk cargo of grains and sandstone, now featuring remotecontrolled quay cranes, autonomousdriving container trucks and a digitally managed flow of goods.
Operating the quay cranes and rubbertyred gantry cranes used to be the most complicated part for workers at the Mawan terminal, according to She Zhenwu, director, overseas business development, CMG. “Now they can operate it all remotely, while sitting in a control room.”
CMG’s Mawan operation is the latest example of China’s ambition to modernise its infrastructure with 5G and AI.
Huawei Technolgies has implemented automation in Tianjin, northern China’s biggest seaport, with its 5G infrastructure and is working with Shaanxi Coal Industry to reduce the number of miners who work 100 metres below ground through the deployment of AI and a 5G mobile network.
In the Port of Shenzhen, the core transformation at Mawan is the selfdeveloped digital management system, which covers operations for containers, break bulk cargo and customs.
“The system has helped improve the operational efficiency at Mawan port by 30%, while reducing the number of on-site workers by 80% and security risks by 50%,” said Zhenwu. Adding CMG’s port unit spent 300 million yuan ($42m) on the system’s development in 2024.
Other smart technologies at Mawan include Internet-of-Things devices and the BeiDou satellite navigation system.
China’s Ministry of Transport last year laid out plans to develop a number of worldclass smart ports and smart waterways by 2027. At present, the country has 18 automated container terminals, with 27 under construction or renovation, according to reports.
The digital management system of CMG’s port unit has also been deployed at its operations in the cities of Shantou, Shunde and Zhanjiang in southern Guangdong province. It has also been installed in the firm’s overseas ports in Sri Lanka and Brazil.
Also in China, Brazilian port authority Portos do Paraná has signed a letter of intent with China Merchants Port Holdings (CMPort), a shareholder in the Paranaguá Container Terminal (TCP), which is set for expansion.
“Paraná was the first place in Brazil where CMPort chose to invest in 2018 and, years later, the company continues to invest in the state, which shows the credibility and relevance that Paraná has for one of the largest economic groups in the world. This signing comes as another stage in TCP’s infrastructure investments, with the aim of expanding capacity and maintaining the international excellence of its services,” said Luiz Fernando Garcia, CEO, Portos do Paraná.
The Brazilian ports scene is in a state of flux at present with a host of auctions earmarked. In the accelerated ports sell-off scheme, 22 terminals are scheduled to be auctioned between now and the end of 2025.
In Taiwan, CMA CGM Kaohsiung Terminal Co. has ordered five hybrid Konecranes Rubber-Tired Gantry (RTG) cranes for its container handling operations at its main port. The cranes will be delivered in mid- 2025 with the most sophisticated set of container handling Smart Features ever delivered in the country.
“CMA CGM uses Konecranes container handling equipment all over the world. This new order will ensure a long and productive future for their container handling operations in Taiwan, and it underlines the strength of our relationship and their confidence in our technology. Our modern container handing technology continues to generate interest wherever it is implemented,” said Jerry Fann, sales director, Port Solutions, Konecranes.
The Konecranes hybrid RTGs utilize a battery for all operations and capture braking energy back to the battery, extending the pure electric operation time. A small diesel genset is used to charge the battery. This combination of diesel and electric power significantly reduces fuel consumption and emissions for cleaner and more economical operation. Each machine is fitted with an ergonomic cabin and four Smart Features that raise efficiency and reduce operator fatigue.
Auto-Steering creates virtual rails for the RTG to help the operator keep the crane on a straight drive path. Auto- Positioning places the spreader over the correct container slot. Stack Collision Prevention monitors the container stack with laser scanners whenever the trolley is in motion, slowing down the trolley when the spreader or container approaches a container target slot. Finally, Auto-TOS (Terminal Operating System) Reporting counts each crane’s moves, maps the position of every container and interfaces directly with the TOS.
In Vietnam, Gemadept Group has announced it will continue to invest in expanding Gemalink International Port in Bà Rịa-Vũng Tàu Province and Nam Đình Vũ Port in Hải Phòng City, arranging capital to start construction on Phase 2 of Gemalink Port to become operational in December 2025.
The project has a total investment of about $300 million. Once completed, the total design capacity of the port will reach 3 million TEU, the highest level compared to other major competitors in Southeast Asia, Gemadept Group’s leadership said.
Once completed, Gemalink port is expected to receive ships of up to 250,000 DWT, the largest container ship size in the world today, creating a competitive advantage in the region. Thereby, the port will be able to attract more large customers, especially ships with a tonnage of 100,000 DWT or more.
For Phase 3 of Nam Đình Vũ Port project, the project is expected to start construction in July 2024 with total investment of VNĐ2.5 trillion ($101.9 million). This project is expected to be completed in the second quarter of 2025, helping to increase the total capacity of the port to 2 million TEU, becoming the largest and most scaled river port in the North of Việt Nam.
Gemadept Group said it will also complete the Hà Nam canal dredging project. This project will bring benefits to the entire port business community in Hải Phòng and the capacity of Nam Đình Vũ Port will increase by about 300,000 TEU.
In addition, the serious congestion of Singapore Port is bringing opportunities to Vietnamese businesses as a number of ships of major shipping lines have diverted to Gemalink Port.
If the congestion lasts, the goods transfer centre will change from Singapore to other places, including Bà Rịa – Vũng Tàu.
PERU
With Chancay Port’s inauguration around the corner, the mega port in Peru is set to revolutionize trade with the Asia-Pacific region by significantly reducing transit times and costs.
As a deepwater port with a maximum depth of 17.8 meters, the Chancay Port can accommodate ultra-large container vessels. The Chancay Terminal project consists of a multi-purpose terminal, a container terminal, and related infrastructure. Its first-phase project plans to build four berths, with two multi-purpose and two container berths. The terminal is designed to handle an annual throughput of one million TEUs, 6 million tons of general cargo, and 160,000 vehicles, said the Belt and Road Portal website.
Peru’s President Dina Boluarte said in July the megaport being built in Chancay, a small town just north of Lima, will serve as a “nerve center” to facilitate connections between South America and Asia.
In a strategic move to strengthen its agricultural supply chain and address rising food prices, the Philippines has unveiled plans to build 17 new deep-water ports. This investment aims to facilitate the efficient movement of essential agricultural products such as rice and fertilizers across the nation.
At a business forum in Manila, the Agriculture Secretary highlighted the urgency of this infrastructure upgrade, noting that the country has accumulated a 27-year backlog in agricultural infrastructure investment. The proposed port expansion is expected to play a crucial role in revitalizing the agricultural sector, ensuring that goods are transported more effectively and at a lower cost.
The new ports will enhance the logistics and distribution network, particularly for vital agricultural commodities. By improving the supply chain for these products, the initiative seeks to stabilize food prices and support the nation’s efforts to combat inflation. This development is part of a broader strategy to modernize the country’s infrastructure and support its growing economy.
In addition to boosting the agricultural supply chain, the construction of these ports is anticipated to create jobs and stimulate economic activity in the regions where they are built. This will not only benefit the agricultural sector but also contribute to broader economic growth and development.
As the Philippines moves forward with these plans, the focus will be on executing the project efficiently and ensuring that the new infrastructure meets the needs of both producers and consumers. This ambitious project underscores the country’s commitment to enhancing its supply chain capabilities and supporting sustainable economic growth.
According to the Global Container Port Performance Index (CPPI) East and Southeast Asian ports leading the pack in 2023, with 13 out of the top 20 spots.
The fourth iteration of the CPPI, developed by the World Bank and S&P Global Market Intelligence, is based on the largest-ever dataset comprising over 182,000 vessel calls, around 238.2 million moves, and approximately 381 million twenty-foot equivalents (TEUs) for the full 2023 calendar year. The CPPI ranks 405 global container ports by efficiency, focusing on container vessels’ port stay duration.
Over 80% of merchandise trade is transporting by sea, underscoring the critical role that the resilience, efficiency, and overall performance of ports play in global markets and the economy.
The report noted that regional disruptions affected port performance universally. Despite the easing of COVID-19 pandemic-related challenges in 2023, the container shipping sector remains unpredictable and volatile, according to Martin Humphreys, Lead Transport Economist at the World Bank.
“Major ports need to invest in resilience, new technology, and green infrastructure to ensure the stability of global markets and the sustainability of the shipping industry,” Humphreys said.
The 2023 CPPI included 57 new ports, such as Muuga Harbour in Estonia and the Port of Al Duqm in Oman, and saw various noteworthy movements. Visakhapatnam Port, a major Indian port, entered the top 20, while Dar es Salaam Port in Tanzania, though low-ranking, managed to cut ship arrival times by 57%.
China’s Yangshan Port retained the top spot for the second year running, with Oman’s Port of Salalah holding the second position. The Port of Cartagena in Colombia rose to third place, Tanger-Mediterranean in Morocco maintained fourth, and Tanjung Pelepas Port in Malaysia completed the top five.
“There is a greater awareness and focus on resilience and efficiency of maritime gateways and greater understanding of negative impact of port delays on economic development,” said Turloch Mooney, head, Port Intelligence & Analytics at S&P Global Market Intelligence. “The highly interconnected nature of container shipping means the negative effect of poor performance in a port can extend beyond that port’s hinterland and disrupt entire schedules. This increases the cost of imports and exports, reduces competitiveness and hinders economic growth and poverty reduction.”
A.P. Moller-Maersk’s port operating arm, APM Terminals, was featured six times in the top 10. Five of these topperforming container terminals have been selected by the new Gemini Cooperation, a long-term operational collaboration between Maersk and Hapag-Lloyd, set to commence in February 2025. Once fully implemented, this network aims to deliver industry-leading 90%+ schedule reliability, competitive transit times, and extensive global coverage.
In the U.S., the Port of New York and New Jersey, the U.S. East Coast’s largest port, ranked 92nd, while the ports of Los Angeles and Long Beach, the nation’s largest container import gateway, ranked 375th and 373rd respectively.
In final news, the Food and Agricultural Organization of the United Nations (FAO)’s Blue Ports Initiative Team recently organized the first meeting of a consultation process to review the adaptation of a ‘Roadmap to a Blue Port’, in collaboration with stakeholders from the Asia-Pacific region. Representatives from the port authorities and fishing administrations of China, India, Indonesia, Korea, the Philippines, Sri Lanka, and Vietnam participated in this review meeting. International organizations with influence in the Asia-Pacific region, such as the Asian Development Bank and PEMSEA, also attended, contributing their knowledge and expertise.
The Roadmap to a Blue Port serves as a consultative document designed to assist fishing ports in implementing a Blue Transformation approach at both strategic and operational levels. It serves as a tool to help regional and national authorities comprehend the transformation process necessary to become a blue port. Earlier, the first Asia-Pacific regional BPI workshop held from 9 to 11 April in China, concluded with unanimous interest among participants to adapt and tailor the guidance’s contents. This adaptation seeks to address the region’s specific challenges, needs, and best practices effectively.
The objective of the introductory meeting was to present the process of the consultation, timelines, and methodology to stakeholders. During the meeting, the FAO BPI Team introduced the theoretical framework underpinning the implementation of the BPI. This framework aligns closely with Agenda 2030 and FAO strategic framework. The discussion elaborated on the foundational principles and operational steps, emphasizing a holistic and participatory approach. It was recognized as a long-term effort requiring collaboration between the public and private sectors. Participants agreed on the process timeframe and review tools.
Looking ahead, participants are expected to submit their contributions, including exemplary practices and comments on main challenges and opportunities. The revised version of the Roadmap is anticipated to be finalized by the end of October, incorporating the collective input and expertise collected from this collaborative consultation process.
