IAMU Research Project FY2023 Final Report

The impact of innovative Industry 4.0 technologies on port resilience

Publication Year 2024
Research Coordinator Wei (Vera) Zhang
Research Partners Khandaker Rasel Hasan; Shu-Ling (Peggy) Chen; Prashant Bhaskar; Wenming Shi; Chia-Hsun Chang; Jiawei Ge; Divine Livingstone Caesar
Publisher International Association of Maritime Universities (IAMU)
DOI https://doi.org/10.68436/r20230202

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Abstract

Port resilience is critical for the economic system and regional economy as ports are no longer an isolated node but essential parts of global logistics systems or supply chain. Utilisation of digital and Industry 4.0 technologies, such as sensor technologies, big data analysis, automation, artificial intelligence, block-chain, internet of things (IoT) and digital twins, have enabled greater applications of smart, innovative, and intelligent technologies in ports and contributing to solve the contemporary challenges. However, the impact of these technologies on port resilience is less

Executive summary

Ports are critical nodes in the global supply chain and logistics. The consequences of port disruption on the total supply chain underline the ports to focus more on resilience measures. The current dimensions of port disruptions and the prevailing resilience mechanism foster more innovative solutions for resilience management where the various Industry 4.0 technologies can play substantial role. Recent Industry 4.0 technological breakthroughs in the domains of communication technology, data analytics and cloud computing have enabled greater applications of smart, innovative, and intelligent technologies in ports. Literature suggests that Industry 4.0 technologies, such as sensor technologies, big data analysis, automation, artificial intelligence, block-chain concepts, and Internet of Things (IoT), are contributing to solving some of the contemporary challenges in port operations. Therefore, the potential role of Industry 4.0 technologies impacting the port resilience management can bring interesting insight for the ports. This is the primary intention of this project to understand how positively and negatively the implementation of various Industry 4.0 technologies can impact the port resilience.

In order to achieve the project objective, a comprehensive research method including literature review, interview and port visits and online survey were executed. The data analysis consists of a mixed method where both the qualitative and quantitative data were collected and empirically analysed. Through the literature review, this research defined port resilience, identified the various factors disrupting port operation and the various resilience tools/mechanisms. It further discussed the various Industry 4.0 technologies and the objectives of implementing these technologies in ports or the characteristics of Industry 4.0 technologies in ports. Moreover, it made some assumptions on how the ports can impacts on the different port resilience tools/mechanisms through the achievements of Industry 4.0 technologies characteristics. Finally, it discussed the challenges on implementing the Industry 4.0 technologies in ports.

Based on the understanding and findings from the literature review, the in-depth semi-structured interviews were carried out to a total nine participants where seven from ports and two from IT companies. The interviews provided a very comprehensive understanding on the most important objectives that ports want to achieve by implementing the Industry 4.0 technologies, the impact of Industry 4.0 technologies on port resilience and challenges ports face in implementing the Industry 4.0 technologies. The interviewed ports highlighted that the most important objectives of implementing the Industry 4.0 technologies are to improve the operational efficiency and productivity and safety and security. The ports visits facilitated with a practical orientation of the Industry 4.0 technologies and its impacts in ports.

In order to develop a generalised understanding, this project then administered an online survey. A total of 44 responses were observed from which 22 were found useable. The survey findings revealed numbers of interesting results. Firstly, it depicts the implementation level of the Industry 4.0 technologies in ports, the attainment level of objectives and characteristics of Industry 4.0 technologies, the level of implementation of port resilience mechanisms and the challenges of implementing the industry 4.0 technologies. Secondly, it shows that the Industry 4.0 technologies in ports have a low-to-average level of implementation. Technologies such as simulation and modelling, IoT and cloud computing have an average level of implementation whereas the rest of the technologies has a very-low-to-low level of implementation. But the survey results depict that although the implementation level of various Industry 4.0 technologies is low, the attainment of the various objectives or characteristics is at a high level. This implies that the implementation of various Industry 4.0 technologies can improve operational efficiency, environmental sustainability, and safety and security. It further illustrates that ports are in an average-to-high level of implementation stage of various port resilience mechanisms. Overall, the Industry 4.0 technologies have an average-to-high impact on their implementation. Thirdly, the survey examined the individual impact of various Industry 4.0 technologies objectives on the port resilience mechanisms and produced interesting results. Each of the Industry 4.0 objectives impacting on each of the resilience mechanism is mostly between average and high with a very few low impacts. This explains that the attainment of any of Industry 4.0 objectives can have an average-to-high impact on the port resilience mechanism/tool though the implementation of Industry 4.0 technologies varies. Lastly, the implementation of various Industry 4.0 technologies is associated with challenges. The survey findings present that most of the challenges can create an average-to-high level of

impediment. Among all the factors, cyber security, limitation incurrent infrastructure, integration to different systems, people and system interoperability have a high level of obstruction whereas the other factors have an average level of obstruction.

In order to mitigate the Industry 4.0 technologies implementation challenges in ports, the following recommendations were made: i) Incorporating the implementation of the Industry 4.0 technologies in the port Masterplan. A port needs to have a plan on how they will implement the various Industry 4.0 technology in ports following the decision-making framework proposed in this project. The ports can first go for the well observed technologies, which are at an average or above-average level of implementation and then gradually move to other technologies. This needs to be addressed in the port Masterplan where a proper plan on the implementation of these technologies should be incorporated. ii) A proactive cyber resilience system needs to be in place for overcoming the cyber threat. Ports, being critical infrastructures in the global supply chains, will always be in the potential threats of system breaching and creating obstacles. Therefore, ports need to be initiative-taking in dealing with impending threats.Other challenges that are well addressed by the respondent ports include system interconnectivity and interoperability, integration and limitation in infrastructure and upgrading an existing facility to a more Industry 4.0 technologies enabled data management system. All these challenges are suggested to be addressed in the port Masterplan as well. iii) It is a challenge to upgrade an existing facility to a more Industry 4.0 technologies enabled port as the improvement may cause some sort of stoppage or delay of services which brings difficult to the ports and their stakeholders. Incorporation of these detailed plannings in the port Masterplan can provide a clear picture to every stakeholder in facilitating a more resilient operation. iv) The application of Industry 4.0 technologies in ports has created positive impacts to the people working life and safety and security. These findings should be communicated to both the internal organisation and the greater external community so that people can understand that these technologies are complementary to their work and life.

Keywords

port resilience, industry 4.0 technologies, innovation, maritime education and training (MET), qualitative and quantitative analysis

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