Smart Ports: Energy, Environment, Technology & Workforce

Smart Ports: Energy, Environment, Technology & Workforce

[SILENCE] [MUSIC] The San Pedro Bay
encompasses America’s largest
port complex, accounting for about 35% of all imported
products arriving at U.S. Shores. This total market share has
declined significantly in recent
years as trade patterns have shifted two major factors and
the local Harbor are driving
goods moving operations towards smart technology solutions. The first is North American
competition which is actively
seeking and securing freight handling and logistical
services contracts for
discretionary cargo. The second is the enactment
and enforcement of air quality
and carbon footprint reduction mandates. The future of the San Pedro Bay
will be determined by these two
challenges and by the adoption of new and responsive smart
technology applications that
increase efficiency and reduce costs. [MUSIC] World Trade was forever
changed with the introduction of
containerization in the 1960’s. With this relatively simple but
practical innovation, loose
cargo could be contained in a stackable rectangular box. Not only was the container
stackable, but it also could be
transported Intermodally to its final destination via any
combination of trucks,
trains, and ships. Intermodality over the past six
decades has led to massive and
continual increases in the flow, capacity and growth
of trade across the oceans
and across the continents. However continuous growth always
reaches critical peaks which
generate new problems that have to be addressed. Unless adequately resolved,
those new problems stall
additional growth and often make it difficult to maintain
the peak levels. In the case of cargo too many
containers at one time in one
place can cause congestion. Congestion jams the terminals,
the freeways and the side
streets as trucks arrived in the lineups to pick up their loads. Congestion and inefficiency
also can negatively impact the
community and can degrade the environment and the
quality of life. The solution involves becoming
smarter than the problem. It means that every sector of
the industry has to become
smarter in order to keep up and improve. Freight itself has to become
smarter and the methods by
which it is tracked, moved and coordinated have
to be made smarter. Along those lines a consortium
of ocean carriers is embarking
on an effort to standardize data protocols for freight movement. The Digital Container Shipping
Association will harmonize
uniform practices in data handling for nine of the eleven
largest carriers which control
about 70% of container capacity. Data points exist throughout
the supply chain universe and
we along with GE Transportation have found a way to
harness those data points. Put them into one single pane of
glass through aggregation and
give us visibility to all the activities happening
within the supply chain. It started off by building
relationships with US Customs
in Washington and in the Partnerships is Chris mentioned
with the liner shipping
companies to share that data overlay it examine it so we
know what is coming to us. The beauty is that information
was available in grayscale
format maybe 2 days before a vessel arrived in Los Angeles. Today our goal was to try to
get that information about 14
days before it comes to LA and receive base origin as much
as 38 days prior to arrival in
Los Angeles we get visibility. If freight mostly entails
inanimate objects packed inside
a container, how can that Freight become smarter while
there is no way to physically
animate lifeless cargo, the information about that cargo
actually can live a virtual
life through technology. Cargo manifests, itemized lists
of goods, descriptions and
photos of said cargo, points of origin, daily tracking estimated
dates of delivery and real-time
notification of arrival, all can be conveyed through infotech
recent developments in the use
of blockchain Technology can and will convert the longtime art
of estimating cargo delivery
dates into an exact science. I think the key is leveraging
the data that did everybody’s
fingertips or that exist in sort of these transaction that
largely has been some sort of
tribal knowledge right someone had been sitting at that desk
dispatching the same trading
lane for last 20 years and they just knew that it would take a
day and a half to get to a
certain warehouse and that’s how they were sort of maybe
ball-parking it on their static
document they were sharing back and forth to a client. I think the reality is we need
to take a step back from that
and and appreciate all the data points that exist on particular
trade lane whether it be air,
ocean, last mile delivery. There’s a lot of brake data
out there just a matter of
aggregating it and using it to provide the best informed called
approximation or schedule.>>The use of uniform
information portals and
protocols along with the implementation of the blockchain
to pinpoint the whereabouts and
condition of specific cargo will go a long way toward optimizing
efficiency and the distribution
and delivery of goods. Expanding access to more on
dock rail also can help reduce
congestion as cargo volumes grow. Additionally the infrastructure
around the harbor and throughout
the cities near it must be upgraded with adequate truck
lanes, bridges and access points
which facilitate rapid movement of trucks without impeding
regular automobile traffic. Even though we can dramatically
increase the efficiency of what
we have out there now, at some point we will have used up all
the capacity even with
efficiency improvements and so at that point we’re going to
need more infrastructure of some
sort I think probably most of us would want that infrastructure
in the form of more on-dock
rail, so that we could be more efficient getting things in and
out but nevertheless I think we
really will need to have some incremental amount of new
infrastructure-related capacity. The state of California has
imposed very strict regulations
regarding air pollution and greenhouse gases. In response and updated San
Pedro Bay clean air action plan
has been jointly authorized by both the Port of Los Angeles and
the Port of Long Beach the Clean
Air action plan or cap provides direction for the anticipated
zero-emission mandates headed
for the harbor in 2030. The plans shift away from fossil
fuels is driving the effort to
Electrify Marine Terminal yard vehicles and potentially utilize
fuel cell technology and
batteries for trucks and other heavy equipment.>>The ultimate goal
is zero emissions. And that is zero smog emissions
and zero carbon emissions for
transportation and at one time the focus was solely on light
duty and now it shifted into
medium duty heavy duty trucks, transport, even
vessels off the shores. Your electric drive for the most
part has less moving parts and
maintenance may actually be less maintenance may be required to
operating cost can be lower this
will come over time the key will be through scale. We are at the kind of low volume
levels today so everything does
have a higher cost that was true with the CNG vehicles at one
time and then with scale if
it took off on its own and no longer needed that you
can say public assistance. So the same thing will
happen with hydrogen fuel
cell on a variety of fronts. Worldwide automation has been
implemented at 44 major port
terminals but only five are located in the United States. Efficiency cutting expenses in
the long run, reducing truck
trips and truck waiting time, along with the mandates to
eliminate exhaust emissions,
have combined to convert some San Pedro Bay terminals into
veritable Laboratories of
Technological Innovation. This Innovation also arises as
a remedy for problematic Mega
ships bearing massive loads which often create bottlenecks
and surges in container movement
within the conventional Terminals and on local streets. Beyond traditional Longshore
tasks there are numerous types
of jobs which will be essential in keeping facilities running
properly in zero-emission
terminals those new assignments and Compass servicing and repair
of battery operated Vehicles
cranes and related electrical systems. Ongoing upkeep of
software-controlled mechanical
operations will be required. New job training will be
provided at various levels from
technical maintenance to Power Systems replacement. Upskilling the harbor Workforce
in areas associated with
electrical engineering and Energy Engineering
will so new opportunities for
technology-intensive careers. Whichever way the industry
proceeds many new jobs and new
industry sectors will be created as terminal shift to automation,
electrification, sustainable
energy and zero emissions. There are still mechanical
elements on the docks that will
continue and there will be a need for a mechanical
awareness so we’re looking at
a hybrid field Megatronics. Folks who have an understanding
of that not only mechanical
matters they understand the electrical requirements required
to for example support, operate,
maintain an electric charging station. All of that will also require
and information technology
awareness to ensure that again the digital information supply
chain that runs parallel to the
physical supply chain are also maintained a protected. Port officials and Industry
leaders claimed that the
zero-emission ports will ultimately generate thousands
of new jobs off the docks in
logistics and support services because a rapid expansion of
trade will be possible with
these facilities operating 24/7. Automation they say will enable
efficient cost-effective and
reliable handling of goods from vessels capable of 22000
TEU container loads. Agreements between the Pacific
Maritime Association Management
Group and the international Longshore and Warehouse Union
will authorize and provide the
skills retraining necessary to appropriately transition
current dockside labor for the
future of automated technology. Meanwhile state and local policy
makers are keeping an eye on the
potential impact of automation and its effect on the workforce. Depending upon how the
automation process involves,
those policymakers could decide to enter the fray. It remains to be seen how all of
this will affect the community
around the harbor area competition from other ports and
the development of other trade
routes around the globe may continue to reduce the overall
market share of discretionary
cargo traffic bound for the San Pedro Bay. One thing is certain with a very
large population base in the
immediate and Regional, area the demand for goods will continue
to be strong in Southern
California ultimately smart technology will play a major
role in how consumer items are
delivered to local customers. [MUSIC]

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