Governance Logistics

The Second Revolution Of Port Community Systems

Technological innovation plays a key role in developing solutions to boost productivity in the most cutting-edge ports in the world. Port Community System (PCS) are a good example. In recent years, they have optimised file management for goods transport and port logistics processes, cutting costs and reducing the number of errors. Now, technology like Blockchain, machine learning and the Internet of Things (IoT) will take PCS a giant step further... but in what direction? We'll break down some of the possibilities below.

Posted on 08.27.2018

PierNext

La digitalización de parte de la actividad portuaria arranca con los Port Community Systems. Firma la imagen Panumas Nikhomkhai

The digitization of part of the port activity starts with the Port Community Systems. [Image: Panumas Nikhomkhai / Shutterstock.com]

At sea ports, where there is a huge variety of documents, information and users, Port Community Systems became a revolutionary tool in the 1980s, as they made it possible to integrate and transfer files associated with goods in an orderly manner using information optimisation processes. Today, several types of new technology are joining forces to transform PCS into much more advanced platforms, which will accelerate process management and facilitate new services throughout the logistics chain.

Blockchain technology for port management

Blockchain technology is, undoubtedly, one of the hottest topics right now and may have a huge impact on logistics and digitalisation at ports in the near future. This system was created for cryptocurrencies like Bitcoin to store information without having to ensure its veracity through a trustworthy third party. This technology allows for decentralised management, limiting or cutting out intermediaries completely and, above all, speeding up procedures and transactions. Ports find the optimisation power of this system hugely attractive. Blockchain technology applied to port management will make it possible to store and share information on ship loads, improve financial operations and contracts, among many other possibilities.

Portic, the company that operates the Port de Barcelona PCS, is one of the companies that is starting to explore this new arena. Currently, the firm is working on a Blockchain pilot programme with ports in Israel, as its Managing Director Javier Gallardo explains. Because, even though PCS have revolutionised port file management, there are still some inefficient steps that could be improved if Blockchain technology were integrated into these platforms. Gallardo refers to the chain of custody that goes "from hand to hand: from the shipping line to the exporter, from the exporter to a bank, from one bank to another, and, finally, to the importer," Javier Gallardo explains. "All of these steps, in the future, could be done with Blockchain."

The Internet of Things: when objects talk

With the Internet of Things (IoT), even the most commonplace objects are connected via the Internet. Equipped with sensors, they send us information on their location, temperature, load or anything else that could be relevant. With IoT, each physical element would have a digital representation and/or connectivity with the PCS. "For example, when a lorry arrives to port, a camera would recognise it, connect to the PCS and the system would say whether or not the lorry can enter. This type of development is closely tied to current trends in big data and machine learning," Javier Gallardo illustrates. The PCS of the future will be able to provide information to make transport planning more efficient. Thanks to these innovations, the supply chain will be able to make decisions 'on its own' in real time to ensure the goods reach their destination on time. From the weather to the state of the roads, type of contract or the supplier's financial conditions... All of the data will be variables that affect how each move is managed.

Bridging the gap

Today, thanks to PCS systems, the flow of information between transport operators at the port and in the hinterland is much better than two decades ago. "The Port Community System allows for a terminal 800 km away to have the same services and level of quality we offer right in the Port of Barcelona," Gallardo says. Now the goal is to go even further. The International Port Community Systems Association (IPCSA) has created Track & Trace, one of the projects moving in that direction. "We're working on a global tracking system that allows us to monitor goods through the various PCS that join this new standard," continues the Portic GM. This initiative could lead to a collaboration model for a whole logistics chain, from origin to destination, in which the PCS provide data to all parties involved. Over the coming years, PCS will see unprecedented evolution. They will go from being digital management platforms to entities that nearly have 'a life of their own', providing streamlined decision-making like maritime logistics has never seen before. The PCS of the future will get feedback through sensors, be able to manage macrodata while also facilitating bank and customs transactions, without intermediaries, without borders. The digital interconnection these platforms will offer will undoubtedly be a seminal step towards the smart ports of the future.

Topics

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The Second Revolution Of Port Community Systems

Blockchain technology for port management

The Internet of Things: when objects talk

Bridging the gap

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