Countermeasures of Shipping and Ports in the Era of the 4 th Industrial Revolution(4IR)
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1 Nov. 16(Thu) ~ Nov. 17(Fri), F, Conference Hall, Busan Port International Passenger Terminal 4th Industrial Revolution & Logistics Innovation Countermeasures of Shipping and Ports in the Era of the 4 th Industrial Revolution(4IR) Yang Chang-ho President Korea Maritime Institute
2 Nov. 16(Thu) ~ Nov. 17(Fri), F, Conference Hall, Busan Port International Passenger Terminal 4th Industrial Revolution & Logistics Innovation
3 1. 1
4 work to be done more effectively & efficiently innovative online system allows shippers to reserve slots on vessels Digital Society Experience Economy products or services should provide customers with unique and memorable experiences a same day delivery service will become a basic service, e.g. highspeed transportation(hyperloop), vitalization of e-commerce Visibility & Transparency predict and plan the supply chain based on trust blockchain technology 2
5 Positive Impacts Minimizing the errors of shipping forecasts Realizing economical shipping operation Cutting operation cost with autonomous ship Zero accident at ports Zero emission of air pollutants and smart energy management at ports Enhancing the convenience of works Improving port productivity resulting from increased visibility Influence of the 4 th IR Negative Impacts Reducing volume of seaborne trade - Improving the mileage of a automobile - Use of renewable energy - Reduction of the traffic volume of container carriers due to domestic production, 3D printers, etc. Reducing the number of jobs - Demand for autonomous ships and seafarers is inverse - The development of IT, e.g. online booking system - Unmanned, fully automated ports 3
6 2. 4
7 Direction for technological development Technological innovation for creating new values innovation comes from inside rather than outside, e.g. Uber, Airbnb, etc. Maersk Line has become an icon of innovation Digitalization and strengthening the connection of information in shipping, ports and logistics should speed up to increase the level of IT a risk of hacking arising from the digitization how to secure against such risk. Promotion of new industries should promote new industries such as smart shipping and smart ports, utilizing the technologies of the 4th IR 5
8 Task for technological implementation Tasks for technological development in ports Develop advanced technology for a Korean Model of Smart Port will be a completely unmanned, intelligent and digitized port. Blockchain-based Global Smart Chain Port Project enables to track and manage logistics information by connecting not only with shipping, ports & land logistics but also with other ports and port cities. 6
9 Task for technological implementation Tasks for technological development in ports Establish big databased control system connecting shippingport-land logistics is expected to bring about seamless flows of logistics, minimizing waiting times and economical transportation etc. Unmanned, autonomous truck platooning and port connection technology should be introduced to allow a convoy of unmanned, autonomous trucks to pass the gate and work at port terminals. 7
10 Task for technological implementation Tasks for technological development in shipping Develop future-oriented shipping technology, such as autonomous ships applied with IoT, big data and AI contributes to the mutual development of shipping and shipbuilding Autonomous ship IoT-based pre-diagnosis system for ships aims to secure safety & efficiency of shipping operation Pre-diagnosis system for ships Online shipping platform technology shippers will be able to reserve spaces on vessels via online by themselves and to share, track and trade empty containers between shipping liners. Online booking Online tracking 8
11 3. 9
12 The necessity of introducing the 4 th IR technology in shipping, ports and logistics Advanced ports in foreign countries are already making efforts to generate new values by connecting digital-based information Our maritime logistics are Industry 4.0s (in shipbuilding and marine), land logistics are Logistics 4.0, such as autonomous cars. However, Korean port logistics still remain at the level of automation within ports (Port 3.0) Raising a serious concern over disconnecting the supply of national logistics. 10
13 Implementation tasks to realize hyper-connected and smart shipping, ports and logistics 1 R&D budget should be expanded while relevant projects should be implemented early The expansion of the R&D budget in shipping, ports logistics to respond to the 4th IR should be implemented technological development for digital port 4.0 should be implemented early 2 Establish measures on how to utilize public big data and building a cooperation network utilizing the public and big data and increasing private participation establishment of a cooperation network among industrial, governmental, educational and research institutes 11
14 Implementation tasks to realize hyper-connected and smart shipping, ports and logistics 3 Come up with a system for nurturing a professional workforce should be developed for training a workforce specializing in advanced shipping technology such as IoT and nurturing professional workforce in smart ports and logistics 4 Establish relevant laws and improve existing regulations revised to allow the revision of the law for the berthing and unberthing of autonomous ships at ports come up with measures for actively responding to international agreements in smart shipping, ports and logistics 12
15 4. 13
16 First policy suggestion Discovering a new industrial model in the era of the 4 th IR Innovative and creative activities becoming widespread, it is expected to cause significant changes. The shipping, ports and logistics will also witness the industry to be divided by leaders and followers while co-existing with the 2nd, 3rd and the 4th industrial revolutions. Whereas leaders will keep acquiring a larger share of the pie, followers will merely survive testing their limits. come up with policy and strategies that are able to acquire new business opportunities in advance 14
17 Second policy suggestion Construction and strengthening of innovation ecosystem of the 4 th IR by shipping, ports and logistics related companies An innovation ecosystem should be constructed and strengthened - customized programs should be brought together to generate synergy effect. - strengthen the digital capacity of small and medium sized companies - develop innovative start-up programs such as Port XL Also, the following tasks should be implemented in stages - discovering companies - educating and training - laying the foundation to enter into the global market 15
18 Third policy suggestion Strengthening the international connection of Korea s shipping, ports and logistics in the era of the 4 th IR establishing seamless national logistics network and for a stronger connection of global supply chains centering on Korean ports. building a new type of port connecting with international logistics. - establish a digital-based e-commerce hub port - establish digital-based shipping and port logistics system that is able to manage temperature and humidity in order to monitor global cold chain logistics. 16
19 Final policy suggestion Introducing the technology of the 4 th IR in the direction towards improving human happiness will face strong resistance from stakeholders necessary to re-educate and strengthen the capacity of existing workers in shipping, ports and logistics, so that they are reassigned to take new jobs. 4th industrial revolution only when it is used for enhancing human happiness and wellbeing. To achieve this, the 4th IR should be utilized to replace 3D labors (jobs) in shipping, ports and logistics and have a mindset and establish a system to share the achievement. 17
20 Conclusion Four policy suggestion to realize hyper-connected and smart shipping, ports and logistics Discovering a new industrial model in the era of the 4 th IR Construction and and strengthening of innovation ecosystem of the 4 th IR by shipping, ports and logistics related companies Strengthening the international connection of Korea s shipping, ports and logistics in the era of the 4 th IR Introducing the technology of the 4 th IR in the direction towards improving human happiness Conclusion Korean companies should join hands together with foreign counterparts to develop and distribute the technology applicable to working sites discovering a new industrial development model centering on human. 18
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