Digital Transformation in the Maritime and Port Industry: Challenges and Opportunities

The maritime and port industry is key to the global economy, as 80 to 90 percent of global trade uses sea transport, while the goods transported are worth about US$ 5 trillion in added value, according to the World Trade Organization (WTO). The economic relevance of the sector, combined with operating challenges and opportunities for productivity gains with more sustainable technologies, has been drawing the attention of startups and entrepreneurs around the world.

We are experiencing an unprecedented moment in the industry, and the adoption of new technologies will make port operations and maritime transport increasingly more efficient, safer and sustainable. We need to grasp this opportunity and translate this moment into efficiency gains and more sustainable performance, while promoting the emergence, development and proliferation of startups, with impacting solutions for the digital transformation of our industry.

A recent study conducted by Wilson Sons, leader in port and maritime logistics in Brazil, has found 528 startups in the industry, some of which offering solutions directly targeting this industry, based in 45 countries on five continents. The United States leads the ranking with 81 startups, followed by Israel with 67. Brazil ranks eighth with 22 startups, ahead of France (19), Spain (17) and Norway (12).

Regarding technologies, the development of Big Data solutions stands out, with 214 startups (more than 40% of the shiptechs). It is applied in preventive maintenance, route optimization, document management, automation of operations and shipbuilding. Then, with 85 startups, we have Artificial Intelligence (AI), which is used to optimise ship arrival dates by shipping companies, and Machine Learning (ML), a subset of AI, to predict fuel consumption as well as optimal shipping route planning. Internet of Things (IoT), Sensors & Monitoring (83) which can be used to predict fuel consumption and optimal shipping route planning. In addition to these, Robotics & Drones (42 startups), Blockchain (20) and Virtual Reality & Augmented Reality (12) were identified in the Tech Cluster ranking.

Most companies found in the study offer fleet management and monitoring solutions (155). In second place (147) are those that support freight and international trade. 

Another four categories were identified: specialised services (93), port and terminal management (64), cybersecurity and sustainability (50) and shipbuilding and maintenance (18).

Some of the main headaches and challenges that the global maritime and port sector faces, including, of course, Brazil, are, I would say, well-known drawbacks, such as poor coordination of activities between multiple participants, the journey around sustainability, the ongoing pursuit of improved shipping safety, and the low operating as well as weather and oceanographic predictability of the ports. And these challenges may be greater or smaller in countries with high or low technological maturity. According to data from the World Bank, for example, the average waiting time for a ship to berth in Brazil is five days, while in the Netherlands it is only one.

Although this comparison needs to be analysed in more depth, we believe that the adoption of new technologies and solutions can greatly optimise traffic as well as maritime and port infrastructure, without replacing the need for investments in construction works and regulatory developments.

Startups and new technologies can be a quick and effective solution to the challenges faced by the industry. However, we have found few startups in the maritime and port sector, compared to other industries, such as fintechs (financial), healthtechs (health) or edtechs (education). Even so, we believe that the current scenario in our industry is much more favourable and resilient than that of others.

"At Wilson Sons, we are committed to leveraging these four trends that drive the transformation of the maritime and port sector"

To foster port competitiveness, companies such as Wilson Sons see technology and startups as allies in the development of maritime and port infrastructure. Wilson Sons is a minority investor in three startups, one Brazilian and two foreign. The Israeli DockTech (which scans the seabed of ports to make shipping and dredging more efficient), the Brazilian Argonáutica (with the dynamic draft tool that optimises ship loading and berthing at terminals) and the British AlDrivers (conversion of vehicles and conventional machinery, such as trucks, into autonomous equipment).

At Wilson Sons, we have been constantly analysing and mapping out startups for more than three years and understanding in detail which solutions have been developed and worked on in the port industry. Based on this analysis, we have listed the four main trends in the sector, which is undergoing an intense digital transformation.

These include: 1 -Proliferation of shiptechs (startups in the maritime and port business) with integrated solutions. It will be more and more common for startups to have solutions that talk to each other and that may potentially offer combined benefits to final clients; 2 - Decarbonization. There is no doubt that there is regulatory pressure as well as pressure from our clients and society as a whole for greener and more sustainable solutions, and, of course, many of the mapped out startups have been developing solutions in this field; 3 - Crowdsourcing to improve integration between stakeholders (such as terminal facilities, towage and pilotage firms, and port authorities), with unique reliability of data about that port; 4 - Autonomous remote operation of ships and port equipment.

At Wilson Sons, we are committed to leveraging these four trends that drive the transformation of the maritime and port sector. In our DNA is the permanent search for innovation, allowing the company to take action before any changes and new scenarios. With the expertise acquired over more than 185 years of operations, we are committed to supporting global trade and the competitiveness and development of Brazil, ensuring the safety and sustainability of port operations.