Resolving port pinch-points

How automation, alternative fuels and other terminal technologies will tackle port congestion.

Ports around the world are pursuing automation to address the problem of container terminal congestion. Acknowledging the issue as “complex” and “difficult to distil”, Drewry ports and terminals senior analyst Eleanor Hadland attributes congestion to off-window arrivals, transport sector strikes, and a lack of landside warehousing/transport capacity.  

High inventory levels as shippers have adapted procurement from ‘just-in-time’ to ‘just-in-case’, a sharp downshift in demand due to rapidly-rising inflation, and the shift towards e-commerce has resulted in a lack of available inland capacity to accommodate imports, contributing to extended dwell times. 

“Congestion has been improving in the second half of 2022 and into 2023, with only North America and Oceania region ports experiencing pre-berth waiting time materially in excess of 2019 average,” says Hadland. 

“Drewry opinion is that most ports have adequate quay length and cranes to handle current/near-term traffic levels. Terminal yards, however, were designed as transit facilities and since the second half of 2020 have been treated as overflow storage which has a knock-on effect on overall port performance.” 

Tauranga’s use of hybrid straddle carriers is contributing to greater fuel efficiencies (Credit: Kalmar)  

Capacity and climate crunch 

Port of Tauranga chief executive Leonard Sampson says that from the perspective of his port – which is New Zealand’s largest in regard to both total cargo volume and container throughput – short-term and long-term capacity is a focal issue. 

“Addressing supply chain capacity and connectivity is crucial to the success of ‘NZ Inc’ – almost all of New Zealand’s trade is via shipping,” says Sampson. 

“We are looking forward to getting shipping back on schedule in the next few months so that we aren’t dealing with the delays and surges in cargo volumes of the past few years, which stretch our container yard capacity, labour resources, rail capacity and productivity.” 

The Port of Tauranga currently handles just over 1.2 million TEU annually, with an estimated maximum capacity of around 1.4 million TEU. “With the berth extension and automation using electric auto-stacking cranes (ASCs), we believe we can increase throughput to around 2.8 million TEU annually.” 

In addition to addressing congestion, Sampson says the port sector is also rallying to the challenges presented by climate change, increasing energy costs and the transition to a lower-carbon economy. 

“Our concern is that technology in the port sector, particularly the utilisation of alternative fuels, is not being developed fast enough. Ports need to purchase assets that have a ten-year, 20-year or longer life, and it is frustrating that there are not enough options available. 

“Having said that, we have made major gains in fuel efficiency in recent years, including the integration of hybrid straddle carriers into our fleet, which have 25% greater fuel efficiency. The introduction of ASCs will have a major impact on our future emissions profile, with an ASC operation producing around 75% fewer emissions than a comparable traditional diesel straddle carrier operation. 

“The automation project will also enable Port of Tauranga to intensify storage capacity within the existing footprint, improve throughput, improve safety and reduce fuel consumption.” 

Over-stretched new normal 

Hadland notes that while severe weather has “long been a factor” behind short-term disruptions at container terminals, such events are worsened in the current global environment. 

“Pre-pandemic this supply-side type interruption to normal operations was typically accommodated by short-term diversions of vessels. However, under post-pandemic operating conditions, the impact of these events has appeared worse as the terminals are already over-stretched.” 

On a positive note, Hadland sees the transition to alternative fuels within the sector resulting in increased uptake of electric container yard equipment. 

“Such innovations typically go hand-in-hand with introduction of more automation. 

“In existing terminals we are seeing a modular approach to automation, whereby elements of the manual operation are automated, enabling productivity gains.” 

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Iain MacIntyre is a freelance journalist.