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2

Intro duc tion

Connected Ports | February 2021

In this report

This is a joint report by Ericsson, ifm, ​and Arthur D Little. It examines and ​quantifies the potential value of private ​cellular networks for the ports industry.

Introduction ​The ports sector ​Industry challenges

3 ​5 ​7

Creating Ports 4.0 ​Private cellular networks

10 ​11

Automated rubber tired gantry cranes ​Automated guided vehicles ​Condition monitoring ​Drones for surveillance and deliveries

19 ​22 ​25 ​28

The business case ​Combining the use cases

31 ​33

Final word

35

Connected Ports | February 2021

4

Intro duc tion

Connected Ports | February 2021

Introduction

World merchant vessel fleet – by type*

Container ships (13%)

Oil tankers (29%)

Bulk carriers (42%)

Others (15%)

Smart Port maturity**

Low maturity

High maturity

*The percentages are from

UNCTAD (United Nations ​Conference on Trade and ​Development) link: https:// ​stats.unctad.org/handbook/ ​MaritimeTransport/ ​MerchantFleet.html

**Maturity is assessed based

on degree of automation and

deployment of smart solutions

by Arthur D. Little through

industry expert discussions.

Today’s ports are designed to support ​specific types of vessels, and there are ​four main types of shipping vessels:

• Oil

• Bulk cargo (carrying coal, iron, grain)

• General cargo

• Globally standardized containers

The last of these carries most of the

world’s non-bulk items.

Several ports have successfully added ​automation elements over the years. ​But due to factors such as long ​equipment exchange cycles, smart ​port maturity is advancing at quite ​a slow pace.

The maturity of a typical current-day

smart port is based on the number

of smart solutions it has in operation.

Because they have a standardized and

consistent cargo type, container ports

have to date made the most strides in

automation, and as a result will be the

focus of this study.

6

The ports sector

Connected Ports | February 2021

The ports sector

Historically, ports operated ​independently and there was little ​international collaboration, but that ​has changed in recent decades.

Instrumental to this change was

containerization in the 1980s. With

a globally standardized container,

international alliances could enable

ports to co-ordinate together and

create more automated processes.

Port operators are growing more

interested in the benefits and efficiencies

gained through connected facilities.

In the past, operators have tried various

solutions. But it’s been challenging

to provide the required high quality

connection that allows the management

of a high density of devices in a mature

smart port.

The five largest marine terminal ​operators in the world are:

1. PSA International (Singapore)

2. Hutchison Ports (Hong Kong)

3. China Cosco Shipping (China)

4. DP World (Dubai)

5. APM Terminals (Netherlands)

Combined, they handle more than ​30% of the world’s throughput, ​according to Alphaliner.

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The ports sector

Connected Ports | February 2021

Industry challenges

Four challenges facing

the world’s ports

Running a tighter ship

The world’s ports only have a limited ​amount of yard space. So as both the ​volume of shipping trade and the size of ​vessels increase, ports are being forced ​to look at how best to utilize their assets. ​According to Port Technology, 76% of ​port operators see optimizing yard and ​terminal operations as their number one ​priority and challenge.

This makes it imperative to reduce

equipment failures and downtime of

critical equipment like cranes. According

to the European Commission, 22%

of port operators believe better asset

monitoring can help overcome business

and economic challenges.

This problem can be solved with

digitalization, which would make this

process faster and more efficient,

cutting yard congestion and its

environmental impact.

9

The ports sector

Connected Ports | February 2021

People-friendly ports

Along with making their processes run ​smoother, increasing worker safety is a ​top concern for ports. Working amongst ​heavy cargo, dangerous equipment and ​many other hazards puts port workers ​at daily risk of injury.

Based on 2018 data from the European

Maritime Safety Agency (EMSA), almost

42% of marine casualties or incidents

took place in the port area.

But as more ports introduce automation

elements that keep workers safe, the

need for technology and engineering

skills will grow. According to research

from McKinsey, 75% of port operators

with experience of automation believe

that a skills gap is an issue.

Getting greener by ​getting smarter

Environmental efforts are persuading ​organizations to use more sustainable ​transport methods like the sea, ​rather than the air. Regulatory bodies ​are requiring ports to reduce their ​greenhouse gas emissions, as seen ​in 2016’s Paris Agreement, which along ​with scientific recommendations, are ​mandating ports cut their emissions ​in half by 2030.

While a reduction of this nature will

come from the sum of many measures

taken, every effort will help. For example,

with 5G technologies at the Port of

Livorno, the COREALIS project estimates

an 8.2% reduction in CO2 as a result of

improved yard movements in the container

terminal processes and KPIs.

“5G technologies

at the Port of ​Livorno led to an ​estimated 8.2% ​reduction in CO2 as ​a result of improved ​yard movements.”

11

Private cellular networks

Connected Ports | February 2021

12

Private cellular networks

Connected Ports | February 2021

Cellular networks

Cellular: at the

helm of smart ports

Cellular networks are the

connecting force that is

helping steer ports towards

the future.

Cellular is the gateway

5G cellular technology is the key tool ​needed to create a smart port and ​lay the foundation for using IoT ​in industrial automation.

Cellular enables mission-critical

communication services like voice

and data capabilities. These help

to prevent injury to workers by

keeping them physically distant

from potential hazards.

The complete solution

5G is well optimized for IoT, ensuring ​low energy usage, increased data ​security, and the ability to support ​high connection density.

In contrast to legacy networks,

5G provides a complete connectivity

solution for licensed and unlicensed

spectra, as well as seamless cellular

vehicle-to-everything (c-v2x)

communication.

The complete solution allows port

operators to only use one backhaul for

all services instead of installing several

pieces of network equipment on,

for example, a crane.

Private cellular networks

Private networks

deliver the goods

A smart port’s network infrastructure

has to be able to handle the large

amounts of data that is generated

by cranes, vehicles, equipment,

and workers.

For example, when operating via remote

control, the network produces and

transmits a live video feed to a remote

operations center, which demands a

reliable, high-bandwidth connection.

Providing the highest possible level of

connectivity, a 5G-ready private cellular

network can provide everything needed

to successfully deploy our five use cases.

14

Use cases

Connected Ports | February 2021

* Steady state net value is a combination

of the terms ”steady state” and ”net value”. ​Steady state means the use case is fully ​deployed, so the full benefits are activated, ​and only the operational costs are active ​(no additional CAPEX-investments). ​Net value is the value after subtracting ​all costs from the value of the benefits, ​i.e. the real ”savings”.

M e th o dolo gy

Since 2017, Ericsson, in collaboration ​with Arthur D. Little, has released a ​series of studies examining the value ​that cellular connectivity and 5G can ​create for industries.

In this study, we’ve extended the

collaboration to include industry leader

ifm, with the aim to further crystalize

insights in smart ports.

For this report, five use cases have been

selected as potential starting points in

the smart port journey. The use cases

span the entire container port operation

chain and are the most important and

relevant cases for the cellular-powered

smart port.

To gauge the net economic, social,

and environmental value, we defined

a baseline port based on concrete and

validated KPIs from actual ports and

then analyzed from the bottom up,

the incremental value created by each

cellular connectivity-enabled use case,

from deployment until operational

steady state*.

The baseline port

Our selected baseline port is a ​container terminal, with a throughput ​of approximately 4 million TEUs ​(twenty-foot equivalent unit) per year. ​It generates roughly $400 million USD ​in revenue with an operating margin ​of around 30%. The baseline port ​represents one of the top 100 container ​ports in the world, approximately, the ​50th largest.

A port can use the same cellular network

for all these use cases, plus other

technologies like sensors, cameras,

human-to-human communication,

and container tracking.

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Use cases

Connected Ports | February 2021

Remote-controlled ship-to-shore cranes

Making light work ​of heavy loads

Safer, more efficient ​dockside cranes.

“22% of crane-related ​injuries resulting in a ​fatality in the United ​States between 2011 ​and 2015, happened ​to the crane operator.”

Ship-to-shore (STS) cranes do the ​loading and unloading of containers ​between ship and dock. This operation ​demands communication with the ​deckman to make sure the team moves ​the right containers. And as loading ​a ship is like putting a puzzle together ​it requires very high precision.

The pain of cranes

STS cranes are located dockside ​and operators need to move through ​the entire port in order to access the ​cranes. It takes time for operators to ​move across the dangerous yard, ​which is filled with vehicles, containers ​and cranes. Cranes are 60-70 meters ​tall, so it can take a long time to reach ​the crane’s driver cabin.

22% of crane-related injuries resulting

in a fatality in the United States between

2011 and 2015, happened to the crane

operator, according to The United States

Bureau of Labor Statistics. As much

as 77% of crane operators suffer from

neck pain, while up to 86% experience

lower back pain from performing their

jobs, according to the Port Equipment

Manufacturers Association (PEMA).

17

Use cases

Connected Ports | February 2021

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Use cases

Connected Ports | February 2021

Although some cranes are fitted with ​elevators and other measures to get ​into the crane’s driver cabin quicker, ​shift changes are still both dangerous ​and time consuming.

Even though being at the top of the

crane gives STS crane operators good

overall visibility, it’s often hard to see

all the corners and angles needed

to maneuver the containers.

Danger drops ​with digitalization

Remote-controlled STS cranes ​are usually connected through a ​combination of WiFi and fiber. Fiber ​is a disadvantage because the cables ​are prone to breaking and are costly ​to repair. This low level of reliability ​also increases the risk of danger.

But by fully digitalizing the information

exchange between the remote operator,

checker, and deckman – the team

involved in the use of STS cranes –

the entire dockside operation can

be digitalized.

Enabled by a cellular network, the

crane operator will be able to control

the cranes remotely from a control

room in real-time.

Checking all the ​safety boxes

“Checkers” are typically stationed at

the STS crane on the dock and work ​with manual inputs. But by using ​digital software, like ABB’s QuayPro, ​in combination with optical character ​recognition (OCR), the checker’s job can ​be significantly evolved. Checkers will ​then become remote checkers, allowing ​them to work in the office environment, ​just like remote crane operators.

According to ABB, this approach

improves safety and provides a more

ergonomic working environment for the

checkers, with one checker becoming

able to handle more than one crane.

This also minimizes errors since manual

inputs are no longer needed.

Heavy loads need

heavy data

In order for this solution to work, each

dockside container crane needs 3D

sensors and a large number of HD

cameras. This requires high bandwidth ​and low network latency between the

remote control room and the crane.

Optical character recognition also

requires high-bandwidth data transfers

and helps in the identification of

containers to reduce the need for

human checkers. 5G perfectly suits

this use case as it supplies the reliability,

bandwidth, latency and high security

that it demands.

“5G perfectly suits

this use case ​as it supplies ​the reliability, ​bandwidth, latency, ​and high security ​that it demands.”

Remote-controlled ​cranes pays off

Through the full visibility of operations ​in the remote control room, this use case ​enables optimized lifts, resulting ​in more efficient operations and ​decreased energy usage.

By removing the need to climb up to

the crane’s driver cabin, digitalization

reduces the number of injuries and

increases worker safety. According to

Kalmar – one of the world’s top crane

manufacturers – 70% of the operators

could be freed up to do other tasks in

quiet times when there are fewer ships

to be loaded and unloaded.

There are financial benefits from letting

operators work from the comfort of

a remote control room and not in the

crane’s driver cabin. Ports can potentially

increase revenue from STS crane tariff

charges by halving the downtime related

to shift changes.

The financial benefit of remote-

controlled STS cranes reaches about

4.9% of the revenue as yearly steady

state net value.

By comparing the economic impact

of remote-controlled STS cranes to

the full cost of network deployment,

we see a payback of around two years

and a return on investment by year

five of 156%.

The system productivity benefits are

only valid when the STS, RTG, and AGV

use cases are simultaneously active for

the entire chain from loading/unloading,

horizontal transport, and stacking.

“By removing the

need to climb ​up to the crane’s ​driver cabin, ​digitalization reduces ​the number of injuries ​and increases ​worker safety.”

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Use cases

Connected Ports | February 2021

Automated rubber tired gantry cranes

Stacking the odds ​in your favour

Rolling out more flexible ​port stacking.

Stacking up the benefits

Mobile gantry cranes are used for ​equipment transferring and flexible ​operations, but are usually used ​to stack containers on the wharf ​and other places.

Rubber tired gantry cranes (RTG)

are more flexible than rail mounted

gantry cranes, as rail infrastructure

is not needed and ports can move

cranes easily.

RTG cranes are the most popular

equipment choice for container stacking

at terminals around the world, especially

ports where high-capacity stacking and

good maneuverability are key. Research

from Kalmar indicates container ports

have a global installation base of

roughly 8,000 cranes and an estimated

60% of them use RTGs.

Typically, ports have around three

to four times more RTG cranes than ship-

to-shore (STS) cranes, which means that

this is more labor intensive to operate,

according to data from Port Gdansk.

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Use cases

Connected Ports | February 2021

Risky business

Most RTGs are operated by on-site, ​human operators, who need to move ​through the container yard and then ​climb up to access the crane’s driver ​cabin. Cranes are also located close ​to many large machines, trucks and ​other containers, which adds risk for the ​operator as they traverse the yard.

As mentioned earlier, 22% of crane-

related fatalities in the U.S. between

2011 and 2015 happened to the

crane operator.

It takes time for the operators to

access the cranes and climb up.

Thus, every shift-change or break,

resulting in the crane operator having

to move from the crane, causes

downtime. Downtime is very costly for

the port, as any crane not in use is not

achieving maximum efficiency.

While the industry is seeing the

introduction of more automation, data

from Konecranes shows more than 90%

of RTGs are still manually controlled,

requiring skilled operators, which have

been harder to attract in recent years.

Unfortunately, human error is the largest

reason for port-related accidents and is

responsible for 75% of marine liability

losses, according to Maritime Journal.

Automation on ​a new level

Automated rubber tired gantry cranes ​are the solution as they can solve all of ​these challenges. Available since 2013, ​automated RTGs have five levels of ​crane automation, according to Kalmar:

1. Remote-controlled:

Operator controls all of the moves

of the automated RTG from the yard

control center.

2. Supervised automatic moves:

Operator supervises automated hoist,

trolley, and gantry moves on stack and

controls operation in the truck lane.

3. Automatic pick up and place

on stack:

Hoist and trolley are executed

automatically on stack and the gantry is

supervised. Operator controls operation

in the truck lane.

4. Automatic gantry:

Hoist, trolley, and gantry movements

are executed automatically on stack.

Operator controls operation in the

truck lane.

5. Fully automated:

Fully automated solution with automatic

truck handling and horizontal transport.

An operator is only needed for

exceptional and complex handling.

“Human error is the ​largest reason for ​port-related accidents ​and is responsible for ​75% of marine liability ​losses.”

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Use cases

Connected Ports | February 2021

Stacks of data required

Today’s automated RTGs, like remote- ​controlled STS cranes, are usually ​connected through an unreliable ​combination of WiFi and fiber cables.

Enabled by safety controllers, smart

3D-sensors, and positioning devices,

automated RTGs are able to conduct

stacking operations automatically.

But whenever any irregularity occurs,

an operator can take over control from

a remote control room.

When automation enters a container

terminal, network latency becomes a

priority. RTG operation with automation

is extremely intolerant of latency and

jitter, often requiring sub-50ms latency

to operate at its full potential.

The solution puts very high requirements

on reliability, bandwidth latency, and

high security, which makes a private 5G

network suitable for this use case.

Lifting your ROI

Through automated and consistent ​movement patterns, ports can achieve ​a 20% reduction of maintenance, ​according to Arthur D Little. Also, ​with fewer spare parts, oils and other ​resources needed, the cranes have less ​environmental impact. And as workers ​no longer need to access the cranes ​and climb to the crane’s driver cabin, ​the number of injuries to crane operators ​is also likely to decrease.

The financial benefit of deploying

automated RTGs reaches about 7.5%

of the revenue as yearly steady state

net value.

Expect payback in less than three years

and a return on investment by year five

of 98%.

“Through automated

and consistent ​movement patterns, ​ports can achieve ​a 20% reduction ​of maintenance.”

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Use cases

Connected Ports | February 2021

Automated guided vehicles

Steering clear ​of danger

Driving up port safety with ​automated guided vehicles.

The impact of collisions

Ports can only operate by using a large ​amount of tractors, all of which require ​a human pilot to move horizontally ​across port yards.

But poor communications between

tractor drivers results in congestion and

collisions, all of which impacts upon

the port’s productivity. According to

ResearchGate, in the past five years,

36% of accidents in ports were caused

by pilot error and 42% of accidents were

classified as “traffic” accidents.

“36% of accidents

in ports were ​caused by pilot ​error and 42% ​of accidents were ​classified as traffic ​accidents.”

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Use cases

Connected Ports | February 2021

Automatically better

Automating horizontal transport ​produces several key benefits. ​Automated guided vehicles (AGVs) ​use smart 3D sensors and cellular ​connectivity to navigate throughout the ​port, acting as driverless forklifts and ​other material-handling vehicles.

AGVs used in ports are also known

as “Intelligent Autonomous Vehicles”

(IAVs). IAVs are one of the component

systems of the Intelligent Transportation

System (ITS) that can operate in

confined private spaces, as well

as in open and public spaces.

AGVs are used in many industries such

as manufacturing. Historically, they’ve

not been smart, instead being operated

by following either magnetic tape

or inductive wire on the floor, neither

of which enables flexibility.

Central intelligence

An AGV that is connected to a cellular ​network can receive work orders as well ​as positioning information from a central ​intelligence. This data supplies collision ​warnings, and improves the accuracy, ​safety, and speed of operations.

According to AGV Network, the

technology is evolving and industries are

using new kinds of navigation systems,

including laser, QR codes, and natural

feature navigation.

Cellular is the driving force

By using 3D sensors in combination with ​cellular capabilities, smart AGVs can ​optimize their routes and their charging, ​cutting their energy consumption. These ​newer generations of smart AGVs ​operate with electricity versus today’s ​more common diesel power.

Each AGV needs various sensors for

safe navigation as well as modules for

a reliable network connection. Sensor

data is mainly processed directly

on today’s AGVs.

To remotely control the AGVs while

complying with safety regulations

requires a connection with extremely

low latency. 5G cellular can meet these

requirements, making it a good solution

for the remote control of AGVs in the

near future.

“The data from a

central intelligence ​supplies collision ​warnings, and ​improves the ​accuracy, safety, ​and speed of ​operations.”

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Use cases

Connected Ports | February 2021

A smoother financial ride

AGVs reduce energy costs by 10% ​due to optimized routes according to ​research by Schmidt, Meyer-Barlag, et ​al (2015). Taking out the human factor ​also increases safety for workers, as less ​human errors means less collisions and ​accidents.

Deploying AGVs will create payback

in around two years and a return on

investment by year five of 149%. The

financial benefit is approximately 7.1%

of the revenue as yearly steady state

net value.

“AGVs reduce energy ​costs by 10% due to ​optimized routes.”

25

Use cases

Connected Ports | February 2021

Condition monitoring

Keeping port ​machinery ship ​shape

Predicting the ​unpredictable with ​condition monitoring.

The downside ​of downtime

When a port experiences downtime ​in one of its assets, it usually results ​in a very costly disruption to its ​operations. A key reason for downtime ​is the malfunction of a machine that ​creates an accident or disruption. ​According to research from Budiyanto ​and Fernanda (2020), 6% of port ​accidents in the last five years were ​due to poor tool maintenance.

A major safety concern in ports is

preventing fires. As dangerous goods

are often stored in ports, any fires or

accidents can result in large disasters.

Budiyanto and Fernanda found that

in the past five years, 11% of accidents

in container terminals were due to fires.

The key reason for causing them was

equipment damage.

“In the past five

years, 11% of ​accidents in ​container terminals ​were due to fires.”

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Use cases

Connected Ports | February 2021

High maintenance

Today, port equipment is normally ​maintained based on a set schedule. ​In some cases, the condition of the ​equipment is evaluated through ​vibration or temperature monitoring, ​a task most often performed manually ​by an operator.

Becoming predictably ​efficient

According to Port Technology, 25% of ​the cost of equipment damage is due ​to inadequate or incorrect maintenance. ​Smarter condition monitoring of ​equipment, assets, and maintenance ​services can be handled much more ​effectively, lowering maintenance costs.

Condition monitoring achieves this

by using cellular-connected sensors

to monitor the condition of all port

assets through factors like vibration

and temperature. These assets include

cranes, AGVs, and stacks of containers.

The sensors will connect to a cellular

network. Condition monitoring software

will then detect any abnormalities, while

also determining when an asset is in

need of maintenance. The most basic

application is vibration monitoring to

identify anomalous behaviors, which

notifies and dispatches a worker to

solve the issue.

Catching faults early

Condition monitoring enables early ​detection of potential faults and their ​causes on the basis of individual ​vibration characteristics and other ​influencing factors. This allows for ​permanent and continual monitoring of ​critical machines and equipment.

The integration into the programmable

logic controller (PLC) makes it possible

to adjust the vibration monitoring to the

process of the machine or the plant. This

is a natural next step after deploying

condition monitoring.

Real-time needs real fast

For condition monitoring, the network ​needs to be able to manage high ​connection density and transfer data in ​real-time with extremely high reliability. ​Plus, the port site needs to process and ​analyze the data in the cloud securely.

This real-time process monitoring is

what helps protect a port’s machinery.

The permanent monitoring helps avoid

damage to machine components, tools

or workpieces, and creates shorter

response times.

Cellular-connected sensors and a

cloud-based solution enables condition

data to transfer in real-time, reducing

on-the-ground monitoring efforts by

40%, according to Port Strategy. These

sensors require response times as fast

as a fraction of a second, making a

private 5G network ideally suited for

this use case.

“25% of the cost

of port equipment ​damage is due ​to inadequate ​or incorrect ​maintenance.”

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Use cases

Connected Ports | February 2021

“Condition-based

monitoring of ​cranes can reduce ​maintenance costs ​by as much as 75%.”

Good financial condition

Using condition monitoring allows ports ​to reduce “over-maintenance” while also ​lessening the risk that those assets will ​break down.

This means that ports can cut the spare

parts, oils, and resources needed for

maintenance by 50%, according to

Saab RDS. Data from HBM indicates

condition-based monitoring of cranes

can reduce maintenance costs by as

much as 75%.

As the risk for machine and equipment

breakages reduces with correct

maintenance, the risk for accidents in the

port also decreases, and therefore the

risk of injuries to workers.

Condition monitoring’s financial

benefit is around 2.7% of the revenue

as yearly steady state net value. This

will give a payback of around two years

and a return on investment by year five

of 126%.

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Use cases

Connected Ports | February 2021

Drones for surveillance and deliveries

A safer port ​of call

Raising port security and ​sustainability with drones.

Rising to the challenge

Security has become a major concern ​for ports. Thefts of cargo are common, ​resulting in disrupted supply chains. ​According to Shipping & Freight ​Resource, in 2018, there were an ​average of 15 cargo thefts reported ​daily. Research from Björn and Eckwall ​(2017) shows that 20% of all marine ​transport thefts happen at the port.

Also, papers and other documentation

deliveries need to reach a ship before it

arrives at the dock. Traditionally, ports

use a tugboat or launch boat for doing

these deliveries, even though they might

consist of only a single envelope or piece

of paper. Maersk Tankers reports that

such deliveries typically cost more than

$1,000 USD each.

Ports are in need of a technological

solution to these problems, and the

use cases provided through drones can

deliver just that.

“In 2018, there were an

average of 15 cargo ​thefts reported daily.”

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Use cases

Connected Ports | February 2021

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Use cases

Connected Ports | February 2021

“Ship-to-shore

deliveries in ​Singapore now ​happen six times ​faster than the ​traditional launch, ​and cost 90% less.”

Drones are taking off

Modern drones use 3D sensors ​connected by cellular to real-time ​analytics to navigate and collect data.

This is allowing ports to deploy drones

for more effective security surveillance

and for the delivery of documents

to and from vessels. In both cases,

a pilot remotely operates the drone

over a 5G network.

Camera-equipped drones collect

and stream data to the cloud, where

analytics can be used to detect

abnormalities, like an unauthorized

person moving throughout the port or

an incorrect truck picking up a container.

According to the Straits Times, the Port

of Singapore is testing 5G-connected

drones for better surveillance and

security. Beginning in August 2020,

a one-year trial is assessing how Airbus

drones perform security inspections

and manage port incidents. The

newspaper also reports that Singapore

is using Airbus drones to make ship-to-

shore deliveries.

Sky high connectivity

The drones require a network that not ​only accommodates high resolution ​video, but also provides high-accuracy ​positioning over an ultra-reliable ​connection, especially when the drone ​is in flight. Very high bandwidth and ​low latency are needed to transfer huge ​amounts of data in real-time, making ​a 5G private network the ideal solution.

Drones are delivering

By using drones instead of launch ​boats, ports are massively cutting the ​cost, efforts, and resources to deliver ​small items to and from approaching ​ships. According to FreightWaves, ​ship-to-shore deliveries in Singapore ​now happen six times faster than the ​traditional launch, and cost 90% less. ​They also reduce CO emissions and

2

safety risk to human workers.

For surveillance, drones can collect

data for cloud-based analytics engines

that will improve security, incident

management, and overall worker safety.

Port security operations will become

more efficient as they now provide

a better vantage point, an ability to

instantly identify abnormalities, and

the capacity to move faster.

Our data predicts drone surveillance

will decrease port theft by 75%,

resulting in lower insurance premiums.

The financial benefit of this use case

is around 1.6% of the revenue as yearly

steady state net value. Payback will

come in around two years and a return

on investment by year five of 154%.

“Our data predicts

drone surveillance ​will decrease ​port theft by ​75%, resulting in ​lower insurance ​premiums.”

32

The business case

Connected Ports | February 2021

The business case

The smart money is ​on smart ports

Out of all our use cases, the highest value comes ​from automated RTG cranes, followed by cellular ​connected AGVs, and then remote-controlled ​STS cranes.

In our baseline port, with all five use cases working

together, we reached a payback time of less than

two years. The annual steady state net value by

year five reaches $101 million USD, which is 25%

of the baseline port’s revenue.

The accumulated net value reaches $260 million

USD in year five – 68% of the baseline port’s

revenue. This figure includes the full network

deployment and the cost and benefits from the

five use cases.

By year five, the use cases contribute to an

accumulated gross value of $406 million USD.

The total, accumulated costs for deploying all use

cases is around $146 million USD by year five,

driving a return on investment of 178%.

Value ​Capex (inc. Integration) ​Opex

Source: Ericsson, Arthur D. Little

33

Combining the use cases

Connected Ports | February 2021

34

Combining the use cases

Connected Ports | February 2021

Combining the use cases

Ports thrive

with all five

Each of the five use cases will

enable a container’s journey

through a port to be faster, safer,

and more efficient. But here’s what

it looks like when all five use cases

are working in unison.

Drones for surveillance and deliveries

as well as condition monitoring are

active in all steps of the process.

01

Remote- ​controlled ship- ​to-shore cranes

02

Automated ​guided vehicles

Remote-controlled STS cranes load and unload ​container ships, moving containers between ​the ship and the dock with precision and ​maneuverability.

AGVs navigate through the port using smart 3D ​sensors, handling all port materials, and reducing ​energy costs and risk of accidents.

03

Automated ​rubber tired ​gantry cranes

04

Condition ​monitoring

Automated RTG cranes stack containers at ​terminals, crucial for when high-capacity ​stacking and good maneuverability are needed.

Condition monitoring detects faults before ​they occur, reducing unplanned downtime ​and maximizing asset productivity.

05

Drones for ​surveillance ​and deliveries

Drones deliver documents from ship to shore, ​reducing costs and environmental impact of ​manned boats, while also conducting security ​surveillance of ports.

A PRIVATE CELLULAR BUYERS’ ​GUIDE: THE ESSENTIALS OF BUILDING ​A PRIVATE 5G OR LTE NETWORK

HOW PORTS AND TRANSPORTATION HUBS LEVERAGE PRIVATE CELLULAR NETWORKS FOR IMPROVED CONNECTIVITY, PERFORMANCE, AND ​SECURITY

www.porttechnology.org

Smarter Supply Chains

OVERVIEW

Our supply chain is increasingly ​adopting modern technologies, ​connected devices, and the data- ​rich, highly actionable business ​insights they enable. Even the ​largest and most challenging ​environments need the flexibility ​of wireless connectivity to connect ​those devices and leverage their ​data. But in some cases, existing ​network technologies, including ​Wi-Fi solutions, aren’t optimised to ​address this challenge because: ​• The sheer size and scope of many

deployments demand long-range ​coverage, and the number of Wi- ​Fi access points needed to cover ​that range isn’t feasible. ​Business-critical devices and ​highly sensitive information call ​for layers of security unavailable ​within Wi-Fi networks alone. ​Applications such as live ​streaming of HD video footage ​require dedicated bandwidth ​and low latency. ​The broad scope of what ​organisations connect puts a ​premium on the ability to easily ​monitor and control network ​traffic flow, and Quality of ​Service (QoS).

•

•

•

When we consider everything

big and small that can now be ​Internet-connected, the boundless ​potential of 5G adds expanded ​opportunity to the long term vision ​of ports and shipping businesses. ​With a private cellular network, ​new efficiencies, operational ​models, and business cases can ​be built upon the underlying ​premise that seamless, secure, and

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“IN SPRAWLING AREAS WHERE ​WIRELESS CONNECTIVITY IS CRITICAL, ​PRIVATE CELLULAR NETWORKS HAVE ​EMERGED AS AN OPTIMAL OPTION.”

frictionless connectivity can be ​assumed across all people (dock ​workers, seafarers, passengers), ​places (ports, warehouses), and ​things (vehicles, ships, cranes, ​devices), at all times.

In sprawling areas where

wireless connectivity is critical, ​private cellular networks have ​emerged as an optimal option. ​Private cellular networks, which ​include both private LTE and private ​5G deployments, are helping ​organisations with locations that ​require wireless connectivity but ​are not well supported by current ​wireless infrastructure.

Private networks play a unique

role in wireless networking, ​providing benefits that range from

increased coverage, capacity, ​and mobility, as well as enhanced ​security and reliability.

ADDRESSING THE CHALLENGES OF ​SECURE NETWORK COVERAGE IN ​LARGE AREAS

Across cities, campuses, and other ​facilities, Wi-Fi is an excellent ​tool for connecting a multitude of ​devices. However, for organisations ​like ports that oversee operations ​across vast, sprawling areas and/ ​or rapidly changing spaces, Wi-Fi ​alone can be challenging, if not ​untenable. Private cellular networks ​can help port operators address ​challenges associated with relying ​solely on Wi-Fi or public cellular.

EDITION 134 | 2

Smarter Supply Chains

COSTS

Many large logistics hubs and ​industrial sites like ports can now ​deploy Internet of Things (IoT) ​sensors and equipment capable ​of machine-to-machine (M2M) ​communication, all of which require ​reliable connectivity. Unfortunately, ​laying fibre in the ground and ​installing a huge quantity of Wi-Fi ​access points is exceptionally ​expensive. Outfitting just one large ​site could cost millions of dollars for ​the fibre alone.

The infrastructure needed for ​a private cellular network can be ​considerably less expensive than ​a widespread Wi-Fi deployment. ​Whereas dozens of Wi-Fi access ​points with extensive wired line ​installation would be required ​in a big area, a local area ​network (LAN) based on cellular ​broadband would call for just ​a few private cellular network ​radios.

Keeping high-bandwidth content

on site with a private cellular ​network and local servers can ​increase data security and reduce ​data plan costs. While public ​service providers may charge per ​device and per data usage, private ​network owners can avoid those ​recurring fees.

PERFORMANCE AND RELIABILITY IN ​PUBLIC AND PRIVATE NETWORKS

Private cellular networks have ​proven to be excellent wireless ​networking options in both ​backup (failover) and primary ​roles, depending on the use case. ​However, in certain scenarios, ​public cellular doesn’t provide ​the cost-efficient, unwavering ​high performance needed to keep ​business-critical applications ​running smoothly around the ​clock.

For instance, many enterprises

operate sites that gather and pass ​huge amounts of data, including a ​lot of information that is pushed to ​the organisation’s data centre.

This traffic encounters

increased network latency and

drives up data costs when carried ​via a public LTE or 5G network ​with pay-per-bit pricing.

Organisations that rely on ​Wi-Fi for connectivity may still ​encounter performance limitations ​when supporting the types of ​high-bandwidth applications ​that are becoming standardised ​in most business operational ​situations, especially across ​vast areas. Examples include ​automated guided vehicles (AGV) ​and real-time video surveillance ​streaming.

One significant cause of Wi-Fi

deficiency is when portable user ​equipment such as a phone, tablet, ​or IoT device clings to a Wi-Fi ​connection even when it has no ​actual coverage — a phenomenon ​known as “sticky Wi-Fi” or “sticky ​client.” Through the prioritisation ​and preemption orchestration ​capabilities of a private cellular ​network, the organisation controls ​the connections between access ​points (APs) and user equipment, ​resulting in better coverage ​flexibility and overall reliability.

SECURITY

In many cases, Wi-Fi security is ​limited to a username and password, ​which may be acceptable for logging ​in at a coffee shop but concerning ​within the framework of a large ​organisation’s network. While ​Wi-Fi 6 has made improvements, ​the presence of sensitive data and ​critical IoT devices underscores the ​need for additional layers of security. ​Altogether, these factors give private ​cellular inherent security advantages ​over other wireless infrastructures ​and help protect an organisation’s ​most critical information from ​malicious attacks.

Private 5G and LTE deployments

include SIM/eSIM authentication ​and edge devices, offering ​additional layers of security through ​encryption that Wi-Fi cannot provide. ​Additionally, the network architecture ​of private 5G or private LTE usually ​includes on-site servers, enabling ​organisations to keep traffic between ​IoT devices and corporate servers ​on their internal network rather than ​routing it through the public network.

3 | EDITION 134

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Smarter Supply Chains

HOW PRIVATE CELLULAR ​NETWORKS WORK

Businesses and ports today are ​increasingly becoming familiar ​with the process of using cellular- ​based connectivity for wireless ​wide area networks (WAN) — ​whether for primary links, failover, ​or augmentation. However, turning ​LTE or 5G into wireless local area ​networks (LAN) is uncharted ​territory for many organisations.

Placing cellular access points ​on-site allows companies to mimic ​a standard public cellular network ​while gaining control and visibility ​of the devices and applications ​on their network. This creates a ​purpose-built wireless network ​that provides the reliability, high- ​performance, security, and cost- ​efficiencies required to support ​business-critical applications.

Private networks can be installed

in various ways: by either a third- ​party network provider, a traditional

cellular operator, or the enterprise ​customer itself. The decision of ​which operator or infrastructure ​provider to use mostly hinges on ​the spectrum of choice and the ​level of network management the ​enterprise is willing to undertake to ​gain cost savings and control over ​its digital infrastructure.

WHAT DO PORTS NEED TO BUILD A ​PRIVATE CELLULAR NETWORK?

For the successful implementation ​of a high-performance, high- ​capacity private cellular network ​throughout an enterprise, IT ​teams must be familiar with ​the components that bring the ​network to life. On top of that, it’s ​important to recognise that when ​each component is developed ​and deployed by a single vendor, ​the resulting unified solution gives ​users the ability to orchestrate ​their network within a single ​management platform.

“PRIVATE CELLULAR NETWORKS HAVE PROVEN ​TO BE EXCELLENT WIRELESS NETWORKING ​OPTIONS IN BOTH BACKUP (FAILOVER) AND ​PRIMARY ROLES, DEPENDING ON THE USE CASE.”

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EDITION 134 | 4

Smarter Supply Chains

FIGURE 1 ​Connecting wireless ​devices with a private ​cellular network

“PRIVATE 5G PROVIDES A CONNECTIVITY ​PLATFORM THAT ENABLES PORTS TO ​MANAGE AND SECURE ALL THEIR IOT AND ​CONNECTIVITY-DEPENDENT TECHNOLOGIES ​ON A SINGLE WIRELESS NETWORK.”

WHEN AND HOW ORGANISATIONS ​USE PRIVATE CELLULAR

The benefits of private LTE ​and private 5G are capturing ​the interest of ports and other ​organisations that have large ​areas filled with lots of moving ​devices and applications that ​must be connected at all times ​without exception. These ​situations often involve the ​gathering and sharing of sensitive ​data between devices and ​servers. When Wi-Fi or public ​cellular are less than ideal or ​even possible, a private cellular ​network can address needs in ​several key areas: ​Vast areas with complex ​networking needs ​In large spaces with extensive ​network requirements and ​hundreds of users and devices, ​private cellular networks help ​prevent congestion and are much ​less expensive to set-up and ​maintain compared to Wi-Fi. ​High-bandwidth traffic within ​budgetary limitations ​Organisations looking to connect ​many video surveillance cameras ​could use public LTE or 5G, but ​associated data usage would likely ​be cost-prohibitive. Private cellular ​can offer a much more cost- ​effective option.

5 | EDITION 134

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Smarter Supply Chains

Remote locations lacking ​wireless infrastructure ​In places where carriers have yet ​to establish wireless infrastructure, ​organisations can easily set up a ​private cellular network to use as ​their wireless LAN. ​Constant connectivity for ​applications on the go ​Mobile use cases, such as connected ​workers, AGV, asset monitoring, ​and more, require a connection ​that can move with them. Private ​cellular networks give users control ​over connectivity and Quality of ​Service (QoS), virtually eliminating ​client stickiness that can cause ​interruptions and even downtime. ​Critical information ​In certain scenarios, the ​transmission and storage of ​highly sensitive information ​are unavoidable, making them ​attractive targets for hackers.

Ports can keep business-critical

information on-site via a private ​cellular network, which enables ​additional layers of security beyond ​what Wi-Fi alone can provide. With ​private 5G, it’s possible to prioritise

network segments dedicated to ​serving critical or highly sensitive ​processes, to avoid interference or ​varying network availability even ​during peak network usage.

Given the ubiquity of IoT

and connectivity-dependent ​technologies, private LTE and ​private 5G are relevant solutions ​in most industries. The ability ​to set up a wireless LAN that is ​significantly higher performing, ​more reliable, flexible, cost- ​effective, and secure than Wi-Fi ​or public cellular alone meets the ​specific needs encountered in ​many use cases.

COMMON USE CASES FOR PRIVATE ​CELLULAR NETWORKS IN PORT AND ​TERMINAL OPERATIONS:

•

High-definition surveillance ​cameras

• Predictive maintenance ​• Automated guided vehicles

(AGVs)

• Automated mobile robots

(AMRs)

• Asset management ​• Crime and environmental

monitoring ​Video surveillance

•

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EDITION 134 | 6