Important to navigate waves of labour change when automating — Peter McLean

AUGUST 30 — Global maritime trade is growing. According to the United Nations Conference on Trade and Development, estimated world seaborne trade volumes, for the first time, surpassed 10 billion tonnes in 2015, accounting for over 80 per cent of total world merchandise trade.

In its Container Insight Weekly, Drewry Shipping Consultants Limited also noted that world container ship traffic grew by 10 per cent year-on-year in the first quarter this year, particularly because of strong demand growth in the Greater China region.

The world shipping fleet also grew by 3.5 per cent in 2015, with ships now carrying an average of 1.75 billion deadweight tonnage (DWT) of cargo — an indication of how ships today are getting bigger.

With the growth of international seaborne trade and the development of bigger ships, ports and container terminals around the world are now increasingly looking at automation as the way forward to improve port productivity, efficiency, competitiveness and more importantly, the safety of workers.

Why automation?

Automation enables the processes at ports to be more predictable. For example, automation allows for precision scheduling which means that waiting times for ships at ports are lowered.

This results in decreased maritime traffic and greater operating efficiency while minimising environmental pressures.

In addition, automation optimises the performance of the entire machine fleet at ports, and the flow of containers, which in turn reduces energy consumption and emissions.

Operating costs are also reduced with automation. When a manual terminal is converted to an automated operation, labour costs can drop by up to 60 per cent and power and fuel costs by up to 25 per cent.

At the same time, automated solutions create a safer workplace for port and terminal workers.

The risk of human error and accidents is high when people interact directly with equipment that handle heavy goods; but automation decouples human and machines.

Instead of operating the machines that unload cargo from tall cranes at the ports itself, workers at automated terminals can control these machines safely from a computer in a central office.

With each and every of their move planned, prepared and programmed, automated machines can detect errors that the human eyes and ears might not, and this helps workers prevent accidents at the ports — hence, improving the safety of workers.

The Patrick Terminal in Brisbane, Australia is a great example of how automation has created a safer working environment.

The use of automation technology and automated equipment at the terminal has allowed it to go a year without losing any injury time among its 160 employees

Change management is key

It is obvious the benefits of automation are significant, but these benefits come with widespread changes that need to be addressed — in particular, there needs to be consideration made to the extensive change management process.

This is because automation not only requires a thorough change of business processes but also, a whole new set of skills and change in the workers’ mind sets.

Managing this change in skills and workplace culture is in fact, more crucial than the technical implementation of automation solutions itself.

Workers need to understand that automation does not necessarily equate to the loss of jobs but instead, it requires increased training to allow them to be proficient in handling automated equipment such as the automated guided vehicles at ports and terminals.

In Singapore for example, all port workers were retained when port operations at the Tanjong Pagar Terminal were shifted to the high-tech Pasir Panjang Terminal earlier this year.

Automated operations require radically different skill sets compared to traditional terminals. Jobs at terminals will evolve to become more process-oriented, and then data-driven and analytical.

Typical additional skills that are required include understanding the operating principles of automated equipment and systems and being competent in measuring and operating sensor technologies, which replace the human senses.

Successful change management requires a lot of effort from the terminals undergoing the transformation.

It involves early planning and having a continuous open dialogue with all stakeholders, including employees and the trade unions, and making sure that there are tailor-made training programmes for the different workers to allow them to adapt to work in a changing environment.

While there is still more to be done in terms of the conversion process and imparting the operational knowledge on automated systems to port workers, it is crucial that terminal and port authorities act fast, especially since it is a steep learning curve for the industry in terms of adjusting to an automated world.

Doing so and managing the transformation successfully by working hand-in-hand with the terminal and port workers to ensure a smooth transition is key for a competitive future in an increasingly automated world.

* Peter McLean is Senior Vice President, Kalmar APAC.

** Kalmar offers the widest range of cargo handling solutions and services to ports, terminals, distribution centres and to heavy industry, and is the industry forerunner in terminal automation.

***This is the personal opinion of the writer and does not necessarily represent the views of Malay Mail Online.