Malcolm Mclean was an American truck driver who invented container shipping and revolutionized the logistics industry. (Source: Will Box)

Now, at the onset of the Fourth Industrial Revolution, container shipping is undergoing a smart makeover to become more efficient, environmentally friendly and cost-effective. Major shipping companies and ports around the world are adopting smart technologies such as Blockchain, Big Data and IoT to automate operations. For example, the world’s largest container shipping company, Maersk is operating on IBM’s  blockchain-like system to cut out additional paperwork and conduct efficient, transparent operations. Major ports now have smart sensors and artificial intelligence (AI) to collect data about the environment and respond to changes in real-time. Finally, to keep up with all the new technology, new infrastructure is outfitting the smart ports of tomorrow.

So, here’s a glimpse into some of the most advanced ports around the world and what the future of container shipping holds.

SEE ALSO: The Changing Waves of the Shipping Industry

Port of Rotterdam

The Port of Rotterdam is Europe’s largest port with more than 461 million tons of cargo and 140,000 vessels passing through it every year. In January 2018, the Port of Rotterdam Authority and IBM announced they will collaborate on a digital transformation project to turn the Port of Rotterdam into a smart, connected port of the future. Already, there are sensors being applied across the span of 42 kilometers of the port both on land and in the sea to collect data about the port’s surroundings.

The Port of Rotterdam is the largest port in Europe and on route to becoming a smart, connected port. (Source: Port of Rotterdam)

Most importantly, the new port will have a central dashboard which will act as the brain of the entire port. The sensors will collect data and send it to the central dashboard where it will be processed in real-time via IBM’s IoT technology. Compared to the traditional radio communications among operators, the new system will drastically cut down the time it takes to communicate and manage traffic as well as prevent or respond to accidents. Operators will be able to oversee all operations of the port at once, and the new, efficient process is projected to save shipping companies up to an hour in berthing time, which translates to a cost savings of about USD 80,000 per hour.

Port of San Diego

The entire city of San Diego has been working to become a smart city and a leader in the movement towards net-zero energy consumption. The city’s port is no different. In 2013, it adopted the Climate Action Plan (CAP) under which the port has pledged to reduce greenhouse gas emissions by 10 percent by 2020 and 25 percent by 2035.

The Port of San Diego uses smart technology to reduce its carbon footprint. (Source: Cleantech San Diego)

As such, the city worked with various software companies led by Cleantech San Diego to develop a smart building project. The project’s smart technology uses sensors, Big Data and IoT to monitor energy levels across the city and provides real-time data upon which places like the city’s port can operate. Essentially, the data allows port operators to identify patterns in energy consumption as well as abnormalities to respond to in real time.

This year, the Port of San Diego and the state of California will undergo a USD 24 million modernization project with the goal of implementing zero-emission freight equipment over the next 20 years, and further incorporate smart technologies to reduce pollution.

SEE ALSO: Clear Skies Ahead: Clean Fuel for Green Shipping

Port of Singapore

Singapore is the trade hub of Asia and home to one of the busiest ports in the world. Every year, 130,000 cargo ships pass through its waters, but the number looks to increase with the growth of the e-commerce industry.

The Port of Singapore is en route to becoming one of the smartest ports in the world. (Source: Singapore Ministry of Transport)

Starting last September, the Maritime and Port Authority of Singapore (MPA) and IBM jointly implemented Project SAFER (sense-making analytics for maritime event recognition) to the port of Singapore. SAFER consists of new technologies to automate port operations, manage traffic and optimize the use of the port’s resources. With the new automation technology, the port can now enforce regulations automatically and monitor all vessel movements within the port at once in real time. Not only that, SAFER makes maritime operations much safer for operators and employees on the docks with the help of AI sensors for accident prevention. For continued development, the Maritime and Port Authority of Singapore held the Smart Port Challenge 2017 to foster startups in developing next-generation technology for enhanced and sustainable maritime operations.

As the ports mentioned above show, the global cargo shipping industry is headed towards vast change. New technologies such as blockchain, IoT and AI will greatly enhance transportation and handling efficiency and lead to greener practices. Traditional steel containers, on the other hand, will continue to be used in immense volumes for its 100 percent recyclability, lightweight and high-strength properties.

CEO Kwon explores CES 2018

As such, CEO Kwon made his first official visit to the 2018 Consumer Electronics Show (CES) in Las Vegas earlier this month to stay on top of the latest trends in connectivity and smart solutions that can be applied to the manufacturing process in smart factories.

SEE ALSO: POSCO CEO Ohjoon Kwon Visits CES 2018

Ultimately, a smart factory for POSCO would entail using smart sensors to pick up data, smart analysis through AI and automated production processes. Moreover, the smart factory would store and analyze its big data and apply it to make future improvements and prevent malfunctions. Aligned with many of POSCO’s business growth engines, major topics and themes at CES 2018 included smart homes, smart cities, autonomous cars and AI, and more than 3,900 companies put forth their best innovations.

Smart Connectivity

As more and more cities undergo smart transformations, the next big trend will be data collection and analysis through 5G connectivity. It was no surprise to see numerous innovations in smart transportation, smart grid, public safety, healthcare, data analytics and more at CES 2018. Moreover, city officials from early-adapting cities such as Kansas City, Miami and Las Vegas took to the stage to discuss their cities’ smartization plans. Some of the topics discussed included using GIS mapping software, smart construction, inclusive technology and autonomous transportation to enhance citizens’ productivity, efficiency, safety and well-being.

CES 2018 was a platform for smart city discussion. (Source: Bosch)

CEO Kwon visited related booths to learn about new technologies POSCO could apply to its businesses. Currently, POSCO’s smart factories are run by POSCO ICT’s smart platform called PosFrame, which allows the factory to apply a digital genome map to operations via data collection, instantly convert smart factory initiatives in domains, act as a common platform for new technologies and apply the same, standardize smart factory model to other facilities through reusable software.

Also at this year’s CES, POSCO ICT signed an MOU with DPR Construction, a leading smart construction company to apply PosFrame to construction sites for more efficient, cost-effective and smarter construction processes.

Smart Transportation

Another major theme at this year’s CES was mobility. Namely, autonomous and electric mobility. Companies from all across the board from traditional car manufacturers and software companies to gaming companies lined up to showcase their new innovations.

Even as the market for sustainable EVs and autonomous EVs look to expand in 2018 and beyond, EVs only make up about 1 percent of the global fleet of cars and there’s still a ways to go before EVs become the norm. Drivers need to feel safe in their EVs or autonomous EVs, want greater range on a single charge and need to see more charging infrastructure in their communities before making the switch.

SEE ALSO: Ask an Expert: Electric Vehicles and the Future of the Automotive Market

What’s more is that just because a vehicle runs on electric batteries, it doesn’t automatically mean the vehicle is eco-friendly or transmits less harmful emissions. Manufacturers and consumers alike have to take a lifecycle approach to assess the car’s impact on the environment from production to end of life recycling.

POSCO works with numerous partners to develop leading solutions for electric vehicles.

That’s why POSCO is working with automakers to come up with vital solutions in the auto industry for a greener future. It supplies partners with an advanced high-strength steel (AHSS) called POSCO GIGA STEEL that is both lightweight and super strong, allowing cars to travel with less energy without compromising passenger safety.

POSCO is also a lithium provider and has developed an innovative technology to speed up the extraction process, saving time, costs and damage to the environment. It also works with car makers to apply premium electric steel to partners’ electric motors to increase efficiency and cut costs.

With so many exciting new innovations and technologies surrounding EVs, POSCO will undoubtedly play a significant role in ensuring automakers have the tools they need to realize a green future.  POSCO will work to stay ahead of newly emerging technologies to enhance the efficiency, sustainability and performance of all of its solutions.

Since last February, CEO Kwon has visited Siemens, GE and other businesses in Silicon Valley to explore new technologies and expand POSCO Group’s smartization plan. At CES 2018, CEO Kwon saw first-hand the latest smart technologies and plans to implement them to all of POSCO’s core businesses including steel, construction, IT and energy. He also met officials from leading smart companies such as GE and DPR Construction, and examined possibilities for cooperation over commercializing POSCO’s smart solutions.

POSCO Kwon met Heilmann Matthias, President and CEO of Digital Solutions at Baker Hughes General Electric (BHGE). Matthias oversees the digital solution business of GE Group, and the two discussed the development of PosFrame, POSCO’s proprietary smart platform, its compatibility with Predix, GE’s smart platform, as well as the possibility for joint commercialization.

In particular, POSCO ICT is planning to sign an MOU with DPR Construction, the world leader in Smart Construction, to collaborate on smart projects and find opportunities to apply new ICT technologies to construction. Through this MOU, the two companies will cooperate on projects such as constructing and operating highly-efficient, low-cost data centers and smart factories controlled by PosFrame.

CEO Kwon also visited the automobiles, home appliances, smart city and smart home exhibition booths. He examined the latest tech trends of IT utilization in steel-consuming industries to develop compatible materials and steel solutions.

He also made sure to explore electric vehicle (EV) batteries and new IT technologies surrounding EVs, as lithium materials are the new growth engine of the company. CEO Kwon also evaluated the possibility of securing new markets for the group’s construction business at home and abroad.

POSCO Group plans to continue searching for new, innovative solutions to apply to its smartization efforts and actively develop domestic and overseas data centers and smart factory markets.

Cover photo courtesy of BGR.

This means that data from city dwellers’ devices and their interaction with the physical city will determine how the government allocates resources and even influence the private sector as well. Although major developing smart cities are inspired by technology, old-school construction resources like steel are still required.

Here’s a look at where the next wave of smart cities will emerge and what opportunities lie ahead.

Countries Ripe for Smart Development

The major developing cities to watch are located in India, China and Africa. These areas of the world are ripe for growth, and what they have in common is a vast amount of land. Before modern ICT and IoT were available, it was almost impossible to imagine a way to uniformly connect these large areas into a single city. However, thanks to technology, governments will be able to bring greater numbers of people together and better manage resources for all. And development is already well underway.

India

In India, the “world’s oldest city” is being developed into a smart city. The city is called Varanasi, and it’s a holy place for the Hindu religion. However, its outdated infrastructure has created a demand for rejuvenation, and Varanasi’s renovation plans involve a lot of steel. With plans to outpace Japan as the second largest producer of steel, Varanasi will be rapidly expanding its own production capacity and turning to the global steel industry for material and technological support. Planned improvements to Varanasi include creating more affordable housing, improving the public transportation system and upgrading the sanitation system. All three of these improvements are major undertakings, and all three have roots in steel. Creating new housing structures, rail systems and modern sanitation will boost steel consumption.

SEE ALSO: Revving Up for Growth: India’s Automotive Market is In Full Gear

A model of the planned smart city in Dholera, in southern Gujarat, India. (Source: Cities Digest)

Aside from Varanasi, there were nearly 100 cities considered for smart city development in India, and approximately 20 of those have been approved by the Indian government for funding. The smart cities on India’s shortlist come from a variety of regions. This redevelopment project is part of a larger goal by the Indian government to bring the large country together. By implementing smart city technology throughout the vast country, India will be able to create a better-organized society.

China

China is rapidly developing its smart cities. With plenty of funding and technology to spare, the Chinese government has earmarked 500 cities for smart city development. While the original goal was to complete the transformation for all 500 cities by the end of 2017, more than half of the listed cities are still undergoing development.

So far, Qingdao, Hangzhou and Xiamen cities are ranked at the top for smart city governance according to the National Development and Reform Commission and the China Center for Urban Development. These cities are already equipped with wifi internet service on buses, smart register and pay services and robots that interact with citizens on a daily basis. Hangzhou, in particular, has been a sort of test tube for Alibaba’s City Brain project where they gathered massive amounts of data for artificial intelligence (AI) to process and make decisions with. The technology has drastically improved the city’s efficiency by decreasing traffic and the time it takes to respond to emergencies. As a result, City Brain will be exported to and implemented in other Chinese cities. Although not everyone is sold on the idea because the technology may put citizens’ privacy at risk, it is still expected to speed up smart city implementation all over China.

Tianjin City is one of the cities in China developing into a smart city. (Source: Bosch)

These cities will require support from the steel industry to develop and engineer high-quality, high-traffic amenities with technology at the core. Similar to Varanasi, many Chinese city projects will initially focus on housing and transportation upgrades.

SEE ALSO: Ask an Expert: 3 Managers Explain POSCO China’s Success in Challenging Chinese Market

Africa

In Africa, over 300 cities will transition into smart cities, but many development projects are facing delays getting off the ground. Much of Africa is in need of establishing standard city amenities like city government offices, schools and an open market for privately-owned businesses. Nevertheless, the region presents a tremendous opportunity for growth, and Africa’s smart cities may become some of the most efficient locations around the world.

The Modderfontein Smart City is being developed in Johannesburg by Chinese firm Zendai. (Source: Future Cape Town)

Because there is a lack of complex infrastructure, these smart cities will be built almost from scratch, allowing the people of the city to benefit from a more customized smart-city technology. Instead of working around a historical route or building, African smart cities have the flexibility to transition into smart cities optimized for the exact needs of their developing governments, education systems and business communities.

The construction of African smart cities will start from scratch. (Source: SOFREP)

This is a city planner’s dream come true. And it’s ripe for steel consumption. The steel industry can provide high-quality materials and technologies, ensuring the best construction methods and materials from the onset. Without having to re-engineer structures, African smart cities are expected to be state of the art.

While opportunities are vast in this new arena of development, many of the top steel companies have already signed contracts with developing countries to assist with smart city production. But that doesn’t mean all of the work has been assigned. With thousands of cities slated to go smart within the next five years, the steel industry will have many opportunities and play a large role in the redevelopment of these communities. Steel companies that have an eye for technology and the highest quality products will be highly sought after in the years to come.

Cover photo courtesy of IoT India Magazine.

POSCO’s smart safety features

As a steelmaking company, POSCO has been working towards becoming a “Smart POSCO”, or incorporating the implementation of AI into their production practices. In 2016, POSCO established a Smart Solution Council to research AI, big data and IoT applications. To date, the company has achieved a cost reduction of USD 14 million with the new technology. Even as one of the first steel producers in the world to implement a smart factory for production, the road ahead is a long one. Members of the discussion panel at the 2017 Smart POSCO Forum offered their expert opinions on how companies should move forward with AI research and applications.

Problem Mining

“One of the biggest difficulties in applying AI to manufacturing companies is problem mining. The only way to solve a problem is to find it and define it.” Kim Byung-In, a professor at the POSTECH Department of Industrial and Management Engineering, started off discussions and added, “Along with problem mining, people can learn from the past with reinforcement learning. Reinforcement learning means learning through similar tasks from the past to apply to new assignments. Defining problems and solutions more precisely and systematically managing related keywords can be useful for future tasks.”

Professor Zhang Byoung Tak, an AI professor at Seoul National University and a distinguished professor for POSCO added, “Traditionally, people solve problems, but in the generation of AI, AI will be able to solve problems for us… People now have to focus on defining problems, implementing systems and getting the right kind of data.”

Cooperative Research and Investment

Along with defining the exact problems that AI can provide solutions for, the implementation of AI will also call for a new working culture for companies and industries.

Tech company VUNO CTO Jung Gyuhwan stated, “Each company has its own production or operation method, and different data formats and protocols, but product inspection and screen UI (User Interface) are common areas. If we can find such common areas that can be commercialized and continue to research ways to expand AI applications to different sectors, we can achieve meaningful results together.”

Researchers developing programming and coding technologies

Jung went on to highlight that most AI personnel are unfamiliar with manufacturing. In particular, steel production terms are so difficult that it takes a considerable amount of time to share and understand information. There are also numerous obstacles and obligations for startups entering an unfamiliar development environment full of regulations and restrictions on things like the use of codes.

“In other words, task efficiency is a trade off with information security. I believe that if there is such a process in POSCO where the risk of technology leakage is not high, it will speed up results through collaboration with start-ups. POSCO ICT in Pangyo is a good place for startup employees to work. If we can take advantage of the POSCO ICT databases, collaboration with start-up companies will be easier. As of now, there are not many AI companies in Korea that specialize in manufacturing. Most people don’t even know that there is a lot of data available in the manufacturing industry. That’s why fostering start-up companies specializing in manufacturing now, is a good idea.”

Google’s Fei-Fei Li announces Google’s acquisition of Kaggle. (Source: Venture Beat)

According to CB Insights, M&A (mergers and acquisitions) of AI startups have increased 700 percent since 2011, because they are more efficient and often more insightful when it comes to AI research. Besides investing in existing startups, members of the panel agreed that collaborative competitions such as Kaggle, a contest platform where data scientists from around the world participate in solving problems in industry and society, are a great place to find talent and foster them as start-up companies.

Tackling New Challenges

The flurry of activity around AI research shows just how new the sector really is. People are still finding ways to apply AI across different sectors and industries. In such a volatile environment, how do companies and researchers navigate their way forward?

According to Choi Heeyoul, a professor of computer science at Handong Global University, companies need to “start where the people, problem definition and data are ready. Whether it is in production, sales, distribution, etc., if there is the will to solve problems, then results will follow. Especially when collecting data, you need the help of data analysts. For example, classification data for different types of steel can only be analyzed if the history of the classification criteria is recorded. Speech recognition is not any better for AI application than other fields, yet the most active and productive research has been completed in this sector. This is attributable to the will to apply AI, the abundance of accurate data and close cooperation with data analysts.”

Obtaining accurate data is vital for AI research

Professor Zhang Byung-Tak had another approach to offer. “I hope people will boldly take on challenges. The dramatic increase in computing power can now enable attempts that were previously considered reckless…No matter how much data we gather, it will never be enough. We need to approach problems as experiments and just start. One way to go about it is to work in reverse instead of waiting for data to be accumulated. You can start the task to define the data that is needed and determine the coherence of the data to the task.”

Lee Jong-Seok, a Professor at Sungkyunkwan University added, “When we are defining problems, we need to separate them into ones that can be solved in the short term and ones that require long term solutions. Some problems can be solved with minor improvements, while other problems will persist. For the latter, it is important to have patience and invest in a solution over a long term.”

That’s exactly what manufacturing companies are doing. They are collecting data every stage of production all the way to sales and administration. Big data is now available to study and apply to boost companies’ efficiency, sustainability and performance. Those who come up with the optimal software and modeling systems for data analytics will win the competitive edge early on.

UNIST professor Choi Jaesik echoed the panel’s sentiment, in closing, saying, “It’s very uncommon for a manufacturing company to hold AI courses for all their employees. I think POSCO can take pride that…POSCO is a great place to apply AI and achieve results. There is already plenty of data on site and employees are continuously working to obtain more accurate data. I look forward to seeing what POSCO will bring to the advancement of AI.”

POSCO CEO Kwon Ohjoon plans on doing exactly that, by increasing investment in research and implementing AI technology where applicable. Read more on POSCO’s smartization efforts here.

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