What China is doing to make ports ‘smart’ and not prone to work stoppages

November 10

China Merchants Group (CMG), the mainland’s leading public port services operator, is pushing a range of automation and digital technologies in its global network, in a major revamp that is expected to cut costs and raise efficiency at these sites.

The state-owned conglomerate’s unit, China Merchants Port Holdings, has already initiated these upgrades to its network, starting with operations at the Port of Shenzhen – ranked among the world’s busiest container terminals.

On the western coastline of the southern tech hub, CMG’s port unit has turned Mawan, a terminal that used to handle break bulk cargo of grains and sandstone, into a showcase that features remote-controlled quay cranes, autonomous-driving container trucks and a digitally managed flow of goods.

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Operating the quay cranes and rubber-tyred gantry cranes used to be the most complicated part for workers at the Mawan terminal, according to She Zhenwu, director of overseas business development at CMG’s port unit.

“Now they can operate it all remotely, while sitting in a cosy control room,” She told reporters at a briefing on Thursday in Shenzhen.

A bird’s-eye view of Mawan terminal, part of the vast Port of Shenzhen in southern Guangdong province. Photo: SCMP alt=A bird’s-eye view of Mawan terminal, part of the vast Port of Shenzhen in southern Guangdong province. Photo: SCMP>

CMG’s upgraded Mawan operation is the latest example of China’s ambition to quickly modernise its vast infrastructure and traditional industries using the latest technologies, including 5G, digital-automation systems and artificial intelligence (AI).

Telecommunications equipment giant Huawei Technologies, for example, has pushed automation in Tianjin, northern China’s biggest seaport, with its 5G infrastructure put in place. Huawei has also worked with state-owned Shaanxi Coal Industry to cut by half the number of miners who work 100 metres below ground through the deployment of AI and a 5G mobile network.

Chinese ports’ digital transformation is in stark contrast to the situation in the US, where concerns about job losses from automation led to a crippling three-day strike last month by dockworkers – the biggest work stoppage of its kind in nearly half a century – that shut down shipping on the East Coast and Gulf of Mexico.

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A tentative deal to end the strike was reached on October 4. It threatened shortages of everything from bananas to auto parts, according to a Reuters report.

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An aerial view of the Port of Tianjin, where the quay cranes, gantry cranes, stackers and forklifts are all controlled by a remote command centre. Photo: Xinhua alt=An aerial view of the Port of Tianjin, where the quay cranes, gantry cranes, stackers and forklifts are all controlled by a remote command centre. Photo: Xinhua>

In the Port of Shenzhen, the core transformation at Mawan is the self-developed digital management system, which covers the operations for containers, break bulk cargo, customs procedure and more, according to She of CMG’s port unit.

“The system has helped improve the operational efficiency at Mawan port by 30 per cent, while reducing the number of on-site workers by 80 per cent and security risks by 50 per cent,” She said. Mawan’s smart port system was first put to use in 2022, after renovations started in 2017.

CMG’s port unit spent 300 million yuan (US$42 million) on the system’s development in 2024, She said. Investments are expected to continue growing each year.

Other smart technologies involved in the automation efforts at the Mawan terminal include Internet-of-Things devices and the BeiDou satellite navigation system, China’s answer to GPS.

China’s Ministry of Transport last year laid out plans to develop a number of world-class smart ports and smart waterways by 2027. At present, the country has 18 automated container terminals, with 27 under construction or renovation, according to official data.

The digital management system of CMG’s port unit has also been deployed at its operations in the cities of Shantou, Shunde and Zhanjiang in southern Guangdong province, according to She. It has also been installed in the firm’s overseas ports in Sri Lanka and Brazil.

The company has also offered the system to external clients, including port operators in Greece and Italy, She said, adding that a new project is underway in Turkey.

This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP’s Facebook and Twitter pages. Copyright © 2024 South China Morning Post Publishers Ltd. All rights reserved.

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