Back to the future

Investing in new technology generally involves some risk. Not only must a new system fulfil today’s requirements, but it should also be able to cope with changing business needs over its expected lifetime. However, over-specifying the functionality of an IT system at the outset can waste valuable time, as well as being very costly. Careful consideration must, therefore, be given to how future-proof any new IT system should be.

Harry Nguyen, MD of Realtime Business Solutions (RBS) points out that IT systems comprise many factors, including hardware, operating system and network as well as software. "To future-proof IT systems, terminals must do their research," he says. "For example, [the operating system] Unix and the C++ language has been available for many years and will stay strong for the foreseeable future."

The subject of future-proofing is a good business process question, says John Lund, sales manager at Visy. "At a port/terminal there are many parties, often with conflicting interests," he says. "The key to a successful project is proper planning. "The technology providers need to meet with the operators to discuss business processes and how the IT systems will work together. Today there is some overlap between what a gate-operating/port access control system, a terminal operating system [TOS] and a vehicle booking system (VBS) can do. "All the technology providers need to meet – leaving their egos at the door – with the customer to deliver a clear solution."

Part of the research and planning process should involve defining the precise reasons for introducing an advanced IT system, in order to ensure the most appropriate system is chosen, says Eui-Sik Kwon, COO of Total Soft Bank (TSB).

"This will prevent terminals wasting time and money on IT systems," he says. "Even after the decision on the system, terminals have to have enough time and resources for a successful installation, and professional advice from internal and external experts. In case of need, they can receive help from a consulting service on applying advanced IT solutions suitable for their terminals."

The choice of system provider is also a crucial issue, argues Mike Schwank, president of Tideworks Technology. "The key is to choose an IT partner who is innovative and agile, develops new functionality over time and offers this new functionality as part of its support and maintenance model. You want the vendor to bring you along as technology develops without your having to make large capital outlays every time you want to upgrade."

However, care should be taken to avoid locking your organisation in to a proprietary platform, advises Richard Harrison, senior VP of Zebra Enterprise Solutions, supplier of the market-leading Navis systems.

"In general, as in choosing any system, the world is moving towards ’agnostic’ application platforms. I would be very worried about any proprietary platform," he says. "Similarly, the ability to interface with, and connect to, the wider ecosystem of enabling technologies in a reliable and maintainable – over time and version – manner would be important."

An approach highlighted by several industry experts is to choose a modular system.

"To avoid an unnecessarily costly system at the outset, I would advise a TOS consisting of modules," says Maxim Maximov, head of the analytics department at Russia-based supplier Solvo, "so you can implement only the modules relevant to your business requirements. And in the case of changing business requirements, you can easily buy additional modules."

Dave Quennell, logistics programme manager at Jade Software, agrees. "Investing in a modular-based solution is sensible, and this is offered in most modern terminal operating systems," he says. "However, the catch is that most require extensive changes and upgrades when new modules are deployed. JMT [Jade Master Terminal] ships inclusive of all modules, which can be turned on with an emailed licence key, making growth painless. "We also provide three upgrades a year, to ensure our TOS is always offering the best available technology to support customers’ operations."

So what technical innovations can port and terminal operators expect to see applied to TOS and other related IT systems in the future?

Quennell, says Jade expects increasing use of "Intelligent Agents", where the system monitors the various activities, predicts issues and makes operational suggestions to resolve them.

"I also expect simulation to be added as part of the TOS’s optimisation algorithms, along with the ability to access and use the system from hand-held devices like smart phones," he adds. "The TOS will no longer be terminal-centric and will change into a portal-style platform that will allow greater business synergies with the terminal’s users and stakeholders."

TSB envisages a greater integration of internet-based functions into the TOS and terminal operations. Kwon explains: "A recent development in IT presents new business models using web applications like cloud computing, which provides users with scaleable and virtualised resources as a service over the internet. "It can be applied to the TOS. Online business service creates a new business environment, providing users with applications online. This can give more flexible, more cost- and time-effective and more transparent software service.

"Even small customers who don’t have a sophisticated data centre can benefit from these advanced solutions. And there will be more advances through web-based business models, especially in today’s depressed economic situation."

Kwon saysTSB’s latest initiative is new web-based solutions, with a relevant product roadmap, to provide a "new perspective" for terminal businesses.

According to Harrison, South Africa’s Transnet Port Terminals provides an example of another aspect of TOS development the industry can expect to see more of. "Multiple terminals running off single instances will increase," he explains. He also expects increased use of "enabling technologies" such as OCR, PDS, RTLS and GPS. "These will place demands upon terminals to understand and interface an increasing variety of very complex individual point solutions. Alternatively, the TOS vendor needs to take on the role of deploying, supplying or partnering with a variety of technologies to enable a less painful integration exercise for their customers."

Schwank agrees that the integration of the TOS with other new technologies and systems is a crucial area for innovation.

"The reality is that terminal operators rely on their IT suppliers to provide much more than just the core TOS functions. They must be able to integrate the TOS with the terminal’s accounting system, truck scales, gate kiosks, OCR, mobile computing devices, DGPS, RTLS and a host of other third-party systems to deliver an end-to-end solution that meets the terminal operator’s needs," he says. "As new technologies become available in the broader marketplace, the TOS must integrate with them."

The Tideworks president also envisages more reliable and better automation of certain tasks, such as vessel, yard and rail planning.

"Most TOS suppliers provide some degree of automated planning, but how effectively this is accomplished, and to what extent, varies," he points out. "The goal is to automate routine tasks and enable the terminal operator to manage by exception as much as possible.

"We also expect to see an increase and improvement in optimisation tools, such that the work of moving containers on the terminal is accomplished in the most efficient manner possible to maximise the utilisation of costly resources. "Optimisation is a complex subject, and it requires fairly complex logic and algorithms to be effectively addressed.

"For example, the ability of the TOS to automatically assign the most appropriate piece of handling equipment to a task involves a myriad of variables – travel distance, current work queue, priority level and so on – and also requires a small leap of faith from the terminal operator that the system can perform this function better than it can be done manually. "We believe TOS systems will continue to improve in this area, allowing terminal operators to further enhance productivity and reduce operating costs."

There are, clearly, many innovations in existence, under development or on the horizon that promise to improve TOS and related systems and, therefore, enhance the efficiency and productivity of terminal operations. But, as Nguyen argues, it is dependent on the creativity of system suppliers to bring these innovations to the industry.