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Connecting to industry insights New Zealand Ports and Freight Yearbook 2021
New Zealand Ports and Freight Yearbook 2021 | Contents
Contents
Introduction 3
Glossary 4
Deloitte Access Economics: Global Perspectives 6
Deloitte Access Economics: Domestic Environment 15
In Focus: Climate-Related Financial Disclosures 23
In Focus: Health and Safety Assurance and Contractors 26
In Focus: Decarbonising Sea and Road Freight 28
In Focus: Digital Twins and Asset Management 32
New Zealand Freight Task 35
Port Performance 44
Port Comparative Performance 54
Port Summaries 58
Our Infrastructure & Capital Projects Offering 72
2
New Zealand Ports and Freight Yearbook 2021 | Introduction
Introduction
The Deloitte New Zealand Ports and Freight We are pleased to release this Yearbook as part of
Yearbook presents a concise snapshot of Deloitte’s Infrastructure & Capital Projects (ICP)
macroeconomic and domestic drivers of New integrated market offering.
Zealand port and freight activity. This Yearbook
Our domestic and global network of ICP
includes insight into the global and domestic
professionals allows us to bring together deep skills,
environment, a series of ‘in focus’ pieces, and
providing integrated solutions to all segments of the
updates from our domestic ports and freight
infrastructure sector and across the asset lifecycle.
analysis. We welcome your feedback and look
forward to future discussion and engagement. Our ICP services help clients to:
The Yearbook has been prepared with contribution • Select investments and provide project delivery
from Deloitte’s specialist economic advisory team, confidence;
Deloitte Access Economics, who have provided
• Effectively plan, manage and control a project’s
global and domestic economic insights. The ‘in
cost and delivery schedule;
focus’ pieces have been provided by our Consulting
and Risk Advisory service lines. • Better manage and optimise existing assets; and
Our Consulting service line provides a perspective • Introduce digital transformation opportunities
on the applications of ‘digital twins’ in asset across the asset lifecycle.
creation and management. Risk Advisory provides
two case studies this year; the first on the task force
on climate-related financial disclosures, and the
second on health and safety and contractor
management for businesses.
The Yearbook also presents recent data on the New
Zealand freight task alongside operational and
financial performance data for New Zealand’s major
ports. This data is further presented via an
interactive dashboard.
3
New Zealand Ports and Freight Yearbook 2021 | Glossary
Glossary
Brexit United Kingdom’s exit from the European Union ONE Ocean Network Express
CHN China OPEC Organization of the Petroleum Exporting Countries
EBIT Earnings Before Interest and Tax PCBU Person Conducting a Business or Undertaking
FIGS Freight Information Gathering System PMI Producer Manufacturing Index
GDP Gross Domestic Product PPP Public Private Partnership
GFC Global Financial Crisis RBNZ Reserve Bank of New Zealand
GT Gross Tonnes RORO Roll-on Roll-off
H&S Health and safety TEU Twenty-foot Equivalent Unit
HFO Heavy Fuel Oil TCFD Task Force on Climate-related Financial Disclosures
HSFO High sulphur fuel oil TWI Trade Weighted Index
ICP Infrastructure & Capital Projects ULSFO Ultra Low Sulphur Fuel Oil
IMF International Monetary Fund USA United States of America
IMO International Maritime Organisation WEO World Economic Outlook
IoT Internet of Things YoY Year on year
LSFO Low Sulphur fuel oil
NFDS National Freight Demand Study
NPAT Net Profit after Tax
4
New Zealand Ports and Freight Yearbook 2021 | Glossary
Glossary
TRADE ROUTES PORTS
AS-ME Asia to Middle East Trade Route AKL Ports of Auckland
AS-Med Asian to Mediterranean Trade Route BLU Southport (Bluff)
AS-NA Asia to North America Trade Route EST Eastland Port
AS-NE Asia to Northern Europe Trade Route LYT Lyttelton Port of Christchurch
AS-SA Asia to South America Trade Route MLB Port Marlborough
AUS-FE Australia to Far East Trade Route NPE Napier Port
NA-SA North America to South America Trade Route NPL Port Taranaki
NE-NA Northern Europe to North America Trade Route NSN Port Nelson
NE-SA Northern Europe to South America Trade Route NTH Northport
POE Port Otago
TIU PrimePort Timaru
TRG Port of Tauranga
WLG CentrePort (Wellington)
5
Deloitte Access Economics
Global Perspectives
6
New Zealand Ports and Freight Yearbook 2021 | Global Perspectives
Global perspectives
Global economy
Growth globally in 2020 ground to a standstill China was the initial epicentre of the COVID-19 A record level of both fiscal and monetary policy Sizeable levels of policy stimulus are expected to
due to the impact of COVID-19. Many countries outbreak but a tight lockdown and subsequent stimulus has cushioned many economies from a remain until economic recoveries are well
experienced recessions as economic activity shut restrictions have seen the Chinese economy more severe fallout from the pandemic. entrenched, with many policymakers wary of
down and the global economy is expected to bounce-back relatively quickly. The Chinese Government support packages were rolled out doing anything to cut down the green shoots of a
have contracted by 3.5% YoY over 2020. economy grew 2.3% over 2020, one of the few over the past 12 months, boosting economic recovery.
However, this GDP result was better than initially major economies to avoid a nasty recession. confidence. In New Zealand, a total of over
feared due to the strong rebound seen in many This expansive policy stance is expected to see
Growth is expected to pick up further in 2021, to $15bn has been spent on wage subsidies and
countries over the latter half of last year. inflation rise in many countries as economic
a pace of almost 8% YoY, putting China back on a small business loans.
activity picks up again. However, the IMF is
growth path close to that forecast pre-COVID.
Massive levels of fiscal and monetary policy The commencement of vaccination programmes forecasting that the global economy will be 6%
support have cushioned the impact from the virus Western countries are expected to fare worse in many developed economies is also providing a smaller in 2025 than it was predicting prior to the
and helped prop up growth. But the strength of over 2021, with ongoing lockdowns in some form boost to confidence, although it will be some virus outbreak.
the economic recovery remains reliant on effective continuing until vaccination programmes are time until populations are fully vaccinated.
vaccination programmes and minimising further The scar the pandemic leaves on global output
rolled out to the majority of populations.
outbreaks. The IMF is currently forecasting the Central banks added to already highly will take quite a long time to heal, despite
global economy to expand 5.5% YoY over 2021 and expansionary monetary policy settings. growth returning toward ‘normal’ levels.
then 4.2% in 2022. Wholesale and retail interest rates fell to new
record lows in many countries in response.
Regional GDP losses relative to pre-COVID outbreak Global growth - actual and projections
(current projected 2022 level relative to pre-COVID (January 2020 WEO) 6.0
forecast, percent difference)
5.0
0.0 4.0
-1.0
3.0
-2.0
2.0
-3.0
1.0
-4.0
-5.0 0.0
-6.0 -1.0
-7.0 -2.0
-8.0 -3.0
-9.0 -4.0
Em. Asia LAC SSA MECA EMDE World Em. Eur. AE China United -5.0
ex. CHN States 2019 2020 2021 2022
AE=advanced economies; Em. Asia ex. CHN = emerging and developing Asia excluding Source: World Economic Outlook October 2019
China; Em.Eur. = emerging and developing Europe; EMDE = emerging market and
developing economies; LAC = Latin America and the Caribbean’ MECA = Middle East and
Central Asia; SSA = sub-Saharan Africa
7
New Zealand Ports and Freight Yearbook 2021 | Global Perspectives
Global perspectives
Global trade
In the wake of COVID-19, the IMF estimates that In the lead-up to the pandemic, increasingly Over the year to December, New Zealand The outlook for other New Zealand food exports
global trade volumes declined by almost 10% YoY. protectionist sentiment had seen a rising focus imports dropped significantly on the back of remains more subdued, with ongoing lockdowns
on buying local goods. Supporting local lower vehicle and fuel imports. However, car in other countries limiting demand for New
However, as the global economy recovers, trade
businesses also remained important through the imports have shown signs of picking up at the Zealand meat.
volumes are expected to rebound 8% over 2021,
COVID-19 recovery efforts. The recent change in end of 2020 and are expected to recover back
and continue to expand by 6% over 2022, based on For New Zealand exporters, a strengthening New
government in the USA has yet to provide a toward more historical average levels. In
IMF WEO forecasts. This is likely to be dominated Zealand dollar may see a dampening in demand
marked change in the increasingly protectionist November, New Zealand’s annual goods trade
by the merchandise trade. The services trade is from offshore and a reduction in NZD incomes
policies, with the Biden Administration tightening surplus hit the highest level in almost 30 years.
expected to remain more muted, with border over the year ahead. With the New Zealand
rules to encourage the federal government to
closures expected to persist for some time. Dairy exports from New Zealand to China fell economy looking in a strong position vis-à-vis
buy domestic, rather than imported, goods and
back at the end of 2020. However, recent dairy many other countries where COVID-19 outbreaks
The decline in merchandise trade over 2020 services.
auctions suggest that demand for New Zealand continue, the New Zealand TWI is expected to
ended up being less severe than initially
In the UK, Brexit has seen extra requirements at dairy products in China is rebounding and dairy remain high over the year ahead.
estimated. However, supply chains remain
ports introduced, causing delays and increasing prices have gained substantially over the last
impacted by the pandemic fallout. Shipping costs
costs. These increased costs are likely to be three months.
have skyrocketed and pressure is not expected to
passed on to consumers in the UK.
ease in the near term.
World Trade Volume - Actual and Projections Global activity indicators and trade volumes
10.0 120.0
15% Imports: Advanced Economies
Imports: Emerging Market and Developing Economies 5.0 100.0
10% Exports: Advanced Economies
Exports: Emerging Market and Developing Economies 0.0 80.0
5% -5.0 60.0
-10.0 40.0
Industrial production
0%
-15.0 20.0
Manufacturing PMI: New orders
-5% -20.0 0.0
2019m11
2019m10
2019m12
2020m10
2020m11
2020m12
2019m1
2019m2
2019m3
2019m4
2019m5
2019m6
2019m7
2019m8
2019m9
2020m1
2020m2
2020m3
2020m4
2020m5
2020m6
2020m7
2020m8
2020m9
-10%
2018 2019 2020 2021
Source: IMF World Economic Outlook October 2020
8
New Zealand Ports and Freight Yearbook 2021 | Global Perspectives
Global perspectives
Container shipping Container rates Costly containers
Last year was marked by an acute shortage of While demand for shipping is estimated to have 10K
Cost to ship a 40-foot container from Shanghai to Los Angeles
containers, in the wake of COVID-19. Trade fallen by about 11% in the wake of the 9K
Cost from Shanghai to Rotterdam
reduced significantly in the first half of 2020 and pandemic, a rapid supply-side contraction of
containers were stranded in ports all over the about 13% kept margins firm. Since June, 8K
world. This meant that there were significant container rates have tripled on some major 7K
shortages of available containers when trade routes.
6K
picked back up again later in the year. As a
Heading into 2020, the focus was largely on
result, container prices escalated to as much as 5K
increased operational costs due to compliance
six times pre-pandemic, hitting record highs. 4K
with new clean fuel regulations and concerns
There are early signs that this shortage is
about a squeeze in margins. However, this was 3K
starting to ease, and container prices are
more than offset by the rise in shipping rates in
expected to soften somewhat over 2021. 2K
recent months. This means many companies
The recovery over the second half of 2020 was come out of 2020 in a better financial position 1K
much stronger than anticipated. Despite the than in 2019.
0K
volatile year, container volumes increased 1.7% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
There was a noted increase in digital quoting
YoY in 2020. In addition, lower volumes of flights
and booking for shipping over 2020, with an Source: Drewry World Container Index
have provided further support as some items,
increased focus on dynamic pricing. This is
that used to be carried by air, shifted to sea
expected to be one of the major trends for 2021.
freight.
More containers are currently being built to help
ease the supply shortages, but they will take
time to come on stream.
Trade reduced significantly in the first half of 2020 and containers were stranded in
ports all over the world. This meant that there were significant shortages of available
containers when trade picked back up again later in the year. As a result, container
prices escalated to as much as six times pre-pandemic, hitting record highs.
9
New Zealand Ports and Freight Yearbook 2021 | Global Perspectives
Global perspectives
Container freight trends
Concerns over a collapse in global freight in the
wake of the pandemic were blown out of the
water in the second half of 2020. Unsurprisingly,
the first half of the year saw a large decline in
trade volumes and long delays due to increased
health and safety requirements. As businesses
returned to some level of normalcy, and
consumer confidence increased, shipping
demand rose dramatically.
In addition, consumers responded to the
pandemic with a strong shift to shopping online.
This has seen online retail surge higher, taking
the share prices of companies such as Amazon to
new records. It is unlikely that this trend will fully
reverse. The virus has essentially sped up the
adoption of many existing online technologies.
One of the key areas that is expected to see Containerised trade on major East-West trade routes, 2014-2020 (Million 20-foot equivalent units and annual percentage change)
further growth is food cargo, particularly
Trans-Pacific Asia-Europe Transatlantic
refrigerated goods. With a growing population
Eastbound Westbound Eastbound Westbound Eastbound Westbound
and increasing food production, this is expected
to remain a key growth area in years ahead. Northern East Asia- North America- Northern
East Asia-North North America- Europe and Northern Total Asia- Northern Europe and
Trans-Pacific Transatlantic
Traditionally, the Asia-North America trade route America East Asia Mediterranean Europe and Europe Europe and Mediterranean
Year to East Asia Mediterranean Mediterranean -North America
sees the majority of Twenty-foot Equivalent Units
(TEU) shipped East bound, from Asia to North 2014 16.2 7 23.2 6.3 15.5 21.8 2.8 3.9 6.7
America. The recent increase in trade barriers 2015 17.4 6.9 24.3 6.4 15 21.3 2.7 4.1 6.8
2016 18.2 7.3 25.5 6.8 15.3 22.1 2.7 4.3 7
between the USA and China has started to shift
2017 19.4 7.3 26.7 7.1 16.4 23.4 3 4.6 7.5
this dominance however, with some
2018 20.8 7.4 28.2 7 17.3 24.3 3.1 4.9 8
manufacturing moving toward South-East Asia.
2019 20 6.8 26.8 7.2 17.5 24.7 2.9 4.9 7.9
2020 18.1 7 25.1 6.9 16.1 23 2.8 4.7 7.4
Source: UNCTAD
10New Zealand Ports and Freight Yearbook 2021 | Global Perspectives
Global perspectives
Alliances
The industry remains highly concentrated
amongst three alliances. The global containership
Top 20 container lines
supply is dominated (~80%) by: 5.0
• 2M Alliance (Maersk and MSC), 4.5
4.0
• the Ocean Alliance (CMA CGM, COSCO and 3.5
Million TEU
Evergreen); and 3.0
• THE Alliance (ONE, Hapag-Lloyd and Yang 2.5
Ming). 2.0
1.5
These alliances carry influence among 1.0
competitors globally, and also own many of the 0.5
ultra-large container vessels. These big ships have -
A.P. Moller-Maersk Group
Wan Hai Lines Ltd
Antong Holdings
IRISL Group
Mediterranean Shipping Company
X-Press Feeders
China COSCO
Pacific International Lines
Shandong International
TS Lines
CMA CGM Group
Hapag-Lloyd
Ocean Network Express
Yang Ming Marine Transport
ZIM Integrated Shipping Services
SM Line
Korea Marine Transport Company
Evergreen Marine Corporation
Hyundai Merchant Marine
Zhonggu Logistics Corporation
the ability to create scale economies.
Transportation
The alliances also enabled companies to carefully
Corporation
manage capacity through the pandemic and
essentially allowed the industry to hit ‘reset’ on
S.A.
shrinking profit margins. Having such strong
conglomerates has allowed shipping companies to
leverage their market position in negotiations and
quickly modify shipping frequency to manage the
fallout from lower shipping demand in the height
of the pandemic. Source: Alphaliner
Despite the strong turnaround in the sector’s fate
over the past year, there were still some casualties
who couldn’t survive the downturn. Pacific
International Limited hit financial strife, with talk of
several takeover offers from various bidders.
11New Zealand Ports and Freight Yearbook 2021 | Global Perspectives
Global perspectives
Ship size
For the past 50 years, container ship sizes have
been on an ever-upward trajectory. That is until
the pandemic hit and fleet owners started to
appreciate the relative nimbleness of smaller
ships. In addition, smaller goods that were
traditionally transported by plane are increasingly
being shipped due to fewer flight options.
In 2020, the first of twelve 24,000 TEU
containerships ordered by HMM was launched.
However, the fallout from COVID-19 may signal an
end to the continuous pursuit of scale.
There has been a shift to more intra-
regional shipping movements, and this has been
accompanied by demand for smaller vessels as
more manufacturing moves to South-East Asia to
avoid US tariffs on Chinese-made goods. These
smaller regional ports are not as well set-up for
the larger vessels that have been favoured up
until now. We may have seen peak ship size for
the time being.
Concerns over supply chain resilience are also
prompting manufacturing firms to consider more
regionalised supply chains. Higher degrees of
automation are helping enable this as it reduces
the labour cost advantages, which have typically
driven off-shoring decisions in the past.
12New Zealand Ports and Freight Yearbook 2021 | Global Perspectives
Global perspectives
Bunker fuel ICE Europe Brent Crude Electronic Energy Future
One of the most significant determinants of 140
container line profitability is fuel prices, which
tanked in the wake of the COVID-19 pandemic. Oil 120
then rebounded as hopes of a robust economic
100
recovery took hold, with oil rallying to $60/barrel
in February 2021 – the highest level seen since 80
$(NZD)
January 2020. This was supported by supply cuts
from the Opec+ producers and a reduction in 60
investment from oil suppliers. The increasing
focus on green energy alternatives is likely to keep
40
a lid on just how far oil prices might rise in coming
20
years, however.
0
Of particular interest in recent months has been
the widening spread between high and low
sulphur fuels. High sulphur fuel prices dropped
dramatically after the introduction of IMO 2020,
but as the spread between HSFO and LSFO has
widened, HSFO prices have stabilised. The spread
is also encouraging more companies to consider
installing scrubbers as an alternative to using the
Of particular interest in recent months has been the widening spread
more expensive LSFO. between high and low sulphur fuels. High sulphur fuel prices
Low sulphur surcharges were scraped toward the
end of 2020 in response to pressure from the
dropped dramatically after the introduction of IMO 2020, but as the
industry as oil prices remained low. However, the spread between HSFO and LSFO has widened, HSFO prices have
recent rise in oil prices is expected to see very low
sulphur fuel oil (VLSFO) charges reinstated. As stabilised. The spread is also encouraging more companies to
prices rise, there is an expectation that LSFO
surcharges will be implemented. Heavy fuel oil consider installing scrubbers as an alternative to using the more
(HFO) is only allowed to be used by ships with
scrubbers installed, but the margin between the
expensive LSFO.
two oils has widened in recent months in favour
of HFO.
13New Zealand Ports and Freight Yearbook 2021 | Global Perspectives
Global perspectives
International ports Top 20 ports
The Port of Shanghai experienced a significant hit
in the early stages of the pandemic, with trade 50
from China declining rapidly. However, Shanghai 45
and other Chinese ports were generally quick to
40
re-open, with strict quarantine protocols in place.
Activity in at the Port of Shanghai has now 35
recovered back to pre-COVID levels.
Million TEU
30
Singapore’s Tuas mega-port is due to have some 25
berths start operating from as early as 2021 and is
20
set to be fully completed in 2040. It is expected to
be the world’s largest single port, with a capacity 15
of 65mn TEU per year. 10
Ports in Europe generally experienced a very 5
strong rebound over 2020. Antwerp had a record
-
Shanghai
Qingdao
Hamburg
Jebel Ali
Shenzhen
Hong Kong
Laem Chabang
SIngapore
Guangzhou
Port Klang
Tianjin
Antwerp
Xiamen
Kaohsiung
Tanjung Pelepas
Dalian
Busan
Rotterdam
Los Angeles
Ningbo-Zhoushan
throughput in 2020, despite COVID-19, with most
volumes going through in the second half of last
year.
In the USA, Californian ports are struggling with a
lack of skilled workers in the face of very high
demand. The rollout of vaccinations to critical 2014 2015 2016 2017 2018 2019
port workers should help alleviate some
Source: Lloyd's List
productivity pressure after Los Angeles and Long
Beach have both been hit by multiple virus
outbreaks.
The aftermath of COVID-19 has seen large
amounts of inbound containers sitting on some
ports, while other regions are struggling to get
containers to load goods.
14Deloitte Access Economics
Domestic Environment
15New Zealand Ports and Freight Yearbook 2021 | Domestic Environment
Domestic environment
2020 – the year that everything changed
COVID-19 had a profound impact on our economy and raised complexities for the ports and freight industry.
The key influences below explain the uniqueness of the COVID-19 impacts and subsequent economic recession.
Dual global supply and Interconnectedness of the Government’s willingness Closure of borders between and
demand shock global economy to spend within countries
Historically, global downturns have been caused Over the past decade, the global economy has One of the key policy responses that supported COVID-19 has curtailed overseas travel into New
by either a demand or supply shock. It is very become more interconnected than ever. New Zealand’s economy during the past few Zealand as countries try to protect their citizens
unusual for both to occur at the same time. global downturns has been the swift action of the against the outbreak. An important element of
Over the past two decades, New Zealand has Reserve Bank. New Zealand’s growth over the past decade has
The COVID-19 situation is different in that it has developed much closer trade links with China. In been the steady inflow of migrants. This driver of
severely impacted demand through lost jobs and 2003, trade with China was about 5% of New The Reserve Bank cut the Official Cash Rate to growth is now under pressure. The figure below
income, but has simultaneously reduced supply Zealand’s total trade, compared to 20% in 2019. record lows. This left New Zealand with little in highlights the significant drop-off in net
due to forced business closures and disrupted the way of monetary stimulus heading into the migration for New Zealand compared to previous
supply chains. This has increased the cost of The interconnectedness of the global economy crisis. As a result, fiscal policy did the heavy lifting quarters. An extended border closure could
doing business during a period when demand is has resulted in longer and more disaggregated in terms of response to the crisis. The $50 billion negativity impact economic activity because of a
softening. supply chains. The transformation of supply COVID-19 Recovery Budget highlighted fall in the growth of the country’s labour force.
chains has taken place in an environment of Government’s willingness to spend.
falling trade barriers and an implicit willingness
to accept increasing interdependence and the 35,000 Population increase by type
associated risks.
30,000
The outbreak of COVID-19 has highlighted the 25,000
risks around these stretched global supply chains.
Manufacturing activity has slowed and low 20,000
demand in key regions has flow-on impacts to 15,000
both New Zealand’s imports and exports.
10,000
5,000
0
Q2-2017 Q3-2017 Q4-2017 Q1-2018 Q2-2018 Q3-2018 Q4-2018 Q1-2019 Q2-2019 Q3-2019 Q4-2019 Q1-2020 Q2-2020
Natural increase Net migration
Source: Statistics New Zealand
16New Zealand Ports and Freight Yearbook 2021 | Domestic Environment
Domestic environment
Yet, New Zealand enters 2021 close to the historical average of 120. This 20% GDP forecasts – pre and post COVID-19 forecasts
very well-placed shows that households are optimistic about the
future. Consumer spending experienced a 15%
No country has had a perfect response to significant bounce back, largely helped by some
COVID-19, but New Zealand can hold its head extraordinary fiscal spending measures. 10%
high. The cost was an initial ‘hard’ lockdown
(with less restrictive subsequent lockdowns) and The Producer Manufacturing Index (PMI) is an 5%
an associated large hit to the economy. New early indicator of economic activity. A PMI
Zealand spent the first half of 2020 in a reading above 50 points indicates 0%
recession. The quarter-to-quarter drop Q2 was - manufacturing activity is expanding; below 50
12.2%, which dwarfed the previous low point of indicates it is contracting. The PMI dropped to -5%
-2.4% in Q4 of 1991. 26.1 in April 2020. This was lower than the low
of 36.1 experienced during the Global Financial -10%
While there was a greater upfront cost to the Crisis. New Zealand’s PMI has rebounded and is
economy, the success of lockdowns in now back at levels just above 50. -15%
suppressing the virus has helped facilitate a
rapid economic recovery. The speed of rebound Better-than-feared job outcomes have eased
has also been unprecedented, with growth the pain for the economy, although the end of RBNZ pre-covid forecast Consensus forecast
surging by 13.8% in Q3 from Q2. New Zealand the Wage Subsidy could change this outcome in
Source: RBNZ, Deloitte Access Economics based on information from commercial banks
enters 2021 very well-placed, with a consensus 2021. Yet, the domestic economy is now
view is that New Zealand is expected to see operating at close to normal levels with the
growth of 15.3% in Q2 2021. ongoing pain in the economy mostly linked to
those industries most affected by closed 160 ANZ business and consumer confidence 80
Business confidence is now back at August 2017 international borders. Uncertainty remains high, 140 60
levels, higher than pre-COVID levels. Business and a range of outcomes remain possible, but
confidence is now positive, which shows the New Zealand’s economy has proved to be more 120 40
general business environment is steadily resilient than initially anticipated.
Index
100
Index
improving. 20
Consumer confidence followed a similar 80 0
trajectory to business confidence and has
increased from 100 points in July 2020 to 114 60 -20
points in January 2020. This indicator is now
40 -40
20 -60
0 -80
2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
Consumer Confidence (LHS) Business Confidence (RHS)
Source: ANZ, Deloitte Access Economics
17New Zealand Ports and Freight Yearbook 2021 | Domestic Environment
Domestic environment
COVID-19 impacts on the ports sector Demand disruption: COVID-19 to the fall in imports include fuel, crude oil and
impact on trade flows aircrafts and parts. Top trading partners with
Ports are a critical part of New Zealand’s transport infrastructure, not only for import and less imports relative to pre-COVID levels include
export goods, but also for the distribution of freight within the country. In general, COVID- COVID-19 disrupted the expected growth pattern of EU, USA and Japan.
19 disrupted the ports sector in the following ways: New Zealand’s trade flows in 2020. The Trade
• Export values in 2020, relative to the previous
Balance in April 2020 showed net traded goods of
period in 2019, were more resilient. The
$1.3 billion. Historically, New Zealand has far higher
Internal operational disruption percentage change in April and May were
values of imported goods over exported goods, negative, followed by a stronger rebound up to
Disruption of port operations due to: making that the highest Trade Balance recorded August. Key commodities contributing to the
since 1960. The current Trade Balance still sits at a increase in exports included respiratory
• Limited operational resources
surplus of $17m. Imports and exports faced equipment, forestry products and fruit.
• Increase in procedures and regulations uncertainty in 2020 and the COVID-19 impact can be However, more recent data shows exports are
seen in a comparison of 2019 and 2020. experiencing negative growth. The relative
softness of exports could be a result of the
External operational disruption • Import values in 2020, relative to the previous resurgence of COVID-19 in key international
period in 2019, were negative for most of the markets influencing demand for exports.
Disruption of port operations due to: year, with a rebound in December. This impact
• Increased supply chain volatility was driven by weak global economic conditions
and lockdowns, slowing consumption and supply
• Limited external operational resource chain disruptions. Key commodities contributing
Demand disruption COVID-19 impacts on trade flows
(2020 relative to 2019)
Decline of port activity due to:
% change from previous period
10%
• Disruption of cargo flow
5%
• Disruption of industrial activity 0%
-5%
Source: Deloitte Global
-10%
The biggest disruption for the ports sector in New Zealand was demand disruption.
-15%
Industrial disputes in Australia also disrupted the shipping activity for New Zealand ports. -20%
COVID-19 also disrupted international trade flows with a flow-on effect on cargo flows -25%
across ports in New Zealand. -30%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Exports Imports
Source: Statistics New Zealand, Deloitte Access Economics
18New Zealand Ports and Freight Yearbook 2021 | Domestic Environment
Domestic environment
Demand disruption: COVID-19 impact on cargo flows across selected ports – 2020 relative to 2019
The charts below present how import and export values have been impacted between Q1 and Q3 in 2020, relative to 2019, across selected ports in
New Zealand. For most ports, the COVID-19 impact was felt most in Q2, but the impact remained strong in Q3 2020 due to weak global economic
conditions and supply chain disruptions.
Auckland Tauranga Christchurch (Lyttelton)
8000 9000
12%
5% 8000
-7% 7000
6000 8% 5% -5%
6000
5000
4000
Value of imports/exports (NZD million)
4000
-6% -12% 3000
-12%
2000 2000 21% -2% -9%
-9% -22% -10% 1000
-15% -9% -17%
0 0
Q1 19 Q1 20 Q2 19 Q2 20 Q3 19 Q3 20 Q1 19 Q1 20 Q2 19 Q2 20 Q3 19 Q3 20 -1000 Q1 19Q1 20 Q2 19Q2 20 Q3 19Q3 20
Imports Exports Imports Exports Imports Exports
Whangarei Nelson
Napier 1600
1400 -40% 1400
1400
1200 1200
1200
1000 1000
-1% 1000
-12%
800 800 6%
800
-25%
600 22% 600
-5% 600
400 400 400
200 -61% 200 -54% 19%
-73% 200 -2%
12% 9% 9%
0 -79% -30% 3%
0 0
Q1 19 Q1 20 Q2 19 Q2 20 Q3 19 Q3 20 Q1 19 Q1 20 Q2 19 Q2 20 Q3 19 Q3 20 Q1 19 Q1 20 Q2 19 Q2 20 Q3 19 Q3 20
Imports Exports Imports Exports Imports Exports
Source: Statistics New Zealand, Deloitte Access Economics
19New Zealand Ports and Freight Yearbook 2021 | Domestic Environment
Domestic environment
Demand disruption: COVID-19 impact on total throughput – 2020 relative to 2019
This chart presents total throughput data for up to Q4 2020 for nine ports involved in handling international containers. The total throughput data
shows that the impact on TEU flows due to COVID-19, was relatively small, with the exception of the Ports of Auckland. Overall, port activity across
New Zealand in the rolling 12-months to the end of December 2020 declined by 6% to the previous year. During 2019, the nine ports handled
throughput of 3.24 million TEU, compared to 3.05 million in 2020. For the year ending December 2020, the biggest decline in container (TEU)
volumes was foodstuffs (-18%), followed by wood products and other (-15%).
Container
3.800 trade: rolling annual container load and discharge (TEUs) 3.80
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
0.05m 0.05m 3.24m
3.300 0.08m 0.09m 3.30
0.09m 0.09m
0.11m 0.12m 3.05m
0.19m 0.18m
2.800 0.27m 0.26m 2.80
0.45m 0.42m
2.300 2.30
0.79m
0.67m
1.800 1.80
1.300 1.21m 1.18m 1.30
0.800 0.80
0.300 0.30
-0.200 Port of Ports of Lyttelton Port of Napier Port Otago Port Nelson Centreport Primeport Southport Total (0.20)
Tauranga Auckland Timaru
2019 2020
Source: FIGS, Deloitte Access Economics
20New Zealand Ports and Freight Yearbook 2021 | Domestic Environment
Domestic environment
External operational disruption: Sea freight rates have increased significantly in Overseas ship visits at selected ports (2020 relative to 2019)
COVID-19 impact on ports 2020. Two contributing factors were the challenge
of limited container availability along with high
Another key impact of COVID-19 on the ports Otago
volume of stock still needing to be moved. There is
sector is linked to external operational disruption
a risk that higher shipping costs could flow through
through supply chain volatility. The pandemic led to Auckland
to consumer price inflation in 2021.
a decline in overseas ship visits and an
inconsistency in the number of arrival and There has also been disruption from late or delayed Tauranga
departure ships. As illustrated in the top chart, ships dropping sea cargo at the Ports of Auckland
Wellington
ports faced a decline in the number of arriving and rather than carrying on to other New Zealand ports,
departing overseas ships across Q1 to Q3 2020. so they do not miss docking windows back in Asia. Lyttelton
This led to a fall in the number of containers being
Napier
handled at New Zealand’s ports and a reduction in
the availability of empty containers. Container -30% -20% -10% 0% 10% 20% 30%
handling for the Ports of Auckland and Tauranga,
who accounted for 63% of all container movements Q1 Q2 Q3
in 2019, were down in Q1 to Q3. Most other ports Source: FIGS, Deloitte Access Economics
container handling was also down relative to 2019,
with only Wellington and Napier showing some Containers handled at selected ports (2020 relative to 2019)
improvement in Q3.
Otago
Auckland
Sea freight rates have increased significantly in 2020. Tauranga
Two contributing factors were the challenge of limited
Wellington
container availability along with high volume of stock
Lyttelton
still needing to be moved. There is a risk that higher
shipping costs could flow through to consumer price Napier
inflation in 2021. -30% -20% -10% 0% 10% 20% 30%
Q1 Q2 Q3
Source: FIGS, Deloitte Access Economics
21New Zealand Ports and Freight Yearbook 2021 | Domestic Environment
Domestic environment
What comes next? On the cost front, governments can now programme is allocated towards road
borrow at record low interest rates to fund infrastructure. This is still good news for the
We will still be dealing with COVID-19 in
new investment. On the benefits front, ports sector, supporting freight supply chains
2021, but there are many reasons to believe
higher infrastructure spending will help to and meeting growing demands of the freight
this year will be much better from an
soften the impact on jobs from winding back sector. However, more infrastructure
economic viewpoint. We have seen the
the Wage Subsidy. stimulus in the ports sector is required to
economy rebound strongly and mass
address capacity constraints.
distribution of COVID-19 vaccines will happen Well targeted infrastructure investment can
this year. New Zealand’s ability to control the be a powerful tool for driving economic Other key focus areas for the ports sector to
outbreak of the virus and provide confidence growth and raising employment in the short focus on as we rebound from COVID-19
to business and consumers to spend remains term. During the project lifecycle and include changing consumer preferences,
critical to the rebound in economic activity. particularly during the construction phases, supply chain digitalisation and operational
infrastructure projects can have a significant efficiencies to adapt to increasing costs.
The future remains uncertain, and a lot will
economic impact on job creation and use of
depend on the next few months and possible Finally, from a broader perspective,
raw materials.
prolonged negative effects for the port and developing and implementing new strategies
freight industry due to continued supply The job-creating capacity of infrastructure to boost investment and productivity that put
chain disruption, weak global economic investment is crucial in the current us on a more prosperous economic growth
conditions and potentially softer exports. environment. However, the impact of path should be a major focus to further build
infrastructure in the long term is arguably on our COVID-19 recovery.
The Government has already put in place
more important. Once built, infrastructure
initiatives to promote exports to support
can enable greater productivity and a more
recovery, for example the Trade Recovery
resilient economy in the face of unforeseen
Strategy and the Industry Transformation
events.
We have seen the economy rebound
Plans, with a key focus on exports.
Of the other options available to
The Shovel-Ready programme included a strongly and mass distribution of COVID-19
limited number of projects in the ports
governments to stimulate economies,
sector, totalling just over $100m in value. vaccines will happen this year. New Zealand’s
infrastructure ranks highly.
A significant part of the total Shovel-Ready
ability to control the outbreak of the virus
and provide confidence to business and
consumers to spend remains critical to the
rebound in economic activity.
22In Focus: Risk Advisory
Climate-Related Financial Disclosures
23New Zealand Ports and Freight Yearbook 2021 | In Focus
Understanding climate-related financial disclosures
Task Force on Climate-related What/Who is the TCFD? The TCFD Framework
Financial Disclosures (TCFD) TCFD is an organisation established in December The TCFD group published its first set of
TCFD climate-related reporting is becoming 2015 by the Financial Stability Board – an recommendations in 2017, establishing a set of
increasingly relevant to a growing number of international body that monitors the global voluntary disclosures covering what they refer to
industries, including ports and freight. We all financial system. Its goal was to develop a set of as the core elements of recommended Climate-
have a role in not only managing the impact of voluntary climate-related financial risk Related Financial Disclosures. TCFD structured its
our operations on climate change, but also the disclosures to be used by companies to inform recommendations around four themes that
impact of climate change on our businesses – in investors and other members of the public about represent core elements of how organisations
particular, the extent to which that impact will the risks they face related to climate change. operate (outlined below).
relate to investment return and security.
The group encourages organisations to evaluate The group encourages organisations to evaluate
This ‘in focus’ piece sets out a high-level and disclose, as part of their annual financial and disclose, as part of their annual financial
explanation of TCFD and, at this stage, what it filing preparation and reporting processes, the filing preparation and reporting processes, the
means for New Zealand’s ports and freight climate-related risks and opportunities that are climate-related risks and opportunities that are
industry. most pertinent to their business activities. To most pertinent to their business activities.
assist with this, they have identified what they
consider the main climate-related risks and
opportunities facing business.
Source: Implementing the Recommendations of the Task Force on Climate-related Financial Disclosures – June 2017
24New Zealand Ports and Freight Yearbook 2021 | In Focus
Understanding climate-related financial disclosures
TCFD and New Zealand Transport-related industries
The benefits
TCFD is gaining increasing prominence in New TCFD is likely to become an increasingly key
• TCFD improves the long term strategic resilience of businesses by allowing them to
Zealand. On 15 September 2020, the Minister for reporting requirement for New Zealand’s ports
comprehensively understand and manage climate-related scenarios and risks over
Climate Change, James Shaw, announced that and freight industry. extended periods of time.
New Zealand would be the first country in the
Port and freight operations, as key parts of New • Provides a good road map for evolving business to understand risks and opportunities in
world to mandate financial reporting on climate
Zealand’s transport infrastructure, will face the lead up to a low carbon future.
risks by implementing a ‘comply-or-explain’
increasingly significant climate-related • Increased awareness of climate-related risks and opportunities resulting in better risk
regime, based on the TCFD framework. The
disruptions, from sea level rise, storm surges, management and more informed strategic planning and decision making.
requirement will apply to publicly listed
increasingly severe and frequent weather events ,
companies and large insurers, banks and • Ensures that climate-related financial information disclosed is decision-useful for
leading to road outages, schedule disruptions,
investment managers. While the changes have investors, lenders, insurers, etc.
biosecurity incursions and other logistical delays,
not yet become law, the Government has • Easier or better access to capital by increasing investor’s and lender’s confidence that
among other issues.
signalled that entities could be required to make the company’s climate-related risks are appropriately assessed and managed.
disclosures from 2023. Transport also accounts for around a fifth of New
Zealand’s greenhouse gas emissions and is a key
New Zealand has committed to achieve zero net
focus of decarbonisation efforts. Investors and
emissions by 2050. More sectors of the New
government will increasingly look to the sector to
Zealand economy will likely be required or
understand what action individual firms are
encouraged to consider climate-related
taking. Adoption of TCFD disclosures also comes
disclosures – either directly through mandatory
with a wide range of benefits.
climate-related financial disclosures, or indirectly
through commercial relationships with investors
or parent/client organisations undertaking TCFD,
voluntarily or not.
25In Focus: Risk Advisory
Health and Safety Assurance and Contractors
26New Zealand Ports and Freight Yearbook 2021 | In Focus
Health and safety assurance and contractors
H&S and the supply chain Where there is no contractual relationship, as is Where to from here
common amongst parties operating at port
The concept of shared worksites is common Before you ask your head of H&S how they are
facilities, understanding how H&S is being
throughout the ports and freight industry. As we managing PCBU relationships, recognise that this
managed with all the parties in the shared
have progressed with understanding and type of management is not solely on one area or
workspace is still important. Board and leadership
addressing the Health and Safety at Work Act person. Each area of the business that engages,
require line of sight that H&S is being addressed,
2015, we are now seeing an increased focus on manages, and interacts with, third parties has
and that the there is effective consultation,
ensuring that health and safety (H&S) risks are responsibilities and accountabilities to address H&S.
cooperation and coordination with all the parties
appropriately addressed across multiple supply
involved. Consider investigating how assurance and Ask yourself the following questions:
chains and other third-party relationships.
monitoring activities are being undertaken
• As a PCBU, do I feel comfortable that H&S is
The concept of PCBU (Person Conducting a together to ensure everybody is operating safely.
Programme Review vs. H&S Third being appropriately addressed with our
Business or Undertaking) is very much a top line
Party Management Review We often undertake deep dives, which consist of contractors, sub-contractors and other
item on board and executive leadership
looking at an organisation’s own process design relationship types, in shared workspaces?
agendas, with an increased focus on ensuring We often get asked to review H&S management
and implementation – and getting direct feedback
they meet their duties as officers under the Act. programmes at a high level. While this still • Are we undertaking appropriate assurance and
from the third parties. It is about having a clear line
Most notably, recent enforcement activity by continues to be of value, we are now seeing monitoring activities and reporting?
of sight that:
WorkSafe demonstrates that understanding and increased focus on understanding how H&S is being
• Are we engaging with our third parties in a
addressing the risk of multiple PCBUs in shared addressed across an organisation’s third party • H&S risks are being addressed;
meaningful way to demonstrate that we are
work areas is a key focus area and one that will relationships. In particular, boards and
• There is monitoring and assurance activities consulting, cooperating and coordinating?
not go away or should be treated lightly. management are wanting assurance that there is
occurring; and
effective consultation, cooperation and To answer these questions, consider undertaking a
coordination (‘the 3 Cs’) occurring across their • All parties are involved in consultation, deep dive through the life cycle of your relationship
multiple PCBU relationships. cooperation and coordination of H&S activities. with the third parties. The aim is to understand how
you are working together to manage risk, learn off
What this means is understanding and receiving
each other, and address issues.
the assurance that H&S risks are being addressed
from the request for proposal/tender,
procurement, contract award, project execution,
monitoring and assurance, and contract renewal
stages of contractor management.
27In Focus:
Decarbonising Sea and Road Freight
28New Zealand Ports and Freight Yearbook 2021 | In Focus
Decarbonising sea and road freight
Decarbonisation is a global imperative
Decarbonisation is a priority for governments, companies and
society at large which, in turn, are making commitments and
increasing efforts to close the gap to net-zero emissions. To
realise the ambition, progress needs to be made particularly
in the harder-to-abate industries – industries that have long
asset lifespans, high energy dependency, and complexity of
electrification – which represent 30% of global CO2 emissions.
In collaboration with Shell, Deloitte has developed two reports
sharing insights from leaders around the world in relation to a
pathway towards decarbonisation of shipping and
road transport – two hard-to-abate industries.
In this ‘in focus’ piece we highlight key findings from these
two reports.
Climate change poses a significant threat to our planet and
way of life and we are already seeing the effects of a
rapidly warming planet, including mass loss of biodiversity,
volatile weather related disasters, stress on food
production and water scarcity. According to the
Intergovernmental Panel on Climate Change, we have until
2030 to reduce carbon emissions to limit temperature
increases below 2°C, in line with the Paris Agreement. To
meet the ambitions of the Paris Agreement, CO2 emissions
will need to fall to net zero by 2050.
29New Zealand Ports and Freight Yearbook 2021 | In Focus
The shipping paradox The first five solutions aim to unlock progress in the next two to “The decarbonisation of shipping cannot be solved by one
three years, and include: organisation on its own. This research clearly shows that it will
Shipping is the backbone of the global economy, accounting for require close collaboration between various players in the shipping
about 80% of the volume of global trade. Never more so than in ➢ Scale-up in customer demand: Create scale in demand for ecosystem and with other sectors. The insights in the research give us
the recent months have we understood the importance of low or zero emissions shipping though chaterers’ and a comprehensive perspective on the barriers, and the road map
shipping to maintain the supply of essential goods. However, as customers’ commitments that include long-term contracts to unlock decarbonisation by identifying who needs to do what, and
the industry’s development continues, it generates increasing and green procurement criteria. when to drive change.”
carbon emissions.
➢ Global regulatory alignment: Level the playing field globally Tarek Helmi, Partner, Deloitte Netherlands
The International Maritime Organization (IMO) has set an with reduced uncertainty regarding regulations and
ambition to reduce international shipping carbon emissions per timeframes.
transport work by at least 40% by 2030, and 70% by 2050, off a
2008 baseline. These ambitions send a signal to the shipping ➢ Cross-sector research and development: Intensify To learn more, download the All Hands on Deck report.
industry that change is coming, and all parties involved need partnerships to develop zero or low-emission fuels through
to prepare. joint research and development.
➢ Scale-up in controlled pilot projects: Increase R&D
effectiveness by running end-to-end green pilot projects
Unlocking solutions for shipping involving customers, charterers, operators, owners and
decarbonisation requires all hands on deck ports on specific routes and vessel types.
Drawing from conversations with 80 senior shipping executives ➢ Coordinated industry commitments: Increase the reach of
representing 22 countries and virtually all sector segments, existing initiatives – such as the Getting to Zero Coalition,
“All Hands on Deck” summarises key findings to unlock the Clean Cargo Working Group and others –
decarbonisation in shipping and aims to build on existing by consolidating objectives and strengthening the
industry initiatives, drive action and realise positive impact. coordination of various concurrent workstreams.
The research recognises the need for a novel decarbonisation Subsequent phases of work will be required
approach that is based on three principles: adopt an ecosystem to accelerate and scale progress, with a common foundational
perspective, think big, start small and scale fast, and focus on operational efficiency solution that cuts through all the phases to
behaviours and triggers. reduce emissions of both existing and future vessels.
Based on these three principles, the report highlights 12 Momentum is building, and there is a sense of optimism that it
solutions, or recommendations for action, that emerged from can be done. For example, technological advancement is
research, interviews and workshops. These solutions making decarbonisation not only a reality but an attractive and
streamline what some view as an insurmountable problem into viable business proposition – see The Motorship | World’s
several manageable sets of actions that address specific barriers first tiltable rotor sails installed.
and enable the industry to get net-zero emissions ships in the
water by 2030. Those who take the lead are in a better position to influence
the outcomes, but every operator and stakeholder in the
industry has a role to play. As one CEO said, we need “all hands
on deck.”
30New Zealand Ports and Freight Yearbook 2021 | In Focus
Decarbonising road freight
Road freight is fundamental to the global economy as the
Highlights from the report include:
most flexible mode of transport, and the primary mechanism
to bring goods to our stores and homes. It currently • The sector is facing several barriers to
accounts for around 9% of global CO2 emissions, the decarbonisation, especially insufficient regulatory
majority of which comes from medium and heavy freight incentives, lacking infrastructure, and limited demand
trucks. from shippers.
To achieve the goals of the Paris Agreement, the sector will • Road freight decarbonisation is close to an inflection
need to realise an emission intensity reduction of over 80% point due to increasing regulatory and market pressure
in less than 30 years. More pressingly, the sector’s and will evolve faster than many expect.
emission intensity should decline by around 30% before
2030. On its current trajectory, the Paris targets will not • To converge on a viable low and zero-emission
be met. technology, the sector needs to adopt a duty cycle
perspective.
This is a challenge, but also an opportunity for first movers
to redefine the energy mix, claim market share, and • Through collaboration around a catalogue of 22
introduce new products and business models. solutions, the sector will be able to reduce emissions
now and accelerate a shift to low and zero-emission
But the challenge is too large for any one organisation or trucks. "Despite the decarbonisation barriers, road freight leaders
even one stakeholder group to address alone. Only a joint, believe that a zero-emission technology pathway is emerging
collaborative effort will allow the sector to take advantage • The sector has defined a decarbonisation road map, that includes both hydrogen and battery electric vehicles,
of the changing paradigm and make progress quickly. which allows it to start deploying low and zero- with both starting to enter the global fleet at scale in the
emission trucks at scale by the late 2020s. coming decade.“
Deloitte, in collaboration with Shell, address this challenge
through interviews with over 150 executives and experts • Achieving significant emissions reduction requires Tarek Helmi, Partner, Deloitte Netherlands
across 22 countries in the global road freight sector. Deloitte a concerted global effort, with leading regions and
and Shell identify 22 solutions to address the barriers to companies sharing knowledge and supporting others to
decarbonise road freight. leapfrog ahead.
To learn more, download the Decarbonised Road
Freight report.
31In Focus: Consulting
Digital Twins and Asset Management
32New Zealand Ports and Freight Yearbook 2021 | In Focus
Digital twins and asset management
Addressing COVID-19 and beyond Simulate
PHYSICAL DIGITAL
COVID-19 has reshaped the world and driven changes in the way that WORLD WORLD
people live and work. This has created new challenges and
opportunities for businesses, which has coincided with, and in part
accelerated, the emergence of new technologies to address them. Analyse
Monitor
The impact on asset management has been particularly acute for
shipping companies and ports, as global supply chains struggle to cope
with unforeseen changes. Effective scenario modelling is essential to PORT DIGITAL TWIN
allow these organisations to better understand the impact these
fluctuations will have on their businesses, and to mitigate any adverse
effects.
Digital twin technology is a key component of Industry 4.0, which looks
to automate traditional industrial practices to help address these
Learn, Predict and Pre-empt
challenges. Global research firm Gartner expects that by 2023, one-
third of mid-to-large-size companies that implemented IoT will have
Connected Vehicles & Cranes Wireless Network
implemented at least one digital twin associated with a COVID-19
motivated use case. WDR Cameras Control Systems & AI
IoT Smart Sensors VR Interfacing
What is a ‘digital twin’? Connected Devices AR Assistance
A digital twin is a digital replica of a physical object or process. Digital
twins leverage real-time and historic data, empowering people to make
optimal adjustments for asset management given the current-state We integrate the physical-digital-physical journey, empowering a Analyse: Overlaying data on top of prototypes or simulations
landscape in real-time, as well as future-focused operational decisions.
human to make the right decision from millions of possible provides visualisations that extend beyond conventional
Ports can capture masses of data from smart sensors, cameras and scenarios with far more certainty. dashboards to include 3D virtual/augmented reality and artificial
other IoT devices and, combined with virtual and augmented reality, intelligence enabled visualisations, along with real-time streaming
use this to create a real-time information flow. They can then better Simulate: Leveraging IoT solutions and utilising the intake of data
to provide quick and accurate measurements on the actual
deploy forklifts or cranes, for example, to optimise the loading and from sensors in real-time to enable the synthesis of dynamic
physical environment in its current state or potential future state.
unloading of cargo dependent on its type (e.g. containers or irregular simulations or prototypes on new or existing products, processes
general cargo such as pipes, barrels, crates). This digital twin view can or ecosystems. With advanced data storage capabilities and Learn, predict and pre-empt: Exercise machine learning on
also leverage artificial intelligence for storage of cargo, use of vehicles, computational processing power, more complex algorithms can be prototypes or simulations to proactively detect potential issues
and staff rostering. This allows ports to gain efficiencies that would be assessed to uncover insights on aggregated data from disparate and breakdowns, or predict potential gains from what-if scenarios.
difficult to achieve without automation, as well as generating other sources. Incorporate deep learning to have the digital twin learn from
benefits such as reducing risk, improving on site health and safety, and itself, similar systems, and domain experts to enhance the
even lowering carbon emissions. accuracy of the predicted, or pre-emptive outcomes.
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