Those arguments are soundly made and supported by sensible thinking in our ‘Uber-isation’ feature in the March issue of Port Strategy, but I can’t help wondering if we’re being blinkered by our inherent avoidance of excessive change in this industry.
If we opened our doors to a bearded, Silicon Valley, captain-of-industry type might we be shocked by the untapped potential our industry offers?
The fact that we don’t think that there’s a way for disruptive technology to make headway in the ports sector is exactly why someone, somewhere will find a way.
Did the bed and breakfast industry see Airbnb on the horizon? Did taxi drivers the world over see Uber coming? Did the humble bookshop recognise Amazon for the massive disruptor that it was to become, and what about the music industry and its Spotify nemesis?
The beauty of disruptors is that they don’t necessarily build on what’s already out there, so making direct comparisons with the functionality and operations of, say, Uber on ports doesn’t give a true picture. Those looking to make a pound, or a few million, from inventing and enforcing disruptive technology on ports will happily start with a clean sheet and won’t be swayed by our arguments of why it’ll never work.
The comparatively easier-to-adapt trucking sector is already feeling the heat of trucking on demand, so the shipping industry, albeit the logistics side, is on the radar of techies with no natural affiliation to it.
Take into account the changed face of port financing with those much-maligned funds now in the picture. When you have investors that are wholly focused on returns and exit strategies, there’s less affinity to heritage, traditional values and the ‘that’s how it’s always been done’ mentality. If an easier or more practical technological solution comes along to aide returns they will take it; if disruption ensues then so be it.
Consider also consultant Drewry’s latest thoughts that it’s becoming increasingly challenging for terminal operators to maintain their levels of financial return as a result of reasons beyond their control. Costs are rising while revenue is not increasing at the same rate. Drewry says the global container port industry is entering a new phase of development, one which is a long way from the highly profitable and resilient business sector it once was.
Digitalisation and digital technology brings both increased efficiency and sustainability – things that the industry is crying out for and things that techies will feast on. It’s coming, we just don’t know where or when.