Digital Transformation

at Algeciras Port

Francisco de los SantosChief Information & Innovation Officer

Algeciras Port Authority

fsantos@apba.es

January, 2019

Information and Technology is Transforming the Port and Shipping Industry...

E-commerce Platforms

Automation & Autonomous

Artificial Intelligence

Digital Forces Transforming the Port and Shipping Industry

Globalization & Maritime Transport

Malcolm McLean, 1956: Initiator of Shipping

Containerization: “The Box that Changed the World”

Manipulation Costs: From 5.86 to 0.16 $/Ton

4x Price: $180M

Container Ships´s Figures

Capacity: 20,000 TEU

Capital Intensive & Very Big Scale Industry

How Are We Transforming Algeciras Port?

6

Digital Platform for Operations Orchestration

Innovation as a Business Process

Intelligence

Things IT Systems

EcosystemsCustomers

Source: Gartner Research

UNDERSTAND THE

BUSINESS & ITS

CHALLENGES

DEFINE A BUSINESS

VISION & DIGITAL

AMBITION

EXECUTE WITH

QUICK-WINS & LONG-

TERM GOALS

1 2 3

7

Steps of the Transformation Journey?

Key Issues

What Are the Busines Challenges?

What Is Algeciras Port Vision and Digital Ambition?

Execution: What´s Going On in Practice?

01

02

03

VALUE PROPOSITION: SUPERIOR QUALITY OF FULL

SERVICE AT A GEOSTRATEGIC LOCATION

STRAIT OF GIBRALTAR

1st SPANISH

4th EUROPEAN

PORT IN

TOTAL CARGO

102 M tons

4,4 M TEU

321 K Trucks

5,5 M Pax

Algeciras Port Positioning

9

Algeciras Port Positioning

Mission of a Port in Global Logistics

Accelerate the Cargo Flowthrough Logistic Chains

to Support Trade & Create Value

Many Players Involved to DeliverThe Port Service

Operations and DocumentationFlows: Complex

Source: BCG

80% of Global Trade by Sea

12

The Evolving Role of Port Authority

Port Authority: From “Landlord” to “Business Facilitator”

Landlord, Regulator & Operator

Port EcosystemOrchestrator

“Logistification” of Business Models

“To set up a reliable and scalable

structure at Amazon, our efforts have

been focused on building our

distribution chain as the core of our

business model”

Jezz Bezos, Amazon CEO

Importance of Logistics in Business is Growing

Problems in Port Logistics

14

REAL TIME INFORMATION & PREDICTIONS

Source: Competitive Gain in the Ocean Supply Chain study and report, BPI Network, XVELA and Navis.

PORTS AS “BLACK HOLES” IN LOGISTIC CHAINS

Key Issues

What Are the Busines Challenges?

What Is Algeciras Port Vision and Digital Ambition?

Execution: What´s Going On in Practice?

01

02

03

Next Generation Algeciras Port

SEAMLESS – AUTONOMOUS – INTELLIGENT

FOCUS ON OPERATIONAL EXCELLENCE &

CONTINUOUS INNOVATION CULTURE TO SUCCEED IN

QUALITY OF SERVICE

Next Generation Algeciras Port

Port Digital Layer: Real Time Info & Control Efficiency of

Every Business Process

Port Collaborative Platform: End-to-End Integration of

Agents and Systems to Share Info and Improve Coordination

Innovation as a Process: Continuous, Systematic, Integrated

in the Business & Ready to Adopt New Business Models

CORE ELEMENTS OF ALGECIRAS NGP

17

Things IT Systems Ecosystems Customers Intelligence

Port Digital Ambition: IoT – AI - DSS

REAL - TIME

VISIBILITY

Situational Awareness

EXECUTION

IMPROVED

PREDICTABILITY

Operational Events

PLANNING

PRESCRIPTIVE

CAPABILITIES

Max. Value Creation

OPTIMIZATION

Decis. Supp. Syst.IoT & Data Adv. Analytics

DIGITAL PLATFORM FOR OPERATIONS ORCHESTRATION

18

Things EcosystemsIntelligence

HOLISTIC INTELLIGENT SYNCHROMODALITY

Key Issues

What Are the Busines Challenges?

What Is Algeciras Port Vision and Digital Ambition?

Execution: What´s Going On in Practice?

01

02

03

Phase I: 2014-2016 Phase II: 2017-2020 Phase III: 2020-2025

2014 2017 2020 2025

Digital Innovation Roadmap

Digital Port Ecosystem

New Innovation

Framework

Collaboration in Port Community

Innovation as a

Business Process

New Business Models

Start-Ups

Collaboration

Automation & Advanced Analytics

IT - Business Integration

Logistics

Innovation

Hub

Next GenerationPort

MaximizeImpact

20

Phase I Projects innovacion.apba.es

Advanced Analytics & Virtual Management System

Met-Ocean & MonteCarlo Simulation Systems

Image Analysis – Gate Automation – Track & Trace– Telco (eLTE)

PHASE II: 2017-20202014 2017 2020

Operational Orchestration Platform

PHASE I: 2014-2016

PORT OPS MANAGEMENT SYSTEM PIT STOP PORT OPERATIONS PROJECT22

All Players Working as a Team

Reduce Idle Time at the Port

Vessel = Formula 1 Car

Pit Stop Port Operations Project

Pit Stop Port Operations Project

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Easy Access to Planning and Execution Info from Vessels Visits

Arrival – Operations – Departure

Forecast Delayed Arrivals

Forecast On-Time Arrivals

Full Visibility of Real-Time & Estimated Events for OPS Coordination

Pit Stop Port Operations Project

CARGO OPERATIONS

Timeline of Estimated & Real Time Events from Different Systems

Access to Unique & Complete Source of Truth to All Parties

"Culture Eats Strategy for Breakfast"— Peter Drucker

Consolidating Innovation Culture

Innovation Propellers

Innovation Web Portal

26Algeciras Port IT Symposium

Executive Leadership

Algeciras NGP: Seamless – Autonomous – Intelligent

Integration of Innovation – Technology – Business

Digital Transformation: Team Sport

Extend Pit Stop Approach along the Logistic Chain

Add more Predictive and Presciptive Intelligence to our Systems

Consolidate Port Living Lab and Relationships with Start-Ups

Wrap-Up and Next Steps

Maritime Transport Future

Malcolm McLean, 1956

IoT

AutonomousVehiclesArtificial

IntelligenceSimplification New Business

Models

3D-Printing

WE SHOULD BE OPEN TO INNOVATE!28

¡MUCHAS GRACIAS!

+info:

http:\\innovacion.apba.es

fsantos@apba.es