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China’s ‘Smart’ Ports Pioneering Automation and Efficiency

China Merchants Group (CMG) is leading a global technological overhaul, focusing on automation and digital enhancements to boost efficiency and cut costs across its network. Notably, at the Port of Shenzhen, CMG has successfully deployed advanced technologies like remote-controlled cranes and autonomous trucks at the Mawan terminal. This move exemplifies China's swift embrace of cutting-edge solutions to modernize infrastructure. CMG's smart port systems have shown remarkable efficiency gains, paving the way for further advancements and global collaborations.



China Merchants Group (CMG), a prominent public port services operator in mainland China, is spearheading a significant technological transformation across its global network with a focus on automation and digital advancements. This initiative is poised to enhance operational efficiency and reduce costs at various port locations.

 

One of the flagship projects undertaken by CMG's unit, China Merchants Port Holdings, involves the modernization of the Port of Shenzhen, which stands as one of the world's busiest container terminals. At the Mawan terminal, situated on the western coast of this bustling tech hub, CMG has successfully implemented a showcase of cutting-edge technologies. This includes the integration of remote-controlled quay cranes, autonomous container trucks, and a digitally streamlined flow of goods, replacing the traditional handling of break bulk cargo like grains and sandstone.

 

According to She Zhenwu, the director of overseas business development at CMG's port unit, the transition to remote operations for complex tasks like managing quay cranes and gantry cranes at the Mawan terminal has been a game-changer. Workers can now operate these machinery from a comfortable control room, marking a significant shift towards efficiency and safety.

 

This strategic upgrade at the Mawan terminal exemplifies China's rapid drive to modernize its extensive infrastructure and traditional sectors through the adoption of cutting-edge technologies such as 5G, digital automation systems, and artificial intelligence (AI). Notably, giants like Huawei Technologies have played a pivotal role in driving automation in key ports like Tianjin, leveraging advancements like 5G infrastructure and AI to revolutionize operations.

 

While China accelerates its digital transformation in ports, the United States faced recent challenges due to concerns over job displacement from automation, leading to a significant strike by dockworkers. In contrast, China's proactive approach highlights a smooth transition towards a more technologically advanced and efficient port ecosystem, minimizing operational risks and enhancing productivity.

 

CMG's investment in a self-developed digital management system at the Mawan terminal has yielded impressive results, boosting operational efficiency by 30%, reducing on-site workforce by 80%, and cutting security risks by 50%. This smart port system, initiated in 2022 after extensive renovations starting in 2017, signifies a pivotal step towards a more streamlined and secure port operation.

 

The digital transformation efforts at the Mawan terminal extend beyond the proprietary management system to include IoT devices and China's BeiDou satellite navigation system, further enhancing operational capabilities. With plans to develop world-class smart ports and waterways by 2027, China is at the forefront of leveraging technology to optimize port operations, with numerous automated container terminals already in operation or under development.

 

CMG's port unit has extended its digital management system to operations in other cities within Guangdong province and overseas ports in Sri Lanka and Brazil. Furthermore, the company has offered this advanced system to port operators in countries like Greece and Italy, with ongoing projects in other regions like Turkey, showcasing a commitment to sharing technological advancements globally.

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