African ports risk falling behind in adopting digital systems

World Bank report highlights global use of Port Community Systems

An international report jointly developed by the International Association of Ports and Harbours (IAPH) and the World Bank has warned that low-and middle-income countries risk falling behind in the adoption of Port Community Systems (PCS) due to technical and financial constraints.

Only 16% of ports that have adopted PCSs represent low- and middle-class countries. The remaining 84% are all instituted in high-income countries.

Providing a seamless exchange of information, coordination, and collaboration among the port community stakeholders, the systems are designed to drive efficiency, transparency, and security across the global logistics chain.

The PCS offers a variety of functionalities, including cargo tracking and tracing, vessel scheduling and berth planning, Customs clearance and inspection, and invoicing and payment, among others.

The study analyses PCS adoption across regions and countries examining implementation in almost 900 ports. Unsurprisingly the most functional PCSs are rarely found in low income countries and over 90% of the ports studied low- and middle-income countries have not yet implemented any such platform.

According to the report, however, 32 countries in this category have initiated projects and at least 93 port are in various stages of implementing a system.

Limited financial and technical resources appear to lie at the centre of the slow adoption rate. The report notes that the cost of initiating a PCS for a small port is likely to be under $10 m, while medium ports will need to invest in the region of $50 million and large ports face costs of over $100 m. Implementing a PCS across a port system within a country, therefore, can be prohibitive.

Funding is usually allocated from the port authority’s budget, private capital or a combination of both.

A legislative framework also has to be considered before establishing a PCS. Legislation needs to define the roles, responsibilities, and obligations of parties involved and provide a guide to ensure that all parties are accountable and responsible for their actions.

Improving efficiency

Providing some feedback on the implementation of a PCS at Port Cotonou in Benin, the report highlights how a Just-In-Time process for trucks helped reduce the average stay time of truck from 269 hours to just three hours.

The Port Authority of Cotonou is expected to make further advancements to its PCS to electronically link all stakeholders involved in the handling of vessels and goods. The African Development Bank Group has approved further investments into the port infrastructure and digital solutions that link entry and exit points to the port’s database.

An integrated centre will be established at the port for trade and freight processing. The goal is to cut transit time in the port area to two hours and relieve congestion along nearby roads.

With the digital gap likely to widen as emerging technologies such as artificial intelligence and cloud computing continue to advance, IAPH has urged developing countries to move quickly to adopt PCS within their ports.

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