Dive Brief:
- The partnership between the Port of Los Angeles and GE Transportation aimed at digitizing shipment information at select port terminals will be expanded for a minimum of five years and $12 million, American Shipper reported Monday.
- Though newly launched in November 2016, the program is already expanding due to initial success and will include all container terminals and shipping lines once approval is received by the Los Angeles City Council. Roughly 9 million TEUs, 15,000 truck providers and thousands of cargo importers will be positively impacted.
- Initial results indicate that the port can expect to see efficiency gains of 8 to 12% as the enhanced project comes to effect all terminals.
Dive Insight:
The drive to increase digitization within the portside maritime supply chain now faces possible resistance over security concerns.
In December of 2016, various industry experts recommended the introduction of an information portal allowing for greater transparency and communication within the maritime supply chain. Now, with the pending opportunity for more shipping lines and their associated support teams such as truckers, terminal operators and chassis providers to sign on to the GE/Port of L.A. digitizing project, there are concerns regarding privacy between rival shippers.
To reassure uncertain users, the extended project will employ GE's Predix industrial internet and data analytics platform, specifically designed to provide security for large amounts of data. All data is appropriately divided, according to Port of Los Angeles Marketing Manager Chris Chase. Users may access only the data that pertains directly to them — for example, Maersk will see only Maersk-related information.
While awaiting approval, the partners are out to convince potential users of the value of the portal. Shipping firms can rely on their own collected data to improve efficiency, reduce traffic congestion, cut truck idling time, and generally upgrade operations, Chase noted.
