Information and Communication Technology

in Inland Port: What next?

Alieff Iqmal Arman
School of Technology Management and Logistics, Universiti Utara Malaysia, 06010 UUM Sintok, Kedah, Malaysia

alieff_iqmal_arma@stml.uum.edu.my

Abstract

Nowadays, the global international trade has significantly growth on the supply chain
activities. The trade activities have contributed the rapid growth of the national economy.
Hence, inland ports serve a greater purpose than just handling cargo at the quayside and to
help the seaport overloading issues of freight container. Investment in the information and
communication technology has become crucial to improve the inland port performance. This
paper aimed at reviewing the reviewing the information and communication technology
toward the management of inland port. Therefore, the research also wants to identify what
next generation of the information and communication technology can improve the inland
port infrastructure. Thus, this study will comply any information and past literatures
regarding to the information and communication technology to the inland port. Next, the
result will be analysed the intensity of each finding regarding to the information and
communication technology. This paper presents a review on the future of inland port with the
application of information and communication technologies. There are three suggestions
from the researcher for a better future inland port that are discussed in this paper.

Keywords: Information and communication technology, future inland port, performance.

1.0 INTRODUCTION
In major transportation industries and port operations, information technology has become a
crucial component of the efficient and effective storage and interpretation of enormous
volumes of data. The supply chain, as the backbone of international trade, promotes the
efficient transportation of commodities from point of production to consumption point. When
we talk about port, the basic definition is simply place that the vessels or land transportation
were loaded and unloaded on the freight. Inland port is the second option of the cargo
commodities handling if the seaport were congested with the vessels and container (South
Carolina Port, 2018). Therefore, inland port refers to the similar port facilities that could be
hinterland locations are complemented. Thus, any trade activities and for the cargo bound
will goes quickly rather than seaport. It is different with the seaport which consist of
significant number of freight cargo management, that will be warehoused and divide to the
modes of land transportation for the distribution (Inland Port Logistic Annual Report, 2016).
In addition, inland port is more on the intermodal of land and rail transportation which the
cargo freight can be distributed. For several container ports, increasing terminal throughput
and thereby productivity has become a concern, especially when bigger container ships put
strain on port operations. This will lead to the useable of inland port.
However, information technology is become important of the any port management
operator (Halena & Hariondo, 2017). With the effective handling of the transport information
system can be essential to the performance of the inland port in future. Information and
communication technology (ICT) is to convey the values, information, and skills that require
for long-term success in a multinational corporate environment that is constantly changing
technologically and economically. According to Raef Bahrini & Alaa. A. Qaffas (2019), the
rapid expansion of information and communication technology has resulted in a dramatic
change of the global through an information society during the last several decades. In India,
the utilization of technology is finally showing throughout the performance of the logistics
chain, with better time interval in shipment, warehousing, and cargo consolidation during the
previous 6 months (Rouhan Sharma, 2018). For effective transportation, proper management
of information and communication systems that process the data and transmit it to those in
charge of port operations is vital. Moreover, effective infrastructures at inland ports,
information and communication systems play a significant role in processing information
linked to cargo from origin to destination for national growth through ports.

2.0 LITERATURE REVIEW

Without a doubt, many researchers have been studied on the information and
communication technology regarding to the effectiveness and usage in the inland port. Many
economists and scholars have concentrated on investigating the effects of ICT dissemination
on the economic growth of developed and developing nations as a result of the globally rapid
advance of ICT in the previous decades.

According to Shahid Nadeem, Waseem, Abdul Khaliq and Jawad (2018) studied the
usage of information and communication technology can give big impact to solve the
problem of communication, information and delivery in the term of e-logistics. E- logistics is
the management of any logistic activity over the internet. The researcher wants to study how
to solve the problem in the e-logistic for the payment system and staff service quality. They
have found that the influence of ICT can improve the e-logistics performance with a better
system to provide the information in the precise way.

According to Yingli Wang (2016) stated that the rapid growth information and
communication technologies (ICTs) for ultimate success and, in some situations, even
survival of any logistical operation or project has long been established in today's highly
competitive commercial markets. Hence, the researcher says that business innovations, such
as just-in-time (JIT), time compression, collaborative planning forecasting and restocking
(CPFR), vendor-managed inventory (VMI), and cross docking, would not have been effective
without the use of information and communication technology. He assumed that to building
the e-logistic capability can be improve by the implementation of ICT.
 Tommy, Reima & Janne (2019), studied that the integration of digitalization toward
the trade activities in the Finnish port. The researcher has identified with the digitalization,
can give several development for a better management on the port infrastructure. This can be
achieved by the influence of information and communication technology. The ICT in term of
open data digitalization, the researcher identified a few benefits which will help the problem
delays in supply chain and also for the development of work. They have determined that most
of the port are need to the skill of open data with comprehensive implementation goal.

Meanwhile, Binntelligent (2019) in their slide presentation stated that the

implementation of the smart digital services with the intelligent system processes will
optimize the multimodal logistic activity of inland port. The intelligent information
technologies will help the inland port to transform for a better smart port in term of
computerisation, connectivity, visibility, transparency, predictability, and the adaptability. So,
ICT can help to stimulate the smart inland port intelligent system and optimisation of the
transhipment on multi-modal logistic.

According to Alvin, Kok-Lim, Shuhong, Junaid, Yeh-Ching, and Mee Hong (2020)
have studied that the information and communication technologies can enhance the port
activities parallel with the smart port infrastructure. Ports encounter intense competition in
the global supply chain in this digital era. Smart ports, as high-performing ports, use
information and communications technology (ICT) to provide a wide range of smart
applications, bringing in remarkable sight vessel and container management, among other
things, and therefore improving the national economy sustainability. Moreover, the
researcher review the several application of the information and communication technology
to enhance activity in the smart port development.

As indicated by previous researcher Halena et. al. (2017), they studied that the
automation tally system with the conjunction of information and communication technology
in Tanjung Priok Port container services. In Indonesia, Tanjung Priok port is the busiest port
and the larges one in north Jakarta. The government of Indonesia have invested to the
information technology device which is automation tally to record all the numbers of
container freight in the port terminal services. Automation tally in the port is based on CCTV
mode which is to capture everything in the terminal activities such as deck position, ID
Number of freight container and seal container. By improving the Tanjung Priok
performance, the researcher has concluded that the influence of information and
communication technology is crucial to the economic growth of Indonesia.

3.0 THE IMPORTANCE OF INFORMATION AND COMMUNICATION

TECHNOLOGIES
Information and communication technology has long been associated with the giant
computer in the basement or other air-conditioned area that performs a lot of processes
speedily. However, an increasing number of inland ports are realising that information and
communication technology might help their company gain a competitive advantage. The
logistic business, which has just recently and rapidly evolved, is one of the most significant
aspects of the supply chain and is connected with speed, flexibility, and technology in today's
globalising world (Berna Kalkan, 2018). In another way, employing information and
communication technology is critical for logistic industries to correctly satisfy customer
demands and needs on schedule in a highly competitive market. Therefore, in the logistic
management is important for the inland port which is their need to adapt with the
advancement of information and communication technologies (ICT). The emergence of new
tools connected to business intelligence, such as mobility tools or data analysis and
visualisation, has an impact on technological progress in logistics operations, allowing
organisations or even inland port to control and monitor activities at any time and from any
location (Cristina Marti Espinosa, 2016). Thus, ICT is the potential to the improvement in the
part of logistic chain which is to increase the efficiency the data speed processing and reduce
errors.
Consequently, as we know that ICT is essential for the development and integration of
global economies, as well as the development of global products for trading on worldwide
marketplaces (Drjagdeep Singh, Mamta Kumari & Shivoham Singh, 2020). It is show that
ICT is important to the supply chain management activities even for the inland port itself.
Besides, ICT plays a critical role in integrating and streamlining supply networks and supply
chain management as a whole. The figures shows that the important of the ICT and it
function.
 Figures 1: Function of Information and Communication Technologies
4.0 ICT ADOPTION IN INLAND PORT
According to Michelle Comerfold (2020), stated that inland port serves as an internal
distribution centre for goods arriving from the seaport. It acts as warehouse capacity for
storage and consolidation of commodities, as well as customs processing services, are
common features of these ports. Regarding to the congested issues in seaport, inland port is
an alternative way that can improve the distribution of import and export activities. In
Malaysia, there are four inland port that provides the services to assist seaport in the container
terminal operation which are Padang Besar Cargo Terminal, Ipoh Cargo Terminal, Segamat
Inland port and Nilai Inland Port (Jegan Jeevam, Shu-ling & Eon-seong, 2015). Therefore,
because of their proximity to international transportation networks and the government's
international and national economic development ambitions, Malaysian dry ports have the
potential to grow in the future (Jegan Jeevan, Monizaihasra & Violeta Roso, 2019). So, based
on this studies that ICT can influence to the future development of the inland port in Malaysia
or even in other countries. They are several that why the ICT is important to the inland port in
term on the supply chain activities such as;

i) Effectiveness of the information management

To ensure the smooth container terminal operation regarding to the cargo freight
for storage of custom clearance with the adoption of ICT.
ii) Usage of the software application or hardware
Logistics information systems use a combination of hardware and software to
organise, regulate, and measure logistics processes of the container terminal
operation.
iii) Digitalization of the transport system
To emerging the digital mobility of intelligent transport information system that
can improve productivity and security for inland port container terminal operation.

iv) Computerization of the container terminal operation

To computerize all the activities of container terminal operation that interconnect
all the activities in one system.
 v) High-speed connectivity
To provides real time information and improve data transmission speed while also
assuring its dependability under all operational circumstances.

4.2 Future Inland Port

It cannot be denied that technological advancements are paving the way for exciting
new developments in the logistics and transportation industries. The automation of terminals
and ports has been one of the most prominent developments in this approach. The goal of
integrating ICT to inland port terminals is to offer a whole new degree of consistency to
cargo handling while lowering labour costs and carbon emissions in comparison to manually
managed terminals. To solve the numerous issues, inland port needs to adapt the ICT in the
operation in the terminal. On of the ICT benefit to the inland port which is the automated
port. With this automation, it will be better than conventional port (Fox Chu. Sven Gailus,
Lisa Liu & Liumin Ni, 2018). As the need for efficiency and transparency grows, it's evident
that ports and terminals that are ahead of the trend will be distinguished by their investment
in automation as a differentiating feature. According to James Henderson (2020), Port of
Rotterdam have adapted with the ICT intervention which is multi-year digitization to
transform the port with the Internet of Thing. So, the next generation of inland port with the
implementation of ICT will give more beneficial to improve the logistic industry. We are
now in the digitalization era which is more on the Internet of Thing usage in our daily life.
These concepts are critical to the current and future usage of information technology to
support logistical operations in all industries even for inland port. Based on this study, the
researcher has found some of the suggestion that will transform the inland port in the future
high technological advancement.

4.2.1 Intelligent Transport Information system

With the presence of information and communication technologies (ICT), have play a
key role in the logistic industries with more effective control of cost, quality and time of the
service rendered. For the next generation of future inland port, the intervention of Intelligent
Transport Information System (ITS) is more reliable toward the operational activity in the
port terminal service. In this context, the use of ITS and other information and
communication technologies (ICTs) creates a more broad and sophisticated logistical chain,
boosting competitiveness and infrastructure efficiency. An intelligent transportation system
(ITS) is a system, application, or platform that enhances transportation quality or achieves
other goals via the use of applications that monitor, manage, or improve transportation
networks (AIndra Labs, 2019). This can be adapting for the inland port if they manage the
port terminal service with hundred of freight container loaded in the port before it will be
distributed. ITS can work to the data collection and analysis of the traffic management to
enhance transportation service. One of main benefit of ITS is the smart traffic management.
This can avoid the congestion issues in the inland port. The port operator can get the
information to ease the congestion, vehicle system, better traffic control, reduce the
environmental effect and enhance the benefit of transportation in general. Hence, inland ports
must be viewed as subsystems of traffic systems and the backbone of integrated
transportation in order to carry growing volumes of various goods efficiently and rationally.

4.2.2 Electronic Storage and Data exchange

Exchange of the information and data management is crucial in any sector in the logistic
industries. The ICT have influenced the electronic data exchange (EDI) tools to assist the
inland port operator for optimize the terminal container operation at port. EDI can be defined
as the electronic exchange of structured messages between computers that does not require
any human interaction in the reading or recording of the messages. According to Prof.
Varbanova (2018), influence of EDI technologies to communicate information between ports
and economic operators would improve port efficiency and expand port market reach,
contributing to the growth of local economies. EDI is to make paperless document and
information interchange among community members as well as to and from external
operators. This is important for the custom clearance in the inland port in the port terminal
operation. Therefore, EDI need to adapt in all of inland port operation due to reducing
bottlenecks which are linkages between the seaports and the inland port that can help reduce
vehicle waiting times to and from the ports.
4.3.3 Artificial Intelligence of Inland Port

Information and communications technology (ICT) advancements are set to have a disruptive
impact on the port industry. Artificial intelligence (AI) with the presence 5G
telecommunications will quickly move from novelty to necessity in the future. Port’s operator
must concentrate on enhancing flows, cargo movements, and intermodal links with the rail
and land transportation networks, which transport commodities inland from seaport.
According to Hugh R. Morley (2017), with a growing interest in utilizing artificial
intelligence to collect and analyse logistics data, shippers, freight forwarders, and transporters
may be able to make far more smart planning choices to effectively optimise the time, cost,
and resources required to move cargo. The intervention of AI can make the inland port as the
smart port with the automated processes parallel with the Internet of Thing. The examples of
smart port intervention with the AI which is the smart sensor that deployed at the port. This
can assist to monitoring the port infrastructure to reduce the need for annual inspections by
scheduling predictive maintenance. In Port of Rotterdam, the sensor have put into next 42
kilometres in the port region capture real-time water, weather, and communications data that
will be utilised to cut wait times, establish ideal docking, loading, and unloading times, and
allow more ships to access the port (Ship Technology, 2017). So, the researcher suggest that
heading forward into a complete digitalization inland port, it will be able to detect and take
advantage of new business models within the wider ecosystem by utilising the full potential
of an internet of things network and smart data solutions.

5.0 CONCLUSION

The intervention of the information and communication technology (ICT) will make
the better future of inland port. This study verifies that the inland port needs to transform to a
better infrastructure of inland port with ICT. Hence, it also disclosed that ICT is the key
indicator of the improvement on the logistic activity between inland port. Terminal container
operations in modernised inland ports are also critical for avoiding delays and uncertainty,
which helps to improve logistic and transportation performance. Therefore, this paper
concluded that the inland port must take action to the benefit of ICT in the port infrastructure
in term of operational, system or logistic activities.
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