How cellular technology can change LatAm ports

Ericsson is seeking to expand its portfolio of connected ports in Latin America in light of the growing interest in automatization and remote control technologies via cellular networks. 

So far, the Swedish manufacturer has identified opportunities that also include other types or maritime transportation, such as waterways that are seeking to switch to 5G technology, Fernán Izquierdo (pictured), director of the Swedish company’s Latin American center of excellence, told BNamericas.

Other opportunities include ports that are investing in modern technology and infrastructure. Some examples include Brazil’s Santos, Colombia’s Cartagena and Mexico’s Lázaro Cárdenas, Veracruz and Manzanillo, Izquierdo said.

“In other words, there are large ports with high traffic throughout the Latin American region that we see as potential clients for this type of solution,” he said.

A connected port, according Izquierdo, is one that has added a layer of intelligence with technology to optimize resources, reduce costs and improve efficiency. 

These technologies may include automated and remote control solutions for vehicles, drones and cranes, as well as other monitoring devices. 

Ericsson already has one connected port in Latin America, Panama City. It became the first maritime terminal in the region to launch a private LTE network in 2017, according to a brief the manufacturer showed BNamericas. 

Before switching to cellular networks, the port experienced several connectivity issues due to its Wi-Fi dependence, which required users to rely on mobile terminals. Since the networks went live, there have not been any reported incidents of connectivity problems, according to the brief. 

“It is important to understand that Wi-Fi outages are primarily generated when ships pass by (with their own Wi-Fi networks), generating interference and causing the network to go down. Each hour of inactivity represents a cost of US$100,000,” Ericsson said. 

Potential

Among other benefits of installing cellular networks to connect ports is the possibility of increasing revenues by eliminating inactive periods, improving productivity, reducing labor costs and reducing verification processes, Ericsson said in a study.

When the frequencies are made available, ports with cellular networks will also be able to use 5G technology, which promises an extremely low latency rate of about 1 millisecond.

“5G allows us to manage a very high number of containers, it allows us to manage robots or machinery remotely. If you have very high latency and you give a robot an order, it cannot wait two seconds to execute it, it has to be immediate,” Izquierdo said. 

“With 5G we managed to do things that we couldn’t do before, we’re even getting to emulate optical fiber, which is the communication channel with the highest speed and lowest latency that we know until now.”

Digitization era

While several investment plans have been announced to build state-of-the-art modern ports in Latin America – for example, the US$800-900mn Mazatlán new port that Caxxor Group is planning for Mexico’s Sinaloa state – the coronavirus pandemic speeded up digital transformation in several industries, Izquierdo said. 

“The pandemic has been a cross-cutting stress test throughout the global supply chain. So many companies have been forced to implement connectivity solutions that were not previously planned,” he said. Izquierdo also talked to BNamericas in January about how telecom solutions can benefit the mining sector. 

Asked whether all ports will transition to cellular networks, he said that is more than certain, as the digitization of ports will become a key competitive factor. 

“The ports that advance the most in digital transformation and technology … will be more competitive than other ports. Therefore, the ports that don’t invest little by little will be left behind,” he said.