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Sustainability: Abstract

Addressing Efficiency and Sustainability in the Port of the Future with 5G: The Experience of the Livorno Port. A Methodological Insight to Measure Innovation Technologies’ Benefits on Port Operations

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74 views21 pages

Sustainability: Abstract

Addressing Efficiency and Sustainability in the Port of the Future with 5G: The Experience of the Livorno Port. A Methodological Insight to Measure Innovation Technologies’ Benefits on Port Operations

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Moazzam Tiwana
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sustainability

Article
Addressing Efficiency and Sustainability in the Port
of the Future with 5G: The Experience of the Livorno Port.
A Methodological Insight to Measure Innovation Technologies’
Benefits on Port Operations
Laura Cavalli 1, *, Giulia Lizzi 1 , Luciano Guerrieri 2 , Antonella Querci 2 , Francescalberto De Bari 2 ,
Gregorio Barbieri 2 , Silvia Ferrini 2 , Riccardo Di Meglio 2 , Rossella Cardone 3 , Alexandr Tardo 4 , Paolo Pagano 4 ,
Andrea Tesei 4 and Domenico Lattuca 4

1 Fondazione Eni Enrico Mattei, Agenda 2030 and Sustainable Development Research Program, Corso
Magenta, 63, 20123 Milano, Italy; [email protected]
2 Development, EU Programs and Innovation Department, Autorità di Sistema Portuale del Mar Tirreno
Settentrionale, Scali Rosciano, 6/7, 57123 Livorno, Italy; [email protected] (L.G.);
[email protected] (A.Q.); [email protected] (F.D.B.); [email protected] (G.B.);
 [email protected] (S.F.); [email protected] (R.D.M.)
 3 Ericsson Telecommunication, Sustainability and Corporate Responsibility Market Area Europe and LATAM,
Citation: Cavalli, L.; Lizzi, G.; 16480 Stockholm, Sweden; [email protected]
4 Consorzio Nazionale Interuniversitario per le Telecomunicazioni, PNTLab—Photonic Networks &
Guerrieri, L.; Querci, A.; De Bari, F.;
Technologies, Via Giuseppe Moruzzi, 1, 56124 Pisa, Italy; [email protected] (A.T.);
Barbieri, G.; Ferrini, S.; Di Meglio, R.;
[email protected] (P.P.); [email protected] (A.T.); [email protected] (D.L.)
Cardone, R.; Tardo, A.; et al.
* Correspondence: [email protected]
Addressing Efficiency and
Sustainability in the Port of the
Abstract: Relying on the international 2030 Agenda and specifically applying sustainable develop-
Future with 5G: The Experience of the
ment’s triple bottom line to port operations, innovation technologies enabled by 5G transformation
Livorno Port. A Methodological
Insight to Measure Innovation
have shown to serve as a junction point between the UN Sustainable Development Goals (SDGs) and
Technologies’ Benefits on Port the port’s Key Performance Indicators (KPIs). In order to measure economic, social and financial
Operations. Sustainability 2021, 13, benefits deriving from 5G networks and digital transformation, a piloted technology model has been
12146. https://doi.org/10.3390/ shaped with the final aim of designing new models of port management and operational planning,
su132112146 and of implementing sustainable port growth policies. Such an assessment finally represents a crucial
means to enhance technological advancements on port competitiveness and efficiency, and to boost
Academic Editor: Manuel sustainability performance by supporting public policies and business decisions, finally leading to
Fernandez-Veiga the development of the port of the future.

Received: 15 September 2021


Keywords: 5G; AI; IoT; digitalization; sustainable development; SDG; ports; Livorno
Accepted: 28 October 2021
Published: 3 November 2021

Publisher’s Note: MDPI stays neutral


1. Introduction
with regard to jurisdictional claims in
published maps and institutional affil- Industries are facing a new and unprecedented worldwide challenge to adapt their
iations. operational decisions to a more responsible and sustainable framework. Ports are not an
exception, since they are fundamental economic ecosystems whose practices significantly
impact the surrounding environment and community.
Therefore, it is increasingly important to pursue sustainable development in ports
within the economic, social and environmental dimensions of sustainability. This requires
Copyright: © 2021 by the authors.
Licensee MDPI, Basel, Switzerland.
to always bear in mind the objective of generating economic, social and financial benefits.
This article is an open access article
In fact, these economic hubs have to be considered as infrastructure assets that are
distributed under the terms and able to foster economic growth and development as well as to be key gateways to interna-
conditions of the Creative Commons tional trade. This means that ports are crucial economic actors when it comes to creating
Attribution (CC BY) license (https:// employment, wealth, contribute to increase the national Gross Domestic Product (GDP)
creativecommons.org/licenses/by/ and promote urban and industrial agglomerations. This also implies that ports generate
4.0/). significant spillovers with respect to the aforementioned three pillars, especially concerning

Sustainability 2021, 13, 12146. https://doi.org/10.3390/su132112146 https://www.mdpi.com/journal/sustainability


Sustainability 2021, 13, 12146 2 of 21

climate-change-related impacts. These effects can be illustrated by analyzing the individual


impacts on economics, society and the environment [1].
Starting with economics, ports are widely recognized as important factors of economic
growth in countries, and this is justified by several implications that can be attributed to
their development process. First of all, this process of development enables to interconnect
cities and regions across the world, thus favoring the progress of international trade. This
observation is supported by data and analysis that show how ports are involved in 80% of
world trade movements, meaning that they are critical points for sustaining globalization
thanks to their ability to ensure the functioning of global supply chains [1,2]. Second,
ports are crucial hubs that can promote regional development through the export of local
goods and logistic services. Third, they are able to accelerate the integration of a country’s
domestic economy in the international one and to become key factors in attracting new
industries [2]. Therefore, a large part of the literature on this theme has recognized how
the development of seaport infrastructures can boost countries’ economies, given that they
lead to greater trade activity, greater foreign reserves, increased supply, and even more
economic benefits [3].
Their impact on society is also something important to be taken into consideration.
The development of ports leads to generate employment opportunities thanks to all the
activities that are related to them and their logistic activities. In addition, the development
of ports contributes to enhancing people’s quality of life by improving the social stability
of the surrounding areas and by creating new opportunities, not only in terms of new jobs
but also in terms of education for the employees and the communities connected to it [4].
From a different perspective, ports can also reduce people’s quality of life, especially that
of the citizens living immediately next to them, due to their contribution to generating
water, air, and noise pollution. It is also important to point out that one great social benefit
of seaports is that they stimulate trade and competitiveness within and between countries
and this, in turn, results in lower prices for domestic commodities [3].
With regard to Climate Change, seaports are both driving it and exposed to its detri-
mental effects. On the one hand, ports directly contribute to shipping emissions through
their activities, which different studies have estimated to be around 2–3% of total GHG
emissions [5]. On the other hand, port operations, supply chain, as well as infrastructures,
are highly vulnerable to some of the side effects stemming from climate-related events.
Rising sea levels, wind waves, water temperature, precipitation, heatwaves, droughts are
concrete threats to port activities and their ability to be resilient. In fact, extreme climatic
events materialize both in significant economic costs—damages to ports facilities, sup-
ply chains, infrastructures and superstructures—and indirect costs, such as the loss of
workplaces and raising taxes for taxpayers, as well as many other intangible side effects,
including pollution in estuaries and the lowering quality of life for the people living in the
surroundings of the port [6].
Understanding the strategic role of ports in the global trading system, also as emitters,
and the potential side effects of climate change implies acknowledging the crucial impor-
tance of reducing their contribution to CO2 emissions and enhancing the climate resilience
of ports, not just as a matter of strategic economic importance but also as a matter of
sustainability. Without well-functioning, climate-resilient, and low-carbon ports, it would
be significantly more complicated to achieve many of the goals set by the 2030 Agenda
for Sustainable Development (2030 Agenda) and other international agreements, given their
interlinkages with so many human activities [1].
To help ports moving the path towards the “Ports of the Future”, digital connectivity
and further technological applications are expected to play a major role in driving the
change. The telecom sector, in particular, and the related technologies are considered key
players to help building sustainable, resilient, and quality infrastructures that can speed up
the progress of attaining the 2030 Agenda [7]. From this point of view, the 5G technology is
going to be essential to increase the advancements of ports in competitiveness, efficiency,
and growth. In fact, the new features of this innovative technology are expected to provide
Sustainability 2021, 13, 12146 3 of 21

better reliability, high speed, energy efficiency, and fast response [8]. Accordingly, 5G
communication networks will enable the users to benefit from crucial innovations, as instant
cloud services, Internet of Things, robot/drone communication, Vehicle-to-Everything, and
tactile internet [9,10]. These last are some of many new potential uses of a technology that
can help to orient many human activities towards a sustainable path. 5G can thereby play
a strategic role in helping us to move in the direction of a sustainable “Port of the Future”.
According to Palazzo and Siano [8], the explored features of 5G should help individuals,
organizations, and governments to achieve sustainable development in different areas.
More specifically, part of the literature advocates that the innovations introduced by this
technology and the related new multimedia service should be useful to help different
actors in attaining the 17 SDGs included in the Agenda 2030. For instance, thanks to 5G,
it is possible to effectively use virtual technologies or the Internet of Things, which can
positively impact several SDGs, such as quality education (SDG 3), Industry Innovation
and infrastructures (SDG 9), as well as many others [8]. Therefore, it is evident how 5G
might be able to play a strategic role in helping us to move in the direction of a sustainable
“Port of the Future” [8].
Traditionally, these benefits would be measured via Key Performance Indicators
(KPIs). First, they are used to improve port operations. Second, they provide a crucial
basis for planning any future port development [11]. Part of the literature identifies and
divides these indicators according to their relevance for the three pillars of sustainable
development—economy, society, and the environment. In this sense, the most considered
economic indicator is “Foreign Direct Investments” while the most identified environmen-
tal indicators are “Water pollution management”, “Air pollution management”, “Noise
pollution”, and “Energy and resource usage”. Finally, about the social dimension, the
indicators generally used are “Job generation and security”, “Social image”, “Quality of
living environment”, “Social participation”, “Job training”, “Public relations”, “Gender
equality”, and “Health and safety” [4]. Hence, KPIs can be essential to measure technolog-
ical advancements in ports, also connecting them with the 17 Sustainable Development
Goals (SDGs).

1.1. Context and Background: COREALIS in the Port of Livorno


Situated in the upper Tyrrhenian Sea in northern Tuscany, the Port of Livorno is one of
the biggest and most significant Italian seaports [12]. With a yearly traffic limit of around
31.7 million tons of freight and more than 700,000 TEUs recorded in 2020, the port is a
multipurpose point, receiving any sort of vessel and handling any kind of traffic.
Since 2015, the Port Authority of Livorno collaborates with the National Inter-University
Consortium for Telecommunications (CNIT) by using the Port as a natural testbed to deploy
and evaluate new technological solutions [13]. The partnership has conceived a computer-
ized plan towards a technology-driven, smarter framework. In this context, digitalization
has become a key component for port management because of the improvement of infor-
mation assortment, the increment of data unwavering quality, and the quicker information
trade. During these years, many activities have been carried on, placing Livorno among
one of the most progressive ports in the Mediterranean for innovation and advancement
improvements [14].
Reengineering and digitalizing port tasks with 5G and IoT started in 2016, when the
Italian branch of Ericsson distinguished Livorno as an optimal testing ground for the “Port
of the Future”. While conveying new advancements into traditional ambiances, port spe-
cialists and partners need to cooperate in their general execution as far as intensity, viability
and manageability are concerned. However, the aim of deploying new technologies in
real environments is that of increasing competitiveness, efficiency and sustainability to
transform existing business processes.
These activities are part of a EU Horizon 2020 program intended to explore ad-
vancements, named COREALIS—Capacity with a pOsitive enviRonmEntal and societAL
footprInt: portS in the future era (under grant agreement No. 768994) [15].
Sustainability 2021, 13, 12146 4 of 21

As 5G gives adaptability, high data transfer capacity and low latency, it is a key
empowering innovation for the advancement of compartment terminal activities. The
COREALIS project preliminary includes a 5G-based control module, namely RTPORT—
Model Driven Real-Time Module [16], designed to coordinate and support general cargo
management operations in real-time, collecting data via yard operators and implanted
sensors and taking operating decisions based on real-time analytical processing.
Through 5G connectivity (based on 3GPP R15 specifications [17], a huge amount
of data is collected from the on-field IoT devices such as 3D LIDARs, Wide Dynamic
Range (WDR) cameras, mobile applications (running on tablets) and tracking devices
installed on forklifts. Based on this data, the Main Control System, using AI algorithms,
determines the sequence of logistic tasks and activities be performed by container terminal
operators including handling, positioning, and tracking of the vehicles as well as of the
freights. Finally, the data collected through a private and prototyping 5G network feeds
a digital twin engine, which elaborates a virtual representation of the considered port
area by allowing on-field operators to virtually navigate inside this virtual environment
(Scheme 1a).
The RTPORT module focuses on both unloading (from the truck) and loading (on
the vessel) operative phases of the general cargo management process. This includes the
following operative steps:
• Once the cargo is unloaded from the truck, a 3D LIDAR device is used to identify the
freight by registering all related information (e.g., unique identifier, length, width,
height, etc.) into the Main Control System.
• A proper forklift is automatically identified on the yard (based on its status and the
distance from the considered cargo) and then it transfers the freight to the storage area.
As soon as the WDR camera detects the forklift, the freight and yard vehicles tracking
operations begin. The cargo is tracked by a WDR camera until reaching its destination.
• Using Augmented Reality (AR), the forklift’s driver is guided to the storage area so that
the cargo can be unloaded and properly stored. When the freight is positioned, WDR
cameras are used to crosscheck the final position of the cargo and this information is
registered by the Main Control System accordingly. Any further repositioning of the
cargo during handling operations is also tracked with WDR cameras.
• Finally, during loading operations on the vessel, forklifts are identified and sent to the
storage area to move freights in front of the correct crane. While approaching this area,
the forklift driver is supported by the Main Control System using AR information
related to the position of the specific freight to be moved, also by navigating inside
the digital twin model by means of Virtual Reality (VR). During this final procedure,
the operations are still monitored and controlled by means through WDR cameras
(Scheme 1b).

1.2. The 2030 Agenda and the Sustainable Development Goals


Adopted in 2015, the 17 Sustainable Development Goals (SDGs) and 169 targets of the
2030 Agenda constitute the United Nations framework for sustainable development until
2030 [18]. This framework encompasses 17 objectives (the SDGs) that can be straightfor-
wardly or by implication connected to port activities. These incorporate environmental
protection, the circular economy, sustainable urban areas and communities, high standards
of good corporate administration, information sharing and partnership building. With a
timetable extending to 2030, port specialists have the opportunity, as well as the time and
ability, to contribute to the 2030 Agenda.
Sustainability 2021, 13, 12146 5 of 21

Scheme 1. (a) G-enabled devices of the control module for cargo operations. (b) 5G-enabled processes
of the control module for cargo operations (Authors’ elaboration).

From this perspective, some studies have already analyzed how the SDGs might
be impacted by the development of sustainable ports. For instance, Schipper [19] has
connected the SDGs to Key Port Performance Indicators in order to assess how the im-
plementation of some port masterplans, which are intended to develop sustainable port
infrastructures, might impact some of the SDGs. He found out that, going towards the
direction of sustainable seaports as in the masterplans taken into consideration for the anal-
ysis, positively affects some SDG targets, such as the 4.4 (By 2030, substantially increase the
number of youth and adults who have relevant skills, including technical and vocational
skills, for employment, decent jobs and entrepreneurship), 6.3 (By 2030, improve water
quality by reducing pollution, eliminating dumping and minimizing release of hazardous
chemicals and materials, halving the proportion of untreated wastewater and substantially
increasing recycling and safe reuse globally.), 8.9 (By 2030, devise and implement policies
to promote sustainable tourism that creates jobs and promotes local culture and products),
or 17.11.1 (By 2020, significantly increase the exports of developing countries, in particular
with a view to doubling the least developed countries’ share of global exports) [19]. This
illustrates the strategic importance of developing more sustainable and resilient ports to
achieve the targets set in the 2030 Agenda.
However, accomplishing the SDGs is not an easy task and requires public and private
collaborations, in line with Goal 17 (Partnership for the Goals). Only through such a similar
arrangement, port authorities have the opportunity to become motors for change, being
Sustainability 2021, 13, 12146 6 of 21

not only operational specialists in the field, but also points of exchange with metropolitan
partners and port urban communities.

2. Methodological Insight
The Port of Livorno, Ericsson Telecommunications (Ericsson), Fondazione Eni Enrico
Mattei (FEEM) and the National Inter-University Consortium for Telecommunications
(CNIT) have developed an ad hoc methodology for technology assessment, with the aim of
increasing port competitiveness, efficiency, and sustainability. The result of the partnership
is a comprehensive model to evaluate the contribution to the SDGs and the economic
benefits of introducing the 5G technology in port activities.
The methodology includes four different steps (Scheme 2). First, it requires to clearly
define the technological, functional, temporal, and impact scope of the assessment. Indeed,
when considering whether or not a new technology should be invested in, port actors
should identify the exact technology or group of technologies to be analyzed and their
reciprocal interactions. They should also identify the specific port processes where such
technologies are introduced and the timeframe of the assessment, as larger investments
might require longer payback periods or provide long-term benefits or detriments. Last, the
SDGs most affected by the port processes should be identified to clearly delimit the impact
of introducing new technology. Such demarcations are crucial to focus the assessment
where it’s most needed. Next, during the application of the model, the first and second
tie consequences of implementing new technology are mapped and estimated. Third,
these results are analyzed to assess their impact on the selected SDGs. Last, once a
comprehensive overview of the introduction of new technology is obtained, a final decision
on the investment is taken [20]. For its explorative nature, this study employed the
abovementioned methodology to identify relevant port processes (Step 2) and SDGs (Step
1) affected by the deployment of the crucial 5G technology (Step 3). Moreover, to benefit
the most from the expertise of the partners involved, the methodology was adapted giving
more weight to experts’ opinions in the resemblance of a Delphi approach [21].
This is a structured communication technique that has the general purpose of fore-
casting the outcomes of a phenomenon. It requires knowledgeable and expert contributors
responding to questions and submitting their answers to a central coordinator. He pro-
cesses the contributions, looking for central and extreme tendencies, and their rationales.
The results are then sent back to the respondents, who are asked to resubmit their views,
assisted by the input provided by the coordinator. This process continues until the coor-
dinator sees that there is a consensus among the experts. The method aims at removing
the bias that can exist when diverse groups of experts meet [22]. This technique can be
useful to explore the issue under scrutiny in this paper since, according to Buckley [23], as
it is particularly effective when the issue under investigation is not clearly suitable to be
analyzed by any technique but can benefit greatly from subjective judgments on a collective
basis. In fact, this paper has pooled together the knowledge of several experts with regard
to the 2030Agenda, the 5G technology, and the dynamics of one specific Italian port. All
these specialists have given their contribution, through their expertise and opinions, in
order to identify the most relevant SDGs involved in ports operations and the type of
impact that different port activities can have on the 17 Goals.
The choice of adopting such a flexible approach is motivated by the critical necessity of
involving all the concerned stakeholders, working smoothly, and, above all, demonstrating the
validity of the concept covered, without aiming at concrete results at this stage. This last point
is in turn justified by the fact that this must be considered, first of all, an exploratory study.

Scheme 2. Model for the evaluation of disruptive technologies and their impact on port activities
(Authors’ elaboration).
Sustainability 2021, 13, 12146 7 of 21

2.1. Step 1: Identification of the Relevant Sustainable Development Goals


The Italian think tank Fondazione Eni Enrico Mattei, specialized in sustainability
applied research, provided the expertise to identify the SDGs most relevant for the intro-
duction of 5G in port operations.
No similar attempt could be found in the literature. Nonetheless, studies concerned
with evaluating only the impact of ports or only with the impact of communication tech-
nologies were identified and retrieved. As an example from the first category, Schipper [19]
combined the Green Port Policy (GPP) approach with the SDGs, linking them with suitable
performance indicators to SDGs. This SDG-GPP approach for sustainable port develop-
ment was applied to the masterplans of 10 selected ports. The results of this analysis are
presented in the following sections of this paper to support the empirical evidence from
the Port of Livorno.
From the second category, a 2021 report carried out by the Global System for Mobile
Communications Association (GSMA) [7] developed a 4-step methodology to understand
which SDGs targets are impacted by the deployment of communication technologies,
including 5G. The first step consists in reviewing empirical and qualitative evidence on
how digital technology has impacted sustainable development. The second step is about
identifying the drivers through which mobile technologies impact SDGs. The next step
aims at identifying the necessary metrics to quantify the drivers and measure the industry’s
contribution to sustainable development in its three dimensions. The last step is intended
to calculate the industry impact scores for each of the 17 goals. In the report this is done
by gathering data for all the 193 countries that have adopted the Agenda 2030. The
SDG impact scores show the mobile industry’s contribution to the SDGs relatively to a
theoretical maximum. The final calculation in the study is obtained by taking the average
of the underlying metric scores, aggregating them globally, by region and development
level, and weighting the country scores by population in each region and development
group. Finally, each goal is assigned an “impact score” on a 100 point scale, where a score
of 0 means that the industry is not having an impact and a score of 100 means that it is
doing anything possible to contribute to the specific SDG under scrutiny.
Both sources significantly influenced the design of this study and were employed to
validate its key findings. However, as previously stated, a Delphi approach was preferred
and characterized also the identification of the SDGs Considering the content of the 2030
Agenda, the SDGs were qualitatively inspected and, after consensus was reached, sorted
into three groups: (1) not relevant for the Port Authority; (2) of little relevance for the Port
Authority; and (3) very relevant for the Port Authority.
As emerged in the first phase of the project, the main Goals related to port operations
resulted in the following: Goal 4 (Quality Education), Goal 8 (Decent Work and Economic
Growth), Goal 9 (Industry, Innovation and Infrastructure), Goal 11 (Sustainable Cities and
Communities), Goal 12 (Responsible Consumption and Production), Goal 13 (Climate
Change), Goal 14 (Life below Water), and Goal 17 (Partnership for the Goals) (Figure 1).
These findings are also supported by the already mentioned literature. The paper written
by Schipper [19], in which he uses the GPP-SDG approach to evaluate the link between the
UN goals and green port policies, finds that progressing towards sustainability in ports
implies an impact to the following goals: Goal 4 (Quality Education), Goal 6 (Clean Water
and Sanitation), Goal 7 (Affordable and Clean Energy), Goal 8 (Decent Work and Economic
Growth), Goal 9 (Industry, Innovation and Infrastructure), Goal 11 (Sustainable Cities and
Communities), Goal 12 (Responsible Consumption and Production), Goal 13, (Climate
Change), Goal 14 (Life below Water), and Goal 17, (Partnership for the Goals). The only
difference is that this study also finds a link between goal 6 and 7 that the present study
has not identified.
Sustainability 2021, 13, 12146 8 of 21

Figure 1. SDGs most related to port operations (Authors’ elaboration of UN SDGs [1].

2.2. Step 2: Analysis of Port Processes


The port’s processes potentially advantaged by the transformative impact of new digi-
tal technology need to be mapped. Employing the lens of value-added services, Ericsson
and CNIT identified the port and logistic processes directly affected by the introduction of
innovative technology. This set includes warehousing, land transportation, customary and
control activities, terminal and port operations, and maritime transportation (Scheme 3).
In application of the Delphi approach, the analysis relied on the authors’ own experi-
ence of port processes in the port of Livorno as well as on the framework of the COREALIS
project [15]. Accordingly, it displays the additional benefit of being tailored to the specific
features and needs of the Port of Livorno, thus avoiding “one size fits all” approaches [24].
Additionally, the processes in Scheme 3 were selected according to two key criteria,
and namely representativity and saliency. Concerning the first point, despite more pro-
cesses such as services to ships (piloting, tugging, mooring and so on) might have also
been included, it’s worth noticing that those here selected constitute typical containerized
processes of an average gateway port with rail and road connections (but not waterborne)
to the hinterland. Accordingly, they are relevant to all ports and operations.

Scheme 3. Map of the selected port and logistics processes (Authors’ elaboration).

On the other hand, the processes presented in Scheme III are connected with unload-
ing and loading of containerized cargo, its shipment to inland nodes (or, its arrival from
the hinterland) and can be carried out in parallel. Hence, physical, digital, or documentary
Sustainability 2021, 13, 12146 9 of 21

steps could be performed by different operators at the same time to ensure faster han-
dling of freight. Therefore, enhancing these synchro-modal operations represents a key
priority for improving the efficiency of ports and deserves being the first testbed for new
technologies [25].

2.3. Step 3: Technology Assessment


Among many emerging technologies [7], for their unique benefits [8] 5G networks
were chosen by the Port of Livorno, Ericsson, FEEM and CNIT for this experimentation.
Indeed, a 5G network has been tested in the Port of Livorno to foster its efficiency, sus-
tainability and safety, as well as to expand the degree of information sharing among
stakeholders engaged in terminal activities (see Step 1).
In fact, 5G networks are crucial for the transition to Logistics 4.0 [26], thanks to
continuous information collection and analysis, as well as automation. The outcome is
better coordination between people, machines and devices. In the case of seaports, these
include cameras, forklifts, trucks, and sensors.
The port of the future will be able to make use of always-connected sensors and
applications that control and make decisions in real-time, to provide intelligent insights
into the port’s condition and operations, and creating room for further optimization.
Comparatively, a fixed cable network is only able to support applications for static
devices rather than for the typical transportation and movement in port areas. Scaling
of connected logistic operations is not feasible either, as cables are costly to install and
maintain. Moreover, the need for connectivity goes beyond the standard Wi-Fi connection.
Therefore, robust communication for mobile-based IoT business-critical applications are
required, to reliably meet time-critical communication through secure networks with
carrier-grade data encryption and identity authentication [26].
Thus, cellular technology (5G) is an excellent match because the port of the future will
have a myriad of IoT devices deployed, which will have different connectivity demands.
Key cellular capabilities include:
• Low and predictable latencies, even with a heavy load and many users;
• Quality of service to guarantee low latency and bit rates;
• More deployment flexibility for sparse and dense options;
• Mobility capabilities to ensure a smooth handover between base stations;
• Flexible scaling of network capacity, depending on demand;
• Reliability of device interoperability [8].

3. Projection of Results
Before offering some preliminary estimations of some environmental and economic
benefits of introducing 5G networks in the Port of Livorno, results from the comprehensive
qualitative assessments described in the previous section are presented (Table 1).
During the analysis, experts from the four partners have examined and identified
several direct and indirect 5G-empowered solutions benefitting from the unique features
of 5G. Most prominently, IoT, augmented reality/virtual reality (AR/VR) and Artificial
Intelligence-based frameworks [7]. According to the authors’ experience, these technologi-
cal solutions collectively deliver benefits to the selected port process, here described.
First, during warehousing, they might faster freight localization, guarantee better and
closer control of cargo conditions, and improve the detection of movements and eventual
damages. Second, during rail or road transportation, the same technologies are expected to
foster coordination between transport modes, allow remote controlling, and enable automation
and autonomous driving in private areas. Third, customs and control activities could benefit
from remotely managed operations and digitalizing their dispatches. Fourth, ports and
terminals might enhance their automated operations and create digital twins; ensure oversight
on freights and reduce internal movements. Last, shipping operations are expected to benefit
from these 5G-enabled technologies in vessel-assisted navigation and automation.
Sustainability 2021, 13, 12146 10 of 21

These improvements are expected to positively impact a number of SDGs. On the


one hand, SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation and
Infrastructure), SDG 11 (Sustainable Cities and Communities), and SDG 12 (Responsible
Consumption and Production) are directly influenced by the 5G-enabled transformation
thanks to the benefits for the logistics value chain, the port infrastructure, and the invest-
ments in innovation. On the other hand, SDG 4 (Quality Education), SDG 13 (Climate
Action) and SDG 14 (Life Below Water), are also positively influenced by this transition
despite not being its main focus, and particularly thanks to the reduced environmental pol-
lution, the saving of energy and CO2 and the need for more qualified workers. As part of
the port’s role in protecting the marine and coastal ecosystems. Last, the public-private part-
nerships necessary to leverage diverse ideas, know-how and contributions for the adoption
of highly transformative technologies—embodied in the partnership behind this collective
endeavor—constitute a crucial step towards the actualization of SDG 17 (Partnerships for
the Goals). These findings are also supported by the existing literature [7,19].

Table 1. Results from the qualitative analysis (Authors’ elaboration).

Enabled Enabled Benefits by Contributions to UN


Port Process Focus Area
Transformation by 5G 5G SDGs
Lower vessel
completion time,
improved personnel
Remotely controlled
Container Terminal safety, less human
Automation quay cranes. (URLLC, 4, 8, 9, 11, 12, 13, 17
Operations mistakes, less
mMTC)
operational
inefficiencies, working
profile upgrade.
Improved
Connected/smart ship security/safety during
with augmented the navigation, new
navigation info, business models,
predictive maintenance increased number of
Transport & Logistic for on-field machineries the stakeholders 4, 8, 9, 11, 12, 13, 17
(cranes, forklifts, involved into data
stackers, trucks). exchange, CO2 and
(URLLC, mMTC, maintenance costs
Network Slicing) reduction, less power
consumption.
Less exposure to
Personnel and
polluting agents for
environmental
on-field personnel,
monitoring with
Environmental CO2 and
potential critical and
Sustainability and environmental impact 4, 8, 9, 11–13, 17
dangerous situations
Personnel Safety reduction, new job
identification. (URLLC,
opportunities, shorter
mMTC, Network
intervention time for
Slicing)
specialized personnel.
Improved security for
sensible data
Unmanned Aerial transmission, better
Vehicles for potential capacity to identify
Cybersecurity 4, 8, 9, 11–13, 14, 17
real-time threats potential threats,
detection. (eMBB) improved data
reliability, new
professional figures.
Sustainability 2021, 13, 12146 11 of 21

Table 1. Cont.

Enabled Enabled Benefits by Contributions to UN


Port Process Focus Area
Transformation by 5G 5G SDGs
Reduced weighing
Automated systems for times, lower
Verified Gross Mass Automation the container weighing. environmental impact, 9, 11, 17
Management (URLLC, eMBB) higher number of
weighing per time unit.
Improved data
integrity, faster data
Secured documental
elaboration, better
Transport & Logistics VGM practices. 8, 9, 11–13, 17
stowage-planning,
(URLLC, eMBB)
reduction of the trucks
waiting time.
Lower time to find a
cargo, reduced
Remote and automated accidents, less
cargo handling, operational
monitoring and inefficiencies, less
Warehouse
Automation tracking systems. human mistakes, lower 8, 9, 11–13, 17
Management
(URLLC, mMTC, handling time per
Network Slicing, cargo unit, reduction of
eMBB) the economic costs,
improved
competitiveness.
Lower time to find a
cargo, reduced
accidents, less
Smart and autonomous
operational
vehicles for cargo
inefficiencies, less
handling and
Transport & Logistic human mistakes, lower 4, 8, 9, 11–13, 17
monitoring. (URLLC,
handling time per
mMTC, Network
cargo unit, reduction of
Slicing, eMBB)
the economic costs,
improved
competitiveness.
Remote assistance and
Reduction of risks of
monitoring of ship
accidents and economic
practices through use
losses, lower time for
of distributed sensors
maneuvers, operation
and cameras
Ship practices optimization, greater
communicating in real
(Loading/unloading Transport & Logistic safety, positive 4, 8, 9, 11, 12, 14, 17
time to the mIoT
Trailer/Piloting) consequences for
system and with
updating education
AR/VR assistance for
programs, on-the-job
drivers. (URLLC—
and continuous
mMTC—Network
training.
Slicing)
Monitoring of seabed,
terminals and other
port infrastructures Major safety through
Environmental
with a distributed the 5G-enabled MIOT
Sustainability and 4, 8, 9, 11–14, 17
sensor system and sensors, reduction of
Personnel Safety
mIoT cameras. accidents.
(mMTC—URLLC—
eMBB)
Sustainability 2021, 13, 12146 12 of 21

Table 1. Cont.

Enabled Enabled Benefits by Contributions to UN


Port Process Focus Area
Transformation by 5G 5G SDGs
Cargo Tracking Truck Reduction of traffic
Appointment System congestion, decrease in
with a massive IoT pollution; Increased
network distributed visibility of the load
over the entire area and road safety;
Controlled corridors Transport & Logistic 4, 8, 9, 11–13, 17
connected with RSU, Positive consequences
AR, control centers and in terms of updating
other trucks. (URLLC— education programs,
mMTC—Network on-the-job and
Slicing—eMBB) continuous training.
Improved mobility,
reduction of
Smart Corridors for
environmental impacts,
real-time
greater control over
monitoring/control
processes, positive
City/Port Relations and infomobility 4, 8, 9, 11–13, 17
consequences in terms
services for passengers
of updating education
in the concept of Smart
programs, on-the-job
City. (URLLC—eMBB)
and continuous
training.

Of the several processes presented in Table 1, those more relevant for the Port of Livorno
are here described more in detail. Container terminal operations can be better automated
through 5G technologies, since the closer spotting, the lower latency and the thus faster
communication lead to improved functioning of all automated activities. Automation, per se,
is not a value, but it indirectly benefits the environment, security, safety and overall working
conditions. However, automation is not just a matter of equipping vehicles and facilities with
adequate devices, but rather requires reengineering processes and services entirely. In the
Port of Livorno, the most significant application today relates to remotely controlled quay
cranes and transport and logistics activities. The remote operations of quay cranes is enabled
by 5G led technologies, since the accuracy that yard movements require can be fostered by
5G services. Moreover, reduced latency allows greater productivity and faster operations.
Benefits are closely linked to reduced idle time, hence reducing the time spent for handling
cargo. Of course, as later displayed in this article, this results in a reduced carbon footprint.
Transport and logistics can also benefit from connected vessel services and improved assistance
to ships and other transport operations. This upgrade has both environmental and economic
benefits, as a consequence of reduced idle times, better exploitation of productivity factors and
enhanced safety conditions.
Verified Gross Mass (VGM) is another key operation that can be positively affected by
5G technologies. It deals with containers before they are loaded onto the ship, basically
for safety reasons and proper storing of cargo. If not fully digitalized, this process may
represent a challenge for medium-large container ports. Fewer queues at port gates are a
clear environmental and social benefit in terms of air and noise pollution often affecting
citizens living nearby. It is also possible to improve the security and reliability of data
on shipments, thus enabling traceability of weighted cargo and facilitating the control of
lorries arriving at port gates. These solutions foster the efficiency of the entire logistic
chain, improving performances also in inland nodes and facilities. Of course, all these
improvements require specific investments in information and communication technologies
and smart mobility applications which are not possible if the connectivity is not upgraded
through 5G coverage. Since VGM is linked both to safety and security of navigation, as well
as smoothness of the logistic chains, the enhanced transformation leads to safer dispatching
and sharing of information as well as to early detection of threats thanks to the improved
Sustainability 2021, 13, 12146 13 of 21

communications between stakeholders. This results in enhanced operations (i.e., less idle
time) and guarantees data integrity, thus allowing greater interworking and potentially
new services based on blockchain.
Since VGM is still in its early stage, we focused our analysis of the port of Livorno
on the more operational and yard-based benefits. However, it deserves to mention that
broader benefits along the logistic chain are possible if some solutions (such as VGM)
move fully digital and interoperable made interoperable thanks to 5G. Table 1 attempts to
provide a comprehensive overview of what might be achieved in the medium-long term.
For the limited resource available and its explorative nature, the following subsections
narrow the focus of this study to two major benefits expected to follow the deployment of
a 5G network in the Port of Livorno: a reduction in the emission of CO2 and a reduction of
economic costs. Please, note that these estimations are entirely preliminary and hypothetical
as, for the limited time since the rollout of 5G in the Port of Livorno, empirical data are not
available yet.

3.1. Environmental Benefit Analysis


The reduction in CO2 emissions was estimated by considering the time needed to ac-
complish each terminal operation and the average fuel consumption of machines/vehicles.
When 5G technologies facilitate the exchange of real-time information among actors in the
terminal, it leads to reducing movements in cargo handling. This optimizes the process
and lowers fuel consumption and associated CO2 emissions (Tables 2 and 3). Despite other
emission reductions likely taking place, it was decided to focus only on this aspect for
reasons of efficiency and simplicity.
Data shown in Tables 2 and 3 are not based on literature sources, but on the authors’
working experience in the collaboration between the terminal and the Port Authority.
On the other hand, the heterogeneity of the processes assessed prohibits presenting in
this paper a common method of analysis and calculation. Accordingly, an exemplifying
description of the CO2 reduction resulting from the more limited use of reach stackers is
here provided.
Typically, tower cranes work for 12 h a day loading and unloading cargo from ships,
while supporting vehicles, such as reach stackers, work for 14 h a day. This difference is due to
the time required to locate a container or a cargo in the yard and the related handling time.
These activities can be optimized with 5G reducing the working time from 14 to 12 h (14% of
the time) for the same amount of cargo, thus matching the working hours of tower cranes.
Towers cranes worked 26,717 h in 2019. Reach stackers worked 40,093 h (Table 4). If
processes were optimized, reducing actual working hours by 14% (5613 h) the annual working
hours of reach stackers would drop to 34,480 (equivalent to a 0.86 reduction factor).

Table 2. Results from the intra-terminal operations process, enabled by 5G. (Authors’ elaboration).

Measurement in 2019 (before 5G) COREALIS Project (with 5G)


Activity Machines Hours Diesel/Year CO2 /Year Hours Diesel/Year CO2 /Year
Activity/Year (m3 ) (ton) Activity/Year (m3 ) (ton)
Vessel load-
Tower crane 26,717 419 1106 26,717 419 1106
ing/unloading
Yard Reach
40,093 595 1571 34,480 512 1351
movements Stackers
2458
Total - 1015 2678 - 931
(−8.21%)
Sustainability 2021, 13, 12146 14 of 21

Table 3. Results from the intra-terminal operations process, enabled by 5G. (Authors’ elaboration).

Environmental Analysis
Operation KPI (Average KPI Baseline KPI Corealis What Benefitted
Value) Target Improved Stakeholder What
CO2 Saving
Improved

Vessels’ Vessel operation Increase of


18 h 16 h Shipping -
berthing completion time operations company
time Vessel idle time speed rate
36 h 34 h -
at berth
Loading (on
ship)/Unloading
Increase of Fuel
Cargo (from a single 18 h/40 min 16 h/30 min 8.2% CO2
operations Haulers reduction
Release truck) operations saving
completion time speed rate
Time to find a Fuel
8 min 7 min
pallet on the yard reduction
Cargoes
Fuel
registration 3 min 2 min
reduction
completion time
Quays and Reduction of
Percentage of Terminal
yards operational
cargoes physical Operator
operations costs Fuel
characteristics 0.9 0.95
reduction
info registered
electronically
Forklift
Fuel
operation 8 min 7 min
reduction
execution time
Occupied space
during the 5000 m2 4500 m2 - -
storage phase
Percentage time
of activ-
60%/40% 65%/35% - -
ity/inactivity of
the forklift
Total number of
movements per 4 3 - -
cargo unit

Table 4. Real working hours for the year 2019 (Authors’ elaboration of data provided by the terminal).

Machines Hours per Year Machines Hours per Year


Reach Stacker 1 2513 RTG 2 2469
Reach Stacker 2 1989 RTG 3 3029
Reach Stacker 3 2501 RTG 4 2926
Reach Stacker 4 2928 RTG 5 1526
Reach Stacker 5 3233 RTG 6 1157
Reach Stacker 6 3845 RTG 7 2239
Reach Stacker 7 4375 RTG 8 1729
Reach Stacker 8 3712 RTG 9 1683
Reach Stacker 9 4337 RTG 10 1683
Reach Stacker 10 4947 RTG 11 1066
Reach Stacker 11 5713 RTG 12 1189
Sustainability 2021, 13, 12146 15 of 21

From there, the fuel reduction is calculated as the sum of the product of the hourly
consumption of every single vehicle, the number of working hours per year and the
reduction coefficient of working hours (0.86) according to the formula:

Fuel = ∑( Mi × Fi × Ti × Ft )
where:
• Mi = machine i-th;
• Fi = hourly fuel consumption of the machine i-th;
• Ti = annual working hours of the machine i-th;
Original hours− Reduced hours
• Ft = coefficient of working hours = Original hours = 0.86.
The reduction of CO2 emissions in this scenario is calculated with the formula:

CO2 = Fuel × CCO2

where:
• CCO2 = CO2 is the emission coefficient supplied by ISPRA [27].
Under the assumption that reach stackers’ operating hours are reduced from 14 to
12 per day, the annual fuel consumption saving is estimated to be 83 m3 . This means that
CO2 emissions associated with yard movements are reduced by 14%. Based on this, it is
estimated that, due to the 5G technologies introduced in the Port of Livorno, CO2 emissions
for one terminal operation would decrease by 8.2% as a result of improved yard movements.
This figure indicates a potential improvement in the environmental sustainability of the
port and more specifically in a contribution to SDG 13 (Climate Action).

3.2. Economic Benefit Analysis


5G testing and deployment are still in their early stages and it is a quite hard task
to estimate the economic impact of 5G in port and logistics operations. 5G will boost
automation and the development of autonomous driving in port yards and terminals,
speeding up and smoothing operations nowadays mostly operated on-site by personnel.
For assessing the economic benefits from 5G deployment, we decided to focus on
three main operational areas. Within port terminals/land operations, these include the use
of gantry cranes and quay cranes controlled remotely through 5G telecommunication; the
employment of autonomous vehicles for yard handling; and faster freight release through
port gates.
As for the maritime side, operations, that can be improved through the deployment of
5G are assisted piloting within port waters, especially in narrow water canals; berthing and
mooring of ships; ships information noticing and communication with the Harbormaster.
Both for land and maritime operations, major benefits would emerge from the reduc-
tion of operational costs through savings, and the increased speed of operations thanks
to improved processes. These benefits would be inevitably distributed to many differ-
ent players, and namely: shipping companies, in relation to reducing navigational costs
and time spent at berth; terminal operators, due to reduced yard costs and increased
efficiency of operations; and hauler/transport operators, due to seamless and faster release
of documentation and information of freight.
It is also straightforward that benefits can be only achieved if these operators are willing
to invest in the enabling technologies unlocked by 5G. These front investments are major
obstacles to the deployment of innovative technologies, including 5G, and would require
accurate consideration. Accordingly, for its exploratory nature, this study only considered
operational costs and gains in productivity, leaving capital costs for dedicated research.
Sustainability 2021, 13, 12146 16 of 21

3.2.1. Maritime Operations


Autonomous vessels and no-manning are the long-term objectives. Nonetheless, the
deployment of 5G can already boost the development of supporting technologies, like
AR/VR, capable of aiding navigations in narrow waters. Please, note that no experimen-
tation with 5G networks in maritime operations is presently undertaken at the Port of
Livorno. Accordingly, the following considerations are entirely speculative.
Currently, the largest vessels enter the port of Livorno only with the aid of three
tugboats and the help of two pilots on board. Infrastructural improvements are planned
but, in the near future, no changes are expected to occur. Accordingly, assisted reality may
lead to a reduction of pilots’ effort in maneuvering, thus allowing a reduction of costs
for this kind of service. This saving could lead to a reduction of up to 1400 euros per
service, which currently is 2800 euros for each ship [28]. No further reduction is expected
for tug services from 5G deployment in the early stages. Investment costs for AR/VR are of
course not neglectable but can be considered low in comparison to yearly expected savings
(Table 5). Of course, not all vessels need to navigate with two pilots on board. Hence,
vessels that presently calling the terminal with two pilots can shift to more advanced
sailing ways.

Table 5. Expected yearly cost savings from 5G-related technologies (Authors’ elaboration).

Costs (EUR) after 5G No. of Affected


Operation Current Costs (EUR) Total Savings (EUR)
Related Deployment Operations (EUR)
Piloting of largest
201.600 thousands 100.8 thousands 72 100.8 thousands
vessels

3.2.2. Land/Terminal Operations


In relation to terminal operations, 5G can ease and make smoother processes at the
quay and in yards, enabling fast telecommunication and remote management (Table 6).
In this respect, the terminal chosen for 5G deployment in the Port of Livorno has 5
quay cranes and 4 RTGs which are presently operated by dockers on-site and in the future
could be converted for remote control.
As for RTGs, a single operator will be able of operating all existing machinery in the
terminal, instead of having 4 operators per shift on site. This will result in lower staff costs,
even if the capital (fixed) cost of placing new equipment should be also duly taken into
account. It is prudential, however, to assume that operating costs at yard may be halved
and, due to an average staff cost of 65,000 euros, this would lead to 130,000 euros cost
savings per year. These data refer to the average yearly cost of staff unit.
The same happens for quay cranes, with operational costs for staff expected to be
halved with new technologies. No changes in shifts may occur, but the remote control
enables less staff effort on site. This reduction is estimated worth 65,000 euros per year.
In the short term, following the results highlighted by the COREALIS analysis, it is
expected that the utilization rate of forklifts would be higher, thus allowing to reduce the
equipment deployed by the terminal. More in detail, it is estimated that the reduction of
one forklift might reduce operational costs by 20,000 euros per year.
Indeed, automated quay cranes may increase productivity by a 20–25% rate [29], which
can be estimated as a reduction of a quarter of the berthing time of vessels. Vessels in 2020 have
spent a total of 1500 h at berth in the selected terminal, which leads to a potential reduction of
375 h of global berthing time [30]. These values are impacted by the severe loss of traffic due to
the COVID-19 outbreak, which led to reduced activity during 2020. On average, this equals 25
h of berthing time for each container vessel, which can be reduced to 20 h on average. As seen
above, the reduction for the general cargo vessel category in the short term could be from 36 h
to 34 h, highlighting thus a 5% decrease. This decrease concerns a smaller number of vessels
and is, therefore, less significant for the expected savings.
Sustainability 2021, 13, 12146 17 of 21

The time saving achievable through improved technology could either bring to more
vessels calling at the port or to a reduction of costs due to less time spent for operations.
In this analysis, it is assumed that the vessel number would not change as a bigger port
throughput would require other interventions (e.g., an increased reach of hinterland
markets) as well. On the other hand, vessels would be already saving time. This is
estimated to amount to 915,000,000 euros saved each year [31,32].
Furthermore, 5G unlocks also smoother operations and, thanks to more precise de-
tection and freight handling, reduces time lost for mistakes or unnecessary movements.
This assessment is even harder to be made, but we can rely on current procedures and
evaluation of mistakes that averagely occur.
Past analyses made in the framework of the B2MOS project could be referred to,
estimating an average mistake rate of 5% on all transactions [33]. This rate can be reduced
to 1% with upgraded procedures. Likewise, the overall time spent for checking cargo
documentation for the release can be lowered from 4 min on average to 0.4 s by avoiding
manual handling. In the short run, the expected decrease would be lower with an expected
reduction from 3 to 2 min (source: COREALIS project).
For assessing time savings related to quicker release of freight, we have to make the
following assumptions:
• We estimated 1.25 TEU for each lorry, entering and getting out of the terminal; this
assumption is based also on general consensus in the relevant literature
• We assume a road modal share of 85% of total handling; this value equals the present
rail share for containerized cargo in the port of Livorno;
• We, therefore, project a yearly value of 140,000 trucks getting in and out of the terminal,
thus leading to 8400 h saved for faster documental release and the exact identification
of the location to load/unload the cargo in the long run; in the short term, the impact
stands at roughly 5800 h. These values are assumed on current traffic and handling
volumes of the port of Livorno.
Economic savings from less idle times at terminals are mostly difficult to assess.
Nonetheless, it is deemed that this benefit leads to better use of truck drivers’ time and the
achievable economic return is mainly based on saving on drivers’ hourly costs. According
to the Comité National Routier, in Italy a driver costs hourly 28.14 euros. This value could
result in a yearly saving of 236,000 euros, which is of course a benefit shared by all haulers.

Table 6. Land/terminal operations benefits (Authors’ elaboration).

COREALIS Project, Enhanced Automation


Operation What Improved Benefited Stakeholder Savings per Container in Port’s Processes
Terminal (EUR) (EUR)
Increased operational
Vessels’ berthing time Shipping companies 126,500 2500
speed
Increased operational
Cargo Release Haulers 164,000 236,000
speed
Terminal operations Quays and yards 20,000 195,000
Terminal operators
(throughput speed) operations
70,000 -

Overall, the annual benefits from 5G deployment at the very local scale (the selected
terminal operator in Livorno), in the aftermath of the introduction of new technologies,
can reach 1.346 million euros yearly (2020 prices).
These estimations are the very first attempt to analyze the impact of 5 G-related
novelties in port and logistics operations in the Port of Livorno. By all evidence, values
should be considered as very provisional and based on rough estimates. Most of the
improvements are eventually linked to the introduction of technologies that, in principle,
are already available and that we deem will be fostered through the availability of the 5G
Sustainability 2021, 13, 12146 18 of 21

network. These upgrades will be only possible if private companies are willing to invest and
to convert processes. Moreover, it has also been highlighted in the literature that automation
is still at its early stages in many ports around the world and that smaller container
terminals tend to invest in this upgrade more difficulty [34]. Subsequently, additional
issues besides 5G play a role in deciding whether to invest in terminal automation and
other technologies that have been outlined in this article. 5G could nonetheless support
this transition but requires decision-makers to change present procedures and mindsets.
We would like to stress that benefits can spread along the logistic chain, involving many
different players. As soon as Logistics 4.0 sets in at the local level, 5G will in this respect
build the background infrastructure for such developments.

3.3. Impact on Port Productivity: An Insight


5G-enabled technologies mean a faster port turnaround for vessels and thus cargo
handling, which is a key priority for most seaports all over the world. If we look at global
figures, we find that the average turnaround time for containerships is presently 0.69 days,
showing that middle-sized ports like Livorno are already significantly behind the global
average. Generally speaking, dry bulk vessels tend to spend more time in ports, on average
2 days, despite the trend of growing ships’ size has led to a reduction of this time [1]. This
pattern shows the importance of investing in port productivity and operational tools to
speed up ships’ operation and cargo release in ports.
Western and Southern European countries, like Italy, report an average performance,
while Asian seaports generally perform better. The potential for a reduction, as depicted
above, is even larger if we look at other vessel types, such as general cargo ships.
Another point that deserves mention, and has been highlighted also in the relevant
literature, is the growing phenomenon of intermediate stops which leads to an increasing
role of transshipment in global trade. Indeed, apart from few large hubs located along
the main shipping routes or at the heartland of economic powerhouses, most seaports
are supplied through a hub and spoke system of a growing number of intermediate
calls and handling needs. In fact, the top 939 global seaports generate only 12,748 pair
connections, meaning that 97.1% of port pairs are possible only through the transshipment
of containers [35].
Accordingly, transshipment is a significant source of operations and hence cost for
seaports, thus requiring to improve the productivity of these operations. It requires to
invest in 5G-enable technologies in order to improve the following productivity factors
crucial to all ports:
• Berth occupancy;
• Revenue for a ton of cargo;
• CAPEX for a ton of cargo;
• Turnaround time;
• The number of gangs needed for port operations [36].
Besides them, indicators highlighting environmental performance can be also taken
into consideration, measuring the impact of port operations on the environment and
climate change [4].
As this study has shown, both port efficiency and sustainability are significantly
improved thanks to 5G-enabled technologies, and there is consensus that their deployment
will continue and expand [37]. Nonetheless, the actual impact of these improvements, both
at the terminal and at the port level, largely remains to be assessed.
Last, when investing in these technologies, ports should not only consider projected
cost cuts and environmental benefits, but more extensively think of a vision for a new
business model. One example is the connected and autonomous vessel, a revolution that
is not going just to modify seafarers’ world and terminal operations, but rather is going
to have a significant impact on sailing schedules, logistics chain fine-tuning and time
optimization. It is therefore important that ports and in particular Port Authorities create a
cooperative environment where such transformations can occur and can be adopted [16]. In
Sustainability 2021, 13, 12146 19 of 21

this respect, the Port of Livorno is aiming to enhance a network of collaborative innovation
that can set a long-term path involving stakeholders from both the public and the private
sector. This paper is the result of one of such crucial partnerships.

4. Conclusions and Policy Recommendations


Ports have a strategic role to play in pursuing sustainable development in all its three
dimensions. The potential benefits connected to the “Port of the Future” are of uttermost
economic and social importance given the contribution that ports can give to boosting
growth, generating employment, improving people’s quality of life, and lowering the
price of goods. Furthermore, they are key actors with respect to climate change from two
viewpoints. First, because of their contribution to global GHG emissions through shipping
operations. Second, they are key global interconnection points that are critically exposed to
extreme wheatear events and sea-level rise. Accordingly, they must reduce their emissions
and improve their resiliency to not compromise global supply chains.
Therefore, it is evident that actions must be taken to enhance and preserve ports. This
goal can be accomplished thanks to innovation. For instance, 5G networks and related new
technologies can contribute to smooth and achieve more efficient ports operations. This
can result in a crucial improvement in terms of making ports more sustainable and help
them play their part, which might be significant, to achieve the 17 goals set by the Agenda
2030. As we have seen, introducing 5G alone can concretely enhance ports efficiency and
contribute to sustainability by having a positive impact on several SDGs.
This requires to develop and apply adequate methodologies to assess economic, social,
and environmental benefits beyond port KPIs. This can be accomplished by utilizing
more extensive sustainability systems like the SDGs, along with traditional economic
examination, administration and estimation models. Despite its explorative nature and the
use of speculative estimates, this study achieved just that. However, we also acknowledge
that there might be limitations related to this work at the present stage.
To begin with, for the purpose of our analysis, it was not been possible to consider the
environmental and social externalities stemming from port operations, such as the potential
job losses due to technological improvements that might result from using machines instead
of human labor for certain port activities; the potential increase in GHG emissions that
could stem from using more machines and devices instead of workers; and the impact on
the landscape of building several 5G antennas to make this technology work.
Another limitation, which is also related to potential environmental externalities, can
be recognized in not having kept into consideration the problem of rebound effects: even if
ports might increase their efficiency, they might not reduce their CO2 emissions but rather
increase them, as enhancing the efficiency of these economic hubs could lead to an increase
of shipping activities. This would imply more freight traffic and, in turn, lead to a net
increase in CO2 emissions.
Moreover, we have not been able to properly analyze the possible benefits and disad-
vantages given by the introduction of these technologies on specific stakeholders, such as
haulage companies, public authorities, shipping lines, port terminal operators, and citizens.
further research is needed to foster our understanding of the “Port of the Future”. Expand-
ing the scope of this work, it could start by exploring the impact of other technologies on
ports’ sustainability and efficiency or analyzing the impact of similar innovations on port
processes that have not been included in this paper.

Author Contributions: This article is a joint work of the authors. Conceptualization, L.C.; Formal
analysis, G.B.; Funding acquisition, P.P.; Investigation, A.T. (Alexandr Tardo) and D.L.; Methodology,
R.C. and F.D.B.; Project administration, A.T. (Andrea Tesei); Supervision, A.Q.; Validation, L.G.;
Writing—original draft, G.L. and R.D.M.; Writing—review & editing, S.F. All authors have read and
agreed to the published version of the manuscript.
Funding: This research received no external funding.
Institutional Review Board Statement: Not applicable.
Sustainability 2021, 13, 12146 20 of 21

Informed Consent Statement: Not applicable.


Data Availability Statement: The data are not publicly available due to due to policy restrictions.
Acknowledgments: We acknowledge Matteo Spinazzola and Federico Nuccetelli for their help.
Conflicts of Interest: The authors declare no conflict of interest.

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