How Port Integration Can Bridge the Digital Divide at the Dock

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How Port Integration Can Bridge the Digital Divide at the Dock


Kris Kosmala, Partner at Maritimo

June 2025

 

African ports are pivotal to the continent’s economy, facilitating the export of raw materials and the import of consumer goods. These ports handle a diverse range of cargo types—bulk (e.g., coal, grain), containerized goods (e.g., electronics, textiles), and general cargo (e.g., vehicles)— and operate under varied management models, from fully public or private to hybrid public-private partnerships. This complexity in cargo and governance poses significant barriers to digitalizing port operations, especially compared to more streamlined global ports like Yokohama, Japan.

Historical Evolution Shapes Today's Port Complexities

African ports emerged as critical trade nodes during the Atlantic trade era between the 16th and 19th centuries, particularly along West Africa’s coastline, where they facilitated the export of commodities—and tragically, people. In the post-independence period, port infrastructure evolved to handle bulk exports such as minerals and agricultural products, while increasing consumer demand led to the need for containerized and general cargo terminals. This evolution resulted in multi-purpose port systems with varied operational requirements and fragmented governance structures.

For instance, South Africa’s ports, managed by Transnet, operate under a landlord model, with the port authority retaining ownership while terminal operations are leased to private operators. In contrast, smaller ports across the continent may remain entirely public. This patchwork of governance models creates a fragmented ecosystem that complicates efforts to modernize and harmonize port operations.

The diversity in cargo and management creates digitalization challenges. Different terminals often use incompatible software systems —such as Terminal Operating Systems (TOS) for containers versus other software for bulk cargo—making port-wide digital platforms difficult to implement. Multiple operators within the landlord models may resist data sharing due to competitive dynamics, further hindering integration. These factors contribute to delays, with average port call durations in Africa often exceeding global averages (40.5 hours in 2023 per CPPI), leading to higher costs and inefficiencies. In a study of the competitiveness of ports in emerging markets, the International Transport Forum found the port of Durban to be the most expensive in the world primarily because of high cargo dues.

Amidst these widespread challenges, the Port of Berbera offers a compelling example of the potential for positive transformation within the African port landscape. Located on Somaliland’s coast, Berbera handles containers, general cargo (e.g., livestock, textiles), and bulk cargo (e.g., cement). Since DP World took over management in 2017, the port has made significant strides: new digital systems were implemented, vessel waiting times dropped from days to hours, vessel productivity rose by 300%, berth moves increased to 75 (compared to the global average of 23.5), and cargo volumes grew by 35%. As a result, the port’s global ranking improved from 245 in 2020 to 103 in 2023. With DP World holding a 51% stake and operational control this enabled unified decision-making and rapid implementation of changes. However, Berbera’s success is not yet replicable across the continent. The port’s multi-purpose operations still require integration across multiple systems, and its progress has been largely driven by DP World’s tailored, operator-led model. Regional political dynamics and the absence of unified digital standards limit its scalability across Africa.

The Yokohama Model: A Model for Streamlined Digitalization

In contrast, container-specialized ports like Yokohama in Japan face fewer digital integration challenges. Located near industrial clusters that manufacture discrete goods such as machinery and electronics, Yokohama focuses heavily on container traffic, with 14 of 24 berths at Honmoku Pier dedicated to container handling.

Yokohama employs the Container Terminal Management System (CTMS) by Mitsui E&S, tailored to Japan’s port governance, which emphasizes on-site decision-making. Despite lacking full automation—crane drivers still manually select work orders—Yokohama achieved a remarkable 1.1 minutes per container move in 2020, compared to the 3.6-minute average of similar ports. This efficiency is credited to the excellence of human-centered practices rather than reliance on automation alone. Yokohama’s focus on containers simplifies digital system integration, and its proximity to industrial clusters enhances supply chain efficiency, making digitalization less complex than in African multi-purpose ports.

While Yokohama operates under vastly different conditions, its success offers actionable lessons. Focusing digitalization on predominant cargo types (e.g., containers) can simplify implementation, as seen in Yokohama’s CTMS. Japan’s unified port governance contrasts sharply with Africa’s fragmented models. African ports need neutral platforms, like Port Community Systems, to enable data sharing among stakeholders.

Moreover, government support is critical. Japan’s Ministry of Land, Infrastructure, Transport and Tourism backs smart port initiatives, such as PORT 2030, integrating AI and Big Data to improve port operations. Similarly, African governments can play a catalytic role by setting digitalization standards, incentivizing data interoperability, and funding infrastructure upgrades.

African ports face unique digitalization challenges due to their multi-purpose operations and diverse management models. While ports like Berbera demonstrate progress, no African port yet serves as a comprehensive model for digitalizing processes crossing port authority, terminal operator(s), government agencies, and logistics services partners of the terminal(s). Yokohama’s success highlights the benefits of specialized operations and unified governance. To advance, African ports must prioritize standardized digital platforms, stakeholder collaboration, and government-backed policies to reduce inefficiencies and support emerging industries, positioning them as competitive trade hubs.

Kris Kosmala is a Partner at Maritimo.

 
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