Sailing into the Future: Leveraging 5G Connectivity in Singapore’s Maritime Sector

In June 2024, Seatrium (Singapore) and Singaporean Communication Service Provider (CSP) M1 Limited signed a Memorandum of Understanding (MoU) to accelerate digital connectivity to enhance shipyard operations with a 5G network as part of Seatrium’s digital transformation. This is part of Seatrium’s digital strategy, which aims to establish a smart yard equipped with future-proof ultra-high-speed connectivity to support a range of innovative applications, including but not limited to smart video analytics, Artificial Intelligence (AI), and digital twin technology augmented with real-time Internet of Things (IoT) capabilities, to enhance the operational efficiency of Seatrium’s shipyards. This recent announcement builds on an earlier partnership in 2022 when 5G connectivity was deployed to enable Augmented Reality (AR) and Virtual Reality (VR) smart glasses solutions. This current partnership aims to further leverage digitalization and virtual technology to enhance the efficiency of remote operations.

According to ABI Research’s Yard Management Technology Trends report (AN-5818), some of the biggest challenges in yard management are the lack of asset visibility, lengthy dry dock times, yard jockey inefficiency, yard congestion, and yard safety. Many of the issues stem from the lack of digital transformation from companies, leading to reliance on manual gate keeping, documentation, inventory management, and asset tracking. Approximately 80% of transportation delays are attributed to yard inefficiencies, and growing complexities for distribution networks are further exacerbating these problems.

Furthermore, the Red Sea crisis that resulted in rerouting ships and prevented cargo from being unloaded at ports in the Middle East worsened the marine gridlock in the Singapore port as congestion and the pile-up of containers grew. The effects are magnified due to the strategic location Singapore has, linking Europe and the Middle East to China. According to Jayendu Krishna, director at Drewry Maritime Services, Singapore’s yard utilization rates rose to nearly 90% in May 2024, surpassing the optimum levels of around 70%. The Maritime and Port Authority of Singapore (MPA) stated that container volumes totaled 16.9 million Twenty-Foot Equivalent Units (TEUs) in the first 5 months of the year, roughly 8% higher than in 2023.

To address the above issues, 5G technology was recommended as a suitable solution to improve efficiencies in port processes that require high mobility. To overcome issues with labor shortages, the low latencies of 5G support autonomous vehicles and enable remote operations through high-speed data transmission, facilitating real-time analytics and decision-making. Furthermore, the use of AR/VR solutions for remote assistance benefits from the high data throughputs enabled by 5G, ensure that more data can be transferred in a shorter period, enhancing real-time interactions.

The Red Sea crisis, that started in 2023, is caused by Houthi rebel attacks on cargo ships and tankers, leading to hundreds of vessels avoiding the Suez Canal. Shipping firms have diverted vessels to the longer route around Africa’s Cape of Good Hope, increasing costs and delays.

With the shipping industry rapidly expanding, ports and yards must enhance efficiency through digitalization to address labor shortages and accommodate increasing traffic in the future.

• Enhanced Connectivity with 5G and IoT Integration: By leveraging the IoT to monitor the yard conditions, utilizing sensors and devices to transmit real-time data on equipment status, location, performance and congestion, significant advancements can be made. This approach not only enhances operational efficiency, but also facilitates proactive maintenance and resource allocation, optimizing overall yard management. Such initiatives are crucial for fostering smarter, more connected maritime environments across Southeast Asia and beyond.
• Automated Operations with Smart Warehousing: Automating warehousing processes is another key area for enhancement, with many positive initiatives from governments and marine companies in ports having been announced. For example, in Singapore, there are plans to transform Tuas Port into the world’s largest automated container terminal, capable of handling up to 65 million TEUs of containers per year, via the use of a private 5G network to support 5G-enabled Automated Guided Vehicles (AGVs) and automated cranes.
• Predictive Maintenance: Predictive maintenance can be practiced by maritime companies to ensure a smooth supply chain in yards. This can be achieved through AI and Machine Learning (ML) where machines are trained based on previously processed knowledge as they establish patterns and generate predictions. By scheduling routine checks for repairs and the transfer of large amounts of data to the control center via 5G networks, potential machine faults can be quickly identified via AI and ML models, thereby minimizing potential downtime due to unforeseen interruptions. As illustrated by previous examples of Keppel Shipyard’s collaboration with M1 Limited, 5G-enabled AR/VR solutions can also assist field engineers with on-site maintenance activities.
• Robotics and Smart Energy Solutions: 5G technology can significantly enhance the operations at shipyards by enabling smart robotics and advanced energy solutions. 5G allows for real-time monitoring of energy consumption across the shipyard, identifying areas of inefficiency and optimizing energy usage. Advanced energy storage systems can be managed and monitored using 5G, ensuring optimal charging and discharging cycles to match the shipyard's energy needs. For example, the MPA and PSA had renewed a MoU on the Port Technology Research and Development Programme in 2023, aiming to prioritize robotic solutions for containers and testing smart grid and energy storage systems, while rolling out its maritime 5G network in phases through mid-2025.

With numerous potential use cases and benefits, ABI Research anticipates significant growth in YMS digitalization spending, reaching US$3.2 billion by 2030 (at a Compound Annual Growth Rate (CAGR) of 28.1%). Investments in YMS through digital transformation are anticipated to drive revenue growth due to the increasing demand for real-time approaches to managing logistics and warehouse operations.