14 Jul Accelerating growth and fostering innovative practices with technology adoption
Accelerating growth and fostering innovative practices with technology adoption
Logistics industry is among the most complex and is seen as a catalyst to growth in several economies. Even though cross-border trade volumes are soaring year-on-year (except the slowdown during the COVID-19 pandemic), the industry isn’t realizing its true potential due to lack of visibility, lack of efficiency due to poor resource utilization and other challenges such as lack of communication, congestion to name a few.
In order to overcome these challenges, industry bodies have been suggesting technology adoption in the form of a Single Window System/Port Community System for specific documentations as well as for other processes. On the other hand, deployment of a holistic solution such as a community platform or a freight corridor too are widely being utilized in Ports across the world.
Rate of adoption
However, the rate of adoption of single window systems/port community systems has been low in several countries as ports and airports experience reluctance from logistics stakeholders. This apprehensive is due to higher investment to setup a digital infrastructure and fearing a possible cyber security risk. In other countries, there is a lack of long-term vision too, which is a hindrance to achieving 100 per cent technology adoption that eventually leads to trade harmonization.
Implementing a long-term vision
While digitization is a boon to cross-border trade is only in papers for several countries worldwide, some have seriously implemented it with a long-term vision. These countries are in that league of nations that strongly believe digitization will be a catalyst for trade harmonization and economic growth.
As every nation works towards this vision, digital transformation plays a key role as it supports the strategic and vital sectors. The objective of this vision is to bolster the digital economy, through which the country will be able to achieve significant synergies that will contribute to the development of a prosperous nation that is future-ready.
Bridging the gap
The major reason for non-compliance to 100 per cent technology adoption is lack of awareness among the public and private stakeholders. For example, in developed world, the reluctance is due to misconceptions prevalent among the stakeholders.
Industry experts believe that Oman’s vision 2040 is in line with facilitating connections between various government and private entities to ensure data quality, provide a reliable and coherent source of information, and help decision-makers monitor performance, improve the quality of services and set new goals and strategies.
Similarly, the kingdom of Saudi Arabia too announced a US$15.31 billion plan by 2030 to build a diverse and holistic economic ecosystem in the country. The kingdom is eyeing upon further leveraging its geographical location and emerge as a global logistics hub.
The national logistics policy announced in 2022 is a comprehensive initiative and eyes upon reducing the logistics cost and benchmark the logistics sector with global standards by 2030. Integrated planning, multi-modal connectivity and end-to-end stakeholder interactions, standardisation of physical assets and human resources development are some of the action plans set under the policy.
Promising plans and alleviating hindrances
In a nutshell, these single window systems/port community systems bring the right balance to ensure the necessary transformation is taking place real-time. On the other hand, various other governments too are offering the necessary support to help public and private bodies to achieve this vision. These countries are pushing for significant private participation too as it is paramount to achieve 100 per cent adoption and ensure the vision is achieved without any hindrance.