CASE STUDY
DP World Takes Port Management to the Next Level With RFID
DP (Dubai Ports) World has reason to be proud to have become one of the
leading terminal operators in the world. Today, DP World has 65 terminals
across 6 continents, and 11 new terminals are under development. The firm
moved 60 million containers in 2014 (about 9 percent of global container trade),
and generated $3.4 billion in revenues, an 11 percent increase over 2013. The
firm employs an international professional team of more than 36,000 people to
serve customers in some of the most dynamic economies in the world.
DP World has adopted a customer-centric approach to enhancing its customers’
supply chains by providing quality, innovative services to effectively manage
container, bulk, and other terminal cargo. The firm invests heavily in terminal
infrastructures, technologies, and people to best serve its customers.
Like other global port and terminal operators, DP World helps shippers around
the world address the often complex and costly challenges of managing the
supply chain. One of the typical problems encountered in container terminal
operations is traffic congestion at port entry points. This congestion is often due
to delays introduced by lengthy procedures and paper-based logistics. In
response, DP World has introduced many IT-based solutions to enhance
terminal capacity utilization. These solutions include the electronic custom
release of cargo, electronic data interchange (EDI) reporting, two-way digital
radio communications, and the “e-token” advanced booking system.
DP World management wanted to take things a step further and decided to
make the loading and unloading of containers operate on “just in time”
principles to improve container turnaround. It found that radio frequency
identification (RFID) technology was an effective way of increasing the efficiency
of truck movements through port access gates. Today, DP World uses RFID-
enabled automatic gate systems at the port terminals it operates in Dubai and
Australia. According to Mohammed Al Muallem, Managing Director of DP World
UAE, the introduction of an automated gate system would not only eliminate
traffic congestion but would also help to eliminate a number of lengthy
procedures, increasing productivity at the ports and improving customer
satisfaction. This will in turn increase the turnaround of shipping goods.
CASE STUDY
DP World Takes Port Management to the Next Level With RFID
Prior to the RFID deployment, DP World spent several months performing proof-
of-concept trials involving several competing RFID suppliers. Because of the
rugged environmental conditions at the ports, DP World required that 99.5
percent of all tags be read successfully, which was a key challenge for many
vendors. After extensive testing and evaluation, DP World selected Identec
Solutions, a global leader in active wireless tracking solutions, as its RFID
supplier.
How does the RFID tracking system work? Trucks that visit a port terminal are
equipped with active RFID tags supplied by Identec Solutions that are fixed on
the rear chassis. As a truck moves towards the gate, its unique tag ID number is
read by an RFID reader, which is integrated with an automated gate system. At
the gate, an optical character recognition (OCR) system determines if the truck
is loaded with a container, identifies the ID number of the truck’s container, and
reads the truck license plate number as a backup identification. The system uses
the supplied information to automatically issue a ticket to the driver specifying
the lane the truck should proceed to in order to load or unload the container.
The system can also automatically determine if the truck is on time, which is
essential information for the efficient pickup and drop off of containers. As the
truck leaves the gate, the RFID tag is read once again, and the driver receives a
receipt for the completed transaction.
RFID has enabled DP World to increase the productivity of container handoffs,
speed the entry and exit of trucks through terminal gates, and increase fuel
efficiency. Victoria Rose, Regional Office Project Coordinator at DP World
Sydney, maintained that RFID would improve gate efficiency through improved
truck management, reducing queues and congestion around gates, and
removing the number of trucks from public roads by streamlining procedures.
Identec’s RFID-based solution has also enabled DP World to improve customer
satisfaction by enhancing the efficiency of customers’ supply chains through
smoother, faster, and more effective delivery of their containers at terminal
gates. The elimination of lengthy paper transactions and manual inspections at
gates and the reduction in manual data input errors demonstrate DP World’s
customer-centric approach to delivering a superior level of service. The
technology also allows transport companies to save time, increase revenues,
and reduce costs.
CASE STUDY
DP World Takes Port Management to the Next Level With RFID
DP World’s use of RFID has also helped it to tighten security by providing better
accuracy on inbound and outbound truck movements through the terminals. For
instance, the system can automatically check whether a truck has a booking and
whether it is authorized to enter the port.
As a next step, DP World will consider expanding its use of RFID-enabled
scanning and tracking technology to further optimize supply chain flow. In the
future, Rose hopes DP World will focus on investigating its use within the yard,
and how data captured can be used.
In 2014, DP World was still going strong, acquiring Economic Zones World for
$2.6 billion in cash. Their main goal was to acquire the Jebel Ali Free Zone, a 22-
square mile plot of land near DP World’s Dubai container port. DP World’s RFID
technologies will be essential to optimizing the use of this new acquisition.
The slowdown in world trade in 2015 is forcing DP World and others in the
supply chain (including ports) to use information and communications
technology (ICT) to drive further improvements in efficiency. In 2016 DP World
had begun replacing humans with robots in warehouses and yard operations,
and is considering investing in autonomous vehicles, simulation and virtual
reality tools, the Internet of Things and Big Data, and advanced cybersecurity
tools. With the return of growth to the world economy, DP World reported 3.2
percent growth in volume for 2016, with especially strong growth of 6 percent
in the 4th quarter of the year.
1. How did Identec Solutions’ RFID-based technology help DP World increase
the efficiency and effectiveness of its customers’ supply chains?
2. Describe two improvements that resulted from implementing the Identec
RFID-based solution.
3. How does the concept of supply chain execution relate to this interactive
session?
4. What managerial, organizational, and technological challenges might DP
World have faced in the early stages of the RFID project’s deployment?
