Digitisation and automation of the shipping sector will have a big impact on bringing industry in Papua New Guinea into the 21^st century, Swire Shipping Country Manager Alistair Skingley tells Business Advantage PNG.

Swire Shipping is planning digital upgrades to secure its competitive advantage in the market. Credit: Swire Shipping

Swire Shipping is the liner division of the China Navigation Company, a wholly-owned subsidiary of UK-based John Swire and Sons Ltd. Papua New Guinea is Swire Shipping’s core market.

Swire Shipping Country Manager Alistair Skingley expects services in PNG will remain stable in 2019, but the company has plans for digital upgrades to secure its competitive advantage in a tight market.

‘We are focused on building a platform to improve our operational efficiency and the implementation of ecommerce solutions to save time and make it easier for customers to interact with us.’

Swire is primarily looking at implementing digital solutions for customers to conduct business online, and to be able to track and trace shipments easily.

Ecommerce solutions the company is investigating include online booking platforms that may provide the option to purchase insurance and other products as part of the booking process.

‘Imagine if we could use data analytics and predictive intelligence to anticipate or reduce delays.’

Story continues after advertisment...

‘These features mean customers can interact with us in a more efficient manner.’

‘By tracking their shipment the business can make alternative arrangements if cargo has gone off schedule,’ Skingley adds.

Narrowing gaps

Swire Shipping’s Alistar Skingley

While a broader infrastructure improvement is needed in PNG, in terms of coastal shipping solutions and road transportation, Skingley says digital upgrades for all stakeholders could help to boost sectoral productivity.

‘At a senior level there is an understanding that upgrades are needed. We need to look at where the gaps are at local level, and seek to narrow these.’

Skingley says Swire is happy to work with local agencies and authorities to share its experience and expertise to further improve the shipping sector.

Clearing cargo at destination rather than at gateway could be one tactic that would benefit the sector.

And through the digitisation and automation of processes, the waiting times could be reduced drastically.

‘There are often delays of six hours on every port call which, if happening throughout PNG, could be adding two to three days of additional time on each shipment.’

‘PNG’s shipping companies are currently working through the implications of Low Sulphur Fuel regulations that will come into force next year.’

‘Imagine if we could use data analytics and predictive intelligence to anticipate or reduce such delays. There would be significant benefits to both port and customer, ‘ he says.

A much-needed uplift in the shipping sector and broader community is likely to come from the introduction of the Coral Sea Cable System.

Other challenges

PNG’s shipping industry is working through the implications of the Low Sulphur Fuel regulations. Credit: Swire Shipping via Facebook

PNG’s shipping companies are currently working through the implications of Low Sulphur Fuel regulations that will come into force on January 1st, 2020.

These regulations will see the limits for the sulphur content of ships’ fuel, known as bunkers or bunker fuel, capped to 0.5 per cent in areas outside the four emission control areas currently in operation, which limit sulphur levels to 0.1 percent in fuel.

Skingley says this is a significant challenge for the sector and Swire is working to find an equitable and commercially acceptable way to fund the additional expense.

Throughout the next six months, Swire’s team in PNG will be working through a number of options and ensuring customers are kept up-to-date on changes in cost.

‘This change in regulation will have a huge impact, which is why it’s even more important we develop other efficiencies where possible,’ Skingley says.