DP World’s expansion and terminal automation plans in the Americas

The recent TOC Americas 2023 event held in Panama was inaugurated with a presentation on Port Automation by Alberto Robinson, VP of Operations and Engineering-Americas for DP World.

Seatrade Maritime News talked to Robinson about the ports and terminals market in Latin America and DP World’s plans and forecasts for the region with 14 terminals from Canada to Chile.

“DP World has expansion initiatives underway across several terminals across the region,” Robinson says. Expansion projects include the Port of Callao in Peru and at the Port of Santos in Brazil.

“The Port of Callao is on the verge of completing its expansion that will increase capacity of the South Terminal by 80%. We continue to modernise operations in Saint John, Canada, with the addition of two new cranes as part of a modernisation project that includes civil works to improve our yard and rail facilities,” he explains.

“In Brazil, substantial investments totalling $35 million are directed towards enhancing the Port of Santos, including capacity expansion, quay extension, and warehouse enlargement for pulp operations.”

“DP World continues to explore strategic investments in various locations in our mission to become a leading provider of end-to-end supply chain solutions,” he adds.

Investment includes in the many levels of automation that can be achieved in new and existing terminals.

“Certainly, when it comes to automation, we have made significant strides. In Vancouver, Canada, our intermodal yard has semi-automated RMGs (rail-mounted gantry cranes) equipped with automation tools. These tools serve a dual purpose: preventing loads from getting too close to our workers and ensuring the quality of inventory management. These cranes are operated remotely and are approximately 80% automated,” Robinson says

“In Brazil, DP World relies on remote operation for its six overhead cranes in the pulp warehouse. With ongoing upgrades to our Warehouse Management System (WMS), we anticipate that these cranes will soon be capable of autonomously executing 70% to 80% of their operational cycle.”

The most complex automated system in DP World’s arsenal is the BOXBAY storage system.

“We are exploring the possibility of introducing our advanced automation and storage system, BOXBAY, to enhance yard capacity at one of our South American terminals,” Robinson says.

“The primary motivation behind this initiative isn't solely automation but rather optimising our yard's footprint and creating better, more efficient, and sustainable operations. This involves innovative approaches, such as storing up to 11 containers within a steel structure, ensuring access to any container without the need to move those on top. Currently, we are in the initial research phase of this project. As we continue to renew our fleet and assess terminal layouts, we remain committed to evaluating and implementing such projects to improve operational efficiency.”

Looking the wider dynamics in the regional market recent transit restrictions and increased costs of using the Panama Canal have seen shippers looking at whether to use South American West Coast terminals to tranship cargoes instead of using the waterway.

Robinson believes that “several factors can impact the selection of shipping routes and transportation modes. It remains uncertain whether a multimodal system can efficiently connect one coast to another, as shipping lines are still addressing draught constraints.”

“In terms of transhipment, an uptick is expected along both South American coasts, primarily due to the accessibility of larger vessels, rather than solely due to fluctuations in Panama Canal costs. The lack of robust rail infrastructure does however limit the potential for greater use of multimodal networks in the short to medium term,” he emphasises.

Robinson says the outlook for Latin American market is positive in 2024. “We certainly, we are currently witnessing a modest uptick in Q4 2023, and we hold a positive outlook for sustained growth throughout 2024. The robust GDP figure from the United States in Q3, a major market for exports from the region, is a positive indicator for 2024.”

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