The Transition of Croatian Seaports into Smart

Ports
M. Jović*, N. Kavran **, S. Aksentijević***, E. Tijan ****
*University of Rijeka/Faculty of Maritime Studies, Rijeka, Croatia
jovic@pfri.hr
**University of Zagreb/Faculty of Transport and Traffic Sciences, Zagreb, Croatia

natalija.kavran@fpz.hr
*** Aksentijević Forensics and Consulting, Ltd., Viškovo, Croatia

axy@vip.hr
****University of Rijeka /Faculty of Maritime Studies, Rijeka, Croatia

etijan@pfri.hr

Abstract - Currently, the most advanced cargo-related
business process management seaport model is a “smart
port”, in which all parts of the seaport operations and
transportation are closely connected through various
networks. Different seaports are in different phases of
system implementation that allows uninterrupted data flow
and interconnections. For example, some Croatian cargo
seaports can be considered “ports in development”, meaning
they are currently only trying to simplify business processes.
The Ministry of the Sea, Transport and Infrastructure plays
an important role in the development of Croatian seaports,
as it has recognized the importance of digitalization and
stakeholder connectivity (shippers, freight forwarders,
maritime agents, etc.), and has taken concrete measures to
achieve digitalization and connectivity. Initially, it is
necessary to enable system integration and stakeholder
connectivity within the seaport, and subsequently connect
the seaports with each other. The first step in the transition
of Croatian seaports into smart ports is the development of
both the Port Community Systems and the National Single
Window. Later on, the goal should be to introduce the
appropriate smart technologies, which should result in
various benefits e.g., accelerated cargo manipulation.
Keywords – smart ports; smart technologies;
interconnected platforms; Croatian seaports
I. INTRODUCTION
Mobility and transport have always played an
important role in economic and social development. With
the increase of cargo volumes, seaport cargo handling
procedures need to be performed in quicker and more
efficient manner. The seaport is a multidimensional
system combined between economical function,
infrastructure system, geographical space and trade [1].
The smart seaport can be defined as “all parts of the port
terminal operations, warehousing, logistics, yard and port
transportation are closely connected through the wireless
network or special network, providing all kinds of
information for daily production supervision, related
government departments and port shipping enterprises”
[2]. According to Kamolov and Park, a transition to a
smart port, takes a lot of time. To achieve such transition,
smart technologies should replace the traditional
technologies, and the processes should be automated [3].
According to Dong Xisong et al., smart ports are based on
the modern electronic information technology, which
represent a service system for transport in seaports [4]. In
this way, services such as collecting, processing, issuing,
exchanging and analysing the use of information are
provided to the participants [4]. According to the
SMART-PORT research project (Action Plan towards the
smart port concept in the Mediterranean Area), which was
co-funded by the MED transnational programme of
European territorial cooperation, several factors affect the
choice of port. These factors can be divided into: port
connectivity regarding the common platform; the level of
electronic information exchange and the costs related to
port operations [5].
Certain Croatian cargo ports are classified as open
ports for international traffic, and they are of significant
(international) economic interest to the Republic of
Croatia. Such ports are ports of Rijeka, Zadar, Šibenik,
Split, and Ploče. Since the cargo throughput in the above-
mentioned ports is economically significant, various
seaport stakeholders are trying to improve their business
performance, to make them more competitive. Different
technologies are used in smart ports, and the usage of
those technologies depends on different factors and
resources used in port operations, such as infrastructure,
cargo handling, security, etc. According to Jens, Delenclos
and Rasmussen, many ports have adopted different
intelligent port technologies, but leading seaports, such as
Hamburg, have connected multiple individual systems to a
single interconnected platform [6]. This type of
interconnected platform integrates data from sources such
as sensors, mobile devices and databases of different
seaport stakeholders.
Not all ports are in the same phase of implementation
of technological systems that will enable digitalization.
That is the reason why some steps need to be taken, from
the initial connecting of the stakeholders within the
seaport to the cooperation between seaports. A smart port
can ultimately be a fully automated port where all devices
are connected by a so-called Internet of Things. However,
most seaports have only achieved a certain, partial level of
integration with the business environment. Deloitte Port
Services claims that if the seaport does follow the market

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 trends, but on the other hand it does not have the defined
and anticipated strategies, the seaport business will not
develop and improve. Becoming a smart seaport means
embracing the following: developing solutions to address
the current and future challenges which seaports face,
including spatial constraints, pressure on productivity,
fiscal constraints, security risks and sustainability [7].
II. INTERDEPENDENCE BETWEEN
STAKEHOLDERS AND DIGITAL-BASED SERVICES
Boston Consulting Group claims that a smart port
technology includes a variety of digital services, which
consists of built-in sensors, truck pre-order systems, and
platforms for data exchange [6]. Seaports should base
their decisions on their role in regional and global trade, as
each seaport has its own specific commercial and
operational needs. According to Jens, Delenclos and
Rasmussen, the following division of stakeholders based
on the management of smart ports technologies exists [6]:
• Infrastructure - port authority, port operators and
terminal operators: smart sensors help them track,
manage, and maintain their physical infrastructure
• Cargo handling - port authority, port operators,
terminal operators, shipping lines, logistics
companies: solving problems with the increased
amounts of cargo
• Intermodal traffic - port authority, port operators,
terminal operators, shipping lines, logistic
companies, cargo owners, rail operators, barge
operators: the technology provides improved
organizational system of operations which
includes cargo trucks and trains
• Customs and Collections - customs, terminal
operators, port authority, port operators, shipping
lines, cargo owners: cargo handling, payments,
trade licenses, import and export permits, and
customs clearances are performed in an easier
way
• Safety and Security- port authority, port operators,
terminal operators, shipping lines, logistic
companies, rail operators, barge operators: they
alert the staff if an unauthorized incursion is
detected, and some ports put additional protection
systems through which they are reporting, such as
network connected biometric scanners
• Energy and environment - port authority, port
operators, terminal operators, shipping lines,
logistic companies, rail operators, barge operators:
help the ports work sustainably
In the time of globalization, when the borders between
countries have disappeared, and the volume of cargo and
dimensions of ships has increased, the port authorities
have increasingly started to face a different set of
challenges. Competition between seaports is becoming
more intense, and only those that successfully respond to
such challenges succeed in maintaining their competitive
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position. Therefore, some port authorities introduce smart
technologies, although this is not enough if the technology
is not adapted to the needs of the port stakeholders
themselves. There is a need for co-operation of all
stakeholders: from local businesses to governments.
According to Deloitte Port Services, Center of Expertise,
“port authorities in Europe and North America are
working hard on fully automated container terminals,
“greenification” of ports and port related economic
activities in the port areas” [8].
As supply chains become more integrated, hinterland
operations become more pronounced. Port authorities
should focus on improving hinterland connections by
taking the lead in drawing up a joint investment program
for the necessary infrastructure improvements; adding that
a port authority can facilitate the application of technology
and enable better insight into traffic flows, helping
enterprises to further optimize their supply chains and
make them more flexible. ''The port authority of the future
is assisting companies through port community systems''
[8].
According to Botti, the port is in a continuous process
of evolution that affects the supply chain stakeholders, but
also the country where the port is located [9].
III. CROATIAN PRACTICES AND INITIATIVES
WHICH LEAD TOWARD SMART PORTS
The port development is divided into four stages:
loading and unloading port; industrial ports; logistics /
supply chain port and smart port [7]. While the first stage
relates only to loading and unloading operations, the last
stage refers to what is increasingly present in developed
ports - the digital integration that makes the seaport smart.
Such seaport shifts its business to become a service
provider, and focuses to the connection of all stakeholders
who contribute to seaport operations. Therefore, smart
ports represent the last development stage where the
digitalization of port activities is at the forefront and
where new services replace traditional practices.
Logistics companies require easy access to
information and port data transparency, and such
technology allows freedom of data exchange among
different smart devices. The data are collected and
analysed to facilitate the exchange of information.
Seaports have a wide variety of smart-port
technologies to choose from, but the key strategic issues
they face should guide the selection process (e.g., an
individual port’s needs can be driven by its location, role
in trade, or level of competition) [6]. In this respect,
seaports can be divided into four categories [6]: emerging
ports, local trade hubs, intermodal ports and city-based
ports (Table 1). Croatian cargo ports cannot be strictly
categorized, and should focus on numerous aspects of the
aforementioned seaport categories. Their main objective
should be to simplify the business processes. Furthermore,
they should also aim to optimize traffic across transport
modes (intermodal gateway) and to minimize impact on
surroundings (city-based port).
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 of the PCS system must be applied in all Port authorities
TABLE 1: A PORT’S INDIVIDUAL NEED DRIVE TECHNOLOGY
STRATEGY in the port areas, with necessary adaptations [12]. This is
the main objective of the project “Design and
Type Focus Applicable solutions implementation of a Port Community System”, with the
Emerging port Ease of doing -Port Community System aim of providing PCS ICT solutions in ports of Rijeka and
business -Single Window Ploče, based on the existing solution in port of Ploče, as
-X-ray scanning well as their integration into the National Single Window,
-Biometric access control
systems
CIMIS system, e-Customs and the existing parts of other
Local trade hub High -Smart cargo-handling individual application systems currently being used.
productivity systems
Anticipated PCS ICT solutions will enable the
-Equipment management and
control optimization of business processes and timely and reliable
-Gate automation data exchange, as well as simplified and accelerated
-Safety management solutions logistics processes among all users/stakeholders.
Intermodal Optimized -Truck appointment systems
gateway traffic across -Traffic-monitoring systems The PCS will be initially implemented in the ports of
transport -Integrated rail and barge Rijeka and Ploče, after which other Croatian ports of
modes platforms international importance (Zadar, Split, Šibenik and
City-based port Minimized -Asset health monitoring Dubrovnik) will be included, with necessary system
impact on -Environment and energy adaptation.
surroundings -Management systems
-Port-wide platforms
IV. CONNECTED TECHNOLOGIES AS A
PREREQUISITE FOR COMPETITIVENESS OF
The Ministry of the Sea, Transport and Infrastructure CROATIAN SEAPORTS
has recognized the importance and advantages of Smart systems based on ICT technology and
digitalization and stakeholder connectivity (such as integrated logistics systems for information exchange
forwarders, maritime agents etc.), in maritime transport. between maritime, urban and road systems enable
These advantages are the business facilitation, the improved port operations. By adopting modern ICT
reducing of administrative mistakes and impediments. solutions, there is a reduction in costs, and in the long run,
Within this, three projects have been developed that there will be a return on funds that were initially invested
will solve the administrative problems faced by in the new ICT infrastructure [9].
stakeholders in the logistics chain of freight transport, According to Heilig and Voß, “Information systems
thereby facilitating data control. The first project refers to have become indispensable to the competitiveness of
the establishment of a National Single Window, an ports, facilitating communication and decision making for
information platform for data exchange and processing enhancing the visibility, efficiency, reliability, and
through the cooperation of the Ministry of the Sea, security in port operations under various conditions” [13].
Transport and Infrastructure, the Customs Administration Providing value-added information services and analytics
of the Ministry of Finance, the Port Authority of Rijeka is increasingly important to maintain a competitive edge
and the Port Authority of Ploče [10]. Besides that, a new and to meet regulatory requirements.
service CIMISNet will significantly improve data
exchange, reduce administrative procedures among Shanghai International Port (Group) Co., Ltd. and
Ministries, all Port authorities, Ministry of the Interior, the Accenture have conducted the research in the area of
Customs administration, Coastal Shipping Agency, smart ports (Figure 1) [14]. They have also emphasized
Croatian Bureau of Statistics etc. Security in cross-border
traffic will also be improved in accordance with Schengen
rules [10].
According to Duvallet, Sadeg and Belfkih, many
challenges in the smart port development exist, which are
also present in Croatian cargo ports: “heterogeneous
technologies: the large equipment list and standards used
in the port, produce and exchange a large amount of data;
large variety of data types: a large amount of data (AIS
data, logistic data, etc.) is used in the port” [11].
In the port of Ploče, the integration of PCS system
with other systems (TOS, CIMIS, etc.) is already present.
The goal is to develop a port logistics center and enable
the automated data exchange based on the concept of
Single Window [12]. Data exchange using CIMIS system
(Croatian Integrated Maritime Information System) has
already been tested and it is now necessary to define the
data exchange structure that will be standard to all PCS Figure 1: Openness and innovation to achieve interconnection in the
systems regardless of the port where they are used; the use value chain of ocean cargo

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 the importance of connected technologies among seaports,
ships, container trucks, connected workers etc.
According to their research, “The most direct and
effective way for traditional industries to embrace
innovation is by introducing innovative forces; The trend
is toward a port ecosystem that is open, interactive, highly
connected, data driven and smart and collaborations
between ports, governments and research institutions are
essential” [14].
The advantages of smart technologies are also
emphasized in the port of Rotterdam: at the same time, it
is possible to gain insight into the business of all
stakeholders and make the process more efficient.
“Digitally optimized berthing can improve safety as well
as efficiency. The guidance can reduce wait times, enable
faster loading and unloading, and allow ships to come and
go more quickly—and shaving an hour from the berthing
process can save ship operators USD 80,000” [15]. The
case study of the Hamburg smart port “has proven that
given the right approach, investing in IoT will yield
results”, and the stakeholders associated with logistic
services have already noticed a reduction in time spent in
the port for increased operational efficiency [16].
Therefore, the impact of Internet of Things technology in
ports as well as development of smart applications will
improve port operations. At last, positive effects on
business processes will be visible throughout the entire
supply chain [17].
Several already existing and worldwide adopted smart
technologies can be applied to Croatian ports such as
smart cargo handling equipment, which reduces operating
costs by up to 10 percent and minimizes idle and
unnecessary energy use [6]. In addition to the economic
and security component, it is important to emphasize the
ecological business aspect in smart ports. A motion-
sensitive terminal lighting system is one of the smart
technologies. It illuminates only when vehicles are nearby
– the port of Valencia reduces energy consumption by 80
percent [6]. Port of Hamburg uses similar smart
illumination at the port roads.
Table 2 shows the advantages of using smart
technologies in seaports by comparing two situations: as-
is (current state) and to-be (future situation).
TABLE 2: DURATION OF THE CONSIDERED ACTIVITIES
WHEN USING SMART ICT
Activity Duration Duration Smart
(as-is) after using ICT
(min) smart ICT used
(to-be) (min)
Truck 15 0,5 RFID
check-out
Locate 15 1 WSN
container
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The as-is situation refers to “a number of manual
steps, such as stopping the truck, delivering the hard copy
of documents to the gate officer, and waiting for the pass
before restarting the truck” [18].
After applying RFID technology, “the activities are
almost totally automated, since, when the truck
approaches the access gate, the RFID allows registering
and controlling the container, thus allowing opening the
gate” [18].
Port of Rijeka represents an intermodal port, and a
multi-purpose port as well, where the port activities are
performed at several locations and terminals. The port of
Rijeka has many advantages such as the geographical
position, the depth of the sea, the resources, and therefore
has become the maritime transit centre of Croatia. In
addition to these characteristics, a major role in the
success of the port is played by its traffic connections with
the rest of the country as well as the surrounding
countries. According to Abbes, seaports benefit from their
strategic positions, but it is necessary to ensure adequate
capacities to meet the potential demand [19]. As a port is
more connected to international maritime routes, it will
attract more global operators. Therefore, the port of Rijeka
could be a competitive and a key connection if
digitalization is increased.
Port of Ploče is also a port of special significance for
Croatia. Recently, new investments have been made in a
new container terminal, bulk cargo terminal, and port
information system. Port of Ploče has recognized the
advantages that this investment could bring: “the increase
in port traffic, economic multiplier effects on the local
community and the narrow gravity area of the port of
Ploče, with the neighbouring Bosnia and Herzegovina will
have positive economic effects by increasing the
competitiveness of their goods due to modern
transhipment facilities in port of Ploče, as well as reduced
transport costs for their goods due to new capacity in port
of Ploče” [20].
V. CONCLUSION
Smart technology solutions enable ports to become
smarter in terms of information flow. Operations such as
tracking, and data collection are used to make the best
decisions and improve business processes. Currently,
attention is directed at data providing services, rather than,
for example, hauling operations. Therefore, smart ports
are the stage in which the digitalization of port activities is
at the forefront and where new services replace or increase
traditional port services. Shareholder cooperation also
plays a very important role in achieving sustainable
business as well. There are numerous ports that turn to
sustainable business procedures, bringing together smart
technologies.
One of the main objectives of Croatian cargo seaports
should be to simplify the business processes as well as to
optimize traffic across transport modes (intermodal
gateway) and to minimize impact on surroundings. The
Ministry of the Sea, Transport and Infrastructure has also
recognized the importance and advantages of
digitalization and stakeholder connectivity: the business
1621
 facilitation, the reducing of administrative mistakes and
impediments.
In port of Ploče, the objectives are: integration of PCS
system with other systems (TOS, CIMIS and others);
development of ports logistics center and enabling the
automated data exchange based on the concept of Single
Window. A well digitalized port allows access to a
common business application system intended for port
management. There is no doubt that this is a strategic
move in which the efficiency of business is at the
forefront.
The port of Rijeka possesses many advantages such as
its position and the depth of the sea at the terminals, but
adequate capacities are essential to meet the potential
demand. Therefore, PCS ICT solution in port of Rijeka
will enable the optimization of business processes, timely
and reliable data exchange as well as simplified and
accelerated business processes among all stakeholders.
The transition of Croatian seaports into smart ports is
definitely possible. The first step toward the transition is
currently in progress: the development of both Port
Community Systems and National Single Window, with
the aim of simplifying information exchange among the
stakeholders. Each seaport faces its own problems or
opportunities, and the transition can be a long and
demanding process. Therefore, in Croatian ports, the goal
should be to introduce as many smart technologies as
possible, which will create numerous benefits, for
example accelerated cargo manipulation.
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