Ports 4.0 Fund
The “Ports 4.0” Fund emerges as a corporate open innovation model to attract, support, and facilitate the application of talent and entrepreneurship to the Spanish public and private logistics-port sector.
It is structured through a public aid plan with the goal of promoting the creation and consolidation of a network of startup companies or new business lines within existing companies that develop products, services, and innovative processes for the Spanish logistics-port sector, with a market-oriented approach.
This plan is called the Entrepreneurship Promotion Plan for Innovation in the Port Sector “Ports 4.0” and ultimately aims to strengthen and facilitate the adaptation of the Spanish logistics-port sector to the 4.0 economy.
Grant awarded for the CLCircular project
The project “CLCircular. Reverse logistics of IoT sensors for real-time monitoring of goods in maritime containers,” submitted by the company Arctic Sea SL to the Ports 2021 call in the Commercial Projects category, has been one of the 12 selected projects, with the allocation of a maximum grant of €864,462 for an eligible budget of €1,080,577 and an execution period of 22 months.
Project description
CLCircular is a real-time monitoring and traceability system for goods transported in maritime containers, which includes quality parameters (temperature, humidity, impacts), security (door opening detection), and logistics efficiency (geolocation).
The system includes both IoT sensors and a cloud platform, which may be decentralized via public or private blockchain, ensuring traceability not only based on responsible declarations but on the physical and immutable evidence of incorruptible and reusable IoT devices through the automation of reverse logistics.
The project includes the development of a new generation of reusable sensors with global connectivity capabilities and the process of automating their reverse logistics from a holistic business perspective.
Impact on the logistics-port environment
The mission of the CLCircular project is initially focused on reducing product waste (especially food) through real-time monitoring and alerting of the conditions in which products are transported, especially in refrigerated containers. It is estimated that 80% of products that need to be kept at controlled temperatures are inadequately managed because the current cold chain is inefficient, incomplete, non-transparent, unsustainable, and inaccessible to many people and businesses. Consequently, the claim rate for container transport exceeds 50%.
For this reason, it is estimated that the positive impact on the logistics-port environment generated by CLCircular will manifest in multiple ways for the various stakeholders involved:
Exporters and importers: The smooth operation of CLCircular’s reverse logistics for sensors will allow real-time monitoring technology to reach many products that were previously not viable due to their high costs. Its adoption will lead to a reduction of up to 75% in incidents due to inadequate information management (loading instructions, undetected intrusion events, improper temperatures, administrative and bureaucratic issues, etc.).
Insurers: By adopting a real-time tracking and traceability system, they will be able to take preventive actions to avoid claims. Additionally, the generation of data, ideally shared between insurer, insured parties, and adjusters, will enable the automation of events (smart contracts) and the streamlining of indemnity payments, reduction of administrative costs, and acquisition of new business, especially those related to perishable products. It is also estimated that claims can be reduced by more than 75% in certain markets.
Logistics operators: Logistics operators will have access to geolocation information from a third-party source, independent of shipping lines, as they will not rely on AIS vessel data. This advantage, along with the potential to offer an additional monitoring service (hardware installation, tracking, alert management) on top of their existing services, may provide a competitive edge, allowing them to reduce the impact of vertical integration processes currently experienced in the logistics industry and create a new revenue stream.
Port Authorities and, in general, all port logistics community agents: The adoption of a transparent system, potentially open to all stakeholders, not only provides economic advantages by reducing losses but also delivers valuable information to optimize logistics operations in terms of time and cost, enhances security against container intrusion or contamination, combats illicit substance and human trafficking, and offers greater ease for overall regulatory compliance, in addition to providing the opportunity to offer more value to their respective clients in the value chain.
