Tackling inefficiencies in the maritime sector with artificial intelligence

Nigeria’s maritime sector is plagued by operational inefficiencies, poor management, weak infrastructure and legal frameworks, resulting in an estimated $7 billion in losses annually and defying all efforts. But stakeholders suggest that adopting AI-driven solutions will improve efficiency, curb corruption and boost global competitiveness. ADAKU ONYENUCHEYA defeated.

While Nigeria’s maritime sector continues to struggle with operational inefficiencies, poor infrastructure and management, corruption, weak legislation and significant economic losses, the integration of Artificial Intelligence (AI) holds the key to solving these long-standing problems and unlocking the sector’s full potential.

Last year, the House of Representatives lamented that Nigeria loses an estimated $7 billion annually as its seaports receive barely 10 percent of West African imports due to poor management and operational inefficiency.

The country’s maritime industry is struggling with overcrowded ports and long waiting times for cargo clearance, leading to delays that cost importers a lot of money and significant losses.

However, experts say embracing AI will transform the country’s maritime industry, improving efficiency, infrastructure and regulations, and reducing economic losses, positioning the country as a global leader in maritime technology.

Experts noted that AI-powered systems can streamline cargo handling, more accurately predict ship arrival times, manage docking schedules, identify inefficiencies in the supply chain, maintain infrastructure and reduce corruption.

This enables port authorities to make informed decisions to reduce waiting times and improve freight throughput in the ports.

These challenges were discussed during the 17th International Maritime Seminar for Judges, organised by the Nigerian Shippers’ Council (NCS) and the Ministry of Maritime and Blue Economy in collaboration with the National Judicial Institute in Abuja.

The Director of the Department of Maritime Law and Studies at the University of KwaZulu-Natal in South Africa, Dr Dusty-Lee Donnelly, highlighted the crucial role AI plays in improving the efficiency and sustainability of the maritime sector. According to him, AI could generate savings of US$50 billion annually.

She described the potential of AI for real-time monitoring, route optimization and predictive maintenance, which can significantly reduce the operational costs of shipping and port operations and reduce the impact on the environment.

She spoke on the theme: “Shipping in the age of innovation and climate change: the role of artificial intelligence, autonomous vessels and decarbonization.”

Donnelly stressed the crucial role that AI will play in shaping the future of the maritime sector, adding that African countries must act now to effectively deal with these changes.

She urged policymakers, educators and industry leaders to develop robust legal frameworks and training programs to leverage the benefits of AI-driven maritime solutions while mitigating risks.

According to the Minister of Maritime and Blue Economy, Adegboyega Oyetola, the future of maritime transport lies in the integration of the Internet of Things (IoT) and data science, including its use for vessel monitoring and tracking, maritime robotics, autonomous shipping and maritime data analytics.

However, experts stressed that AI systems reduce economic losses by detecting anomalies in shipping and transaction data, flagging potential fraudulent activities, irregularities in cargo documentation, discrepancies in shipping routes and inefficiencies in the supply chain, allowing authorities to take swift action against smuggling and theft.

In addition, AI technologies can facilitate exports by optimizing supply chain logistics, reducing delays and minimizing spoilage of perishable goods, which is often a problem for exporters whose goods are rejected.

Abdulkadir Ahmed, Managing Director of NLNG Shipping and Marine Services Limited (NSML), highlighted the transformative potential of AI in the shipping sector and how AI technologies are poised to revolutionize various aspects of maritime operations.

He said this revolution extends from navigation to vessel design and maintenance, significantly improving efficiency, safety and sustainability.

Ahmed explained that AI can significantly improve navigation by helping to plan and execute optimal routes, taking into account factors such as weather, traffic, fuel consumption, port availability and regulations.

He explained that AI can monitor and analyze real-time data about a vessel’s performance, health and environment, and provide alerts and recommendations for corrective action, paving the way for autonomous vessels that operate with minimal human supervision.

On innovations in cargo handling, Ahmed described how sensors, cameras, robots and drones can streamline the loading and unloading process by efficiently identifying, locating, tracking and moving cargo.

He said algorithms and data analytics can optimize storage and distribution to ensure the best arrangement of containers based on various parameters.

According to Ahmed, this technology also enhances cargo security and traceability through biometrics, blockchain and smart contracts, ensuring compliance with customs and regulatory requirements.

Ahmed further highlighted the capabilities of AI in the field of maintenance, which is crucial for preventing and detecting failures.

According to him, AI can use sensors, cameras, robots and drones to monitor and inspect ship components and perform predictive and preventive maintenance to avoid costly failures.

Ahmed spoke about improved security and logistics, indicating that AI technologies can prevent and respond to threats such as piracy, terrorism and cyber attacks through advanced sensors, cameras and robots.

Furthermore, inadequate legislation and poor regulatory compliance have long been a hindrance to the maritime sector in Nigeria.

Experts stressed that AI can support the development of more effective policies and improve regulatory oversight through technology capacity building.

President Bola Tinubu’s Special Assistant on Artificial Intelligence, Fernandez Marcus Obiene, stressed the need for robust regulatory frameworks and continuous professional development.

Speaking on “Optimizing Maritime Operations through Advanced Digitalization”, he said Nigeria is skeptical about full automation while other countries are more positive, noting that global satellite application systems and control systems play a vital role in the shipping industry.

Obiene outlined four levels of automation: manual, remote, semi-autonomous and fully autonomous, noting that achieving full automation in Nigeria faces regulatory and technical challenges.

He said Nigeria needs to put in place regulatory frameworks that take into account these technological changes. The shipping and port industry also needs to navigate complex regulations to ensure safe and efficient operations, he said.

The Executive Secretary of the Nigerian Shipping Council, Ukeshima Akutah, said the government will invest in automated port systems and deploy AI to improve service delivery and enhance global competitiveness in the maritime sector, while addressing the challenges of the modern maritime sector.

Akutah pointed out that the transition to automated systems and AI could pose several challenges, including potential job losses.

However, he said that to address these concerns, we must focus on capacity building and diversifying knowledge portfolios on the use of AI technologies and autonomous vessels.

The NSC chief noted that investment in maritime education and training would be prioritised for both the judiciary and maritime operators to equip the workforce with the necessary skills for the changing sector.

“Investments in capacity building, diversification of knowledge portfolios, maritime education and training will fill potential gaps arising from the new developments in the maritime and shipping sectors through the deployment of technology, AI and autonomous vessels,” he said.
The Secretary to the Government of the Federation (SGF), George Akume, stressed the need for a robust judiciary against the backdrop of globalisation and rapid developments in international trade.

He pointed out that advances in shipping technology, geopolitical conflicts and changes in maritime law require judicial officers to be well equipped to resolve maritime disputes efficiently.

The Vice Chancellor of Rayhaan University, Kebbi State, Prof. Mohammed Ahmadu, spoke on the “Legal Implications of Emerging Technology and Automation” and stressed the need for self-regulation and capacity building in information technology legislation in the maritime sector.

He stressed the need to regulate technology through self-regulation with regulatory standards so that we can keep pace with the rapidly evolving digital technology in the maritime sector.

Ahmadu said the judiciary must embrace digital legal literacy and automation systems to effectively deal with new technologies in the maritime sector, noting that capacity building in universities and the public sector is critical to addressing the challenges posed by new technologies in the legal field.

He pointed out that the country’s Constitution stipulates government support for the development of science and technology, as per Article 18, while Article 37 emphasizes the privacy of communications, laying the foundation for automation and AI.