"As the industry moves towards the new millennium, ports are today increasingly challenged to improve on solutions by developing new and advanced technologies and equipment for faster and more efficient movement within the terminal. This is perhaps to the industry's benefit but we must keep in mind that for the new millennium, cargo owners the world over are still stressing on several basic key values - cost and efficiency.

These then are the same basic demands and challenges that the industry faces today, particularly container terminals. With shipping lines building faster and larger vessels, ports are focused on developing current terminal infrastructure to ensure competitiveness. With information and communication technologies taking the new millennium by storm, port management has also to ensure that their terminal automation ranks among the best and most efficient. These are all being initiated, and progress has been significant among the world's busiest terminals.

But these advancements have brought the industry back to the same problems. Shipping lines encounter inefficient ports and this causes delay in the course of their daily business. In turn, ports encounter delays in local modes of transportation resulting in logistical bottlenecks at container yards.

All these have resulted in increasing demand for improved port services.

Volume growth has also been a contributory factor, spurred by the rebound of the Asian economies from the recent financial crisis. The recent quarterly survey published by Drewry Shipping Consultants reported that the world container traffic exceeded 200 million TEUs (twenty-foot equivalent units) in 1999, with the bulk of this increase recorded in Asia handling 53.7 per cent of this volume, an increase of some 3.4 million boxes from 1998's 52 per cent. A recent report by Ocean Shipping Consultant (OSC), World Container Port Market to 2012, also indicated the same whereby it was predicted that the port market would grow by about 25 per cent in 2002.

This upward trend has directly resulted in the need to enhance existing ports to ensure their survival against the emergence of new ports all over the world challenging the established hubs. PSA (Port of Singapore Authority), with its reported new terminal expenditure programme, is expected to accelerate port capacity to some 35 million TEUs a year by 2010 if the market dictates. Simultaneously, Maersk Sealand has shifted its business to its new strategic partner, Port of Tanjung Pelepas, guaranteeing an immediate two million TEUs annually.

Hutchison Whampoa, through Hutchison International Terminals, recently acquired 30 per cent stake in Westport. P&O Port's involvement in Tanjung Perak in Surabaya has seen the doubling of port capacity to at least one million TEUs a year.

For a new port, its attractiveness is largely due to its ability to custom-design a facility towards the needs of present and future generations of container vessels. Accessibility to the port has also been towards minimum depths of 15m to 16m. Large berths with possibilities of working container vessels from both sides of the terminal have also been considered towards increasing productivity. Port equipment, other back-up facilities and information technology (IT) systems have also been designed towards current world standards.

We have also seen in recent times mergers, acquisitions and joint ventures by lines and terminal operators. The emergence of Hutchison, PSA and Maersk Sealand as the world's top three terminal operators has helped create synergies within the respective terminal operator's worldwide network. These practices also enable the port operator to acquire more funds for the continuous expansion and upgrading of existing facilities and equipment. They would also benefit from technology transfer and labour exchange.

The port industry has passed through a transition period in the last 10 to 15 years. The industry has morphed from a labour-intensive, manually- driven business to an efficient and highly sophisticated industry poised to face the challenges of the 21st century. Time spent at wharfs by vessels has also been reduced drastically. One major innovation during this period, which has yet to be tested towards its full potential, has been the use of IT. Port operators around the world are now utilising integrated IT network systems and e-commerce solutions linked to all major port users.

These systems can facilitate the seamless flow of information to the port community and at the terminal side. The use of information technology has proven to be effective in reducing cost and raising service levels by transforming the port business to suit the 21st century corporate mindset.

In this dotcom age, there may be new trends in the 21st century that will lead ports towards being the driving force behind the entire supply- chain model.