Phase one of what will be the world’s largest fully automated port is now complete and the Singaporean government are loving it. Prime Minister Lee Hsien Loong sees the port as a jewel in Singapore’s crown, and an incredible infrastructure project that will cement Singapore at the heart of the global supply chain.
The port, now sitting on reclaimed land, is pretty awesome and when finished will be the largest of its kind, boasting the most cutting-edge automated technology. Long gone are the days of crane operators and truck drivers – instead the container port is completely “manned” by robots. This allows the port to run smoothly and at much higher rates of productivity. This in turn will mean a huge handling capacity and much lower costs for importers.
Whilst the technology is impressive and many are to gain, it is worth noting the losers of all this automation and AI based systems. And who is that – people, and many of them, that’s who! Driverless trucks and cranes might sound cool, but for everyone that doesn’t need a driver, that’s one less job for someone.
Without any government support, such as retraining or subsidies, unemployment for those in the shipping industry could spread globally as more ports look to efficiency gains from employing more tech. Bad news for port workers who have honed their skills in this industry as they are likely to struggle finding work elsewhere.
THINK LIKE AN ECONOMIST!
Q1. Define productivity.
Q2. Explain how the quality of capital has increased in the article.
Q3. Explain the impact that increased automation will have on the productivity of the shipping industry.
Q4. What type of mobility is being referred to with regards to the workers in the ports?
Q5. Analyse how the government could support these workers who may lose their jobs.
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