Port Efficiency: The Application of Blockchain Technology in the Construction Material Supply Chain

Abstract

The Port of Durban has recently experienced operational delays, which have affected its performance. Delays at the Port hinder the timely completion of projects in South Africa's construction sector. Hence, this exploratory research focuses on identifying, through the literature, the suitability and consequences of using blockchain technology to facilitate the supply chain for construction materials. Furthermore, the port productivity of the Port of Durban was compared with that of Rotterdam harbours. The Quantitative Research Approach aligns with this research philosophy and underpinnings. Secondary data are collected from the port website, and the Malmquist Productivity Index is used to determine the enablers of Port Productivity from 2017 to 2023. The heterogeneity of the port cases limits the generalisation of findings. However, policymakers, project managers, investment planners, and operational practitioners will benefit as the possibilities of blockchain technology in enhancing the supply chain of construction materials are discussed. Due to time constraints, the data is limited to the period of 2017-2023. The research findings show that technologies such as Blockchain and artificial intelligence are major drivers of port productivity at the Port of Rotterdam. The application of various customised technologies has improved the Port of Rotterdam's productivity. The construction sector is in dire need of effective, efficient port systems, given the multiple stakeholders and projects. The application of Blockchain technology, especially with smart contracts, provides a degree of flexibility.

Keywords: Blockchain, Construction Material Supply Chain, Efficiency, Productivity, Port of Durban and Rotterdam.