Smart Technology

Insight: The Future of Container Terminals is Vertical

High-bay storage is a bold rethinking of how to store, move, and manage containers

TLME News Service

Ports around the world are under pressure. Container ships keep getting bigger, cargo volumes keep climbing, and available land for expansion is tighter than ever. Terminals that once relied on sprawling stacks of containers in open yards are hitting their limits. Enter high-bay storage: a bold rethinking of how to store, move, and manage containers.

Instead of piling containers on top of one another, high-bay systems use steel racks, automated cranes, and intelligent software to give each container its own slot. The result is a vertical warehouse for containers that can stretch up 11 stories high. It’s a radical shift, and it’s catching the industry’s attention.

Why High-Bay? The Advantages Stack Up

The biggest win is space. A high-bay system like BoxBay claims it can cut terminal footprint needs by up to 70%. By going vertical, terminals can store thousands of TEUs on a fraction of the land, an advantage that’s especially valuable where real estate costs are sky-high.

Watch: BoxBay - Pushing the Envelope to Discover New Frontiers

Efficiency is another game-changer. In a traditional yard, operators often have to reshuffle containers to get to the one they need. That can mean wasted time and wasted fuel. High-bay storage eliminates that problem - every container is directly accessible. The impact is smoother operations, faster vessel turnaround, and fewer surprises when yard utilization is heavy.

There’s also the safety factor. Automated cranes replace much of the manual equipment, reducing the risk of accidents. Containers don’t have to be shuffled or precariously lifted from unstable stacks, which lowers the chance of damage or injury. Workers spend less time in high-risk areas, and that’s good news for both safety records and insurance premiums.

Then there’s sustainability. High-bay systems are fully electric, with cranes and conveyors powered by clean energy where available. Some designs can even feed on solar panels built into the structure’s roof.

Energy recovery features - like regenerative braking - further cut consumption. Less diesel, less noise, less light pollution, and fewer emissions make high-bay systems a natural fit for greener ports.

The Price Tag and the Payback

High-bay storage doesn’t come cheap. Steel structures, advanced cranes, and integrated IT systems demand a hefty upfront investment. But the equation shifts when you factor in land costs.

In prime port locations, saving three out of four hectares for every 3,000 TEUs stored can translate into tens of millions of dollars. Add in lower operating costs - fewer reshuffles, less equipment, reduced labor, and lower maintenance - and the payback period can be surprisingly short.

At Jebel Ali’s BoxBay pilot, energy consumption came in nearly 30% lower than expected, while move rates on both the waterside and landside beat projections. The combination of higher productivity, lower energy use, and land savings, points to a business case that’s only getting stronger as cargo volumes rise.

Safety and Sustainability in Action

Automation means fewer people in harm’s way. With stacker cranes and conveyors handling container moves, the risks of collisions, toppled stacks, and equipment accidents drop dramatically. Containers stay in stable, secure racks until they’re needed.

On the sustainability front, electrification replaces diesel-driven yard tractors, cutting emissions. The enclosed structure helps curb light and noise pollution, which matters for ports surrounded by growing cities. Taken together, these factors give terminals not just an operational upgrade but also a social license boost.

From Concept to Reality

The best-known high-bay project is BoxBay at Jebel Ali Port in Dubai, a joint venture between DP World and SMS Group. The facility stacks containers 11 stories high, storing nearly 800 units at a time.

During its test phase, the system handled more than 63,000 moves, proving that it could deliver in real-world terminal conditions. For DP World, the payoff is clear: higher throughput per hectare and predictable performance under heavy loads.

The second frontier is Busan, South Korea, where the technology is being prepared for deployment at the Pusan Newport Corporation terminal.

Busan is one of the world’s busiest container hubs, and with land constraints tightening, high-bay storage offers a way to expand capacity without expanding outward. For a port that already handles millions of TEUs annually, the move could reshape how mega-terminals think about land use.

Looking Ahead

High-bay storage is still new, but the momentum is building. The costs are high, but so are the stakes. As terminals juggle surging demand, land scarcity, and environmental pressures, the promise of compact, automated, and sustainable storage is hard to ignore.

The question isn’t whether more ports will follow Jebel Ali and Busan’s lead, it’s about how fast they will do so. For container terminals looking to future-proof their operations, high-bay storage may well be the next big move.

Watch: BoxBay Proves Faster More Energy Efficient Over Conventional Terminals