[Tech Talk] Stealing Information with Port Cranes? The 'Smart Crane' Triggering Chinese Spy Allegations

US Security Authorities Warn of Chinese Cranes
Port Surveillance and Cargo Tracking Also Possible
Some Deny as "Unsubstantiated Claims"

From the world's number one trading port, the Port of Singapore, to the domestic Port of Busan, massive port cranes are invariably lined up neatly at large port facilities. Cranes are equipment used to load and unload containers weighing tens of tons (t) from cargo ships, and they have established themselves as essential facilities in modern maritime trade.

However, recently, the U.S. political sphere has been thrown into turmoil because of cranes. There has been a possibility raised that sensors installed on cutting-edge Chinese cranes could be used as 'spy tools' to monitor the U.S. and its allies. Currently, it is known that 7 out of 10 port cranes installed worldwide are of Chinese origin.

Chinese State-Owned ZPMC Holds Majority Share of Global Port Crane Market

The Port of Rotterdam in the Netherlands, known as the most highly automated port in the world. Installation of container cranes manufactured by Shanghai Zhenhua Heavy Industries Co., Ltd. (ZPMC).
[Image source=Yonhap News]

The claim that Chinese cranes could threaten U.S. security was first raised last month. At that time, the U.S. financial media outlet The Wall Street Journal (WSJ) cited statements from former U.S. counterintelligence officials, reporting that "China could obtain information about cargo that the U.S. military ships domestically and internationally to support operations."

The media likened Chinese cranes to a "Trojan horse," warning that they could become a "second Huawei (Chinese telecommunications equipment company)" and that "(crane manufacturing in China) is a legitimate business that can conceal secret intelligence gathering." In fact, last year, the U.S. Defense Intelligence Agency (DIA) reportedly assessed the possibility that China could disrupt port cargo volumes or spy on unloading information.

The Chinese cranes targeted by U.S. security authorities are highly likely to be those manufactured by Shanghai Zhenhua Heavy Industries Company (ZPMC), headquartered in China. It is a state-owned enterprise specializing in the design and manufacture of container handling cranes and related equipment. For over a decade, it has maintained a global market share of 50-74% depending on the type of crane, making it the world's number one company.

Cameras, Sensors, Cargo Information Software... The Paradox of 'Automated Cranes'

Port of Los Angeles, USA. [Image source=Yonhap News]

Cranes are divided into types such as 'container cranes,' which move containers up and down, and 'gantry cranes,' which move parts during shipbuilding. ZPMC ranks first globally in both fields. However, a crane itself is merely a machine combining large pulleys and levers. So why is the U.S. concerned about Chinese cranes?

Over the past 20 years, cranes have rapidly advanced by integrating digital technology. First, 'semi-automated cranes' were invented, automating the operation of internal mechanical devices, and now fully automated cranes that can move cargo remotely without a human operator have been commercialized. These are called 'smart cranes.'

Smart cranes are equipped with various sensors for remote control. ZPMC, the current leader in smart cranes, automates cranes with a technology called 'Smart Core,' which includes high-resolution closed-circuit television (CCTV), image sensors, and anti-sway sensors that automatically control the swinging of the cables holding the cargo.

From a high vantage point, the field of view expands. CCTV cameras mounted on massive cranes reaching heights of 50 to 65 meters can oversee the entire port, a national strategic facility. This is why the U.S. is wary of Chinese cranes.

However, the truly concerning feature is the monitoring software added to the Smart Core. It tracks the cargo details of incoming ships in advance and positions containers in the most efficient locations. While this function aids logistics optimization and convenience, it could also be viewed as a surveillance tool capable of uncovering all the contents transported by shippers.

ZPMC Cranes Dominating the World Market Are Difficult to Replace in Reality

Chinese-made crane.
[Image source=Yonhap News]

The 'Chinese crane spy tool theory' has sparked significant debate even within the U.S. This is largely because there are many doubts about how Chinese military authorities could transfer sensor information back to their country.

Currently, the Smart Core of ZPMC cranes installed in the U.S. uses cloud services from American IT companies such as Microsoft and Amazon. Implanting backdoor programs to siphon information stored in U.S.-based databases (DB) to China would be an extremely difficult task.

For this reason, the American Association of Port Authorities (AAPA) has also expressed skepticism about the spy tool theory. On the 10th of last month (local time), AAPA stated, "Despite warnings from various media, there is no evidence that Chinese cranes in the U.S. have caused security issues," and explained, "Port cranes are certainly a concentration of cutting-edge technology, but they do not have the capability to track the origin and final destination of cargo containers."

There are also practical issues. ZPMC cranes currently account for about 80% of container cranes at U.S. ports and are installed worldwide beyond the U.S. The U.S. Navy operates in all seas on Earth and resupplies at ports in various countries. Even if the U.S. succeeds in replacing Chinese cranes domestically, as long as ZPMC facilities exist globally, the 'Chinese crane risk' cannot be eliminated.

Busan Port Takes First Step Toward 'Smart Crane Localization'

So, what about the domestic situation? According to data received by the office of Ahn Byung-gil, a member of the People Power Party, from the Ministry of Oceans and Fisheries on the 16th of last month, out of 809 cranes operating at 10 domestic ports, 427 (52.8%) are ZPMC products. At that time, Representative Ahn emphasized, "Ports, as national infrastructure, must maintain the strictest security," and stressed, "A full-scale investigation is needed to check the security of all cranes installed at domestic ports."

However, in the domestic context, the crane risk is expected to be partially alleviated in the long term. The Busan Port Authority, which operates the country's largest port, Busan Port, has been promoting the 'Port Handling Equipment Localization Project' since the second half of last year.

This project aims to replace container cranes, which have relied on foreign products, with domestic technology. In fact, on July 13th of last year, the first domestically produced remote-controlled container crane was successfully installed at the New Port of Busan.

This content was produced with the assistance of AI translation services.