Background: In the context of the latest fourth Industrial Revolution, more and more people have a growing awareness of the concept of Industry 4.0. It has a wide range of applications in various fields and is also particularly important in port logistics. For small and medium-sized ports, digital transformation is significant important since they play a vital role in the supply chain. However, such ports still face many obstacles from digital transformation.

Purpose: The study aims to investigate and understand the application of Industry 4.0 in small and medium-sized ports, identify challenges and opportunities related to the implementation of Industry 4.0 technologies by analyzing existing advantages. Thus, help small and medium-sized ports better achieve the transformation of port digitization.

Method: The method in this thesis is based on grounded theory. Besides, the researchers have chosen interpretivism to utilize surveys with port executives to examine the successful digitalization processes in different sized ports. The methodology employed involves a combination of qualitative data, quantitative and secondary data to support the findings. Additionally, the researchers incorporate stakeholder theory to assess the potential advantages and barriers associated with the digital transformation of ports.

Conclusion: The researchers found that the technologies should be implemented in priorities such as digitization and Closed network system. Researchers also identified major barriers to implementation which are financing and knowledge & expertise. Most ports have recognized the importance of Industry 4.0. The main benefits of Industry 4.0 are improved operations and cost saving.