The influential role of ports in pursuing decarbonisation
At a glance
Ports account for around three percent of global greenhouse gas emissions* and are uniquely positioned to be today's net zero pioneers. Operating at the energy-heavy central nexus of international trade and transportation, means ports hold significant influence in shaping more sustainable practices. Devising a strategy, exploring sustainable operations, and energy consumption analysis serve to position ports as catalysts for the energy transition. Identifying sustainable business models outside what's expected or mandated attracts new like-minded partners, customers, and passengers and boosts the bottom line. This article discusses how ports can leverage their supply chain and logistics partnerships and engagement to lead the industry's decarbonisation efforts.
Global supply chain leaders with sustainable leverage
Understanding the interaction of ports with global supply chains, regional trade, manufacturing, production, and consumer markets demonstrates the broad opportunity to set ambitious decarbonisation goals. The shift from traditional receiving models towards transportation and distribution hubs is creating transformation. Ports are seeing new levels of innovation, growth, competitiveness and development – with cleaner and greener ways at the core of this evolution.
Ports operating across a cluster of transport, logistics and value-added services, manufacturing, and tourism benefit from implementing multi-stakeholder programs over time. As an example, a port in the Middle East recently implemented new technology solutions, requesting supply chain partners to undertake new arrival processes. The program's success was based on gradually coalescing stakeholders and bringing them along the change journey. The port pursued incremental changes across supply chain governance, including software systems and paperless gates, and transformed procedures operationally and sustainably. As a result, the port uncovered considerable operational and environmental efficiencies by looking at the challenges and unpacking innovative, feasible solutions. Through improved digital technologies for unloading and reloading, intermodal shifts from roads to rail and waterways decrease the time and energy spent.
Short-term decarbonisation opportunities for ports.
Across the ports industry, a more significant shift in mindset is needed to effectively and timely decarbonise. While a sharpened net zero focus is increasingly required for regulation and compliance purposes, the bottom-line and brand-enhancing opportunities for leading the emissions reduction charge are clear. For example, Maersk has carved out its position as a leader in decarbonisation. Maersk has done this by recognising its role in contributing to global emissions and choosing to go above and beyond compliance and requirements. The organisation expedited action by bringing its net zero targets forward by ten years. One way to accelerate sustainable practices is to become more demanding of supply chains.
On average, 40 percent of goods going through ports are energy-related**. GHD Advisory sees positive impact and output from ports focusing on renewal energy infrastructure, on-shore power supplies, electrification of operations and equipment, hydrogen production, storage and distribution, bio-fueling options and cleaner on-shore power. Many of these focus areas can be considered quick wins. By strategically using incentives and initiatives, rolling out energy transition criteria and timeframes to stakeholders is accelerating decarbonisation action.
Putting decarbonisation plans into practice.
Forward-thinking and sustainably-minded ports are incorporating decarbonisation into their master planning. Creating viable energy transition pathways means developing a coordinated, multi-stakeholder approach and identifying ways to move the agenda forward. Port operators, owners or landlords with stevedores managing terminals can leverage break points in agreements and contracts to renegotiate decarbonisation priorities. Take the opportunity to embed new requirements around standards and adherence to reducing emissions. Utilising its significant purchasing power and change influence, a UK-based port recently contractually stipulated that truck and transport haulage models be zero emission within a set timeframe.
Acting as transformation catalysts, fleet decarbonisation is picking up momentum. The GHD Zero Emission Vehicle Optimisation (ZEVO) tool combines specialist knowledge with data analytics and modelling through electrification, alternative fuels and other technologies. GHD ZEVO provides ports with an understanding and analysis of fleet transition to make practical and realistic decisions. Exploring green-hydrogen vessel designs, green-ammonia and methanol-ready new builds, as well as the use of biofuels based on waste materials, innovative fuel-saving retrofits, and wind-assisted propulsion, is gaining traction.
There is no one-size-fits-all approach to decarbonisation. While some industry leaders may forge ahead with renewable energy bunkering, others may need help with the cost premium or manage new fuel's real and perceived safety risks. Regional differences will also impart their flavour on the decarbonisation of ports with electricity and fuel access likely to vary considerably with the availability of biofuel and hydrogen supply chains or a lack of remote power transmission infrastructure.
GHD Advisory guidance:
While decarbonisation is being held back due to a lack of government-supporting legislation and other external factors, there are practical steps that ports can take to leverage supply chain relationships and accelerate their decarbonisation journey. Driving for a combined voice across industry stakeholders and members interacting with ports sits at the core of opportunity for change. Other ways include:
- As part of a port master planning refresh, develop a decarbonisation strategy on the optimal role of the port in tackling decarbonisation in the land and marine areas or assets under its control.
- As part of your strategy, develop a port-user and community-supported roadmap for the preferred decarbonisation pathway.
- Assess the port organisation's current progress for reporting and establishing a plan to increase transparency and/or compliance with developing sustainability and decarbonisation standards.
- Map all emissions in the port-controlled areas (marine and landside) and understand who is doing what to decarbonise and the opportunities, challenges, and safety/health risks.
- Initiate collective port industry forums on how best to collaborate on decarbonisation solutions and facilitate the needs of port users with their decarbonisation journeys. Establish connections to industry bodies worldwide to come together and act as a combined think tank.
- Undertake preliminary business cases to ensure the identified port decarbonisation roadmap actions are fully understood and budgeted/funded by stakeholders.
Learn more about how GHD Advisory can help you decarbonise through our Integrated Transport Consultancy.
*A review of the port carbon emission sources and related emission reduction technical measures.
** The new energy landscape: impact on and implications for European ports