Baltic Transport Journal 3-4/2022

№ 3-4/2022 (107-108), MAY/AUGUST

ISSN 1733-6732

Baltic Transport bimonthly-daily companion

REPORT

Baltic general cargo & passenger markets in 2021 S U S TA I N A B I L I T Y

How elites pollute the most but pay the least

OFFICIAL MEDIA PARTNER OF:

Journal

LEGAL

Recommendations for fending off ransomware in shipping

The Port of Opportunities The Port of HaminaKotka is a versatile Finnish seaport serving trade and industry. The biggest universal port in Finland is an important hub in Europe and in the Baltic Sea region.

Welcome to the Port of HaminaKotka!

haminakotka.com

Dear Readers,

L

ooking back in ten or 20 years at 2022, we will probably reminisce that it had a decently cool summer... Though the heat waves by and large omitted my place, where it was absurdly autumn-ish (+13 when most of Europe got scorched by nothing less than +30-35), the pattern is clear as burned with a pyrography machine: climate change is riding roughshod over greater and greater spaces. It will be a bleak consolation that, for instance, the 2037 grape harvest around Gävle or Hanko went unexpectedly well.

More air conditioning won’t solve the issue.

That is why the greening transport & logistics theme continues to occupy a fair share of our pages. This time around, we are starting with two Charts of the Issue. One is about the time required for transitioning from the less to the more clean versions of what are already alternative fuels. The other infographic shifts our focus to another ingredient of dealing with global warming: CO2 removal (with which even the laboured shipping industry experiments). Here is a DIY tip on a microscale: plant a plant; even better – turn your dwelling into a small-scale jungle (believe me, every effort counts!).

Industry-wise, we are hosting an interview with Carbon Neutral Consulting’s Steve Crolius, among others, on the organisation’s The Ammonia Report. This piece is followed by several other splendid climate-focused reads, including a shocking article on carbon inequality (about how elites pollute the A Summer’s Day (1915) by Oskar Fischer; photo: Artvee most but pay the least); on researchpowered setting up of e-methanol production in the Baltic Sea region (where else!); a legal analysis of whether the EU can require the fuel providers to pay for part of the extended Emissions Trading System (rather than passing it all to consumers); the role marine insurance can play in motivating the industry to partake in the green change; and a read that throws down the gauntlet to the notion that electrification will save us all.

Technology topics have also been prominent in our journal for the past couple of years, and this summer issue isn’t an exception. You will find reads about remote inspection techniques; digital pivots in the maritime business (with artificial intelligence taking centre stage); digitalisation in ports’ sustainability strategies; using a digital DNA to understand a vessel; digital developments in support of seafarer health and well-being; recommendations for fending off ransomware in shipping; and how tech-based relays can solve the truck driver shortage.

I sincerely hope other columns will also garner your attention as they cover equally important themes: tackling bio-content in marine fuels or playing out the new cranes and existing docks matrix. Lastly, an extraordinary mention goes to the article from the Mission to Seafarers on a gender-balanced workforce that rounds up the key challenges for women in seafaring.

And there is always Transport miscellany for a wee bit of relief from the sizzling sun and the grave concerns about humanity’s future on the third rock from the sun. In it, you will read about the connecting power of art, a lighthouse-turned-clock that struck a round quarter of a millennium, acquainting teenagers with the diversity of the on- and offshore maritime employment opportunities, and riding a teensy-weensy car from Poland to Italy (including by a pair whose joint age is 188!). All things counted, I’m pretty sure you won’t find this issue all sizzle and no steak.

Przemysław Myszka

EDITORIAL Baltic Transport Journal Publisher

BALTIC PRESS SP. Z O.O. Address: ul. Pułaskiego 8 81-368 Gdynia, Poland office@baltictransportjournal.com

www.baltictransportjournal.com www.europeantransportmaps.com Board Member

BEATA MIŁOWSKA

Managing Director

PRZEMYSŁAW OPŁOCKI

Editor-in-Chief

PRZEMYSŁAW MYSZKA przemek@baltictransportjournal.com

Roving Editor

MAREK BŁUŚ marek@baltictransportjournal.com

Proofreading Editor EWA KOCHAŃSKA

Contributing Writers

IJEOMA AJIBADE, ALEXANDER BUCHMANN, MITJA CABONI, HENRY CLACK, LAURENT HENTGES, ESA HENTTINEN, GRANT INGRAM, FELIX JUNG, PATRIZIA KERN-FERRETTI, MARIGOLD LANGLEY, JAANA NIEMI, AOIFE O’LEARY, ANDREW PEERS, RICHARD PHILLIPS, PIERRE POITRAS, CHRISTOPHE SABY, FITZWILLIAM SCOTT, ANDRZEJ URBAŚ, MARK WARNER, MATTHEW WITTEMEIER

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Head of Marketing & Sales PRZEMYSŁAW OPŁOCKI po@baltictransportjournal.com

If you wish to share your feedback or have information for us, do not hesitate to contact us at: editorial@baltictransportjournal.com

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PRZEMYSŁAW OPŁOCKI tel.: +48 603 520 020

Cover

Port of Oxelösund ISSN 1733-6732

№ 3-4/2022 (107-108), MAY/AUGUST

Baltic Transport bimonthly-daily companion

REPORT

Baltic general cargo & passenger markets in 2021

Journal

LEGAL

Recommendations for fending off ransomware in shipping

S U S TA I N A B I L I T Y

How elites pollute the most but pay the least

OFFICIAL MEDIA PARTNER OF:

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Go to www.baltictransportjournal.com and click: SUBSCRIPTION or contact us at subscription@baltictransportjournal.com

3-4/2022 | Baltic Transport Journal | 3

LINER SERVICE EUROPE GREAT LAKES

The first and only yearround liner service between Europe and the Great lakes Quick transit time | Through bills of lading | Onward connections using Spliethoff’s European and American logistic network | Line-supplied containers, project, heavy lift, steel, forest products and bulk| Calling various Great Lake ports, including: - Valleyfield QC - Cleveland OH - Duluth MN - Ramey’s Bend ON - Chicago IL - Monroe MI www.spliethoff.com or greatlakes@spliethoff.com

CONTENTS

3

REGULAR COLUMNS

3 8 10 12 16 20 22 24 26

Editorial BTJ calendar of events Market SMS What’s new?

Map news Made in China What’s in the Cabinet Venture forth Charts of the issue: – Comparing apples with apples to cut emissions and costs, and worldwide development of LNG use and infrastructure – Mind the gap: carbon dioxide removal 88 Events: ECG aims to create new normal in volatile reality – Instability rules the vehicle logistics sector

by Ewa Kochańska 90 Collector’s corner: A trip down memory lane

by Marek Błuś 92 Transport miscellany 94 Who is who

28 42

LEGAL

42 Requiring oil majors to pay – A legal analysis of whether the EU can require the fuel providers to pay for part of the extended Emissions Trading System rather than passing it all to consumers

by Aoife O’Leary 46 Cyber hijack – Recommendations for fending off ransomware in shipping

by Henry Clack 48 Safety in store – Addressing warehouse risks

by Andrew Peers 50 Responsible environmental stewardship – Bringing the insurance ecosystem together around a common purpose

by Patrizia Kern-Ferretti

MARITIME

28 Managing challenges by investing in the future – Highlights from the Port of Turku’s recent and coming strategic investments

by Jaana Niemi 30 A wholesome transformation – On the (automation) road to post-COVID-19 shipping recovery

by Alexander Buchmann 32 Lightening the load – New cranes and existing docks

by Richard Phillips 34 Powerstudy – Assessing the life-cycle potential of renewable eMethanol as green electro-fuel

by Felix Jung 36 Engage in the future – here and now – Interview with Steve Crolius, President of Carbon Neutral Consulting

by Przemysław Myszka 38 Tiny critters, huge losses – Bio-content in marine fuel helps reduce emissions – but will it leave you ‘all at sea?’

by Pierre Poitras 40 Geopolitics, energy transition, and the Pomeranian region – Interview with Wojciech Tyborowski, Director of Invest in Pomerania

by Andrzej Urbaś 3-4/2022 | Baltic Transport Journal | 5

1,600 tonnes on the move.

For your heavylift project, our crane even travels at full load. www.liebherr.com

Maritime cranes

CONTENTS

52

74 SUSTAINABILITY

52 Carbon inequality – How elites pollute the most but pay the least

by Ewa Kochańska 56 Behind the curve – Towards a gender-balanced workforce: key challenges for women in seafaring

by Reverend Ijeoma Ajibade 58 Crew welfare at the centre – Digital developments are supporting seafarer health and well-being

by Marigold Langley 60 Think beyond – The framework of sustainability: why electrification isn’t all good

by Matthew Wittemeier 62 The adventure – Interview with Michel van Roozendaal, President, Kalmar

by Przemysław Myszka

65

TECHNOLOGY

74 Sustainable at the core – Using the digital DNA to understand a vessel thoroughly

by Esa Henttinen 76 Data-powered, real-time port sustainability – The role seaports can play in greening shipping – thanks to digitalisation

by Grant Ingram 78 The route to regulating MASS – Terminology critical for developing autonomous ship regulations

by Fitzwilliam Scott 80 The best of digital and human – What benefits will the expansion of remote inspection techniques bring

by Laurent Hentges 82 Make it happen!

– Driving innovation – in Europe and abroad

by Mitja Caboni 84 Digital pivots – Artificial intelligence and maritime innovation

by Mark Warner

REPORT

65 Baltic general cargo & passenger markets in 2021

by Marek Błuś and Przemysław Myszka

70

NEWSLETTER BPO

70 BPO Digitalization Working Group discusses current projects in Baltic ports

by Andrzej Urbaś 72 The latest BPO report analyses the impact of climate policies and regulations on the port sector

by Andrzej Urbaś 73 Baltic Ports Conference 2022

by Andrzej Urbaś

86

LOGISTICS

86 Europe’s road freight market – relayed – How tech-based relays can solve the truck driver shortage

by Christophe Saby 3-4/2022 | Baltic Transport Journal | 7

BTJ CALENDAR OF EVENTS Baltic Ports Conference 2022, 7-8/09/22, PL/Gdynia, www.balticportsconference.com This year's Baltic Ports Conference (BPC) comes to Gdynia, Poland, on 7-8 September. Join us at the Baltic Ports Organization's (BPO) premium event for a series of insightful presentations and discussions on the main topics shaping the current and future landscape of the European and Baltic maritime industry: geopolitics, energy transformation, trade, and decarbonisation.

Baltic and Black Sea Ports & Shipping, 27-29/09/22, LT/Palanga, www.transportevents.com Hosted by the Port of Klaipėda, the conference & exhibition will focus on connecting international trade and investment between the Baltic and the Black seas. The two-day conference programme will feature 30 world-class transport and logistics speakers addressing global & regional issues. More than 250 participants are expected, representing a rich stakeholder cross-section from across the two regions.

International Rail Forum & Conference 2022, 5-7/10/22, CZ/Prague, irfc.eu/en The International Railway Forum & Conference (IRFC) is one of the leading events in the international railway calendar. It will bring together top executives and decision-makers, rail and logistics professionals, customers, influential politicians and institutions from across Europe.

The 2022 edition will, i.a., focus on innovative technologies and best practices in rail freight and logistics in Europe and across the Euro-Asian market, along with European and Asian manufacturers, freight and intermodal operators and forwarders presenting solutions, products and services. The best railway-related projects will be showcased, too.

Bulk Terminals Riga 2022, 11-12/10/22, LV/Riga, www.bulkterminals.org/index.php/events The conference sets the scene with a bulk markets analysis, continuing with a complete programme that addresses operators’ concerns with sound practical solutions. The event will tackle issues such as improving safety, streamlining operations, ensuring environmental protection, digitalisation (incl. cyber risks), development opportunities, and the lasting effect of COVID-19 on bulk terminal operations. Bulk Terminals Riga 2022 will also zoom in on the regional and international fallout of China’s dispute with Lithuania and the war in Ukraine.

WOF EXPO, 12-13/10/22, CZ/Prague, wofexpo.com It will be the second year of the international B2B exhibition focused on the Central & Eastern Europe region. This year around, it will place at PVA Expo Prague. Similar events abroad inspired the organisation of the WOF EXPO, as CEE, a very dynamic region, had none.

From the need to an idea to a bustling B2B business platform, an innovative logistics, e-commerce, and supply chain event was born. WOF EXPO will be the ideal spot for anybody seeking and presenting opportunities for the ‘New Europe’ region – your go-to networking event.

TOC Americas, 18-20/10/22, PE/Lima, www.tocevents-americas.com TOC Americas is a market-focused conference & exhibition which takes place annually in one of the world’s key shipping hubs. This conference-led event is the complete container supply chain show for Americas, bringing together shippers, logistics providers, shipping lines, 3PLs, port authorities, terminal operators and other key audiences to learn, debate and network. Dry bulk shipping professionals will also have a dedicated conference track.

Understanding the Total Cost of Ownership, 26-27/10/22, online, www.bulkterminals.org/index.php/events/ courses-and-training The objective of the course is to raise awareness amongst bulk terminal buyers of the need to behave in a better-informed way and equipment suppliers to understand the operational needs of the gear they are supplying. The course will be delivered through expert presentations, case studies, and group work facilitated by The Wolfson Centre for Bulk Solids Handling Technology and the Solids Handling & Processing Association (SHAPA).

TOC Asia, 29-30/11/22, SG/Marina Bay Sands, Singapore, www.tocevents-asia.com After two years of industry change, port technology advancement and digital acceleration, we are pleased to bring the industry back together face-to-face. Take part in our two-track content agenda to hear from change-makers within the global container supply chain and discover the latest innovations within terminal operations. Alongside our first-class conference, you will also benefit from a global port technology exhibition and the return of TOC’s famous social programme.

transport logistic, 9-12/05/23, DE/Munich, www.transportlogistic.de/en The world’s leading trade fair for logistics, mobility, IT, and supply chain management has been taking place in Munich since 1978. The trade fair, accompanied by a conference programme, presents the optimal solutions for every requirement, combining innovative products, technologies, and systems with pooled expertise and a strong sales focus.

8 | Baltic Transport Journal | 3-4/2022

BTJ CALENDAR OF EVENTS

Stockholm is a lovely city.

Avoid it.

The capital of Sweden attracts thousands of people every day. Commuters, tourists, taxis, you name it. The closer you get, the slower the traffic – and cargo transports – moves. Delays that can put a serious dent in your logistics.

But when you face a problem, go around it. At the Port of Oxelösund, just a short distance south of Stockholm, we offer the possibility to bypass the heavy traffic completely. And, as a bonus, we have a direct connection to Sweden’s biggest motorway, European route E4. No more traffic jams, just smooth sailing.

The Port of Oxelösund is more than a port. We can handle your entire logistics chain and optimize every part of your goods’ journey, from start to finish. Our goal is to be the Baltic’s leading port terminal, with Europe’s best stevedoring services.

oxhamn.se

3-4/2022 | Baltic Transport Journal | 9

For more Market Statistics Made Simple please visit: www.baltictransportjournal.com

Tallink & Silja Line: 211,318 ro-ro cargo units carried in H1 2022 (+8.6% yoy)

The company’s ferries served 2,272,435 passengers (+227% year-on-year) along with transporting 365,943 private vehicles (+81.6% yoy).

The Port of Tallinn:

2.79m international ferry & cruise passengers served in H1 2022 (+188% yoy) In addition, the port’s subsidiary TS Laevad transported 955k passengers across domestic ferry routes, an increase of 12% on the H1 2021 result.

Tallink & Silja Line’s volumes Route Estonia-Finland Finland-Sweden Estonia-Sweden Total Estonia-Finland Finland-Sweden Estonia-Sweden Total Estonia-Finland Finland-Sweden Estonia-Sweden Total

H1 2022 yoy Freight traffic [ro-ro cargo units] 147,913 +9.2% 37,679 +5.3% 25,726 +10.7% 211,318 +8.6% Passenger traffic [ferry travellers] 1,305,605 +143% 768,312 +456% 198,518 +917% 2,272,435 +227% Private vehicles in ferry traffic 306,515 +71.0% 45,505 +111% 13,923 +1,792% 365,943 +81.6%

Finnlines:

393k ro-ro cargo units carried in H1 2022 (+0.5% yoy) The company’s fleet also transported 742kt of non-unitised freight, an increase of 8.8% on the H1 2021 result. On the other hand, fewer vehicles were carried, down 18.9% year-on-year to 73k units. More passengers (including truckers) sailed with Finnlines, up 25.4% yoy to 286k travellers.

The Port of Riga:

The Port of Tallinn’s volumes H1 2022 yoy Cargo traffic [thousand tonnes] Wheeled (ro-ro) 3,531 +9.7% Liquid bulk 3,169 -28.3% Containerised 1,140 +23.2% Containers (TEUs) 146,821 +33.6% Break-bulk 367 +54.5% Non-marine 6.0 +1,130% Total 9,518 -14.8% International ferry & cruise traffic [thousand passengers] Tallinn-Helsinki 2,453 +179% Tallinn-Stockholm 183 -1 Muuga-Vuosaari 79 +27.8% Cruise 54 -1 Other 24 -18.7% Total 2,793 +188% 1

No traffic in H1 2021

The Port of Raahe:

2.39mt handled in I-V 2022 (+15.2% yoy) The Finnish seaport took care of 2.03mt in import (+17.3% year-on-year) and 355.6kt in export traffic (+4.4% yoy). Additionally, 56 TEUs went through Raahe relative to 75 twenty-footers in January-May 2021.

11.32mt handled in H1 2022 (+11.5% yoy)

The Port of HaminaKotka:

The Latvian seaport took care of 6.66mt of dry bulk (+22.2% year-on-year), 3.86mt of general cargo (+8.3% yoy), and 795.5kt of liquid bulk (-29.8% yoy).

Riga’s container traffic rose by 18.2% yoy to 240,956 TEUs. The port also welcomed passengers: 25,299 cruise travellers (later, on 7 August 2022, the Latvian seaport celebrated welcoming its ten-millionth passenger).

Whereas exports contracted by 9.7% year-on-year to 5.25mt, imports advanced by 6.4% yoy to 1.95mt and cabotage by 1,012% yoy to 292.6kt.

The Finnish ports’ container traffic decreased by 6% yoy to 305,998 TEUs.

The Port of Halland:

13,542 TEUs handled in Q1 2022 (+21.6% yoy)

976kt handled in Q1 2022 (+0.2% yoy) The Swedish west coast ports of Halmstad and Varberg took care of 630kt of general cargo (+1.8% year-on-year), 242kt of dry (-2.8% yoy) and 104kt of liquid bulk (-1.9% yoy). Halland’s container traffic lost 20.8% on the Q1 2021 result, down to 11,087 TEUs. Ro-ro traffic also contracted: by 5.6% yoy to 8,798 units. Fewer vehicles were handled, too, a decrease of 31.5% yoy to 11,846 units. On the other hand, more passengers were served, a 37.9% yoy rise to 10,298 ferry travellers (plus 1,394 private cars, 476% more than in Q1 2021).

7.49mt handled in H1 2022 (-2.4% yoy)

The Ports of Stockholm:

At the same time, 127,713 ro-ro cargo units were handled across Kapellskär, Norvik, Nynäshamn, and Stockholm, a 3.3% increase on the Q1 2021 result. The Ports of Stockholm overall took care of 2.36mt (+9.5% year-on-year), including 2.1mt of general cargo (+5.1% yoy), 219kt of dry (+48% yoy), and 46kt of liquid bulk (+254% yoy). The ports’ finished vehicle logistics business handled 6,459 units (+4.6% yoy).

The ports’ ferry traffic amounted to 914,710 travellers (+144% yoy), along with 136,218 vehicles brought onboard ferries (+56.9% yoy).

The Port of Helsingborg: 2.23mt handled in Q1 2022 (+6.8% yoy) The Q1 2022 unitised freight traffic saw 68,373 TEUs (+4.3% year-on-year) and 119,769 ro-ro cargo units (+9.2% yoy) passing through the Swedish seaport’s quays. Of the total, general cargo accounted for 2.11mt (+7% yoy), with the remainder comprising 64kt of liquid (-12.3% yoy) and 52kt of dry bulk (+30%). Helsingborg’s passenger traffic advanced by 88.7% yoy to 803,841 travellers. Some 130,964 pax cars were transported in ferry traffic (+114% yoy).

10 | Baltic Transport Journal | 3-4/2022

MARKET SMS The Port of Szczecin-Świnoujście: 17.49mt handled in H1 2022 (+2.8% yoy) The ports’ leading trade, general cargo (excluding timber), totalled 9.09mt (-1.8% year-on-year), of which ferry cargo accounted for 7.43mt (-1.1% yoy). Some 3.30mt of liquid bulk was taken care of (+29.1% yoy), including 2.01mt of liquefied natural gas (+34.8% yoy).

The Polish ports also handled 1.59mt of iron ore (+68.2% yoy), 1.39mt of other dry bulk (-8% yoy), 1.16mt of coal (-28.6% yoy), 825.2kt of grains (-18.7% yoy), and 127kt of timber (+31.2% yoy). Szczecin-Świnoujście’s container traffic amounted to 35,075 TEUs (-16.1% yoy).

The Port of Oxelösund:

Rostock Port:

Dry bulk, the Swedish port’s leading trade, advanced by 52.7% year-on-year to 1.48mt. The seaport also took care of 154kt of liquid bulk (-49% yoy) and 93kt of general cargo (+8.1% yoy). Oxelösund’s container traffic rose by 136% yoy to 2,504 TEUs. At the same time, fewer ro-ro cargo units (1,458) were handled, down 55.9% on the Q1 2021 result.

With 9.1mt, wheeled (ro-ro) cargo topped the German Baltic seaport’s freight traffic. Dry bulk came in second with 3.6mt (including 1.77mt of grains). Liquid bulk handling totalled 1.42mt, while break-bulk’s – 313kt.

Some 314.4k ro-ro cargo units went through Rostock’s quays, including 218k trucks, 88.2k trailers, and 8,150 railcars. The port’s intermodal rail traffic amounted to 64k units.

1.72mt handled in Q1 2022 (+27.2% yoy)

14.4mt handled in H1 2022

The Port of Antwerp-Bruges: 147.2mt handled in H1 2022 (+1.4% yoy) Whereas containerised freight handling contracted by 9.8% year-on-year to 74.1mt, other general cargo groups advanced: wheeled (ro-ro) by 8.9% yoy to 10.9mt and break-bulk by 22% yoy to 6.4mt. The turnover of liquid and dry bulk also rose: by 16.5% yoy to 47.3mt and by 17.6% yoy to 8.7mt, respectively. The ports’ finished vehicle traffic increased as well: by 2.4% yoy to 1.72m cars. Container-wise, Antwerp-Bruges took care of 6.77m TEUs, a decrease of 6.2% on the H1 2021 result.

The Port of Liepāja: 43,235 ro-ro cargo units handled in H1 2022 (+49.8% yoy) The Latvian seaport also took care of more containers, up 90.2% year-on-year totalling 9,572 TEUs. The Port of Liepāja’s H1 2022 overall freight turnover amounted to 3.88mt (+15.2% yoy), including 2.57mt of dry bulk (+14.4% yoy), 1.12mt of general cargo (+35.4% yoy), and 194.7kt of liquid bulk (-34.4% yoy).

The port’s passenger traffic advanced as well; with 35,872 travellers, it was an increase of 105% on the H1 2021 result.

"THE BEST MAP OF THE NEW SILK ROAD! * NOT A REAL QUOTE (BUT WOULD BE IF MARCO POLO WAS HERE WITH US – SCAN THE QR CODE AND CHECK FOR YOURSELF!)

3-4/2022 | Baltic Transport Journal | 11

For more news items please visit: www.baltictransportjournal.com

Esbjerg orders another LHM 800

Liebherr’s new LHM series – presented

The largest and most powerful mobile harbour crane in Liebherr’s portfolio will land at the Danish seaport in 2023, while it awaits delivery of an LHM 600 by 2022-end.

It will be Esbjerg’s second LHM 800 in a fleet totalling seven Liebherrs as of next year. The newest machinery will be used for handling the ever-growing wind turbines. LHM 800 alone can lift 308t; in tandem mode, using the Sycratronic system developed in co-op with the Port of Esbjerg, up to 616t can be pulled. Importantly, tandem lifts make it easier to handle long cargoes, such as rotor blades that can measure over 90 m in length. Sycratronic is a computerised assistance system for operating two cranes with one operator. The solution monitors operation to avoid overloads and compensate for the displacement of components being loaded. Some four-fifths of Europe’s installed offshore wind energy capacity has been shipped out of Esbjerg. The port handles more than 0.5mt/year of wind turbine components. Esbjerg received its first Liebherr mobile harbour crane, an LHM 1080, in 1994. In 2019, the Danish seaport took hold of its first LHM 800.

The latest product line features a new crane control system (Master V), advanced sensor integration, and digital information transmission. The position of the outrigger system is now monitored by sensors, forming part of the internal data processing. Using a new outrigger base in the field only requires a software update by Liebherr. Digital IP cameras are used for better monitoring of the crane interior and the external crane environment. An independent power circuit supplies the new control, meaning the machinery can be continuously monitored by cameras and protected without activating the crane ignition. The new series also features the Liebherr Pactronic 2.0 hybrid hydraulic drive system.

An accumulator serves as energy storage and provides support when needed by supplying additional, temporarily stored power. Pactronic 2.0 offers two operating modes: Boost and Green. The former acts as a power amplifier, increasing lifting speeds. Liebherr says the new LHM with Pactronic 2.0 achieves the same performance parameters as a comparable device with two main units. The Green mode has been designed to save fuel or power consumption and reduce CO2 emissions. During the lifting process, Pactronic 2.0 supports the main unit to such an extent that less power is required by the main drive, despite the lifting speeds remaining the same. By setting the individual lifting height, the power output of Pactronic 2.0 is adjusted accordingly.

The additional energy is distributed over the entire lifting process. The new Pactronic reacts to changes in the outside temperature and the accompanying change in pressure in the reservoir. The cabin of the new LHM has also been redesigned to provide increased comfort, precision, and safety.

Botnia Enabler – delivered The Chinese CIMC Raffles shipbuilding yard handed over the brandnew con-ro vessel to Wallenius Sol on 13 May 2022, the first in a series of two. The 242 by 35.2 m Swedish-flagged ship offers 6,442 lane metres of carrying capacity. The 1A Super ice-class Botnia Enabler serves the Zeebrugge-Antwerp-Kokkola-Skellefteå-Oulu-KemiTravemünde stretch. According to the shipping line, thanks to the new vessel, the service’s ro-ro and container capacities will increase by 100% and 300%, respectively. Wallenius Sol calls Botnia Enabler a multi-fuel ship, meaning she can sail on liquefied natural gas (LNG), bioLNG, diesel and its synthetic version. The sister ship Baltic Enabler joined the service in question in the penultimate week of August.

Photo: Liebherr

Fredriksskans is again on track The Port of Gävle’s intermodal terminal has been put online following increased demand for rail transportation of both containers and trailers.

Located close to the port’s quays and warehouses, the facility spans 50k m2 and offers a 550 m long track. Yilport Gävle, the port freight operator, is in charge of handling the flows. The company has invested in two reachstackers to take care of the traffic. In parallel, the official launch of Yilport’s upgraded container terminal in Gävle was celebrated on 18 May 2022. The facility’s annual handling capacity has been doubled to 600k TEUs. 12 | Baltic Transport Journal | 3-4/2022

Photo: Henrik Sundkvist/Wallenius Sol

WHAT’S NEW? Świnoujście-Szczecin Fairway – deepened DEME and Van Oord have completed dredging the 65 km long channel, which now offers 12.5 m of depth (previously 10.5 m). Approximately 24m m3 of material was dredged, among others, by DEME’s Scheldt River and Meuse River and Van Oord’s Vox Amalia and HAM317. The material was used for creating two artificial islands, one of them as a new natural habitat. Ober 9,000 trees and bushes were also planted as part of the project’s greenery works to create new wildlife habitats.

Deepening the Świnoujście-Szczecin Fairway also proved to be DEME and Van Oord’s largest unexploded ordnance campaign (a five-tonne bomb was one of the ‘discoveries;’ after a year of research and preparations, the so-called Tallboy was safely detonated in situ by the Polish Navy). As well as the deepening works and the new islands, the parties carried out shore protection works and underwater reinforcements and installed cables and navigational aids. The deeper fairway will make it possible for bigger & heavier vessels to call the Port of Szczecin.

Photo: Van Oord

New domestic ferry for the Turku archipelago Deltamarin has won the tender for providing the complete basic design and major parts of the detail design of a vessel for Finferries, which HL-Metal will build in the Finnish Pargas. The 30.8 by 7.8 m ferry, offering 25t of carrying capacity and space for 99 passengers, will start operating on 1 May 2023, serving islands north of Nagu in the Turku archipelago.

Enabling sustainable development Through close cooperation with the industry, WALLENIUS SOL is building a sustainable and long-term infrastructure around the Gulf of Bothnia.

Join us on the journey.

Read more at wallenius-sol.com

3-4/2022 | Baltic Transport Journal | 13

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Green Cargo and LKAB strike a deal The Swedish state rail freight haulier will transport raw materials between Luleå and the mining company’s Ore Fields (mines in Gällivare and Kiruna).

The traffic will include seven weekly runs, with around 1,200t carried daily. The agreement will also see Green Cargo modernising its customer interface and providing LKAB with a dedicated customer service team responsible for deliveries and developing new digital and operational services.

Meanwhile, Green Cargo has exercised the option to take in additional Transmontana-Mb locomotives from Softronic. The new rolling stock will enter traffic in 2024, increasing Green Cargo’s Transmontana-Mb fleet to 22. The new machines will serve the company’s traffic in northern Sweden, carrying industrial raw materials. They will replace Rc locomotives, as one Mb can pull the same weight as two Rcs. The freed-up Rcs will be, in turn, used for intermodal transports.

Photo: Green Cargo

DCT Gdańsk to grow with a new quay

New plot for port development in Szczecin

The Budimex-Dredging International consortium will construct the T3 expansion, increasing the terminal’s handling capacity by 1.7m TEUs to 4.5m/year. T3 will cover 36.5 ha of yard area and a 717 m long and 17.5 m deep quay wall. The project will also see DCT Gdańsk purchasing seven ship-to-shore cranes capable of serving the largest container ships and 20 semi-automated rail-mounted gantries. Operationally, T3 will come online at the end of 2024’s second half, while the full commissioning is planned for Q2 2025.

The port authority is looking for investors interested in developing a total of 44.6 ha across the under-construction Norwegian and Danish and the existing Finnish quay. The area, divided into four yards, will be made available to investors in 2023. The future Norwegian quay will offer 12.5 m of water depth and 300 m of berthing space. Ships 240 m long and 32.3 m wide will be able to call the new quay. A rail terminal, capable of serving 750 m long train sets, will be located next to the new infrastructure.

Longer freight trains tested in Sweden With the help of the Swedish Transport Administration, the Swedish arm of TX Logistik has tested an 838 m long train across a 500 km stretch between Malmö and Frövi. The pilot train carried 48 trailers with foodstuffs from the Swedish retail chain Coop, achieving speeds of up to 120 km/h. Currently, 630 m long trains are permitted on most of the country’s routes. TX Logistik Sweden has been operating the Bro-Malmö service on behalf of Coop since 2012, which currently offers 20 weekly round trips. Coop’s transports are handled 30% by rail, and the company hopes to increase that share. The involved parties intend to continue testing longer trains in Sweden.

Photo: TX Logistik/Kasper Dudzik

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WHAT’S NEW? New made in the Baltic drop-in marine fuel tested

Photo: Neste

Neste and Nordic Marine Oil have developed the Neste Marine 0.1 Co-processed marine fuel, said to enable up to 80% greenhouse gas emission (GHG-E) reduction over the lifecycle compared to fossil fuels. The new product, ISO 8217-compliant, is produced at Neste’s refinery in the Finnish Porvoo, where renewable raw materials are co-processed with fossil raw materials in the conventional refining process. The sustainability characteristics of the co-processed marine fuel are certified with International Sustainability and Carbon Certification (ISCC PLUS) with a mass balance approach. The GHG-E reduction has been calculated using a method guided by the EU Renewable Energy Directive II (EU)2018/2001. Nordic Marine Oil started offering the new fuel in Denmark as of May 2022.

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environmentally friendly energy. The port, with it’s business mindset, is constantly developing and expanding. There is ongoing expansion of the RoRo-port with a 3:rd berth and widening of berth no. 2 for 230 m long vessels.

Also shore-to-ship power connection, extended line-up areas and more. Large investments are planned for development of the rail infrastructure.

3-4/2022 | Baltic Transport Journal | 15

For Europe-wide maps news on ro-ro & ferry container intermodal please visit: www.europeantransportmaps.com

New rail service between Slovakia and Turkey METRANS’ container trains will be, as of 3 September 2022, connecting its terminal in Dunajská Streda with Halkalı with two weekly round trips.

Photo: METRANS

Finnlines to kick off a new freight service As of 23 July 2022, the company’s ro-ro Finnpulp connects Rosslare and Zeebrugge with two weekly round trips. The 187 m long freighter offers 3,259 lane metres of cargo capacity. “We are delighted to support the growing post-Brexit Irish trade to the Continent and provide transport operators with an important alternative route, which will greatly benefit all stakeholders and the Irish economy. Finnlines provides cost-efficient and highfrequency liner services to its customers with the lowest CO2 emissions per transported cargo unit,” Antonio Raimo, Line Manager, Finnlines, said.

New rail ferry for Estonia-Finland traffic – in the making Fennorail has entrusted Deltamarin with designing a vessel for carrying trailers, trucks, and railcars. Eurocarrier will offer 2,500 lane metres of capacity, including 1,000 for train cargo (of the 1,520 mm gauge). Plans speak of connecting Estonia and Finland’s TEN-T rail networks, with Paldiski as the receiving port on the Estonian side. According to Sjöfartstidningen, Eurocarrier will initially offer two daily round trips. The newbuild could enter traffic as soon as 2025. “We strive to make the train ferry climate-friendly and profitable. The train ferry will have multifuel marine engines that can run on either pure LNG [liquefied natural gas], a mixture of LNG and green hydrogen or marine gas oil (MGO),” Kaj Jansson, Member of the Board of Fennorail, highlighted.

16 | Baltic Transport Journal | 3-4/2022

Photo: Deltamarin

MAP NEWS Tallink Grupp charters out two more ships

Hansa Destinations’ capacity – doubled

Slaapschepen Public has, on behalf of the Dutch Central Agency for the Reception of Asylum Seekers, chartered two ferries up till now serving traffic in the Baltic. Silja Europa, previously sailing between Helsinki and Tallinn, started the new assignment in the Netherlands on 20 August 2022, while Galaxy (Stockholm-Turku) will join her on 20 September 2022. Both have been taken in for seven months, with an option for an additional quarter of a year. The charter covers Tallink Grupp’s technical crew only. Silja Europa and Galaxy join Isabelle and Victoria I; the former provides accommodation for refugees in Tallinn, while the latter – in Scotland. In the meantime, the company’s subsidiary Tallinn Swedish Line handed over the 1972-built 1,000 lane metres of capacity ro-ro Sea Wind to the new owners on 26 April 2022 in Tallinn’s Paljassaare Harbour. Tallink Grupp has rearranged its schedules following the sale: the 2,087 lm ferry Regal Star was shifted from the KapellskärPaldiski service onto the Muuga-Vuosaari route according to Sea Wind’s schedule. The 1,400 lm ro-pax Sailor has thus remained alone on the Kapellskär-Paldiski connection, though now serving extra departures.

On 25 April 2022, the subsidiary of Rederi AB Gotland deployed the ro-ro Eliana Marino (174 by 25 m, 2,500 lane metres of carrying capacity) on the Nynäshamn-Rostock service. The route served together with Drotten (1,650 lm) now offers six instead of three weekly round trips. The charter of the Italian-flagged Eliana Marino will last till January 2023.

Photo: Hansa Destination/Marc Ottini

Changes to BAX Hapag-Lloyd has changed its Baltic Sea Express (BAX), with the new, as of 4 May 2022, loop including the ports of Hamburg, Helsingborg,

POH_205_x_133.5.qxp_(BTJ Package 2021) 13.04.21 Seite Helsinki’s Vuosaari, Tallinn’s Muuga, and 17:28 Rauma.

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Port of Hamburg Marketing Pickhuben 6, 20457 Hamburg, Germany Phone: +49 40 377 09-0 E-Mail: info@hafen-hamburg.de 3-4/2022 | Baltic Transport Journal | 17

For Europe-wide maps news on ro-ro & ferry container intermodal please visit: www.europeantransportmaps.com

New South-North Sweden shuttle in place The Lund-based First Row Shipping & Logistics has kicked off a container rail service that connects Umeå’s brand-new rail terminal with APM Terminals Gothenburg. The train set, which runs once per week in both directions, offers 68 containers of capacity. First Row Shipping & Logistics expects to add more round trips after the summer of 2022. “We see a huge need for this shuttle, and we have found goods flows that we barely knew existed that want to utilize it. The fantastic thing about Umeå, in particular, is that the goods are so diversified, with many players creating a broad mix of, above all, industrial exports,” Nikolas Rowland, CEO of First Row Shipping & Logistics, underscored. The company’s first container shuttle, the 1,400 km long Gothenburg-Piteå route, has grown over the months from one to three weekly departures.

Photo: First Row Shipping & Logistics

New Czechia-Germany rail service The Austrian freight haulier Rail Cargo Group (RCG) has added the Mělník-Wilhelmshaven container connection to its network. On their way, RCG’s trains will pass the Czech Děčín and the German Maschen and Huden.

Northbound, trains will leave Mělník on Mondays and return on Tuesdays.

Hupac ups the frequency of its Germany-Poland service The company has doubled the number of round trips between Samskip’s Duisburg Rail Terminal (DRT) and METRANS’ Terminal Hub Gądki to six per week. In addition, Hupac will launch two terminals in the coming months. First, in September 2022, in Brwinów near Warsaw, which will replace METRANS’ Pruszków in the company’s Gądki-Pruszków service (three/week). The 14 ha big terminal in Brwinów will offer four rail tracks for 750 m long trains, plus a 42k m2 warehouse. Next, probably in 2024, Duisburg Hohenbudberg will become operational, taking over Hupac’s operations from DRT.

New Germany-Sweden intermodal rail service

Brand-new ro-ro service between Latvia and Sweden

On behalf of Samskip Multimodal, TX Logistik has started connecting Duisburg with Katrineholm with two weekly round trips. The trains – 700 m long and carrying up to 42 cargo transport units (trailers and containers) – link the Duisburg Rail Terminal with the GDL facility in Katrineholm via Padborg, the Öresund/Øresund Bridge, and Malmö. The service mainly carries industrial and consumer goods.

As of 1 June 2022, the Riga-based Scandic Line offers a new connection between the ports of Riga and Södertälje, with three weekly round trips. The crossing is served by the 108.5 by 17.5 m Midas, offering 1,030 lane metres of freight capacity for trucks & trailers, vehicles, and other cargo loaded onto mafi trailers.

Photo: Samskip

Photo: Scandic Line

The Bettembourg-Poznań-Swarzędz rail service grows in frequency CFL intermodal, a subsidiary of CFL multimodal, has increased the number of round trips by one to four a week between Luxembourg and Poland. Earlier, a Bettembourg-Poznań-Swarzędz train set consisted of up to 38 cranable and non-cranable trailers loaded onto 15 double-pocket for the former and four Modalohr wagons for the latter. From mid-June 2022, the composition changed to 11 pocket and eight Modalohr wagons.

18 | Baltic Transport Journal | 3-4/2022

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The Port of Kaskinen handles over 1 million tons of goods annually.

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MADE IN CHINA Gebrüder Weiss to strengthen its presence along the Middle Corridor The Austrian transport & logistics service provider has announced it will place a pronounced focus on serving Asia-Europe freight traffic along the New Silk Road’s southern trade lane. Thomas Moser, the company’s Director and Regional Manager Black Sea/CIS, highlighted, “We expect demand for road transports to increase as China re-opens its borders, having closed them as a result of the coronavirus. The fact that we have long-term contracts with reliable regional partners means that we can offer our customers sufficient cargo space, regular services and acceptable transport times.” Gebrüder Weiss will use its logistics centres in Almaty and Tbilisi to take care of the expected increase in volumes. Apart from transportation (air, rail, sea, road), the company also offers customs clearance, warehouse logistics, and e-fulfilment services. According to Kazakhstan Temir Zholy, the state’s railways, the country’s Caspian ports in Aktau and Kuryk have so far seen a doubling of their cargo handling this year, including container traffic.

Photo: Gebrüder Weiss

China to Germany via the Middle Corridor…

A new multimodal (rail-sea) service is up & running, connecting Xi’an with Mannheim through the Caspian and Black seas and Central Europe. The first train set, loaded with apparel, sporting articles and other goods, left China on 13 April 2022, crossing Khorgos on its way. The load was transshipped in Aktau for sea delivery to Baku, where the containers boarded a train for another transloading in Poti, from which the ship carried them to Constanța. A train was formed in Romania, heading to Mannheim via Hungary, Slovakia, and Czechia.

... and from China to Iran, too The brand-new service sees trains departing Ningxia in central-north China, passing Khorgos on its way to the Port of Aktau, from which it crosses the Caspian Sea to the Iranian port in Bandar-e Anzali.

Rail-linking Central Asia

New China-Italy rail service

The Kyrgyz have proposed a new railroad that would better connect their country with China to the east and Uzbekistan to the west. The link with the former would start in Torugart, from which it would go to Kashgar, already connected to Ürümqi, an established New Silk Road nod. There have been plans to join Kyrgyzstan and China by rail for two decades, but only recently have they started taking shape. The three countries are working on a feasibility study, intending to kick off the construction works in 2023.

Contship Italia and Bahnoperator have teamed up to launch a route that connects Chonqing and Melzo. The service’s trains leave China every Sunday, with plans to have additional departures also every Wednesday in the future. The transit time is 22 days. As revealed by Yuxinou Logistics, the first set carried €10m worth of goods (clothing, home appliances, daily necessities).

China completes the Taklamakan Desert Railway The country has opened the 2,712 km long loop that goes through the world’s second-largest desert. Trains can travel through the new rail line with speeds reaching 120 km/h. There are 22 stations along the way, including six cargo ones. The Taklamakan Desert Railway runs through the Xinjiang Uygur Autonomous Region, and China hopes to increase rail exports of local goods (cotton, minerals, red dates, walnuts). Several anti-desertification measures have been implemented to preserve the new infrastructure, among others, planting 13m of trees and installing 50m m2 of grass grids.

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3-4/2022 | Baltic Transport Journal | 21

WHAT’S IN THE CABINET Next step for including shipping in EU ETS – taken

The European Parliament (EP) has voted, and the European Council has agreed, on their positions regarding the future shape of the EU Emissions Trading System (EU ETS), both supporting the inclusion of shipping in the mechanism.

The European Community Shipowners’ Associations (ECSA) have welcomed the move, especially the institutions’ support of the mandatory pass-through of the ETS costs to the vessel’s commercial operator in line with the ‘polluter pays principle.’ ECSA would, however, like to see the earmarking of the funds generated by including shipping in the EU ETS for helping the industry in its transition towards clean operations: by bridging the price gap between clean and conventional fuels through, among others, carbon contracts for difference. Sotiris Raptis, ECSA’s Secretary-General, commented in this regard, “80% of the current ETS revenues are used for the energy transition of other ETS sectors, and we need to see the same happening in shipping. It’s a makeor-break moment for the decarbonisation of shipping and the competitiveness of the sector.” Other associations have also welcomed the voting agreement. Still, they have voiced their concerns surrounding the potential negative impact of including only half of the emissions on voyages between EU and non-EU ports. The Federation of European Private Port Companies and Terminals (FEPORT) said in a press release, “Evasive calls to non-EU ports can have harmful consequences for business activity and employment in EU ports, but also for the environment. That is, by changing routes, ships will lengthen their voyages and avoid being financially accountable for their emissions under the Emission Trading System of the EU.” The organisation cites studies indicating the increased risk of some EU seaports losing their business.

In contrast, other NGOs, like Transport & Environment, bring forth research that says port call evasion that may result from shipping becoming part of EU ETS will have a marginal effect on the EU port business. The EP has proposed to include all emissions on extra-EU voyages from 2027. The institution has also brought forward the proposition to subject vessels originating from non-EU transhipment ports to double the costs until 2027. Moreover, says FEPORT, the EP and Council’s positions include a “port of call” definition that excludes stops in a non-EU transhipment port, “implying that such port calls cannot be used to trick the system.” Together with the European Sea Port Organisation (ESPO), FEPORT urges EU policymakers to strengthen the position of the block’s ports by, i.a., facilitating the public financing of green refuelling and recharging infrastructure as well as opening funding opportunities for terminal operators to green and improve their equipment’s performance. To that end, ESPO adopted the Valencia Declaration on Empowering Europe’s Ports during its most recent annual conference.

A minimum hydrogen quota – proposed Energy providers, shipping companies, and NGOs have rallied to call on the EU to introduce a minimum quota of 6% sustainable and scalable hydrogen fuels by 2030. Last year the European Commission proposed the FuelEU Maritime Regulation aimed at increasing the uptake of alternative marine fuels.

“Unfortunately, the law fails to guarantee the competitiveness of sustainable and scalable e-fuels, and risks promoting cheaper, unsustainable fuels,” Transport & Environment underlined in a press release. The organisation’s Policy Officer Sustainable Shipping, Delphine Gozillon, furthered, “An ambitious shipping fuels law will be key to set the shipping sector on course for full decarbonisation.

Sustainable e-fuels are currently too expensive compared to other alternatives such as fossil LNG and biofuels, holding back investments in production facilities, refuelling infrastructure in ports and zero-emission ships. However, with a bit of a push e-fuels produced from renewable hydrogen can be scalable. That’s why we need a quota to get the ball rolling and encourage companies to start investing in clean shipping fuels. Shipping does not need to be a dirty industry forever.”

The All Aboard Alliance – formed The Alliance for a Diverse, Equitable, and Inclusive Maritime Industry has been set up to lead the transformation towards a more diversified, inclusive and attractive maritime industry, ensuring equitable opportunities for everyone. The Alliance has detailed a few of the most pressing challenges of structural character the sector faces: attracting and retaining workers among a global talent shortage; meeting stakeholders’ expectations on improving diversity, equity and inclusion; and accommodating more innovation (in operations, problem-solving and decision-making). The All Aboard Alliance has been designed around five principles.

First: appoint a business sponsor to lead and ensure accountability of diversity, equity and inclusion within the organisation. Second: equip and educate people to understand their role in fostering a diverse, equitable and inclusive workplace – from senior leaders through to line managers and team members. Third: create and maintain an organisational culture of equity and belonging where everyone has equal opportunities to contribute and thrive. Fourth: capture relevant data and develop insights to evaluate progress and evolve strategic objectives.

Fifth: communicate commitment and progress externally on an annual basis.

Photo: Canva

World Ports Tracker – launched The International Association of Ports and Harbors (IAPH) has produced the first edition of its quarterly dashboard and detailed report for its members. The World Ports Tracker aims to monitor the evolution of the port industry’s critical aspects, including cargo handling trends and passenger traffic. The report part also delves into hinterland connectivity, warehouse utilisation, and regional analyses of the data collected from small and large seaports and river ports. Additionally, the World Ports Tracker includes forecasts from respondents on how they see vessel calls, cargo volumes, and passenger traffic in the upcoming 12 months. IAPH members will get hold of the next edition of the World Ports Tracker at the turn of the year.

22 | Baltic Transport Journal | 3-4/2022

WHAT’S IN THE CABINET Winners of the #IAPH2022 Sustainability Awards – chosen During the International Association of Ports and Harbors’ (IAPH) World Ports Conference 2022 in Vancouver, the organisation’s latest set of acknowledgements was handed over to award those championing sustainability in its various aspects. Antonis Michail, IAPH’s Technical Director, commented, “With projects from 26 different countries this year, we are delighted to see that such a diverse group of winners have been selected from the Americas, Europe, Asia and Oceania by the jury and voters.” IAPH also presented the Akiyama Award, established in memory of one of the organisation’s founding fathers, Toru Akiyama, who was its Secretary-General from 1967-1973. Click the infographic tiles to learn more about the individual winners.

Insights into Vessel Connectivity Technologies – published

The American Bureau of Shipping (ABS) has released another addition to its guidance on key maritime technologies. The publication discusses the available communication technologies while also providing guidance to vessel owners, operators and system vendors in ensuring they are equipped to meet current and future demands. Insights into Vessel Connectivity Technologies furthermore reviews the relevant regulations and industry standards on vessel connectivity, along with future technology development and challenges.

“The ship-to-shore interface is the location of some of maritime’s most dynamic change and as the demands on the technology grow ever greater, so is its importance to vessel operations and safety,” Patrick Ryan, ABS’ SVP, Global Engineering and Technology, said.

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VENTURE FORTH GDYNIA TO HAVE A DIGITAL TWIN • The port authority has commissioned the consortium of HydroBIM, the BIM Association and scan3D to map the seaport’s areas digitally.

The cloud platform will integrate geographical and spatial data, allowing for creating past, present, and future representations (in two and three dimensions) of the Port of Gdynia’s infrastructure.

Additionally, the represented pieces, down to single objects, will have their data sets, including technical documentation. According to the port authority, having a common digital data environment will boost asset management and, among others, improve maintenance.

The solution will have bank-grade cyber security. •

AUTONOMOUS, ALL-ELECTRIC COASTAL FEEDER – IN THE MAKING • DB Schenker, Ekornes, Naval Dynamics, Kongsberg Maritime, and Massterly have partnered to develop a next-gen waterborne transport solution for the Ikornnes-Ålesund route in Norway. Following the prestudy agreement, the parties will work on deploying a 49.9 by 9.6 m, 18 FEUs capacity container carrier on the 23 nautical mile-long

stretch that handles Ekornes’ cargo flows. Based on the Naval Dynamics’ NDS AutoBarge 250 concept developed in partnership with Kongsberg and Massterly, the vessel will run un-crewed but supervised by Massterly’s Remote Operation Center staffed with certified navigators and naval engineers. •

UNIFEEDER CHOOSES ZERONORTH • The feeder & short sea container line will implement the tech company’s full suite of optimisation services. The three-year deal will see 90 of Unifeeder’s vessels using services included in ZeroNorth’s platform,

plus ClearLynx’s bunker solution. The suite includes voyage planning & optimisation (including weather routing) and recommendations on bunker and vessel operations to lower fuel consumption and emissions. •

NORWAY’S FIRST AMMONIA BUNKERING TERMINAL – UNDER DEVELOPMENT • Backed by NOK89m (about €9.1m) from the country’s Green Platform, a consortium develops shore and floating stations for tanking vessels with green ammonia as a marine fuel. Azane Fuel Solutions, a JV between Amon Maritime and Econnect Energy, is behind the bunkering infrastructure technology (both are partners

in the consortium for the Ammonia Fuel Bunkering Network project).

The first facility will become operational in 2024. The infrastructure will cater to numerous ships, including the world’s first ammonia fuel cell vessel, Eidesvik Offshore’s Viking Energy (to be converted by 2023). •

SAMSKIP AND OCEAN INFINITY SECURE FUNDS FOR HYDROGEN CONTAINER SHIPS • The Norwegian state enterprise Enova has granted NOK150m (€15m) for developing two 500 TEUs of capacity, hydrogen-powered, remotely-controlled, and autonomous-ready container carriers. Each vessel will feature a 3.2 MW hydrogen fuel cell, with diesel-electric propulsion as a backup. The two SeaShuttles are slated for launch by 2025. They will connect Oslo and Rotterdam across what is said to be one of the Clydebank Declaration’s Green Corridors (providing

end-to-end emission-free logistics). In total, Enova currently supports setting up seven hydrogen and ammonia-powered vessels with NOK451.3m, apart from the SeaShuttles Thor Dahl’s hydrogen fuel cell dry bulk carrier and Færder Tankers Norway’s ammonia-powered two tankers and two car carriers. Additionally, the enterprise backs the establishment of five production plants for renewable hydrogen along the Norwegian coast with NOK669m. •

HELSINGBORG TO RECEIVE SWEDEN’S FIRST ELECTRIC REACHSTACKER • Kalmar will supply its 587 kWh of battery capacity Electric Reachstacker in Q4 2022. The machinery will have a wheelbase of 6.5 m, a stacking capability up to five high, and a maximum lifting capacity of 45t, 32t, and 16t in the first, second, and third row, respectively. The order also includes comprehensive training for maintenance technicians and

equipment operators. The deal includes an option for additional two electric reachstackers. “We will sustainably develop the new container terminal [ready in 2028] with automation, electrification, and efficient land use. Investing in the electric reachstackers is an important step in our journey,” Bart Steijaert, the Port of Helsingborg’s CEO, said. •

AA LOGISTIK’S FIRST E-TRUCK • The Swedish freight haulier received its first electric truck from Scania to operate it 10k km/year with an 89% lower carbon footprint than a traditional lorry. The e-truck is deployed around Finnslätten, where AA Logistik will have its brand-new 32k m2, photovoltaics-furnished

warehouse ready in 2024. AA Logistik will electrify its entire fleet of 15 heavy-duty trucks by 2030. Finnslätten already has an ABB charging station installed by Mälarenergi that can provide both overnight and daily fast recharge to the new e-truck. •

Photo: AA Logistik

24 | Baltic Transport Journal | 3-4/2022

VENTURE FORTH PORTS OF STOCKHOLM-CMB.TECH HYDROGEN CO-OP • The two have partnered to start offering hydrogen in Stockholm Norvik Port – for port operations as well as the needs of shipping and haulage. To that end, a hydrogen fuelling station will be erected

adjacent to the port, following which port vehicles will be converted to run on green hydrogen. Norvik’s first hydrogen-fuelled terminal truck is planned to start operating in 2023. •

ELECTRIC BARGE FOR DRY BULK TRANSPORT IN STOCKHOLM • Avatar Logistics and Sand & Grus AB Jehander are planning to construct an environmentally friendly e-barge for transporting sand and gravel to a cement factory located in the Swedish capital. The newbuild will replace the 1970-built Jehander 1, used by Avatar Logistics for shipping macadam, gravel, and sand. The 75 by 8.5 m vessel can take up to 1,420t across six holds and carries around 300kt/year dry bulk from Sand & Grus AB Jehander’s gravel pits in

Mälaren (central Sweden). The Dutch Shipyard Ferus Smit has already provided the first design. Avatar Logistics will now try to secure green co-financing for constructing the barge. “The electric barge will be technologically advanced and offer double the capacity, meaning that each shipment can replace 100 trucks. The barge’s electric propulsion will also decrease Jehander’s CO2 footprint by up to 95% relative to the trucking alternative,” Johan Lantz, CEO of Avatar Logistics, highlighted. •

MORE SPACE FOR OWE IN RØNNE • The Danish seaport will make available ten more hectares for offshore wind energy (OWE) projects. The Port of Rønne has begun the regulatory approval process at the same time also initiating a tender round for the

development project. In effect, the southern part of the island seaport will focus on catering to the OWE industry, while passenger traffic will consolidate in the northern. The port’s reconstruction is expected to be ready in 2025. •

AWAKE.AI-INTEL PORT DIGITALISATION CO-OP • The Finnish and the Californian tech companies have joined forces to mesh edge, artificial intelligence (AI), and 5G technologies to make port operations more efficient. The solution uses machine-learning models to detect yard objects via sensors installed in the port area, automatically providing real-time awareness of utilisation rates and cargo

flows. “Potential benefits from using the platform include but are not limited to a better use of existing capacity, reduced port area emissions, accurate real-time prediction of arrivals and departures, optimised port calls driven by AI and computer-vision insights, real-time information sharing, and time and cost savings,” Awake.AI listed. •

VERBRUGGE TERMINALS COVERED WITH SOLAR PANELS • The logistics company, operating in Vlissingen in the North Sea Port, has had KiesZon, part of the Greenchoice Group, install 77,250 solar panels on its warehouse roofs at two locations. The system can generate 25m kWh/year, equivalent to the needs of some 9,000

households. The solar farm will help reduce CO2 emissions by 15kt/year.

The investment also saw the network operator Stedin laying new cables from the distribution station in Vlissingen-Oost, which involved deep drilling under the Vlissingen docks. •

ARVID NORDQUIST TO MAKE ITS COFFEE TRANSPORT FOSSIL-FREE • With the help of Scanlog, the Swedish coffee maker has signed an agreement with the carrier Hamburg Süd to use biofuel to carry the company’s containers. The RSB- or ISCC-certified Ecofuel will be used by Arvid Nordquist to lower the CO2 emissions of its sea shipments by around 75%. The remaining portion will be carbon

offset. The company’s distribution is already 80% fossil-free. The agreement entered into force in April 2022 and covers some 260 containers from Brazil (about 30% of Arvid Nordquist’s total raw coffee beans traffic). The parties will also look into how to scale up their biofuel co-op. •

CMA CGM-ENGIE BIOMETHANE CO-OP • The French shipping line and utility company have partnered to co-invest in the Salamander project that wants to set up a secondgeneration biomethane production plant in Le Havre. The two plan to finalise their investment decision in late 2022. A funding request has been submitted to the European Commission’s Innovation Fund.

Once inked and set in motion (backed up by a total investment of €150m), the Salamander project will gradually come online in 2026,

producing 11kt of biomethane/year. Dry biomass from local woodwaste sources and solid recovered fuel will feed the unit, producing biomethane via pyrogasification. CMA CGM and ENGIE will use the Salamander project to help them tick off the 200kt/year renewable gas production target by 2028. CMA CGM will use the output for propelling its gas-run fleet, which currently includes 30 dual-fuel ‘e-methane-ready’ ships, up to 77 by 2026-end. •

PORT OF TALLINN INVESTS IN A NEW QUAY IN PALDISKI • The authority will expend up to €53m in setting up a new 310 m long quay and adjacent ten ha big yard in Paldiski South Harbour. The new infrastructure, slated for commissioning in the summer of 2025, is meant to serve Estonian offshore wind farms, with the first to be ready in 2028.

The new quay will also be used for military mobility purposes, as the project is co-financed (€20m) by the European Commission through the EstMilMob project. The new infrastructure will also be fit to handle ro-ro ships. • 3-4/2022 | Baltic Transport Journal | 25

CHART OF THE ISSUE

Source: SEA-LNG

26 | Baltic Transport Journal | 3-4/2022

CDR Infographics_6ne.pdf

7

08/03/22

12:09

CHART OF THE ISSUE

MIND THE GAP: CARBON DIOXIDE REMOVAL (CDR)

CO2

CDR is needed in addition to deep and rapid decarbonisation The 1.5°C aligned carbon budget emissions trajectory looks a bit like this:

THE WORLD HAS A LIMITED AND DECLINING CARBON BUDGET FOR 1.5°C

But even ambitious decarbonisation scenarios look a bit like this:

The carbon budget ‘overshoot gap’ – the amount of CDR needed to stay within the 1.5°C carbon budget – looks like this: CDR needed

~500 Gt CO2

2050

~570-725 Gt CO2

(2020-2050)

2050

~70-225 Gt CO2

(2020-2050)

2050

(2020-2050)

What will it take to scale CDR to keep 1.5˚C alive?

A PORTFOLIO OF SOLUTIONS… NATURAL CLIMATE SOLUTIONS

C

M

HYBRID / BIOMASS WITH CARBON REMOVAL STORAGE

ENGINEERED SOLUTIONS

Y

CM

MY

CO2

CO2

CO2

CY

CMY

‘RESTORE’

BIOCHAR

BECCS

DACCS

WHAT?

‘MANAGE’

Restore natural ecosystems (e.g. forests, peatlands)

Better manage current use of land

Burn biomass in absence of oxygen to slow decomposition

Produce energy from biomass then capture CO2 produced

Capture CO2 direct from air and store underground

RISKS

K

Permanence: carbon stored in biosphere is short-term

Permanence: improved practices are not maintained

Feedstock: biomass feedstock not sourced sustainably

Feedstock: biomass feedstock not sourced sustainably

Moral Hazard, Clean power: insufficiently available

CO-BENEFITS* Biodiversity Clean water Community economic return Soil health

CO-BENEFITS*

Fossil free energy generation Skilled jobs

CDR POTENTIAL 2020-2050

…SCALED RAPIDLY TO CUMULATIVELY REMOVE 165GT CO2 BY 2050

58

60

6

13

27

Gt CO2

Gt CO2

Gt CO2

Gt CO2

Gt CO2

IN ADDITION

ACCELERATE CDR INNOVATION, E.G. ROCK WEATHERING, OCEAN ALKALINITY AND FERTILISATION, MICRO-ALGAE

165 Gt CO2

Deploying portfolio of removals solutions at maximum speed could remove around 165 Gt CO2 by 2050

Source: Energy Transitions Commission

3-4/2022 | Baltic Transport Journal | 27

Highlights from the Port of Turku’s recent and coming strategic investments

Managing challenges by investing in the future

by Jaana Niemi Things are certainly looking up for the Port of Turku, and the post-pandemic comeback has begun satisfyingly. The daily passenger traffic has returned to its normal level after two difficult COVID-19-strained years. The new climate-smart cruise ferry Viking Glory, put onto the Turku-Stockholm service

by Viking Line last winter, has brought an applauded boost to the passenger volumes with her daily calls. The passenger capacity increased by 10% when the newbuild replaced Amorella; additionally, the new vessel transports 60% more cargo than her predecessor. With the post-pandemic bottledup demand for travelling and the lifting of the previously rapidly changing travel restrictions, the number of passengers travelling through the port is back to a satisfying level.

T

he outlook for international cruise traffic is also positive.

Altogether 22 cruise ship visits have been booked for this summer, more than twice the number seen in the best pre-corona years. Among the ten or so shipping companies that have announced vessel calls for the summer, there are several cruise lines whose vessels are visiting Turku for the first time.

The positively launched cruise summer is also set to continue in the coming years. Bookings have already been made for 2023 and 2024, adding to the Port of Turku’s future confidence. Cruise companies and tourists are attracted by the beauty of Turku and the archipelago – visits made possible thanks to an efficient port that can serve the traffic.

The art of future Passenger traffic has always been a crucial part of Turku’s port operations. That is why the City of Turku and the port authority are willing to invest strongly in keeping it so in the future. An extensive project has been initiated to provide the ferry lines with a brand-new, modern joint terminal.

This investment is part of the city’s plan to improve the port infrastructure, reconstruct the historical area around the castle, and bring the city’s maritime component closer to the centre, thus making it more accessible for the local citizens to enjoy.

PES-Architects have won the competition with their Origami concept, becoming 28 | Baltic Transport Journal | 3-4/2022

the principal architectural designer for the new Ferry Terminal Turku. While the jury unanimously chose the proposal, they commended the two other final stage proposals for their high-quality designs. Clear functionality and expressive architecture stand behind Origami’s success. The work will continue with a development phase in cooperation with other parties; it will commence in late summer 2022, extending to spring next year, when the project will shift to the implementation stage.

However, parts of the construction project have been rescheduled due to the spike in the cost of construction materials. The start of the quay investment related to the passenger travel port will be postponed by one year, and the lease for the field areas used for port traffic will be extended until 2026-end. By changing the schedules, Turku wants to ensure that the new passenger terminal, port structures, and the construction of the Museum of History and the Future stay within budget.

Notwithstanding the new situation, planning all projects in the city centre and the port will continue uninterrupted.

The City of Turku, the port, the project management team and involved partners are determined to begin the construction work in 2023. Initially planned for completion in 2026, the terminal building will now be commissioned in 2027.

“We are aiming to build a modern terminal that is highly efficient and where the passenger flows move without delays. The

visit to the terminal is an integral part of the maritime voyage, and we want the experience to have an equally high standard all through the journey,” says Erik Söderholm, the Port of Turku’s Managing Director. He furthers, “Turku has a long history within the maritime industry and the connection between Turku, Mariehamn and Stockholm is not only very important and vital to the citizens and export & import business, but we are also well known as a maritime city all over the world. This will be an important and historical landmark for our city that will stand here for many years to come.”

Better infrastructure = less pollution The Turku-Helsinki railway is a part of the European TEN-T network, with the connection between the main railway stations in Turku and Pasila in Helsinki, a piece of the Core Network.

In spring 2022, the Finnish Ministry of Transport and Communications proposed to the European Commission that the railway leading to the Port of Turku should be included in the TEN-T Comprehensive Network. A proposal was brought to the Turku City Council at the beginning of June this year that the railroad should be brought from the central railway station to the passenger terminal’s direct vicinity from the port’s north side. The City Council decided that Turku would start negotiations with the Finnish Transport and Infrastructure Agency about shifting the port rail line from its current location.

MARITIME

Photo: Jarmo Piironen/Port of Turku

Photo: Jouni Saaristo/Port of Turku

Photo: PES-Architects

Postponing the schedule will give time for implementing the newly electrified passenger railway from the Muhkuri rail yard to the port.

Renewing the infrastructure by building a new rail connection and a road network that bypasses the city centre and the historical castle area is a step towards a cleaner city with less air and noise pollution. Naturally, the goal is also to make the connections to the port more comfortable, sustainable and efficient for travellers.

From sea to land: building flats on waste The above actions strongly support the city’s goal of becoming climate-neutral by 2029. Sustainability and environmental awareness are essential in developing the city and its port.

Among many, the two decided in 2018 to stop sea disposal of dredged masses and instead move to land depositions. In the same year, the CircVol project was launched,

during which the goal for Turku Science Park was to find ways to utilise dredged masses and other excess soil and industrial surplus products in earthworks. The first concrete location to dispose of clay soil is the Lauttaranta district in Turku, a residential construction area. By placing the dredging sediments in embankment pools to be built on the current alluvial land, it is possible to erect a new district with blocks of flats on the seaside in the Latokari area.

Wind of change The Port of Turku is very relieved of how well it has recovered from the pandemic and is looking forward to a busy and bright future with many exciting projects and changes.

The port authority is working hard to expand Turku’s traffic towards central Europe – and the ‘hot topic’ here has lately been a possible shipping line between Turku and the Port of Gdynia. The negotiations are ongoing – the Port of Turku is working on

finding the right shipping company to open this new connection.

Söderholm highlights, “For Turku, the new direct regular liner ship connection to Poland would mean a new fast route to continental Europe that would support the business life of the whole of western Finland. In addition to Poland, with strong economic growth, the connection would act as a gateway to the markets of central and southern Europe in terms of both exports and imports. Based on our discussions, there is interest on the market in a new line that would provide a cost-efficient option for truck transports through Via Baltica. After a sea voyage of just 24 hours, the trucks can get on the road in Turku at best in ten minutes, which means considerable time savings for time-sensitive transports.”

There is no question that the wind of change is blowing over Turku – the place to follow in the coming years for anyone interested in the shipping and port industries!

3-4/2022 | Baltic Transport Journal | 29

On the (automation) road to post-COVID-19 shipping recovery

A wholesome transformation

by Alexander Buchmann, Managing Director, Hanseaticsoft The global pandemic was highly challenging for many shipping businesses. Still, as the world moves on, it’s time for companies to embrace some of the positives and look toward a digital future.

Technology, digitalisation, and automation were probably not top of the agenda for many shipowners and operators before the pandemic, especially in an industry more traditional than innovative in its thinking, but things have changed.

N

ow companies are increasingly recognising that they need new ways of doing things to sustain future growth, and making use of digital technologies to automate processes could be the answer.

Some have already begun this journey.

The pandemic saw shipping lines become more agile and adaptable in response to a changing operating environment, with many using digital technology for the first time. Last year’s report by Inmarsat highlighted that the coronavirus pandemic was a “universal disruptor and catalyst for digital transformation.” As such, the adoption of digital technology in the maritime sector will be three years ahead of previous estimates by the end of this year.

Many shipping managers are now willing to let go of old processes and take a leap of faith, employing technology that other industries have used for years to transform how they operate.

Data accessibility One of these technologies is cloud-based maritime solutions, which some are realising can bring significant benefits to their operations after trialling such systems during the pandemic.

In the past, data synchronisation was a slow process, done three or four times a day. With 5G on board and a better Internet connection, ships can have real-time data 30 | Baltic Transport Journal | 3-4/2022

exchange with the office instead of sending out an email and waiting 12 hours for a reply.

Now companies can store data in one central place and make it accessible to everyone on land or sea from any device – computer, laptop, mobile phone, or tablet. This real-time sharing of data and information has been a game-changer. People no longer work in silos and can communicate and collaborate easily with their colleagues, transforming how a business operates no matter where people are. As data is centralised in the cloud, important information such as maritime instructions, crew schedules, and payroll data can be accessed by everyone, which speeds up communications and productivity.

Harvest time Another core benefit is access to reams of data. Companies increasingly want analytics and insights into their business to inform their decision-making. Having access to data using digital technology enables companies to extrapolate valuable insights that can change how they do business in the future.

The cloud is helping maritime businesses become more efficient at data management and analytics. Real-time access to data across an entire fleet gives immediate visibility of what is going on, allowing for adjustments and addressing issues immediately. The ability to harvest and analyse data efficiently is helping companies be more agile and

dynamic to react quickly to any situation.

This, in turn, saves them time and money.

However, it’s not just any old data.

Companies need to be able to access ‘good data’ that is consistent, high quality, and can be used for reports to gain insights into areas such as risk management, maintenance, purchasing, or finance. This allows them to make more accurate decisions and future predictions based on what their data already shows them. Tools such as Microsoft’s Power BI make this easier when integrated into cloud-based systems and can enable data to be drawn from multiple sources and analysed in a central place.

Data becomes more than just a report and can be used to give the business clarity, uncover areas that need improvement, and highlight growth opportunities. Crew members can also be given greater autonomy and control over their data to manage their schedules, payslips, training, and other essential employment areas. The benefits this can bring along are huge: improving the way companies operate, streamlining processes, and increasing collaboration across the entire organisation.

Forced accuracy Embracing digital technologies to start automating tasks is only the journey’s start. The next step for companies to really take advantage of the benefits this brings is to ensure they have accurate data.

MARITIME

Photo: Hanseaticsoft

This is where companies can start to make real inroads to saving time and money and using their data to inform future actions. However, this is proving challenging for some organisations that believe they can get instant insights by “simply” implementing technology. Many shipping managers think that just because they have a great deal of data, it’s a straightforward process to make sense of this. Unfortunately, this is usually not the case, and we find that most data sets are neither consistent nor accurate.

It is, therefore, necessary to look at how data is captured and ensure it’s done in a way that produces consistent, complete, and quality data that can be used for reporting. It is critical that employees putting information into systems are doing it in the correct format; otherwise, mistakes can be made. For example, look at a simple request from a vessel to purchase essential items for the crew. A crew member might request the items in a digital order form correctly using a standardised catalogue, but at the last minute, someone adds, say, washing powder to the list as a free text. Instead of following the same process, they write the words “washing powder” on the form, skewing the digital process and making the data unreliable. A way around this is to use ship management software that guides and forces data to be inputted accurately and consistently; software that is rule-driven and demands that rules are followed every time so that the data set is precise and can be trusted to give a realistic picture.

This can often take longer to do, but the end result is managers have data they can use. The stricter the processes for entering data, the better the resulting insights, analytics, and calculations will be. The true benefits from automation then become apparent.

Process automation A key area where companies see automation benefits is in purchasing. Companies using our cloud-based management software can use a standardised digital form sent to suppliers, who use the same form to offer their products. The system then uses this data to show the best prices automatically.

It helps companies overhaul purchasing by automating the entire process and gaining real-time visibility into their budgets and operating expenditures. Having this reliable data also offers the option for more automation, e.g., linking purchasing and scheduling information to automate the delivery of goods to the vessel’s next destination.

Another area is maintenance. This can be automated so that maintenance managers have real-time visibility over the entire fleet and know where they are at scheduling jobs.

Keeping track of work centrally, precisely, and according to requirements and priorities is essential to ensure the fleet operates safely as well as for budget and labour planning.

Another example is our crew management software. Once a seafarer’s personal data is entered correctly, they can go into the system to add their hours and expenses. This automates payroll, and the money goes straight into their banks.

By automating these processes, companies save significant time and money on administration. It also provides trusted and reliable data that can be easily compiled into reports or analytics to help managers make predictions about future expenditure and take action where needed.

Gaining traction Many shipping companies are now at the start of their digital automation journey. As they witness first-hand how digital solutions can help the business drive down costs, become more efficient, and stay competitive, we expect the industry to see a wholesome transformation as automation gains traction.

The Hamburg-based Hanseaticsoft, part of Lloyd’s Register’s Maritime Performance Services division, offers modern software solutions to optimise workflows in shipping companies. We help others to gain new perspectives on processes and increase business performance. Many years of developing cross-departmental software for maximum benefit made us experts in this field – in Germany and globally. Thanks to our work-saving and self-explanatory solutions, customers can cope with infobesity plus address the increasing challenges they face concerning the rapid technological advancement. Head to hanseaticsoft.com to learn more.

3-4/2022 | Baltic Transport Journal | 31

New cranes and existing docks

Lightening the load

by Richard Phillips, Mechanical Engineer, Casper, Phillips & Associates Inc. (CP&A) Since its inception, the progress of the container crane industry has been remarkable in many ways.

Considering the enormous capital costs, one of the most astonishing changes has been the increase in the size of equipment and facilities, with no obvious limit in sight. The only things limiting ship size are the water depth and bridges between the port and open sea. Container cranes have kept up with vessel sizes by increasing their outreach and lift height and capacity. It is evident that the race for lower costs has encouraged shipping companies to procure larger, more efficient vessels. Terminal operators and owners are increasingly looking to increase the size of their quayside container cranes, which presents a series of challenges that must be overcome, such as coping with increased wheel loads.

W

hen ships get wider, they are more stable. This extra stability permits higher container stacks above and below the vessel’s deck. The economy of scale is a significant factor leading to the continued growth of container vessels. As carrier size increases, the shipping cost per container decreases. As older ships are retired, they are replaced with newer, larger ships. Taller cranes with longer outreaches are needed to service these larger vessels.

Recent events have also placed additional demands on the supply chain, causing port owners and operators to look at faster ways of increasing container throughput. Utilising existing infrastructure is one way to do this. By putting new cranes on an existing dock, owners and operators avoid the expense and delay of constructing a new facility and receive the benefit of servicing larger ships. Regardless, when larger vessels want to call the port, the port needs the infrastructure to service the containers on the larger carriers. These larger cranes weigh more and put greater loads on the dock. So, the docks need to have a higher strength or be upgraded to support the larger loads.

A cantilevered nature Designing cranes with longer outreaches and larger lift heights while minimising the wheel loads is not easy, given the cantilevered nature of dockside container cranes.

A cantilever is structurally inefficient because it needs to balance its weight. Cantilevered structures appear to be the most efficient ship-to-shore container crane design. As an aside, there is research into other arrangements, so it is possible a better solution exists, but that is an article for another day, perhaps.

32 | Baltic Transport Journal | 3-4/2022

For cantilevered cranes, waterside wheel loads are dramatically increased as outreaches and lift heights increase to keep up with vessel sizes. Put simply: a wheel load is the amount of load being transferred from a crane wheel onto the supporting dock structure. This includes the crane self-weight, effects of the lifted load, wind loads, and so on.

One physical dimension that has remained constant is the 40-foot hatch opening on almost all container ships.

Terminal productivity demands a standard industry practice to work adjacent cranes on every other hatch. This means the total crane width, measured from bumper-tobumper along the dock, must not exceed the centre-to-centre distance between alternate hatches. That restricts crane widths to approx. 88.5' (27 metres) regardless of crane outreach and height. The 40’ hatch opening is the industry standard. Trains, trucks, yard cranes and, of course, ships are all designed around this standard. It takes much investment from multiple parties to adopt a new standard.

Dock designers need to be concerned about this 88.5’ crane width limitation because that dimension limits the effective length of the dock that can be used to support each crane. This limitation, coupled with cantilever inefficiency, longer outreaches, increased load capacity, increased lift height, and higher storm wind loads, has caused dock loading to increase from about 70t/m at the turn of the century to 130t/m – and growing. This is an increase of 185% in the last two decades.

Understanding dock strength In an ideal world, a dock owner would have sufficient documentation, including

as-built drawings, calculations, soil reports, and material certifications, so they know how strong or structurally sound it is. And those findings might reveal that the dock isn’t strong enough for larger cranes.

The usual practice is to use a larger rail and strengthen the rail support structure.

In general, a new piling is installed for rails over water. Increasing the gantry rail beam or adding new pilings can be an option for rails on land. However, that is not the only thing to consider. Often, larger cranes can be safely installed on an existing dock by following a rational engineering approach that takes full advantage of the as-built dock strength. Sometimes dock designers make conservative decisions during the design and construction process that can lead to the dock having reserve strength. Concrete can also become stronger over time, leading to reserve strength. The published dock strength, supported by good documentation, can be considered a reliable minimum; it is almost always possible to find additional capacity from such an existing design.

Original design safety factors may also be unnecessarily conservative. When selecting a safety factor, the design engineer should consider the probable accuracy of the applied loads. It is rational to assign a lower safety factor when the applied load is known with a high degree of certainty. Conversely, higher safety factors are justified when loads are less well defined. Many civil engineers use high safety factors for crane loads because they are designing the dock based on estimates of crane loading. However, the crane loading can be determined to a very high degree of certainty if the crane self-weight is physically measured. Often, a lesser

MARITIME

Photo: CP&A

than originally assumed dock safety factor can be rationally justified.

The crane design engineer also has an important role. They can minimise wheel loads by exercising skilful attention to minimising weight during the design phase. It does take engineering expertise to achieve minimum structural weight, but this extra effort can often pay for itself with reduced steel costs and lower demands on the dock.

Another way to reduce wheel loads in high seismic zones is to specify a base isolation system such as the crane base antiseismic isolation system (BASIS) developed

by CP&A. The damper system in the BASIS, based on non-linear time history analysis (NLTHA), slips when the applied lateral load exceeds the design lateral load, isolating the crane from the ground motion of an earthquake.

The damper system reduces the wheel load in two ways. Limiting the amount of earthquake energy transferred to the crane reduces the strength demand, which means the crane structure can be lighter.

A lighter crane structure means reduced wheel loads. A damper system limits the lateral loads transferred to the crane during an earthquake. As lateral loads are applied to the crane structure, the wheel loads on one side increase and the other decrease.

Limiting the lateral loads during an earthquake limits this effect, reducing the wheel load to the dock. Another factor in the appeal of the BASIS system is being able to quickly put the cranes back into service after a major earthquake.

Establishing safe wheel loads for new cranes The first step in establishing safe wheel loads for an existing dock is to specify a realistic allowable wheel load based on the loads, outreach, and other physical requirements needed for the new crane. All too often, the owner of an under-strength dock tries to transfer the problem to the crane manufacturer without understanding the physical limitations that may make compliance impossible. This often results in crane manufacturers refusing to bid or delivering a crane that does not meet the wheel load requirements. A crane consultant can estimate realistic wheel loads for various crane sizes, wind speeds and other environmental loading conditions to help the port specify the largest feasible crane.

If a dock is found to have marginal strength, sometimes the most economical solution is to strengthen the dock rather than optimise the crane weights. If the decision is made to strengthen the dock, keep in mind the potential for a future crane raise or boom extension to increase the useful life of the cranes. Also, it is very likely that future crane

orders will be for even larger gantries and will require higher dock wheel load capacity.

If an owner must limit the wheel loads, the manufacturer should be required to prove compliance by measuring the actual wheel loads after completing the crane. The owner should retain the right to cancel the order if the manufacturer has failed to meet contractual obligations. A good crane consultant can be an asset to an owner to prevent contentious issues. In addition, a good consultant will work with an owner to help make sure new cranes are appropriately sized and will not become prematurely obsolete due to increasing vessel sizes.

While companies like ours support the terminal operators and crane owners who generally work with shipping lines, we do not typically interact directly with shipbuilders unless the shipping line and the terminal operator are the same company.

It is important – and befitting – therefore that we continue to engage with terminal operators and owners that are likely to show a continued need to increase the size of their quayside container cranes.

CPA was founded in 1987 by Bill Casper and Rich Phillips after relocating from a California consulting firm. We started with pre-established worldwide recognition as structural engineers specialising in container cranes. For the container industry, we are unique in that we offer a multi-discipline combination of mechanical, structural, electrical and computer science engineering, plus anti-corrosion coating technology. We have also expanded our crane expertise to include most types of cranes – from RTG, RMG and Goliath cranes to B.O.P handlers on drillships. Ports and crane manufacturers worldwide use our services to design and procure all types of load handling equipment. Head to www.casperphillips.com to learn more.

3-4/2022 | Baltic Transport Journal | 33

Assessing the life-cycle potential of renewable eMethanol as green electro-fuel

Powerstudy

by Felix Jung, Sustainability & LCA Manager, Liquid Wind The shipping industry faces a considerable challenge – one approaching at an increasing speed.

Confronted with the International Maritime Organization’s (IMO) regulations that require it to reduce its carbon intensity by 40% by 2030, the sector is focussing on short-term efficiencies. Achieving the IMO’s targeted 70% reduction by mid-century, shipping looks further ahead to a broader energy transition. Momentum is growing towards the use of renewable fuels. Calculating life-cycle emissions demonstrates that eMethanol can significantly contribute to carbon footprint reduction.

A

chieving the first of the above goals will require a process of collaboration and pilot projects that enable the industry to adopt the first generation of alternative fuels.

Ticking off the second will require an ample supply of fully sustainable marine fuels.

Compliance with the 2030 target will necessitate the progressive adoption of fuels from biogenic and synthetic sources (e-fuels); by 2050, there will need to be a sharp decline in fossil fuel usage and a ramping up of the supply of renewables. How the industry spends the time and where it places its focus between now and 2030 will be critical to a successful outcome.

Swing the balance The classification society Lloyd’s Register notes that the readiness of alternative marine fuels is an interplay between technology, investment, and market readiness.

The technology piece is relatively straightforward around how the fuels work; investment reflects the commitment needed in the fuels and infrastructure. The community element stands for the policy required to adopt zero-carbon fuels.

Net-zero carbon ships are technically and operationally possible, but the challenge for the industry is that the bulk of the fuel technology exists outside shipping. Developing a non-fossil fuel is a simple challenge.

Setting up the required supply chain and infrastructure is when one must roll up the 34 | Baltic Transport Journal | 3-4/2022

sleeves. Making it happen requires a partnership between producers and consumers.

Anecdotal evidence suggests that a primary driver of fuel adoption is price; required capital will be higher, but ultimately the total fuel cost lies in its operational expenditure. To help close the competitive gap requires a carbon price – which will emerge once shipping enters the EU Emissions Trading System in 2023.

The key to the green policy framework is how regulators work to make fossil fuels uncompetitive and enable a playing field that supports a clean fuel transition with alternatives available at price parity. Bridging the supply-demand gap with a policy framework that does not penalise first movers is what can be done in the short term. From a practical viewpoint, this involves linking vessel trades and regions to map out and facilitate fuel production and find convergence between the two. These ‘green corridor’ projects require partnerships between producers and consumers and a strategy that enables both sides of the equation to move in tandem.

Counting emissions – all of them Shipowners and other stakeholders are already focussing on methanol, specifically how to navigate the pathway from conventional to renewable alternatives. For example, the Green Maritime Methanol initiative based in the Netherlands brings together knowledge centres and companies to provide input and feedback on the transition

to sustainable methanol.

The project partners have recognised that making methanol a viable fuel requires the industry’s input from the outset, gaining knowledge of regulations, requirements, constraints, and opportunities. The project focuses on transitioning from fossil to biomethanol and from blue to green eMethanol made from renewable resources. The project’s Pieter ’t Hart sees biomethanol emerging in volume by 2030, followed by a shift to recycled CO2 and eMethanol, with a gradual process speeding up.

Perhaps the most crucial aspect of this process is the life-cycle assessment of carbon emissions so that all stakeholders can understand the total carbon contribution of their fuel choices in terms of emissions on a well-towake basis. Shipping’s current carbon intensity measurement is tank-to-wake, counting only the emissions emitted when combusting the fuel. The former measurement enables transparency to capture the entire upstream process from well-to-tank. Using a well-towake approach is essential to ensuring that the burden of greenhouse gas emissions (GHG-E) is not shifted upstream. The emissions profile of each fuel needs to be rationally assessed.

About 94% emission reduction To meet the growing demand for carbon-neutral fuel and the need to reduce GHG-E, Liquid Wind is developing FlagshipONE. This commercial-scale renewable eMethanolfacility will capture

MARITIME

Photo: Liquid Wind

CO2 emissions from a biomass combined heat and power plant.

Liquid Wind will start constructing FlagshipONE in the Swedish Örnsköldsvik during 2022 and plans to have ten renewable methanol production facilities onstream by 2030. The production pathway for Liquid Wind’s methanol will combine green hydrogen generated from wind energy with the CO2 recycled from biogenic sources. The Danish energy company Ørsted and Liquid Wind AB have reached an agreement, under which Ørsted acquired a 45 % ownership share of Liquid Wind AB’s FlagshipONE eMethanol project.

To understand the full carbon contribution of its renewable eMethanol, Liquid Wind undertook a life-cycle analysis to determine and compare the entire environmental impact of its eMethanol, evaluating the production process to understand where it can make improvements.

To calculate the life-cycle emissions of the produced renewable methanol, Liquid Wind evaluated carbon emissions per megajoule (MJ) of energy versus a range of alternative fuels. This required understanding its environmental impact pre-combustion, using inventory analysis, an impact assessment, and subsequent interpretation to make a meaningful comparison.

Using material energy flow analysis, Liquid Wind measured each module of the new facility to record grams of CO2 per MJ emitted, assigning GHG-E to each material and energy flow for every module. The calculations included assumptions on carbon

emissions for wind power as well as negative carbon credits for CO2 capture but ignored ‘embodied’ emissions from the manufacturing process.

The research found that methanol is a carbon sink before combustion, i.e., on a well-to-tank basis. Yet, by expanding this to a well-to-wake basis, Liquid Wind found that the company’s renewable methanol has a minor net-positive carbon contribution.

The well-to-gate emissions of FlagshipONE’s eMethanol (life-cycle emission when leaving the production facility) are relatively small, at around -1.3kg CO2eq per kg of eMethanol produced. About -1.4kg of CO2 is from capturing the carbon and is credited as negative emissions. When the scope is expanded to include the ‘use phase,’ well-to-wake, the emissions of transport and combustion are considered. The captured CO2 is re-emitted, which results in a netpositive climate change potential of about 5g CO2eq/MJ. A further evaluation against other fuels provided increased transparency of upstream carbon emissions, enabling measurement of sustainable development criteria.

Fossil fuels emit around 85-90g CO2eq/MJ on

a life-cycle emission basis. Liquid Wind’s analysis found that replacing fossil fuels with renewable methanol results in a carbon emission reduction of about 94% (well-towake emissions of eMethanol are compared to other marine fuel alternatives based on data provided in Brynolf et al. [2014]).

Liquid Wind’s research also concluded that the production of low-carbon eMethanol depends on the sourcing of green electricity. For instance, the use of typical grid electricity would increase life-cycle emissions three times.

Clearer light Well-to-wake accounting of carbon emission equivalence is critical for a successful transition by the shipping industry towards net-zero operations, as it can help avoid burden shift and minimises reputational risk. It also increases control by enabling more accurate comparison and benchmarking and, therefore, more accurate emissions accounting for future trading and marketbased levies. In the long run, it helps put shipping’s carbon emissions in a clearer light – providing an incentive for sustainable innovation along the supply chain.

Liquid Wind is a power-to-fuel development company committed to reducing carbon emissions. The company develops, finances, builds, and manages replicable facilities for the production of eMethanol to accelerate the transition to carbon-neutral shipping and transportation. The facilities will produce green electro-fuel, so Liquid Wind can offer customers the opportunity to reach their sustainability goals quickly. In 2021, StartUs Insights included Liquid Wind in the Top 5 Energy Start-ups globally. For more information, please visit liquidwind.se and follow the company on LinkedIn and Twitter.

3-4/2022 | Baltic Transport Journal | 35

Interview with Steve Crolius, President of Carbon Neutral Consulting

Engage in the future – here and now

by Przemysław Myszka For the transport industry, sea- and land-wise, it is the ‘greenway’ or the highway. It is too big of a sector to neglect the decarbonisation thereof, hoping that gains in other industries will make amends for the predicted rise in shipping and overland transportation’s carbon footprint. We are talking to Carbon Neutral Consulting’s President Steve Crolius about the different greenhouse gas emission (GHG-E) reduction tools – and why ammonia stands out as per the organisation’s The Ammonia Report. He also shares his views on the green revolution’s potential to democratise and decentralise the global energy sector and why we need to gather pace for the technology we already have today to lift us off our feet in the future – the quicker, the better.

Could you share the story behind Carbon Neutral Consulting?

The main goal of Carbon Neutral Consulting is to provide business strategy counselling to companies facing opportunities and challenges presented by the energy transition. I have a business strategy background myself, about 35 years. I worked for the Clinton Climate Initiative (CCI) from 2006 to 2013, leading the transportation programme and looking at how the sector can be decarbonised. We spent much time researching hydrogen as fuel when somebody suggested that hydrogen carriers might be easier to work with, including issues like managing it as a bulk commodity.

We then started going the ammonia path as an energy vector, a potential fuel.

Once I left the CCI, I took up consulting again and was asked to join the board of the NH3 Fuel Association, a group of scientists who felt strong about ammonia as an energy carrier. Around that time, Japan began scrutinising ammonia, within its Strategic Innovation Promotion Program and especially the Energy Carriers initiative, as one method of ‘packaging hydrogen.’

It was transformative: ammonia went from a good idea that engineers could appreciate to something that might seriously work in the real world. In 2016, I was elected to preside over the NH3 Fuel Association; my election platform was to turn the organisation into a proper, fee-paying members industry association. The following year, we got that off the ground, initially having seven members, up to over 150 nowadays.

I stepped down in the summer of 2021, 36 | Baltic Transport Journal | 3-4/2022

feeling that ammonia and hydrogen, likewise other aspects of the energy transition, garner such attention – that companies need to make plans based on reality, foreseeable forces, and trends. That led some colleagues and me to start Carbon Neutral Consulting.

Since then, we have been working with large and small companies around the challengesopportunities questions we anticipated they would have, helping them succeed.

Where do we stand today with making the industry greener – and why should we do better?

There are a lot of companies, investors, and different public sector agencies in North America who are all moving with outstanding commitment and energy to do their part in promoting the energy transition. Yet, we are just lacking the national framework for reducing GHG-E in the US. The Biden Administration has laid forth certain ambitions but has been unable to put in place a national programme to achieve those.

The bottom-up activity is great – and maybe it will cohere essential parts of the national decarbonisation programme, but we shouldn’t put too much hope in that. It seems it isn’t the way the world works: if there’s no leadership with a strong vision, things will still go in the desired direction, but in all likelihood, we won’t reach the peaks of the grand goals.

According to 2018 data from the International Energy Agency, the transportation sector, passenger and freight, accounted for 21% of global GHG-E. There is no possibility that the industry can be

left outside the equation. If we don’t head climate change off, the consequences will be catastrophic for humanity.

Fortunately, when it comes to the solutions to this challenge, the news is almost all good.

Rising to the challenge is going well, particularly on the technological front, where there is an extreme up-welling of ingenuity.

One of our potential clients, for instance, has invested in this catalytic, photo-reactant approach to creating energy-rich molecules, such as methanol or ammonia, and then extracting them back. It is the sort of innovation and genius that takes your breath away.

Business formation is going along. Capital inflow is, of course, critical. Financial institutions have a growing interest in injecting money to get innovation going. One of our other clients, a private equity firm, is contemplating an investment in another promising venture. They are dealing with huge chunks of money, so due diligence will be pivotal in knowing this will be a smart way of allocating their funds.

The policy-development story isn’t quite as good – but it is also not bad. Many jurisdictions have developed policies and instruments to help parties go in the right direction. Conversely, we lack political will. In the US, as a country, we are not manifesting the political will – at least not enough in contrast to Europe or Japan. China and India are sending mixed signals.

Carbon Neutral Consulting has published The Ammonia Report. Do you think ammonia is one of the answers to decarbonising shipping – or the answer?

MARITIME Before launching The Ammonia Report, we spent around a year putting our thoughts together and writing the thing. At the end of the process, we asked ourselves: what will we call this report? Though we knew it might be an overstatement, a slight misrepresentation of our message, we nonetheless wanted to clarify that this is a report focusing on ammonia.

Carbon Neutral Consulting does not see ammonia as ‘the best choice’ marine fuel in any shape or form. In the light of the International Maritime Organization’s (IMO) GHG Strategy, it is evident that the status quo of burning heavy fuel oil to run ships won’t hold. If not that bunker, then what? The Ammonia Report shows companies the way of addressing this question. It is a counselling approach: work with the client from where they are to help them get some clarity and develop a plan that will set them for success to the best of their abilities.

Or at least survival. With that orientation, we have looked at the different options and concluded that ammonia is the one that has a lot going forward.

In short, it is a good bet, not a banker in any form whatsoever, but a workable start for companies to address the situation.

Ammonia is practical – in the sense that one can initiate a demonstration project and see how it works. In other words, it gets you off the ‘wait for 20X0 and see’ couch.

Getting your wheels in motion today is essential. The present IMO goal of 2050 – and who knows, maybe it will become more ambitious – is an asset-replacement cycle away from now. Having mid-century in a shipping line’s 2022-crosshairs makes much more sense than waking up in 2040 and asking yourself whether the time is right to get your tonnage green for 2050. That’s ruinous! One will ruin the company should others start transitioning today. Engage in the future here and now.

If ammonia isn’t the answer, leastways for you, one will be richer by getting the lay of the land (and probably acquiring a better understanding of what will work for your fleet instead of ammonia).

To sidestep the chicken and egg situation, The Ammonia Report emphasises the role of cross-party consultation in forming small coalitions first, which then join up and become super coalitions. This is already happening, and it becomes increasingly difficult to keep track of all the entities joining the ammonia fellowship to get a practical experience: shipbuilders, engine manufacturers, ports, bunkering companies, classification societies, you name it. There is also the Clydebank Declaration on building

end-to-end green corridors, which, by definition, requires diverse stakeholders working hand in hand towards putting the low- or zero-carbon pieces together.

Maybe the solution to making shipping more eco-friendly is “simply” less shipping? Perhaps we need a new economic model that will also reshape the transport landscape?

Answering first from a personal perspective, I’m well aware of all the stresses humanity at this stage puts on nature’s systems. Climate change is one of them but not the only one. Future-wise, I believe we need to change many things about how we live.

From the Carbon Neutral Consulting’s point of view, I have a conviction that we have what it takes to decarbonise the maritime industry. It is undoubtedly a tremendous amount of work, yet, from the asset replacement cycle angle, spanning some 30 years, see how many changes can occur. To bring that much needed green change in 2050, we need to roll up our sleeves properly – and do it today. I believe that by mid-century, we can make the maritime sector a trivial source of GHG-E. Rethinking the global economy, though perhaps it may bring a lot of positives, isn’t necessary for decarbonising transportation. It can be the other way around.

The energy transition might set off a new wave of democratisation and decentralisation. As things stand today, the sources of fossil fuels are located in a few hotspots.

By way of contrast, renewable sources of energy can be found anywhere. By going green, economies reliant on imports of dirty hydrocarbons yesterday can become exporters of clean energy tomorrow. Think of India, for example, and the country’s solar and wind potential – in contrast to its dependency on foreign oil & gas (as high as 70-80% of its domestic needs). The Indian government is already working on a hydrogen strategy, and indeed the development phase will involve foreign investment and technology transfer. At the same time, there are very energetic Indian companies who want to tap into the green revolution.

In the end, countries such as India will have greater ownership of their energy sector than today.

Markets will, of course, play their part, calculating whether it is more sound to set up the energy harvesting facility where the production costs might be higher but bank on shorter transportation distances, hence lower logistics expenses.

What would you change in how we are handling the maritime industry’s decarbonisation process?

I wouldn’t change what is happening, but at what pace. The IMO has recently received some bad press from media outlets like The New York Times, which blamed the organisation for being captured by insiders not necessarily concerned with the swift decarbonisation of shipping. That is not my experience, certainly not of the IMO’s Marine Environment Protection Committee (MEPC).

IMO and MEPC’s meetings involve many stakeholders having prolonged discussions and consultations. It is a process-heavy thing, the speed of which won’t stun you.

If I were ‘the king,’ I would insist they shift into a higher gear. I think that would be immensely beneficial, particular to those not sure what to do and who might “play it safe” by betting on, e.g., liquefied natural gas – but that will take them only as far as, say, 2030 – rather than acting strategically for decades to come.

3-4/2022 | Baltic Transport Journal | 37

Bio-content in marine fuel helps reduce emissions – but will it leave you ‘all at sea?’

Tiny critters, huge losses

by Pierre Poitras, Technical Consultant, Conidia Bioscience Increasing percentages of bio-components are being added to marine fuels to help meet regulations and reduce the shipping sector’s environmental impact. But what difference does this make to fuel husbandry, and are there any risks to the marine operators? There are certainly some areas for concern, and fuel management procedures may need to be adapted to avoid unnecessary maintenance costs or damage to engine systems. Let us look at how the increased percentage of biofuels can raise the cost of fuel as well as leave it susceptible to microbes.

I

n 2017, the 6th edition of ISO 8217 allowed additional distillate fatty acid methyl ester (FAME) (DF) grades: DFA, DFZ, and DFB with a FAME content of 7.0 v/v %, another potential facilitator of increased water content and microbial contamination. These are complemented with new biofuels, created using innovative refining processes, such as hydroprocessing of vegetable oils (the increasingly popular HVO, particularly in the Nordic) and the coprocessing of waste products (oils, plastics) and other raw materials to substitute conventional crude oil, which may have different trace contaminants. While these reduce greenhouse gas emissions (GHG-E), their different chemistry can pose additional risks to marine assets.

Water finds its way The increased threat comes from a higher potential for microbial contamination.

Dormant spores of microbes, including yeast, filamentous fungi and bacteria, are present in the fuel and, when water and air are in the system, create an ideal breeding ground for them to multiply and grow. The bio-component (biodiesel) within marine fuels, generically referred to as FAME, gives these fuels a greater affinity to retain water, exacerbating the risks of microbial contamination.

Water will typically separate from fuel but introducing FAME into its chemical 38 | Baltic Transport Journal | 3-4/2022

composition means retaining water at greater concentrations. At the refinery, fuel contains <200 parts per million (ppm) water content.

Once exposed to the elements, DF grades can hold over 500 ppm of water. Typically, the higher the FAME content, the greater the potential for an increased amount of emulsified water, reaching up to 1,500 ppm.

Indeed, 100% biodiesel can hold 15 to 25 times more water than 100% diesel fuel.

Water can find its way into fuel throughout the fuel supply chain. Anywhere air is present, there is potential for moisture to condense – and there is plenty of opportunity for that in a marine environment!

Water can be present in the fuel as free droplets, entrained water, or a separated layer of free water beneath the fuel. The risk of contamination grows significantly with a higher organic content of biofuels for the microbes to feed on. Even if general maintenance procedures have prevented or controlled contamination in the past, shipowners and operators should consider taking additional steps to minimise the threat and protect their vessels.

Why it’s an issue Microbial contamination covers multiple types of organisms, the presence of which will vary according to individual site conditions, based on factors such as temperature and humidity. The microbes

work together in communities to degrade fuel and affect fuelling equipment. They form biofilms: complex structures of sticky, slimy polymeric substances that provide a protective habitat for microbes growing within them. These biofilms can clump with any other floating cellular material to form microbial biomass clusters that can plug filters, screens, or other small orifices within the fuel system. Furthermore, these biomass layers generate organic acids that corrode metal surfaces, causing damage to fuel tanks and other ancillary equipment.

If left untreated, vessels are at risk of costly damage to systems, breakdowns while at sea, and being out of service for several days.

As we look to increase the percentage of FAME further to reduce the environmental impact of marine fuels, the risk of microbial contamination also increases. On top of this threat, technological advances to produce more efficient combustion engines increase the machinery’s susceptibility to the dangers of microbial contamination. Recent engine advancement has introduced precise, higher internal pressure fuel nozzles, whose smaller orifices have a lower tolerance to sediments and particulate matter that might be generated by off-spec fuel. This ‘perfect storm’ in the advances to control GHG-E requires better fuel management steps to ensure valuable equipment is not damaged, and huge costs aren’t incurred.

MARITIME

Photo: Conidia Bioscience

Before realising there is a problem Removing as much water as possible from fuel supplies is good practice, but a sound testing regime will also help ensure contamination does not lead to corrosion or system damage. Understanding the contamination levels means taking maintenance actions, such as tank cleaning and adding biocide, which can be tailored and optimised to avoid unnecessary costs.

Sampling to identify microbial contamination is carried out in a laboratory or onboard. Testing frequency can be honed according to microbial test results, observed trends, and operational experience. The issues with sending samples to shore-based laboratories for testing derive from the fact that microbes are living, dynamic organisms. It means that the microbial population can change while the sample is in transit and during time delays, and the results may not represent the tank environment. Therefore, samples must be stored and transported under environmentally-controlled conditions, which presents logistical issues. The time taken to get results may mean the ship has visited a port and returned to sea before realising there is even a problem.

Rather than sending fuel samples to a laboratory, testing the fuel in situ, whether in port or at sea, provides a quick, easy, and

cost-effective alternative. Test kits based on antibodies, such as the FUELSTAT® test kit from Conidia Bioscience, are a proven method for identifying microbes with the ability to degrade fuel and provide an accurate indication of contamination levels.

These low-cost, single-use test kits are simple to use, require minimal training, need no special handling, and can be readily integrated into day-to-day operations.

They provide a result in a matter of minutes, scanned into a mobile app to log and share results immediately from ship to shore. They offer an economical and quick way to determine levels of microbial contamination in fuel and enable fuel tank testing while at sea and any required remediation work to be scheduled for when the ship returns to port.

While we wait We must reduce GHG-E. Increasing the percentage of FAME in marine fuels is

a clear and easy ‘winner’ in the short term while we wait for the development of technology and infrastructure to support zerocarbon alternatives. However, the chemical change in the composition of biofuels means we need to recognise the increased risk of microbial contamination. Subsequently, we should adapt routine operations to ensure advanced corrosion and damage to system components do not threaten vessel availability and burden the bottom line with additional costs.

Although shipowners may have previously had minimal issues with microbial contamination, fuel management procedures should be updated to protect vessels.

Contamination can occur throughout the fuel supply chain, and simple onboard testing provides instant results, facilitates optimisation of maintenance procedures, and may save thousands in repairs or lost operating time.

Conidia Bioscience celebrates 20 years of supporting the development, manufacture, and supply of fuel tests in aviation, marine, and land diesel sectors. Our suite of tests detects microbiological contamination at the tank for middle distillate fuels using a fast, easy-to-use immunoassay antibody technology that gives results in minutes and comes with a digital platform, FUELSTAT® Result, to record the results in the field digitally. Click conidia.com to learn more. The article is based on the Protecting equipment from microbial contamination when changing fuel chemistry white paper.

3-4/2022 | Baltic Transport Journal | 39

Interview with Wojciech Tyborowski, Director of Invest in Pomerania

Geopolitics, energy transition, and the Pomeranian region

by Andrzej Urbaś We recently had the chance to sit down with Wojciech Tyborowski, Director of Invest in Pomerania, and chat about how the current geopolitical situation in and around the Baltic Sea region may influence investor moods. It also allowed us to learn more about their new initiative – the Invest in Pomerania Academy and what it holds in store for the maritime transport sector.

The current, dynamic geopolitical situation in Europe is one of the leading topics. Have you noticed any impact on investor moods related to expanding their business to Poland, particularly the Pomeranian region?

From the investor’s perspective, it is a continuation of the situation with COVID. We have a high level of uncertainty impacting the investors differently, depending on the sector they represent. Some have a more optimistic outlook towards the future, but then there are others, like the automotive sector, who might not yet be in a drastically difficult spot, economywise, but their outlooks for the future are very uncertain. Many of their projects are on hold, waiting to see how the situation plays out. As long as the war continues, uncertainty will be a major factor when considering investment decisions.

The War in Ukraine is probably going to last for a longer time. Is there a risk for investors to steer away from Poland in the future until the conflict is resolved?

I am mostly afraid that at some point, the business sector will get used to the fact that there is a war being fought in Europe, and it will become just another part of the current economic reality. The reason why I consider it sad is because of the human aspect.

The business perspective may seem cold 40 | Baltic Transport Journal | 3-4/2022

considering the tragedy at hand. But companies will probably consider it as another variable when planning their future moves.

Whether the conflict will steer investors away from Poland depends on how the war develops. Should anything happen near the Polish borders, that might become a risk factor for the decision-makers. If the conflict retains its current form, the associated risk level will be significantly lower. The companies will somehow find a way to incorporate it into their decision models, but it shouldn’t become a significant factor.

The current uncertainty is very high; nobody knows how long the war will go.

Companies are observing the situation very carefully, and we can only wait and see what the future will bring.

in Pomerania. The idea is to provide training for people with no previous work experience in a given sector or who lack specific qualifications to apply for a job in an entry-level position in the chosen sector.

In terms of maritime, we focus mainly on training for operators, who might find employment in terminals, working with different kinds of equipment, such as cranes or machinery used to carry cargo around the ships. The choice to provide this kind of education is based on research we have conducted among the companies active within the maritime sector, asking them directly what type of employee profiles they will be looking for in the future.

Invest in Pomerania has recently announced the Invest in Pomerania Academy project. Could you tell us more about it, specifically about training for maritime transport professions?

The maritime economy sector, as a whole, needs a workforce, especially the shipbuilding and the rapidly developing offshore wind industries. Does Invest in Pomerania plan to expand the training programs of the Academy to cover areas?

The idea of the Academy is to provide an opportunity for people who are considering changing their career paths. People who already know what they want to do would like access more training which will enable them to start a career in a different sector.

Right now, we are targeting IT and the maritime industry. The latter encompasses port and offshore specialisations, as these are central to our strategy of growing business

We intend to do so. Right now, it is being discussed with the Marshal’s Office of the Pomeranian Voivodeship and the European Commission because we will be applying for the financing of this project during the next EU budget perspective. We will have more information on that by the end of this year.

We hope to expand the Invest in Pomerania Academy’s scope to cover the shipbuilding area and dive deeper into the offshore sector.

MARITIME

Photo: Canva

It is already visible to us that the latter will require a different set of competencies in the future. At present, we focus on skills that might help with the construction of offshore wind farms. In two or three years, we will shift that focus toward the competencies required to operate them. So yes, we also think about and wish to introduce this in the future.

The energy transition is another hot topic. What opportunities do you see in that regard, specifically for Pomerania?

How is the region preparing for the shift?

There are two major areas in which the region is making preparations. One of them is, of course, the offshore sector. Besides our activities related to supplying future talent, we have a couple of other major initiatives linked to establishing scientific infrastructure for future development. The Offshore Wind Energy Competence Center is being created in the town of Rumia by the Rumia Invest Park. Naturally, this is happening in cooperation with the Marshal’s Office. Then there is also the R&D centre constructed by the Maritime University in Gdynia. The Gdańsk University of Technology also leads various scientific initiatives. As you can see, a lot is going on, a direct answer to the fact

that offshore wind will be the next dynamically developing sector in the region.

Hydrogen is the second area in which preparations are being made in the context of the energy transition. We already have the Cluster of Hydrogen Technologies in Gdańsk run in close collaboration with the Marshal’s Office. Hydrogen can play a vital role in changing the energy mix and stabilising renewable energy supply. Offshore wind alone might not be sufficient, and that’s where hydrogen comes into play. These are the two major areas for us and the region, and that’s where the preparation efforts are focused.

Last but not least, while there are still a couple of months left in 2022’s tank, can you tell us a little about Invest in Pomerania’s plans for the next year?

In 2023, we will be shifting our focus towards the offshore wind sector, that’s for sure. The IT sector will also be very high on our priority list as well as electronics. We will direct much effort toward further developing the Invest in Pomerania Academy.

Additionally, several projects started over the last two or three years will be coming to an end. These were primarily linked to providing financial support to small and medium companies to support the

construction of new production and manufacturing facilities in the region.

We are also planning a couple of economic missions, mainly to the United States and Asia, with a focus on South Korea. These naturally depend on the COVID situation; right now, we hope that it will remain stable. That said, you can’t predict the future, but fingers crossed that everything goes as planned!

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A legal analysis of whether the EU can require the fuel providers to pay for part of the extended Emissions Trading System rather than passing it all to consumers

Requiring oil majors to pay

by Aoife O’Leary, Founder and CEO, Opportunity Green The European Commission (COM) has proposed including the road transport and buildings sectors in the EU Emissions Trading System from 2026 (known as the ETS2). The regulated entities will be the upstream providers of fuel, i.e., the oil majors such as Total, Shell, BP, Eni and Repsol. This legal analysis, commissioned by Transport & Environment, considers whether the oil majors can be required to absorb part of the ETS2 cost and concludes that there are at least two options the EU could use to do so.

T

o that end, three suggested options have been provided as examples of how this could be done. First, inserting provisions into EU Member State corporate governance codes. Second, using a system similar to the requirement in

Belgium that if medicine costs exceed a certain value, pharmaceutical companies must pay into a social security fund. Third, regulated tariffs for electricity as in France.

Each of these options will be assessed from a legal perspective, and then

a recommendation will be provided. In addition, as the options are either pricing- or levy-based, they raise questions about the legal base to be used. Consequently, the legislative procedure for adopting any measure will also be analysed.

Pricing transparency Before any regulation can require the oil majors to absorb part of the ETS2 cost, it will be essential to know how much of that cost is being passed on. While the market sets prices at the pump, national taxes and other regulations constitute that price.

Therefore, the first requirement should be that any supplier of fuel for road transport or buildings must provide a breakdown of the costs going into the price at the pump to describe how much of the price is determined by oil exploration and extraction, how much is national taxation, how much is the ETS2 price, and importantly, how

much is profit. Commercial operators have no inherent right to keep this information secret.

If the EU passes a law requiring them to share the information, they must do so.

The EU already mandates this for agriculture products, where price information is collected at each stage of the supply chain.

Regulation for transport fuels would have to consider that some oil companies are vertically integrated, but the principle is the same. For road transport, the information could be added to the EU oil monitor, which is published regularly.

In addition, it will be important for the EU to analyse fuel prices for road transport and buildings at a more macro level, i.e., following national and EU level prices as the sector enters the ETS2 to understand how much of the ETS2 price is being passed onto consumers. However, it would be difficult to tell, at any precise moment, how much was being passed onto consumers as both the ETS2 price and the price at the pump change frequently. Thus, the analysis would have to be carried out yearly (or perhaps more often, such as every quarter) to analyse the pass-through percentage.

Corporate governance codes Many EU Member States have corporate governance codes which cover topics such as executive pay and shareholder protection. While, in theory, the EU could require the Member States to place requirements on oil majors into their governance codes, several considerations make this not the most favoured option.

The Belgian Code on Corporate Governance (previously known as the Code Lippens) applies to companies listed on the Belgian stock exchange. There is a separate code for non-listed companies in Belgium, the Code Buysse, which seems to be the pattern in several Member States.

Meanwhile, other Member States only have corporate governance codes for listed companies. Thus, an issue arises if not all the providers of road transport and buildings fuel are listed on stock exchanges across the EU (complete analysis of whether these fuel 42 | Baltic Transport Journal | 3-4/2022

providers are listed on stock exchanges is beyond the scope of this paper).

The EU has a choice of instruments when it acts but cannot require Member States to put EU legislation in a particular place in their legislative codes. Suppose the EU chooses to use a Regulation as its instrument. In that case, everything in the Regulation is directly effective in Member State legal systems without any transposition required, but this does not place the measures into any particular place in Member State legislative systems.

The EU could also put a requirement in a Directive, an instrument of harmonisation of law across the block. In this case, it will require transposition in the EU Member States, but as it is an instrument of harmonisation, how the provisions are transposed is left to the individual Member States.

Another option is that the EU could issue a recommendation or opinion. Still, these are

non-binding in nature – and this would not be a suitable legal instrument for a requirement involving payments.

However, the EU can require certain outcomes, regardless of the legal instrument chosen, and to the extent that a Member State not placing a requirement in the governance code meant that the outcome was not achieved, the EU could force compliance.

Finally, as fully discussed in the final section of this article, the most suitable legal base for the measure is environmental, which has little linkage to a corporate governance code and could therefore raise questions around the appropriate legal base.

Therefore, the most critical consideration for EU law is the content of the law rather than the placing within the Member State legal order. The rest of this analysis will consider the content of the law, which could simply be part of the future ETS2 legislation.

LEGAL Regulated tariffs The French energy system is based on regulated access to gas and electricity with a standard charge (determined by the Commission de régulation de l’énergie) for the use of the networks. This charge accounts for about 40% of the price paid by the final consumer. A similar arrangement for road transport could involve regulating the price at the pump or the wholesale price of transport fuel.

The EU regulation of mobile phone tariffs provides a useful precedent. The EU has placed several caps on wholesale and retail charges. This was adopted using the legal base of harmonising the regulation of the internal market (Article 114 of the Treaty on the Functioning of the European Union, TFEU).

Still, several mobile phone operators challenged whether the EU had the authority to issue such price caps and whether, if the EU did, the measure was proportionate (Case C-58/08 – Vodafone and others). The challenge failed on both counts.

The challenge to the EU’s authority to cap prices came about because under TFEU Article 114 there is a requirement for divergent laws to exist before the EU can step in and regulate. Mobile phone providers argued

that there were no divergent laws, just divergent prices, but the Court of Justice of the European Union (CJEU) dismissed this as being manifestly false.

Secondly, and more interestingly for the purposes of considering a price cap for road transport, was the argument of whether the regulation from the EU was proportionate to the aim to be achieved. All EU legislation must comply with the principle of proportionality which is that the regulation must only go as far as is necessary to achieve the stated aim. The mobile phone operators claimed that regulating wholesale pricing would only have been a more proportionate measure, and regulating retail pricing was beyond the minimum required to meet the aims of the measure.

The CJEU dismissed the challenge to proportionality as the retail price cap “ought to ensure that retail charges for Communitywide roaming services provide a more reasonable reflection of the underlying costs involved in the provision of those services than has been the case.” The CJEU stated further, “reductions in wholesale prices might not be reflected in lower retail prices for roaming owing to the absence of incentives for that to happen [...]

there was no competitive pressure on operators to pass on that reduction.” The CJEU was upholding the right of the EU to reflect reasonable costs and, in effect, not allowing mobile phone providers to receive excessive profits. Reliance was made on the recitals and impact assessment of the mobile phone pricing regulation, which clearly set out the objects of the regulation and the analysis showing that without regulating retail prices, the desired outcome might not be achieved.

This supplies a direct precedent for the EU to regulate excessive profits or a retail price cap on road transport fuels. It would be ideal if the objects of the regulation are set out clearly in the legislation’s recitals, and there is a robust impact assessment for the CJEU to rely upon if the legislation is challenged.

However, the lack of an impact assessment that looks at the question of the oil majors absorbing some of the ETS2 cost or the impact of a retail price cap would not be fatal to any legislation surviving, especially if there are robust recitals explaining the reasoning for the measure and stating that the measure is proportionate to the aim and the minimum required for that aim to be achieved.

Levy on turnover Belgium has a levy on the turnover of pharmaceutical companies if the state budget for medicines is exceeded. In Italy, there is a similar provision where pharmaceutical companies must cover 50% of the overrun if the “direct purchase budget” for medicines is exceeded. A similar provision could be introduced where a levy is placed on the turnover of entities that provide fuels for road transport.

Road transport fuel suppliers are highly

concentrated, with six companies covering 75% of sales in Germany and 20 companies covering 99% in the UK. Therefore, there is a relatively modest number of entities to which any turnover regulation would apply in the road sector (though it seems that the buildings sector is less concentrated due to the broader use of multiple fuel types).

However, one of the issues that would be difficult to navigate would be ensuring that the correct entity’s turnover was assessed.

Each oil company will have several company registrations across different countries with different incomings and outgoings booked to varying entities for tax efficiency.

It could immediately be foreseen that oil majors could set up new companies to limit the amount of turnover assessed for any levy.

Thus, it could prove complicated to design legislation that takes into account multiple entities to ensure the appropriate turnover is considered.

Conclusion on potential design options Based on this analysis, regulating prices at the pump or mandating that if more than a certain percentage of the ETS2 price (or absolute euro value) is passed onto

consumers, the oil majors must contribute a certain percentage in addition to the ETS2 price to a fund are options to be preferred. These will be discussed further, but

first, the legal base for any measure must be considered as the EU only has the powers given to it in the Treaties and cannot step outside those powers.

Legal base Whatever measure is adopted, the legal base will be important for determining the legislative procedure to be used. The current ETS uses TFEU Article 192 on the protection of the environment as its legal base, and the COM has proposed that the ETS2 will also use TFEU Article 192 as a legal base.

The default legislative procedure for measures using Article 192 is the ordinary legislative procedure which uses qualified majority voting in the Council. But if measures are “primarily of a fiscal nature” or “significantly affecting a Member State’s choice between different energy sources and the general structure of its energy supply,” then

the special legislative procedure requiring unanimity voting in Council is required.

In addition, there is the question of whether a levy should move away from Article 192 entirely and be based on Article 113 on the harmonisation of taxation. The following sections will analyse each of these options in turn.

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LEGAL Significantly affect energy choice Poland challenged the ETS Market Stability Reserve (MSR) on the basis that the price of allowances would influence the choice of production technology for future investment and thus impact the country’s electricity production structure which would have a significant impact on Poland’s choice of energy source (C-5/16 Poland v Parliament and Council). Therefore, Poland claimed that the MSR should have been adopted using the special legislative procedure (in which Poland would have had a veto).

But the CJEU rejected this challenge on the

basis that a broad interpretation of measures which significantly affect a Member State’s energy choice “would risk having the effect of making recourse to the special legislative procedure, which the TFEU intended as an exception, into the general rule. That conclusion is irreconcilable with the Court’s case law, according to which provisions that are exceptions to principles must be interpreted strictly.”

As the CJEU dismissed the claim by Poland that the MSR significantly affected its choice of energy sources and importantly ruled that any

exemption be interpreted strictly, it is extremely unlikely that a measure to ensure that oil majors absorb a portion of the ETS2 would be found to significantly affect a Member State’s choice between different energy sources.

While putting a cap on road transport and, more importantly, on building emissions could be said to affect a Member State’s choice between different energy sources, this is inherent to the ETS2 itself and not the addition of any provisions requiring oil companies to absorb some of the ETS2 costs.

Primarily of a fiscal nature It is further unlikely that the addition of a measure requiring the absorption of ETS2 costs by the oil companies could be seen as being “primarily of a fiscal nature” if the explicit aim of the action is reducing climate impacts. The primary objective of the ETS2 is to reduce emissions, not to raise government revenue. Adding a measure ensuring oil companies absorb some of the ETS2 cost would not alter that primary aim but simply be an addition to assist in achieving that goal.

The ETS2 could directly affect consumers if the full allowance price were passed through. While this should aid with moving consumers towards lowering their use of fossil fuels for transport and building heating, vulnerable consumers do not have the available capital to buy an electric car or retrofit their homes (as examples).

The COM recognises this and states it will create the Social Climate Fund (SCF) alongside the ETS2 to tackle this issue. Ensuring

the oil companies either absorb some of the cost and/or contribute to the SCF would aid poorer households in moving to options for transport and heating that have lower climate impacts as these would be financed by the SCF or if the oil companies absorbed some of the cost, this would leave poorer households with more capital they could invest in measures to reduce emissions. In other words, ensuring that the aims of the ETS2 are more likely to be achieved.

Harmonisation of taxation A provision to ensure oil majors absorb most of the ETS2 price would be a fully integrated part of the ETS2; there is no reason to believe such a provision should be based on a separate TFEU Article. However, it is possible that the claim could be made that any requirement for the oil companies to pay additional amounts is akin to a tax. Thus, its legal base should be that of Article 113 TFEU on the harmonisation of taxes (note the mobile phone tariff case discussed above related to Article 114 on internal market harmonisation, not 113). Using Article 113 as the legal base would mean any resulting measure must be enacted via unanimity in the Council. However, it is unlikely any such claim could succeed.

As long as the levy on the oil majors is primarily aimed at protecting the environment, rather than harmonising taxation across the EU, the use of Article 192 is more appropriate.

The Court has held in C-45/86 Commission v Council that a specific legal base precludes the possibility of using a more general legal base. The environmental base is to be preferred between a legal base of primarily environmental action or taxation harmonisation for a levy on oil majors. Though such a measure would in a limited way harmonise taxation across the EU, it would be regulating the price due to a sought-after environmental impact rather than as a taxation matter per se.

This is important as the CJEU has held in the past that the legal basis for a legislative

act “must rest on objective factors amenable to judicial review, which include in particular the aim and the content of the measure” (Case C-211/01 Commission v Council).

In addition, the CJEU has stated that “if the examination of a Community measure reveals that it pursues a twofold purpose or that it has a twofold component and if one of these is identifiable as the main or predominant purpose or component whereas the other is merely incidental, the act must be based on a single legal basis, namely that required by the main or predominant purpose or component” (Case C-155/91 Commission v Council; Case C-36/98 Spain v Council). As the EU would be regulating based on environmental concerns, Article 192 TFEU should be the legal base.

Tackling social exclusion Part of the aim of the SCF and any measure to have the oil majors absorb some of the ETS2 cost is to protect vulnerable consumers.

However, this in and of itself cannot be the basis for any EU legislation as there is no legal base in the TFEU which could be relied on.

Tackling poverty and social exclusion is one of the specific policy goals of the EU, but TFEU Article 153 calls for it to be achieved solely by non-legislative cooperation. Therefore, any aim 44 | Baltic Transport Journal | 3-4/2022

of relieving poverty or protecting vulnerable consumers must always be secondary to achieving the climate goals of the legislation if it is to have the best possible chance of being adopted and surviving any potential legal challenge.

An alternative legal base would be the protection of consumers in Article 169. It aims to promote “the interests of consumers and to ensure a high level of consumer protection, the Union shall contribute to protecting the health,

safety and economic interests of consumers, as well as to promoting their right to information.”

There are two options for enacting legislation under this article – one is for “measures which support, supplement and monitor the policy pursued by the Member States.” Requiring the oil majors to absorb some of the ETS2 cost would not be supporting policy pursued by Member States, so this option could not be used.

LEGAL The other option uses Article 114 on the harmonisation of the internal market, which allows for measures to be adopted using the ordinary legislative procedure. However, there is no additional benefit to using this

Article compared to using Article 192 on the environment. Indeed, separating the legal base for oil majors to absorb some of the ETS2 cost from the legal base for the rest of the ETS2 would make the measures more

akin to a separate tax or levy.

Thus, the recommendation is to leave Article 192 as the legal base and ensure that environmental protection is the final measure’s main aim.

Proposed regulation Two options stand out as having the best potential: regulating prices at the pump or placing a requirement that if

more than a certain percentage of the ETS2 price (or absolute euro value) is passed on to consumers, the oil majors

must contribute a certain percentage in addition to the ETS2 price to the proposed SCF.

Option A: contribution to Social Climate Fund The SCF has two aims. First: to finance direct income support for vulnerable households, such as by reducing electricity taxes and levies. Second: to support measures and investments that reduce emissions in the road transport and buildings sectors and, as a result, reduce fossil fuel costs for vulnerable households, micro-enterprises and transport users. These aims are essential in ensuring any regulation is not primarily of a fiscal nature as they are clearly stated to be environmental.

As an example of how this regulation could work, if the EU determines that more than 50% of the ETS cost is being passed onto consumers (via the price transparency information

they have collected), then the entities in the road transport sector of the ETS2 must pay the average allowance cost for the ETS2 from the previous year for 20% the entities’ emissions responsibility. The following example uses very simplified numbers for illustration purposes; an economic analysis should be carried out to decide the appropriate metrics.

The fictional oil company Totell surrenders 1,000 European Union Allowances (EUAs) in 2027 for its 2026 road transport emissions. Based on the information provided by Totell and its own analysis, the COM considers that Totell passed on 65% of the cost of the EUAs to the consumer. The average cost of a EUA during 2026 was €100. As

the 65% pass-through is larger than the 50% cap, Totell must pay, in addition to the EUAs already purchased, 20% of 1,000 = 200, multiplied by the average EUA price of €100 = €20,000 into the SCF. A sliding scale could be set with larger penalties as greater proportions are passed on to the consumer.

This could even be simplified by requiring Totell to pay the same amount the company passed on in excess of the pass-through cap into the SCF. This would work the same as in the above example, but as Totell passed 65% through to consumers, which is larger than the 50% cap, Totell would be required to pay an amount equivalent to the 15% excess pass-through into the SCF.

Option B: a cap on retail prices Another option would be for the EU to directly regulate road transport fuel retail prices. By doing so, the EU would essentially require the oil majors to absorb a certain amount of the ETS2 price as they would not necessarily (depending on prices) be able to pass it on.

The COM could set the cap by considering the information provided by the pricing transparency requirements discussed at the start of this analysis on

a quarterly (or more frequent) basis. This would further the environmental aim of the ETS2 because it would reduce the amount that more vulnerable customers (and everyone else) pay so that they could more easily save up the capital required to install a heat pump or buy an electric vehicle (as examples).

However, the environmental purpose (important to ensure the legal base is not seen as “primarily of a fiscal nature”) is

less clear-cut as the consumers who save money due to the retail price cap would not necessarily invest these savings in measures that reduce climate change.

Further, it does reduce the climate signal sent to all other consumers.

The recitals to the legislation would be key to ensuring a clear environmental benefit to this measure is articulated, which could be relied upon later in the case of any challenge to the regulation.

Conclusion Multiple legal options are available to the EU to ensure that the fuel providers absorb the ETS2 cost. This piece considered using corporate governance codes, regulated pricing, and a levy on turnover.

The final conclusion presents two options. Option A is a hybrid that is mainly modelled on the turnover levy but considers the pass-through from the oil companies to the consumers and the

ETS2 price for the penalty. Notably, the penalty should go to the SCF because it is designed to reinforce the aims of the ETS2 by supporting vulnerable households who might not otherwise be able to move their transport and heating consumption away from fossil fuels.

Option B would be for the EU to directly regulate the retail price of road fuel. Both of these options primarily aim

to protect the environment, rather than having a financial aim, avoiding a requirement to use the special legislative procedure. However, Option A provides a clearer environmental benefit. Thus, it will be extra important if Option B is adopted to ensure that there is clear reasoning set out in the recitals to the legislation that could be relied upon in any subsequent challenge to the law.

Climate change is terrifying. But if the global community acts now, the solutions that reduce emissions also bring enormous opportunities for economic development, improved health and increased democracy.

At Opportunity Green we help countries, civil society and business access those opportunities.

Visit www.opportunitygreen.org to learn more.

3-4/2022 | Baltic Transport Journal | 45

Recommendations for fending off ransomware in shipping

Cyber hijack

by Henry Clack, Associate, HFW As for all businesses, ransomware is a significant issue for the shipping industry. There have been a series of high-profile attacks on the sector in recent years. In 2021, Swire Pacific Offshore was reportedly the victim of a cyber attack. Whilst its fleet of roughly 50 vessels was not materially affected, the attack is understood to have caused a significant loss to the company. Historically, shipowners have viewed their ships as being relatively immune to these sorts of attacks as, due to their very nature, they have been ‘air-gapped’ from the rest of the owners’ IT network. This is, however, no longer the case.

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he software and hardware on board that monitors or controls the vessel’s physical equipment (known as operational technology or OT) have increasingly been connected with the outside world. This equipment, which generally comprises computer systems that control engines, steering gear, pumps or valves, is now regularly linked to the outside world to allow for external monitoring by head office or third-party suppliers/manufacturers. Cybercriminals can exploit this vulnerability.

An increasingly attractive form of cyber crime Ransomware exploits are relatively straightforward to execute. They can either be purchased on the dark web as software packages or be of a bespoke design for a unique target. The code can infiltrate and encrypt computer networks, locking employees and IT teams out of the system until a fee has been paid in exchange for its release. The recent growth in cryptocurrencies has provided perpetrators with an anonymous payment system, making it an increasingly attractive form of cybercrime.

46 | Baltic Transport Journal | 3-4/2022

Regarding the payment of ransoms, it is important to note that the victim may face legal issues if it makes payment without carrying out due diligence. Whilst the payment of ransoms is legal as a matter of English law, this is not always the case in other jurisdictions. Similarly, it should be borne in mind that transferring funds to terrorist organisations is illegal, and this is particularly problematic given that some groups are arguably politically motivated and/or state-sponsored. Insurers should also exercise caution as UK law includes a specific offence for insurers who fund ransom payments to a terrorist organisation.

Finally, ransomware victims could fall foul of sanction rules. In September 2021, the Office of Foreign Assets Control (OFAC; a financial intelligence and enforcement agency of the U.S. Treasury Department) issued an advisory notice with specific information relating to ransomware. The memo states that individuals may be “held civilly liable even if such person did not know or have reason to know that it was engaging in a transaction that was prohibited under sanctions laws and regulations administered by OFAC.”

Reconnecting HFW, CyberOwl and the maritime innovation agency Thetius have released The Great Disconnect, a report which attempts to shed light on the cyber security readiness of shipping based on surveys and research interviews of more than 200 industry professionals.

Whilst the report deals with several cyber issues facing the shipping industry, the survey results were striking when it came to ransomware: 44% of industry professionals reported that their organisation had been the subject of a cyberattack in the last three years. Of those, 3% resulted in paying a ransom by the victim to the attacker, at an average cost of $3.1m.

The report makes four recommendations of practical measures for ship operators, industry suppliers, and wider stakeholders to take to reduce the risk of falling victim to these attacks.

First: set up a dedicated cyber security directorate within fleet operations that covers both IT and OT security. One of the most significant vulnerabilities uncovered during the research was the serious disconnect between senior leaders in organisations that operate ships, those responsible for the

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security of IT systems, and those responsible for protecting OT systems. Taking a holistic approach to cyber security that includes both IT and OT systems alongside physical security is therefore critical.

Second: implement a comprehensive cyber incident training and drill programme. Everyone in an organisation, whether at sea or ashore, must understand what actions are required of them during a live cyber incident. The programme should be based on practical scenarios that reflect the actual setup and security posture of the organisation, its people, processes, and technology. Senior leaders in organisations should understand the decisions they will need to make during a cyberattack to enable their organisation to deliver the best response to minimise losses and disruption. They should have confidence that systems and processes have been put in place to ensure that the right information gets to the right people to make the right decisions quickly.

Third: develop minimum security standards for suppliers and partners. It was clear from the survey and research interviews that maritime suppliers work to a much less stringent cyber security

standard than the ship operators they serve.

On average, industry suppliers reported a 10% lower score than those who work for ship operators across all of the selfassessment questions asked in the survey.

We recommend that all shipowners and operators create a cyber security standard that is incorporated into the procurement or counterparty due diligence processes.

This can be designed as a supplier code of connection which sets a minimum cyber security standard for the supplier before they are permitted to connect to vessel systems or access ship data.

Lastly: conduct an urgent review of insurance policies and seek guidance on

ransom payments. Only 35% of respondents to our industry survey confirmed that their organisation has insurance in place to cover cyber risks. Though many organisations may believe they are covered under existing policies, for many policies, there are blanketing exemptions they should be aware of. Further, even if cyber threats are not specifically exempted, the circumstances of an attack and the failures of organisations to address earlier failures and vulnerabilities identified in cyber security systems and processes could lead to denied claims.

These recommendations should go some way to reduce the risks facing the shipping industry.

Whether we are solving complex issues within the construction, aviation or shipping industries, or providing advice across insurance, commodities and energy, we are specialist lawyers here to add value to our clients. We think about the commercial solution first – and then underpin our advice with a solid foundation of legal expertise. Go here to access the Maritime Cyber Security Thought Leadership Report. For more information on our HFW-CyberOwl joint cyber security proposition, visit www.hfw.com/cyberowl-hub.

We help asset operators in the maritime and critical national infrastructure sectors gain visibility of systems on their remote assets, actively manage the cyber risks and gain assurance of cyber compliance. Head to www.cyberowl.io to learn more.

3-4/2022 | Baltic Transport Journal | 47

Addressing warehouse risks

Safety in store

by Andrew Peers, Deputy Underwriting Director, TT Club Major incidents caused by explosive materials at storage facilities are relatively uncommon throughout Europe. Though, catastrophic incidents elsewhere – Tianjin in 2015, Beirut in 2020, and more recently, the tragic event in Chittagong – inevitably attract substantial attention. However, less startling accidents, together with near-miss events, deserve greater publicity in a congested supply chain world, as they each may have the potential to be just as damaging. A clear focus should therefore be placed on taking proper care of explosive goods, particularly how they are handled in storage facilities. Fortunately, a wealth of advice on the subject is available.

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hether located in port areas or inland, warehouses are a fundamental component of the global supply chain: be it short- or long-term cargo storage, modal interchange, or facilitating added value activities such as re-work or co-packing.

Arguably, warehouses have become increasingly important nodes, as just-intime supply chain models are being adjusted with a more conservative approach to longerterm inventory storage. Some operators will have been forced to demonstrate agility over the last two years, perhaps embarking on new or increased warehouse capacity requirements to meet evolving business needs. However, those exploring dynamic warehousing options should not be complacent and, instead, develop an understanding of the associated risks.

As part of its TT Brief series, TT Club has identified key risks, providing compact, visually-led guidance to mitigate the identified risks in establishing or choosing a warehouse as well as its operation. These documents, targeted at the operational workforce, seek to provide contentful messaging to support toolbox talks and good hands-on practices.

No one-size-fits-all solution Initial practical considerations for establishing a warehouse will inevitably relate to location, proximity to transport networks, size, availability of labour and rental prices and/or land costs. The first and most crucial decision will be whether to own or lease the property. There will likely be considerable differences in responsibilities – therefore 48 | Baltic Transport Journal | 3-4/2022

liabilities to maintain and repair the warehouse – resting on this decision. When entering any contract, it is critical to fully understand your obligations to mitigate risk.

A consideration of growing importance is climate change, the risk of exposure to weather-related losses and the likelihood of flooding (e.g., roof and drainage systems capable of withstanding the ever more severe downpours experienced in many regions).

The associated losses of such incidents can be far-reaching. Water is unforgiving and can penetrate and damage just about any area or commodity. Flood water is inherently dirty, which increases the likelihood of damage. Additionally, in many cases where local sewers have been flooded, the water can be unsanitary, further elevating the seriousness of the damage and the health risk.

Perhaps a less obvious consideration might be the activities of other storage units or facilities adjacent to the intended operation. Are there contamination risks or hazards associated with incompatible cargoes to consider? For example, the ammonium nitrate in the Beirut blast was stored beside fireworks, the ignition of which set off what is regarded as one of the most powerful nonnuclear explosions in history.

While insurance may provide a degree of protection, studies have shown that there can be a significant difference between an insured loss and the total economic loss. The latter includes indirect costs, such as lost management time and reputational damage (in Beirut, the blast-damaged grain silos have lately caught on fire, posing a threat to neighbouring residential areas). Your insurer must have a sound understanding

of your operational activities, your property, what cargo you are storing (the Beirut warehouse was used by authorities to store various confiscated goods), what equipment is on-site at any given time and a reasonable valuation of it all.

Some obvious physical measures concerning warehouse security include perimeter fences, video surveillance and barriers.

However, effective security measures also include procedural aspects like ensuring due diligence when hiring personnel, issuing security badges, and providing company uniforms and information security. There is no one-size-fits-all solution to warehouse security; much will depend on the goods being stored and the frequency of cargo movements.

Who, where, when and why Industry statistics illustrate an uncomfortable number of bodily injuries sustained in the warehouse environment. There are many moving components in play, and the advent of automation introduces complex safety challenges. For example, according to statistics from the UK’s Health and Safety Executive, approximately 28,000 workers in the country sustain non-fatal injuries at work each year. Slip, trip and fall incidents account for 32% of these injuries, and being struck by a moving or falling object accounts for 11%. The average annual fatal injury rate in the transport and storage sector is around twice the average rate across all other industries. Creating a safe and secure environment can not only reduce the risk of injury to staff but also reduce cargo damage and its impact on profitability.

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Photo: Canva

Control of personnel, as well as visitors and contractors, is a fundamental step to sustaining safety. Understanding who is within the premises, when and why, restricting access to areas where they do not need to be, and ensuring adequate induction training will all assist in mitigating the risk.

Effectively segregating people and handling equipment is another critical challenge in operational zones.

Finally, warehouse fires are amongst the more significant claims in terms of both cost and operational impact. The primary causes of warehouse fires include electrical failure or malfunction, hot works, maintenancerelated issues and poor enforcement of nosmoking policies. Many incidents can be avoided entirely by periodic risk assessment, effective maintenance and training, policy enforcement, and good housekeeping. Due diligence relating to the cargo being stored and understanding the potential risks they present is vital.

Versed in safety TT Club would also like to draw the attention of those involved in warehousing and storage to the recently published Warehousing White Paper: Storage and handling of Dangerous Goods in preparation for, or after, sea-transport (issued by four industry organisations: ICHCA

International, IVODGA, National Cargo Bureau and World Shipping Council). This publication valuably seeks to bridge any gaps between international regulations and local practices, setting out detailed good practice guidance for all those taking part in handling and storage of dangerous goods that are at rest in transit, somewhere between the point of origin and the intended destination, typically in a port area.

In a world where significant volumes of dangerous goods are transported internationally – generally understood to be in the region of 10% of all packaged goods, with an estimated additional 5% reflecting the murky criminal underbelly of misdeclared cargo – the reality is that the interchange between different modes of transport necessarily involves periods of storage.

The Warehousing White Paper, and its accompanying Checklist, detail the risks involved in storing and handling dangerous goods and, importantly, the measures to be taken in containing them. Topics covered include competency and training

of workforces; property construction; fire protection; security equipment; and protocols and emergency response procedures.

It is intended as a practical guide to systematic and documentable processes for those managing and operating storage facilities to ensure the ongoing safety and that incidents are containable if they arise.

Ports, terminals and logistics operators must be fully versed in the local and national regulations regarding all operational aspects. Since these entities are also necessarily dependent on complete and accurate dangerous goods declarations, thorough risk assessments need to take the presence of such freight as a primary concern. This will include ensuring that all neighbouring stakeholders (such as operators, emergency responders, enforcement agencies, etc.) are appropriately equipped and trained for any eventuality. Naturally, in all communities where warehouses and storage facilities are located, there are reciprocal responsibilities – each potentially presenting risk as well as vulnerability.

TT Club specialises in the insurance of intermodal operators, non-vessel owning common carriers, freight forwarders, logistics operators, marine terminals, stevedores, port authorities and ship operators. The company also deals with claims, underwriting, risk management as well as actively works on increasing safety through the transport & logistics field. Please visit www.ttclub.com for more info.

3-4/2022 | Baltic Transport Journal | 49

Bringing the insurance ecosystem together around a common purpose

Responsible environmental stewardship

by Patrizia Kern-Ferretti, Head Marine, Swiss Re Corporate Solutions, and Chair, Poseidon Principles for Marine Insurance In the race to decarbonise the maritime industry – which science and society are demanding as more and more urgent – all maritime stakeholders must play their part. We have established the Poseidon Principles for Marine Insurance in recognition of the role marine insurance, as a vital part of the maritime ecosystem, has to play in incentivising environmentally responsible behaviour. Today, we are preparing the foundation for data sharing and collaboration with our clients that will help us build a more sustainable future for all.

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he Poseidon Principles for Marine Insurance are a global framework for measuring and reporting the alignment of insurers’ hull and machinery portfolios with climate targets. The framework is built on four principles: assessment of climate alignment, accountability, enforcement, and transparency (shared with the sister organisation Poseidon Principles for Financial Institutions and the Sea Cargo Charter). Established under the auspices of the Global Maritime Forum, the three initiatives aim to increase the transparency of environmental impacts within global seaborne trade, promote industry-wide change, and support a better future for the industry and society.

In practice, the Principles are first and foremost a framework for emissions data collection and transparency. They give insurers the tools to obtain real and granular data about their insured emissions and to track them year over year, allowing them to make evidence-based strategic decisions and work together with their clients to meet decarbonisation targets.

Our journey to draft the Poseidon Principles for Marine Insurance started in 2020. The Principles were launched in December 2021 with six leading insurers as Signatories and three Affiliate members. They entered into force in April this 50 | Baltic Transport Journal | 3-4/2022

year – when they reached nine Signatories and five Affiliates. With the number of Signatories surpassing the threshold of eight, the commitment to measure and report the climate alignment of our hull and machinery portfolios has become binding. In addition, the International Union of Marine Insurance acts as the Principles’ Supporting Partner.

It has been exciting to see our ranks grow so quickly, and it is inspiring to look back at the learning curve we have climbed in our own organisations and collectively within marine insurance. I believe the reason we have been successful in doing so is that the time is right for collaborative solutions to the climate crisis. The demand and will from all parts of industry and society to accelerate action to address the climate crisis will only increase.

Through data to decarbonisation A key opportunity that Signatories to the Poseidon Principles can take advantage of is access to data. With accurate and granular data about their insured emissions, Signatories can establish key performance indicators, measure their progress over time, and work with clients in finding ways to make environmentally responsible decisions that also make business sense. This allows us to be a leading player in shipping’s journey towards decarbonisation.

Another advantage the data offers Signatories to the Poseidon Principles for Marine Insurance is proving their commitments to sustainability. Signatories commit not only to measure but also publicly disclose the climate alignment of their hull and machinery portfolios.

This creates transparency that keeps us accountable to our targets. It also signals to the maritime industry that shipping decarbonisation is our priority.

The Poseidon Principles for Marine Insurance are fortunate to be able to build on the efforts of the Poseidon Principles for Financial Institutions, established in 2019. Like our sister initiative, we base our data on the International Maritime Organization’s (IMO) Data Collection System, which requires ships of 5,000 gross tonnage or above to gather and report data to the IMO. This means that the Poseidon Principles do not generate an additional data collection burden on our clients.

Both Poseidon Principles for banks and insurers have chosen to benchmark the carbon intensity of their ship finance or hull and machinery insurance portfolios against the IMO’s ambition to reduce total greenhouse gas emissions (GHG-E) from international shipping by at least 50% by 2050. As a step towards alignment with the Paris Agreement, the Poseidon Principles

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Photo: Canva

for Marine Insurance have decided to adopt a second benchmark: a 100% emission reduction by mid-century.

A broader movement Due to the complexity of the maritime insurance space, the Principles allow for different types of participation in the framework. Insurance companies with hull and machinery portfolios can join as Signatories.

The carbon intensity of these portfolios is benchmarked against the IMO’s target of reducing shipping GHG-E by at least 50% by 2050. Other key insurance stakeholders, such as brokers or protection and indemnity insurance clubs, can commit to supporting the Principles and join as Affiliate members.

By doing so, they can fulfil their commitment, e.g., by sharing knowledge about the Principles among their clients and facilitating smooth data collection.

One of the aims of the Poseidon Principles for Marine Insurance is to bring the insurance industry together around a shared challenge and a common purpose.

As Signatories and Affiliate members, we can share best practices and learn from each other. We are able to point to our fellow members and say that this is not the mission of a single company but a broader movement in our industry that will only grow.

Our doors remain open – all leading players in the marine insurance

ecosystem are invited to join us. We continue in our onboarding efforts and aim to reach 15 Signatories before this year is out. In these efforts, we will also focus on expanding our coverage geographically. The Poseidon Principles for Marine Insurance are a global initiative; therefore, it is essential that our membership ref lects our international outlook.

As a newly established association, much of our attention in the coming months will be devoted to finalising some of the association’s administrative aspects, along with sharing knowledge on what the Principles mean among our clients and prospective new members. We are currently initiating our first data collection process that will allow us to disclose our insured emissions this coming December.

We look forward to collaborating with our clients and business partners to ensure a smooth data collection process and, subsequently, analysing the data and gaining insights that we have not had access to in the past.

In step with the demands Looking even further ahead, the Poseidon Principles for Marine Insurance will ensure that the Principles remain consistent with any relevant IMO policy updates and with the latest climate science. The trajectories will be reviewed and improved regularly to maintain the initiative’s robust nature and remain in step with the demands of our society.

In addition, although climate alignment is currently the only environmental factor included in our framework, it is within the power of Signatories to expand the remit of the Poseidon Principles for Marine Insurance. I look toward the future of this initiative with excitement.

Our real work is just beginning. However, I’m excited and motivated by the energy shown by all Signatories and Affiliate members at our recent founding meeting, which took place on 27 April 2022. I am honoured to have been elected as the Chair of the Poseidon Principles for Marine Insurance – and I look forward to working with fellow members to make this initiative a success!

The Poseidon Principles for Marine Insurance are a framework for measuring and reporting the alignment of insurers’ shipping portfolios with climate goals. Recognising insurers’ role in promoting responsible environmental stewardship throughout the maritime value chain, the framework provides them with tools to foster collaboration with clients, gain insight to enhance strategic decision-making, and address the impacts of climate change.

Visit www.poseidonprinciples.org/insurance for more information.

3-4/2022 | Baltic Transport Journal | 51

How elites pollute the most but pay the least

Carbon inequality

by Ewa Kochańska

The Oxfam-commissioned report Carbon inequality in 2030 analysed statistical data to make 2030 global emission predictions based on countries’ carbon reduction pledges, or NDCs (nationally determined contributions), of various income groups. The report found that unless the deeply-rooted carbon footprint of the world’s elites is immediately addressed and significantly reduced, the resulting climate changes will force the poorest communities to pay a steep price for resulting economic and natural disasters. Additionally, the top global earners’ current consumption and investment trends are moving further away from the 1.5°C Paris Agreement goal; at the same time, the bottom 50% of earners, so those most impacted by adverse weather events, have been staying safely below that goal.

‘He who pays the piper calls the tune’ In 2030, the total emissions of the bottom 90% of global earners will just slightly surpass the 1.5°C-compatible emissions level, while the wealthiest 10% alone will nearly reach that level. Yet despite the statistical research, which has been returning very similar results for several decades now, the absolute emissions associated with the top 1% earners are set to continue increasing.

This is because the carbon intensity of the economies of countries where the richest 52 | Baltic Transport Journal | 3-4/2022

Fig. 1. Per capita consumption emissions of global income groups in 1990-2030 and the 2030 1.5°C-compatible total global emissions level1 Based on current national emissions reduction policies and pledges, the per capita consumption emissions of the richest 1% are set to be 25% higher in 2030 than in 1990, and still 30 times higher than the global per capita level compatible with the 1.5⁰C Paris Agreement goal

70

60

50 tCO2/capita

R

esearch conducted by the Institute for European Environmental Policy (IEEP) and the Stockholm Environmental Institute (SEI) found that the wealthiest 10%, around 800m people, are responsible for nearly half of the emissions increase between 1990 and 2015.

Moreover, by 2030, the carbon footprint of the top 1%, which is only 80m people, will be 30 times higher than the global per capita level compatible with the 1.5°C target; the middle 40% earners are set to emit twice the 1.5°C per capita level. Meanwhile, the footprint of the poorest 50% – about 4.0b people – will remain quite a bit below that level.

The report also discovered a global shift regarding the carbon footprint of the leading global polluters. For example, by 2030, the Chinese will contribute to the top 1% emissions more than the US, and the citizens of India will contribute more than those of the EU. Emissions from countries such as Saudi Arabia and Brazil will also continue increasing and contributing to the top 1% emissions.

These statistics underscore that while rightfully trying to eradicate extreme poverty and achieve a higher standard of living for their citizens, middle-income countries are making economic progress without paying enough attention to the emissions resulting from their emerging industries.

Per capita emissions gap in 2030: 67.7t CO2/ capita

40

1990 Per capita emissions (tCO2) 2015 Per capita emissions (tCO2) 2030 Per capita emissions (tCO2) 2030 1.5⁰C-compatible global per capita level (2.3t CO2)

The per capita emissions of the richest 10% in 2030 are set to be nearly 10 times higher than the global 1.5⁰C-compatible per capita level, while the per capita emissions of the poorest 50% will still be far below that level

30

Per capita emissions gap in 2030: 18.7t CO2/ capita

20

10

Per capita emissions gap in 2030: 2.2t CO2/ capita

Per capita emissions gap in 2030: 2.5t CO2/ capita

0 Richest 1%

Richest 10%

Middle 40%

Poorest 50%

Global average

Annual income in 2030 ($2011PPP) of the richest 1%: >$172k; richest 10%: >$55k; middle 40%: $9.8k; poorest 50%: <$9.8k; total population in 2030: about 7.9b Source for figs. 1-2: IEEP and SEI 1

reside is not decreasing rapidly enough to offset the consumption habits of their wealthiest citizens.

Between 2015 and 2030, the top 1% are estimated to reduce their per capita consumption emissions by only 5%; that number would have to be 97 to align with the 1.5°C goal. And while the poorest communities’ emissions are set to increase by 17% in that same time – even if they tripled, they would still be within the 1.5°C-compatible per capita level in 2030.

It is difficult to imagine what habits and lifestyles contribute to such high carbon emissions. The report found that, e.g., billionaires’ carbon footprint can amount to thousands of tonnes annually, with

superyachts as the main pollutants (estimated 7.0kt/year) along with private jets, large vehicles, and multiple luxury homes.

Post-2021, the newest form of luxury travel – space tourism – will quickly become the most significant emissions contributor, with hundreds of tonnes of carbon being emitted during a 10-minute-flight of four passengers.

Transport overall is the biggest problem regarding carbon emissions worldwide, and in the EU, the highest emission contributions are transport-related.

As for the top earners’ carbon footprint, it is also associated with capital investments which, according to one study, accounted for as much as 70% of the carbon footprint of the top 1% in 2019.

SUSTAINABILITY Fig. 2. Total consumption emissions in 1990-2030 of global income groups and the 2030 1.5°C-compatible total global emissions level

40 35 30 GtCO2

25

Total emissions in 2030 of the richest 10% alone are set to nearly amount to the global total for a 1.5⁰C pathway

20

Total emissions in 2030 of the poorest 90% combined are set to only just exceed the global total for a 1.5⁰C pathway

Total emissions gap in 2030: at least 17 GtCO2

15 10 5 0 Richest 1%

Richest 10%

Middle 40%

Poorest 50%

Global total

1990 Total emissions (GtCO2) 2015 Total emissions (GtCO2) 2030 Total emissions (GtCO2) 2030 1.5⁰C-compatible total emissions level (18 GtCO2)

The obvious conclusion would be that to keep the 1.5°C target in sight, the wealthiest populations must change their habits.

At the same time, governments must take decisive action against their most aggressive polluters – in the form of regulations, bans, or luxury carbon taxes.

Even though there have been many policy proposals in first-world countries targeting luxury spending, particularly related to travel, these regulations struggle to pass through congressional houses worldwide.

In democratic nations, where most wealthy people live, the electoral process allows for large financial donations by individuals and organisations to political candidates, who have learned to count and depend on that money. The recipients of such contributions are expected to respond to their donors’ concerns, usually regarding taxes and financial policy. Simply put, to keep the donations coming, politicians must vote consistently with their donors’ priorities.

According to Affluence & Influence: Economic Inequality and Political Power in America, a book by Princeton professor Martin Gilens, the American federal government almost always sides with the interests of their wealthiest class.

Interestingly, Gilens’ book also highlights that presidential campaign platforms are usually more consistent with the interests of the lower and middle class. Once the elections are over, however, the lauded policies are often not even introduced in parliamentary bodies or stall during the legislative process.

Furthermore, the elites’ influence has been steadily rising in the past several

decades while the responsiveness to the middle and lower class has been decreasing.

According to Gilens’ research, whether the middle or lower class supports a given policy does not affect how likely it is to become law.

However, there is an obvious pattern showing that if the affluent favour it, the proposal is much more likely to become law. Clearly, the wealthiest 1% are not about to support policies that chip away at the lifestyle that has often been common to their families for several generations.

Incidentally, the biggest companies in the world manage to avoid taxation altogether. For instance, in 2018, Amazon paid no federal income tax while profiting $11b.

Their CEOs are not far behind; according to ProPublica’s The Secret IRS Files: Trove of Never-Before-Seen Records Reveal How the Wealthiest Avoid Income Tax, Jeff Bezos, the second-richest person alive, did not have to pay any income taxes for two years (2007 and 2011), while the wealthiest man alive, Elon Musk, did not pay income tax in 2018. Both have been rather generous in their political donations, if not personally, then through their companies and political action committees.

‘A light purse is a heavy curse’ The most significant turnaround in this decade in dealing with decreasing emissions is expected to come from the middle earners – the 40% between the richest 10% and the poorest 50%. This is the same group that, between 1990 and 2015, had the highest emission growth rate and therefore was subjected to numerous campaigns to permanently change their

lifestyle, i.e., fuel/vehicle switching, use of renewable energy, more efficient use and recycling of materials, etc. At the same time, before the pandemic, the middle class experienced wage stagnation while both the poorest’ and the richest’ incomes increased. Now, the post-pandemic estimates predict that the global middle class will shrink even more, seeing higher housing, healthcare, and education costs.

But, it is the poorest who pay the highest price for government regulations, increased carbon emissions, and the resulting climate changes, even though they are the least responsible for them. For example, corporations routinely transfer the costs of carbon emission-related regulations to their customers. As a result, when the percentage of earnings is considered, the lowest income households end up paying for these regulations as much as twice more than the top 10% ones. Many rural and, increasingly, urban areas populated by lower-income communities are already experiencing ‘energy poverty,’ which means they cannot adequately heat and cool their households. Consequently, the existing climate-change policy framework further impoverishes low-income citizens. It can even push more people into poverty while not doing enough to change the behaviour of the key polluters.

Also, the World Health Organization already warns that between 2030 and 2050, an additional 250k/year deaths will occur due to climate-related impacts such as malnutrition, malaria, diarrhoea, and heat stress. Increasing droughts deplete food and water sources, while flooding, 3-4/2022 | Baltic Transport Journal | 53

SUSTAINABILITY Fig. 3. An overview of climate-sensitive health risks, their exposure pathways and vulnerability factors

Source: World Health Organization

tornadoes and hurricanes destroy homes, community infrastructure, agriculture, and life. According to the United Nations, some 52 (!) small island developing states (SIDS) are at risk of disappearing due to rising sea levels. SIDS are located in the Caribbean, the Pacific, the Atlantic, the Indian Ocean, and the South China Sea, having a combined population of about 65m. Some have already had to relocate their populations. For example, in Fiji, the residents of Vunidogoloa had to be moved to higher grounds. The Fiji government invested hundreds of thousands of US dollars for the relocation, including building 30 new houses, fish ponds, and farms.

But it’s not just developing islands that deal with climate-related relocations.

The residents of Shishmaref, an island populated mainly by the Iñupiat Alaska Natives, reluctantly voted in 2016 to relocate due to their coastline melting. Since then, they have been looking for funding for the resettlement of their community, working on a relocation framework, and trying to get assistance from either the Alaskan or federal government. Amid the 54 | Baltic Transport Journal | 3-4/2022

erosion crisis, they’re still there: a village standing on melting ice.

Even in the most developed countries, low-income communities struggle the most with climate change and the resulting disastrous weather events. The warming temperatures are less of a problem for the financially comfortable for many reasons; among others, air conditioning is a basic appliance in medium to higher-income housing, and quality homes are less prone to storm shocks overall. Higher income also makes it possible to live in safer areas, above sea levels, and away from other dangerous bodies of water, dry wooded areas, or industrial facilities which can release chemical and toxic spills due to weather events. Likewise, in case of disaster, higher earnings and savings allow to relocate ahead of danger, purchase survival equipment and additional food, and long-term, benefit from insurance claims.

Statistically, severe weather events intensify income inequality. Post-disaster, the higher-income households move away and the remaining community more often than not transitions into poverty.

Climate-proofing High-income countries and regions like the US, UK, and EU have profited economically from their carbon-intensive industries. Thanks to that, they have the economic means to take bold action to reduce global emissions and lessen the climate change impacts, which their road to economic prowess encouraged. “For such countries, a ‘fair share,’ in line with the analysis of the Civil Society Equity Review group, requires both deep domestic emissions reductions – at a minimum – to the 1.5°C-compatible per capita level, and in addition the provision of adequate, new and additional international climate finance to support low- and middle-income countries who require it to limit their emissions to the same level,” says the report. This is besides the funds that must be directed towards climate adaptation efforts, climate-related aftermaths, and climate-related community relocations.

The consequences of climate change impact especially agricultural communities, affecting production, trade, and, thus, food security. Therefore, the low- to middle-income countries are most vulnerable

SUSTAINABILITY Fig. 4. Per capita consumption emissions of national income groups in 2030 and the global average 1.5°C-compatible per capita level

100 90 80

tCO2/capita

70 60

127

In China, the consumption emissions of half the population are set to remain below the 1.5⁰C per capita target, while those of the richest 1% are set to rise dramatically

US national per capita consumption emissions are set to fall by about half from 2015– 2030, but to a level that is still 4 times the global 1.5⁰C per capita level

In the EU and UK, the consumption emissions of the poorest 50% of the population are set to fall to the 1.5⁰C per capita target, but the richest 10% will remain 5–6 times above it

Indian national per capita consumption emissions are set to remain within the global 1.5⁰C per capita target, although the emissions of the richest 10% are set to rise to over 5 times that level

50 40 30 20 10 0 China

USA

EU

UK

India

Richest 1% nationally

Richest 10% nationally

Middle 40% nationally

Poorest 50% nationally

National average

1.5⁰C-compatible global average

Source: Carbon inequality in 2030

to climate-caused disasters and have limited means to offset the weather negatives.

For example, the Caribbean countries had around 30 tropical storms just in 2020, but the strength of the hurricanes has increased so much that the current infrastructure is unable to withstand them. Likewise, in the Pacific Island countries, the power of cyclones hitting their communities has grown in recent years. But according to a study from the International Institute for Environment and Development, 46 of the least-developed countries worldwide lack funds for ‘climate-proofing.’

The carbon inequality statistics are startling on a global level. Still, the effectiveness of emission-reduction policies depends on individual countries’ social and political environments since carbon inequality is also significant locally. In India, the national per capita consumption emissions are expected to be within the 1.5°C goal by 2030, even though emissions of their wealthiest 10% are set to grow to five times that level. Similarly, the EU and the UK are expected to cut their

national per capita consumption emissions, with their poorest 50% populations set to achieve the 1.5°C-compatible global level.

In contrast, the wealthiest 10% will remain considerably higher.

The political action on carbon emissions has to be well-thought-out to be fair and effective. If it is not, such a policy framework damages the poorest communities who do not even benefit from the carbon-intensive activities the rich enjoy.

To the heart The report concludes that to achieve the Paris Agreement’s 1.5°C goal, either the wealthiest global communities, especially the top 1%, have to change their behaviour drastically to decrease their carbon footprint – or the rest of the world must engage in even deeper emission cuts.

Realistically, that means that the wealthiest nations, particularly their governments, must take a leadership role and engage in a fairer and more decisive campaign and policy-making to diminish carbon emissions

by the end of this decade. Additionally, they must create financing for lower- to middleincome communities and countries so they can also take further emission limiting steps and deal with climate-event-related loss, damages, and relocations.

“At the national and regional level, analysis of carbon inequality must move urgently to the heart of government efforts to implement strengthened NDCs with a far clearer focus than has been the case to date on measures to reduce inequality and address the excessive emissions of the richest, while supporting those on the lowest incomes,” says the Carbon inequality in 2030 report.

Enacting smart policies through incentives, regulations, taxes, or even bans on carbon-intensive luxury activities and purchases, especially those involving travel and capital investments, is unquestionably a necessity. Here, advocacy groups and watchdog organisations will have to play a profound role in ensuring that political self-interests are put aside.

3-4/2022 | Baltic Transport Journal | 55

Towards a gender-balanced workforce: key challenges for women in seafaring

Behind the curve

by Reverend Ijeoma Ajibade, Regional Director Europe, The Mission to Seafarers As we all know, shipping has been a historically male-dominated industry. While bringing more women into the maritime world has been a key consideration for governments, NGOs, and global organisations in the sector, men are still 98% of the world’s estimated 1.6 million seafarers. Change is taking place, but it is happening slowly.

The entire maritime industry is responsible for providing women seafarers with the support, opportunities, and guidance they need to overcome the barriers they face, both in sea-going and shore-side job roles.

W

omen’s social and economic development is an essential priority for many global organisations. Both the International Maritime Organization and the World Maritime University are responding to the issue of gender inclusion by setting out a clear rationale for the training and employment of women in maritime, including research to support this. Both institutions have developed various programmes and events encouraging the industry to share learning, expertise, and best practices on gender empowerment.

However, the reality is that gender and women’s rights are still contentious issues, depending on where you are in the world.

This can massively impact female seafarers

and their experiences at sea. From our position as a welfare charity, The Mission to Seafarers has deliberated on how we can better support female seafarers and improve understanding of what life at sea is like for these women.

This year, we created the 2022 Women Seafarers Report that looks at the experiences and needs specific to female seafarers and how organisations can provide the best possible support to women at sea.

The maritime industry has recognised that more must be done to attract and retain women. Female seafarers face the same long hours and contracts, little job security and employment protection as their male counterparts, but they must also contend with persistent gender stereotypes and

discrimination. This discrimination affects working conditions, access to education and training, and career opportunities, but outstanding women seafarers have been working in the shipping industry despite these challenges. It all comes down to having the proper support to navigate life at sea as a woman.

Maritime welfare support had been traditionally developed to respond to the needs of male seafarers. Now that the number of women seafarers is on the rise, welfare organisations must consider what they can do to identify the needs of women seafarers and shape their services accordingly. Here are five key takeaways from the report, outlining challenges specific to female seafarers.

Access to maritime education and training Women continue to face discrimination when it comes to maritime education and training. In some countries, women may be discouraged or find it difficult to enrol in nautical courses, and when they register,

they encounter training staff who are averse to their presence.

Some employers are reluctant to take on women cadets or qualified female seafarers due to the erroneous belief that women work

at sea for less time than men. This difficulty in placing women seafarers can impact college admissions, as statistics show that 100% placements at sea are a significant part of any maritime college marketing strategy and success.

A lack of inclusion and acceptance Evidence shows that women seafarers can be confronted with a certain level of exclusion and sometimes resistance from their male colleagues. This can make it difficult for women seafarers to flourish at work.

These attitudes can range from overt hostility to discriminatory comments dressed up as “humour,” with the intention to get

the message across that the ship is not an appropriate workplace for a woman. This treatment can undermine not only the confidence of women seafarers but also create a hostile working environment.

Women in senior positions may experience difficulty with men who do not like taking orders from a female authority. Female

seafarers may also feel they need to work harder than their male counterparts to prove to everyone that they can do their job and are worthy of their position in the crew. Women end up having to jump through additional hoops to prove themselves and take on the burden of reassuring men that women seafarers have the right to be on board.

Sexual harassment and intimidation Sexual harassment and intimidation are horrific challenges for women seafarers to face. They require firm action from all maritime industry sectors, and all vessels should be safe workplaces for women. Sexual harassment and intimidation take many forms at sea, from inappropriate remarks to threats, physical violence, and assault.

56 | Baltic Transport Journal | 3-4/2022

Women cope with sexual harassment in several different ways. They may withdraw from on-board social situations, or if they do attend, they may choose to leave events early. Some women lock themselves in their cabins at night for safety.

Many shipping companies have antiharassment policies, backed by company

training and courses, and women seafarers tend to be positive about these initiatives and the dedication of their organisations to create a safer working environment. Women who believe their company is committed to eliminating sexual harassment are also more likely to come forward and make formal complaints about their experiences.

SUSTAINABILITY

Photos: The Mission to Seafarers

Access to good healthcare While far from a female-specific problem, access to healthcare on board can be challenging for women seafarers. On some vessels, seafarers are largely dependent on fellow crew members for medical consultations and treatment, resulting in awkward situations for women and impacting patient confidentiality. Another critical health challenge for women seafarers is the access to sanitary products and disposal of sanitary waste.

Use of on-board facilities Crews often become small communities congregating in a vessel’s limited space. Apart from the division of shipboard spaces and the use of facilities by rank, women may be informally excluded or may not feel comfortable in certain areas of the ship where, for example, pornography is watched or openly displayed, or TV sets dominated by shows targeted to a male audience.

In response, women seafarers may spend excessive time alone in their cabins. This kind of isolation may extend to shore leave as male seafarers may not invite female colleagues to join them when they go ashore.

Realising the benefits of a diverse workforce While it is clear there is a gender gap in maritime, the good news is that there are actionable steps the industry can take to overcome these barriers and boost female welfare, as well as improve recruitment and retention.

Several maritime organisations and associations aim to provide women with peer support, where they can share experiences, find solutions to common challenges, and seek advice on career development and progression. These communities also promote the visibility of role models for women in maritime, showing that success is possible. This can empower women to continue their careers in the business and even acquire skills that can

put them on a path to achieving leadership positions.

By better understanding female seafarers’ challenges, organisations can improve their support for women at sea.

This can include everything from welfare support and creating gender-sensitive living conditions on board ships to no-tolerance policies for discrimination against female seafarers. Training for all staff on achieving a workplace free from violence and harassment can help enhance respect for diversity and reduce the burden on women seafarers to prove themselves worthy of the job they’re more than qualified for.

Women seafarers bring a fresh perspective to the maritime industry and contribute to a diversity of thought and new ideas to find solutions to long-standing issues. Having a gender-balanced workforce also helps deliver the skills the industry needs to continue moving forward. While gender equity is a critical global priority, shipping remains behind the curve. By taking decisive action, the maritime sector can improve the working conditions of existing female seafarers and encourage more women to apply for job roles. By creating a more equitable working environment, the maritime industry will be able to recruit and retain more women seafarers and reap the rewards of a more diverse workforce.

The Mission to Seafarers (MtS) provides help and support to the 1.6 million men and women who face danger every day to keep our global economy afloat. MtS works in over 200 ports in 50 countries, caring for seafarers of all ranks, nationalities, and beliefs. Through its global network of chaplains, staff and volunteers, MtS offers practical, emotional and spiritual support to seafarers through ship visits, drop-in seafarers’ centres, and a range of welfare and emergency support services. Visit www.missiontoseafarers.org to learn more.

3-4/2022 | Baltic Transport Journal | 57

Digital developments are supporting seafarer health and well-being

Crew welfare at the centre

by Marigold Langley The coronavirus pandemic has seen widespread international restrictions, including travel bans and port closures that forced the crew to stay longer at sea – some working many months beyond their contracts. In addition to missing family and friends, some needed medical advice and access to emails for personal transactions. And, of course, they wanted to stay up-to-date with the latest news from shore. We now see these same requirements for crew whom the war in Ukraine has impacted, which has particularly affected seafarers from key Baltic and Eastern European crew supply countries. Crew welfare has taken centre stage in the maritime industry in recent years – and digital communications are playing a crucial role in supporting the health and well-being of seafarers across the globe.

T

he Baltic region plays a vital role in global shipping. Some 15% of the world’s cargo traffic is handled in the Baltic Sea, making it one of the busiest maritime areas. Up to 5,500 ships navigate through the region each month; at any given moment, there are about 2,000 vessels in the Baltic marine area.

Boasting a strong maritime history, the Baltic states control about 7,000 ships, representing 13% of the world f leet and 35% of EU-controlled vessels. The region offers a pool of 70,000 officers, with many crew supply agencies based in the area to furnish the needs of international and regional shipping.

A basic human right With an ageing demographic and predictions of crew shortages by 2026, talent nurturing and crew retention have become increasingly important. Communication technologies play a crucial role in this context. Crew surveys repeatedly highlight that access to the Internet and voice calls are key factors in the employment decision-making process.

58 | Baltic Transport Journal | 3-4/2022

Recognising the significant benefit of crew connectivity to seafarers’ health and well-being, stakeholders in the global shipping industry have recently adopted new amendments to the Maritime Labour Convention (MLC 2006), which aim to improve onboard living and working conditions. Mandatory Internet access for seafarers was high on the list of changes. Indeed, the International Transport Workers’ Federation stated, “Being able to keep in touch with family and friends isn’t just a nice-to-have, it’s a basic human right.” This commitment looks set to transform the way ship operators approach their satcom provision in the future.

Gwenaël Loheac, President – Europe and West Africa at the IEC Telecom Group, notes, “Reliable access to crew communication links is essential for seafarers’ well-being, but also vital for recruitment and retention – a factor which will become increasingly important to meet the expectations of Generation Z and future recruits. And with crew costs representing the largest outgoing in vessel

operational expenditures, it is vital to protect and support human assets.”

Improved working conditions and strengthened crew morale The IEC Telecom Group is at the forefront of bringing connectivity to crew at sea. Working side-by-side with major satellite operators such as Iridium, Inmarsat and Thuraya, the company provides a wide range of connectivity solutions suitable for all vessel sizes. Loheac shares, “Today, there is really no excuse not to meet the planned MLC communication amendment.

Access to crew welfare is no longer limited to VSAT-equipped vessels. There are a lot of affordable and compact solutions, powered by L-band, to match requirements of small and mid-sized boats.”

The key to successfully providing crew communications is segregating this connectivity aspect from critical vessel systems. The OneGate network management system by IEC Telecom offers a solution for this challenge. This technology provides onboard management with complete visibility over communication links.

SUSTAINABILITY

Photos: IEC Telecom Group

Gwenaël Loheac President – Europe and West Africa, IEC Telecom Group

Featuring an easy-to-use digital dashboard, OneGate allows monitoring of the bandwidth distribution onsite and provides IT specialists ashore with remote access to filter management.

The need for enhanced crew welfare has spurred the development of specialised applications optimised for L-band.

In particular, video conferencing is the

driving force behind a whole new range of smart services, including telemedicine, e-learning, and remote maintenance.

Video conferencing is now commonplace onboard large vessels. Yet, using regular telecom applications, such as Zoom or Microsoft Teams, requires at least 500Kbps. Not only does this impact monthly expenses, but it also restricts the availability of video calls to a VSAT channel. Working with industry partners, IEC Telecom has developed a video conferencing app operational at 40-80Kbps, enabling this vital communication even over a backup channel.

Access to healthcare is another essential component of crew well-being. Satellite communication has made telemedicine possible at sea. The OneHealth kit by IEC

Telecom provides doctors with remote real-time access to a patient’s vitals over an in-built application, supporting data transfer and video conferencing. As such, professional medical support becomes available to crew members as and when required, improving working conditions and strengthening crew morale.

Those who embrace change The satellite communications industry is evolving at speed and bringing benefits to those at the very heart of international shipping – the seafarers. Loheac ends, “We are witnessing a time of fast-paced development in the digital world, which will ultimately benefit maritime users who embrace change, and crew welfare looks set to remain at the centre of this evolution.”

The IEC Telecom Group is one of the leading international satellite service operators. Renowned for supplying highquality satellite-based solutions to customers for almost 30 years, we deliver efficient end-to-end voice and data services when and where it matters the most. We are committed to enabling digitalisation for the maritime industry as well as remote units on land, where GSM coverage is unavailable. For urban networks, we provide a powerful satellite back-up to ensure the business continuity of customer enterprises. Visit iec-telecom.com/en to learn more.

3-4/2022 | Baltic Transport Journal | 59

The framework of sustainability: why electrification isn’t all good

Think beyond

by Matthew Wittemeier, Director Marketing and Sales, Terminal & Distribution Logistics Division, INFORM At the IANA Expo 2021, I had the pleasure of sitting on the automation panel with several distinguished and undoubtedly more experienced professionals. The conversation ranged from practical steps toward automating today to innovations that will come to shape the industry in a decade. Somewhere in the middle, the moderator brought up the topic of “sustainability.” I was the last to have an opportunity to voice my opinion – a fact that I’m grateful for because each of my fellow panellists talked about electrification – in any way, shape, or form – as being the primary focus of sustainability efforts in intermodal. I took a vastly different approach. I posited that while electrification is a positive step, it is merely scratching the surface of what could be achieved if we fundamentally rethink what sustainability is, what it means to our industry, and what would constitute a future-ready vision of sustainability in the transportation sector.

I

made the point that electrification of terminal assets principally moves the emission of CO2 out of the terminal environment upstream to the energy producer – but the CO2 is still being generated. Unlike our maritime cousins, who are actively building green energy production into their facilities, intermodal terminals in the US are still predominately receiving electricity generated centrally through the burning of fossil fuels. As such, while the terminal might see a decrease in CO2 emissions on the facility, they’re passing the buck to the energy producer, who will see a net gain. An improvement in environmental sustainability doesn’t happen unless the terminal can guarantee that the electricity running their new electrified equipment is itself green.

Even worse, the increased demand for electricity to terminals adds strain to the electrical grids they’re connected to, an issue, which in time, is likely to increase electrical costs for other system users.

DP World’s Carla Grifo shared a very 60 | Baltic Transport Journal | 3-4/2022

similar sentiment when I talked with her during a 2038: Future Visions interview. In short, electrifying equipment is good, but only when the electricity is produced locally. True sustainability is about doing more with less and pushing the return of existing assets to their fullest.

What is sustainability?

The first thing that comes to most people’s minds when considering the term “sustainability” is environmental sustainability. Yet, it is so much more.

Sustainability is more a thinking framework than a singular end goal. The sustainability framework provides a way to consider the future impact of an action, a process, a system – on the planet and its creatures, including people. The environment, or the planet, is a single side of the equation. If we set electrification against the broader framework, while potentially positive for the planet, if the cost of living is inadvertently raised for the people in the surrounding communities, then the

true sense of sustainability isn’t achieved.

While I have only been in the industry for the past five years, I have certainly seen a sector dedicated to improving the world around it. Rail freight transport on its own drives significant environmental benefits when compared to long-haul trucking. The discussions around electrification also indicate that the industry wants to improve its environmental sustainability outcomes. That said, we need to consider the broader framework of sustainability as discussed above when considering what actions to take.

In a January 2021 technical paper in Port Technology, my co-authors and I presented evidence from multiple studies of INFORM’s optimisation modules looking at the impact of optimisation on traditional diesel-powered, horizontal transport equipment. One of the key takeaways was that reducing equipment to complete the same quantity of work was the most significant way to reduce CO2 emissions within the system.

SUSTAINABILITY

Photo: Canva

Furthermore, multiple studies on the consumer automotive market conclusively show that the environmental cost of producing a new electric vehicle is significantly higher than the environmental cost of maintaining and using an already produced gas-powered vehicle. Naturally, replacing end-of-life machinery with new electrified hardware is a solid argument.

However, these two points together make a compelling argument that replacing existing diesel-powered equipment for the sake of driving sustainability is, again, not a positive move towards sustainability.

A future vision of sustainability We must look at the short and the long term as an industry. Concerning

the former, we need to weigh the pros and cons of investments, including those sustainability-tagged. However, regarding the latter, we ought to challenge how we operate our terminals. Are the processes we have in place today the best – or do they exist because that is how we have ‘always done it?’

Rethinking sustainability starts with understanding and seeing the larger framework presented. But it can only truly be effective if we dare to be willing to reconsider the foundations on which

we have built our industry. Innovation and new ways of doing things are all too often seen as scary, and risk-averse management structures prevent us from actually creating real positive change.

In closing, I encourage you to think beyond electrification. Think beyond your current operations. Think beyond the limits of what you have today and truly consider what would drive real sustainability in the industry. We have a saying at INFORM: old process + new technology = expensive old process.

Based in Aachen, Germany, INFORM specialises in artificial intelligence (AI) and operations research, including machine learning and fuzzy logic, to improve operational decision-making in various industries, among others, logistics and supply chain (maritime and overland). Head to www.inform-software.com to discover more.

3-4/2022 | Baltic Transport Journal | 61

Interview with Michel van Roozendaal, President, Kalmar

The adventure

by Przemysław Myszka The transport & logistics industry, including cargo handling, wants to ‘clean up’ after itself by partaking in the green transition. We are talking with Michel van Roozendaal, Kalmar’s new captain and Member of its parent company’s executive board, about the New Era of Logistics and electrification’s special role in it.

What has been the latest news about Kalmar?

What stands behind the “New Era of Logistics” slogan?

The company, an essential part of Cargotec, is very much committed to the journey of providing sustainable and innovative cargo flow solutions – as has been our path for many decades. After the ‘no go’ for the merger with Konecranes, we have decided to re-focus by uniting the, until now, two separate segments of our business: mobile solutions and automation. We have also concluded to discontinue the large crane unit because of too much cross-competition, resulting in the undervaluation of what we can supply.

The future of Kalmar will therefore revolve around counterbalance machinery, like reachstackers, and horizontal and vertical equipment such as terminal tractors and straddle carriers, respectively. This portfolio should interplay nicely with our automation efforts. And, of course, all of this goes under the ‘New Era of Logistics’ umbrella, where we see electrification as the leading driving force. During the latest TOC Europe in June 2022, we presented our electric reachstacker.

It is a modular design machine, meaning one can, for example, customise the battery pack size to suit their needs. Fast forward to end-July, and together with the Port of Helsingborg, we could announce that the Swedish seaport will be the country’s first to run a Kalmar Electric Reachstacker as of this year’s last quarter, featuring 587 kWh of battery capacity. The deal includes an option for an additional two.

Experiencing the New Era of Logistics will come in different ways. Take, for instance, the reachstacker drivers and how the latest advancements in technology make it possible to coach them in optimising their driving. The modern experience isn’t about putting the equipment together, dropping it on the customer, and running away, but being with the clients over the machinery’s total lifecycle.

The external setting changes the experience, too. There are different total cost of ownership comparisons one can go through. For instance, California will ban quay and yard machinery running on fossil fuel, so operators will have to look around for alternatives – greener ones in the mind of the regulators. In places where solutions won’t be ‘legislated out’ in such a direct way, customers will follow their spreadsheets – and values. Companies are willing to pay the green premium, as sending containers through a more environmentally-friendly terminal reduces the clients’ and their own emissions.

Organisations are making commitments – these aren’t empty gestures that will look nice in an ESG report. Kalmar is looking into reducing its foot- as well as hand- print, i.e., the emissions our machinery produces when used by customers. If the power generation mix is based on renewables, like in the Nordics, then the benefits of green machinery trickle down to what ultimately

62 | Baltic Transport Journal | 3-4/2022

lands on the grocery shelves. Kalmar doesn’t want to be that company that tells others to go green while its own operations are dirty. Heavy-duty machines are our trade, so it makes perfect (green) sense to source less carbon-intense steel for making them.

But it goes even further: one needs to have in place recycling logistics for batteries. The idea is to keep them in the loop, up and running after refurbishment. After all, manufacturing hi-end battery packs requires precious components and materials, and nobody would like to see rareearth elements thrown away just like that.

A wasteful economy is what deserves discarding in turn.

The experience with the equipment will also change as regards maintenance. An electric drive is, to a large extent, a different pair of shoes relative to a combustion engine. This will see many service people altering their skills, including safety issues while working with high amperage.

Moreover, I see electrification as a precursor for broader automation simply because you don’t have all the mechanics of the traditional motor-driver relation you need to mimic. Instead, algorithms can sort out the nitty-gritty already from within, so to say.

No laws of physics forbid the use of electric machinery – either in the full sun of Africa or in the depths of freezing Finland.

Among others, our solution has built-in battery heaters to ensure the equipment works within the optimal settings. The challenge lies in organising the workflow to secure enough charging opportunities. There are

SUSTAINABILITY

Photos: Kalmar

many options regarding the battery pack and the size of the charging station matrix.

It isn’t rocket science, so potential clients won’t have too much difficulty picking the best configuration.

What are the stumbling blocks that can put a break on the green transition?

While the changeover is revolutionary at its core, down on the ground, the changes are evolutionary. We don’t idle waiting for some magical switch to go from ‘off ’ to ‘on,’ finally allowing us to start investing in eco-friendlier solutions.

Some limitations might suppress the pace at which things could go. One is

the availability of rare-earth elements or securing the grid capacity, as other industries also scramble to shift their gears onto the green level.

Another constraint is the power density of batteries; we had to wait a considerable amount of time to get our hands on battery packs that can store the required energy and be handy enough for mounting on a reachstacker.

Another factor was charging times; compact and powerful batteries would be useless if you had to spend an eternity ‘filling them up’ anew. Opportunity charging comes here as a sub-issue: for it to be sufficiently efficient since nothing good would come from charging the packs only a bit.

Apart from time, the transition will require trust building. The Kalmar Electric Reachstacker works – it can move containers all day long, just as its fossil fuel counterparts do. Data-wise, however, there are gazillion documented working hours of diesel reachstackers. From this angle, it will necessitate experimenting with the new technology, even though it’s proven to work.

And that’s all fine because it speaks to our openness for change, the adventure in seeking better ways of doing things.

3-4/2022 | Baltic Transport Journal | 63

Trelleborg

Travemünde

Klaipėda

Rostock Świnoujście

Efficient & Reliable Transport Solutions between Germany, Poland, Lithuania and Sweden www.ttline.com/en/freight

REPORT

Baltic general cargo & passenger markets in 2021

by Marek Błuś and Przemysław Myszka Amidst a relatively flat year overall, the region’s general cargo market rolled up its sleeves and walked in leaps and bounds in 2021. Having totalled 342.79mt (+8.8% year-on-year), it is once again Baltic’s leading trade. Both its unitised and break-bulk legs made significant advances, up 8.5% yoy to 258.58mt and 9.5% yoy to 84.22mt, respectively. With an increase of 11.9% yoy to 157.90mt, the region’s wheeled traffic once again showed it is second to none. The turnover of ro-ro cargo units overtook that of twenty-footers: 11,629k (+11.5% yoy) vs 11,373k (+4.5% yoy). That said, the container market was up, too; with 100.67mt, some 3.6% more than the 2020 result. The coronavirus pandemic was a wee bit less burdensome last year, making it possible for the passenger sector to earn an extra 7.6% yoy in the number of served passengers (59.59m). Generally speaking, not a bad year.

Which, in all probability, won’t be possible to say about 2022 once we have the figures…

3-4/2022 | Baltic Transport Journal | 65

REPORT Tab. 1. The Baltic Sea region’s (BSR) ports’ cargo turnover in 2020-2021 (thousand tonnes)1 № 1 2 3 4 5 6 7 8 9 1

Country Russia Sweden Finland Poland Denmark Germany Lithuania Latvia Estonia Total

2021 258,580 168,181 103,727 96,680 94,255 60,626 49,751 41,731 39,404 912,935

2020 241,481 167,594 109,948 88,520 91,271 54,052 51,529 44,928 37,688 887,011

yoy +7.1% +0.4% -5.7% +9.2% +3.3% +12.2% -3.5% -7.1% +4.6% +2.9%

Share 2021 28.32% 18.42% 11.36% 10.59% 10.32% 6.64% 5.45% 4.57% 4.32%

Share 2020 27.22% 18.89% 12.40% 9.98% 10.29% 6.09% 5.81% 5.07% 4.25%

Share 2021-share 2020 [pp] +1.10pp -0.47pp -1.03pp +0.61pp +0.03pp +0.55pp -0.36pp -0.49pp +0.07pp

All tabs.: only Russian and German Baltic ports; all Danish ports

Tab. 2. BSR’s ports’ general cargo turnover in 2020-2021 (thousand tonnes) № 1 2 3 4 5 6 7 8 9

Country Sweden Russia Finland Germany Denmark Poland Estonia Latvia Lithuania Total Share of total

2021 83,652 48,850 44,207 43,297 40,520 38,520 17,984 13,352 12,410 342,792 37.55%

2020 78,979 46,162 43,713 37,446 37,850 35,640 12,015 12,362 10,949 315,116 35.53%

yoy +5.9% +5.8% +1.1% +15.6% +7.1% +8.1% +49.7% +8.0% +13.3% +8.8% +2.02pp

Share 2021 24.40% 14.25% 12.90% 12.63% 11.82% 11.24% 5.25% 3.90% 3.62%

Share 2020 25.06% 14.65% 13.87% 11.88% 12.01% 11.31% 3.81% 3.92% 3.47%

Share 2021-share 2020 [pp] -0.66pp -0.40pp -0.98pp +0.75pp -0.19pp -0.07pp +1.43pp -0.03pp +0.15pp

Tab. 3. BSR’s ports’ unitised freight (containerised and wheeled) turnover in 2020-2021 (thousand tonnes) № 1 2 3 4 5 6 7 8 9

Country Sweden Germany Denmark Poland Russia Finland Estonia Lithuania Latvia Total Share of general cargo Share of total

Photo: TT-Line

66 | Baltic Transport Journal | 3-4/2022

2021 64,269 36,797 35,837 33,460 32,216 29,194 9,736 9,160 7,910 258,579 75.43% 28.32%

2020 59,656 31,088 33,162 30,403 31,662 27,658 8,424 8,348 7,838 238,239 75.60% 26.86%

yoy +7.7% +18.4% +8.1% +10.1% +1.7% +5.6% +15.6% +9.7% +0.9% +8.5% -0.17pp +1.47pp

Share 2021 24.85% 14.23% 13.86% 12.94% 12.46% 11.29% 3.77% 3.54% 3.06%

Share 2020 25.04% 13.05% 13.92% 12.76% 13.29% 11.61% 3.54% 3.50% 3.29%

Share 2021-share 2020 [pp] -0.19pp +1.18pp -0.06pp +0.18pp -0.83pp -0.32pp +0.23pp +0.04pp -0.23pp

REPORT Tab. 4. BSR’s ports’ wheeled freight (ro-ro) turnover in 2020-2021 (thousand tonnes) № 1 2 3 4 5 6 7 8 9

Country Sweden Germany Denmark Finland Poland Estonia Russia Latvia Lithuania Total Share of unitised Share of general cargo Share of total

2021 50,078 34,536 27,856 17,780 10,130 7,542 3,725 3,533 2,725 157,905 61.07% 46.06% 17.30%

2020 46,120 29,194 25,831 15,775 8,747 6,616 3,241 3,136 2,390 141,050 59.21% 44.76% 15.90%

yoy +8.6% +18.3% +7.8% +12.7% +15.8% +14.0% +14.9% +12.7% +14.0% +11.9% +1.86pp +1.30pp +1.39pp

Share 2021 31.71% 21.87% 17.64% 11.26% 6.42% 4.78% 2.36% 2.24% 1.73%

Share 2020 32.70% 20.70% 18.31% 11.18% 6.20% 4.69% 2.30% 2.22% 1.69%

Share 2021-share 2020 [pp] -0.98pp +1.17pp -0.67pp +0.08pp +0.21pp +0.09pp +0.06pp +0.01pp +0.03pp

Share 2021 28.30% 23.17% 14.10% 11.34% 7.93% 6.39% 4.35% 2.25% 2.18%

Share 2020 29.24% 22.28% 13.93% 12.23% 7.54% 6.13% 4.84% 1.95% 1.86%

Share 2021-share 2020 [pp] -0.94pp +0.89pp +0.17pp -0.89pp +0.38pp +0.26pp -0.49pp +0.30pp +0.32pp

Share 2021 23.02% 19.76% 17.83% 9.79% 7.72% 6.46% 6.01% 5.56% 3.86%

Share 2020 25.13% 18.86% 20.88% 4.67% 8.27% 5.88% 6.81% 6.10% 3.38%

Share 2021-share 2020 [pp] -2.12pp +0.90pp -3.06pp +5.12pp -0.55pp +0.58pp -0.80pp -0.54pp +0.48pp

Tab. 5. BSR’s ports’ containerised freight turnover in 2020-2021 (thousand tonnes) № 1 2 3 4 5 6 7 8 9

Country Russia Poland Sweden Finland Denmark Lithuania Latvia Germany Estonia Total Share of unitised Share of general cargo Share of total

2021 28,491 23,330 14,191 11,414 7,981 6,435 4,377 2,261 2,194 100,674 38.93% 29.37% 11.03%

2020 28,421 21,656 13,536 11,883 7,331 5,958 4,702 1,894 1,808 97,189 40.79% 30.84% 10.96%

yoy +0.2% +7.7% +4.8% -3.9% +8.9% +8.0% -6.9% +19.4% +21.3% +3.6% -1.86pp -1.47pp +0.07pp

Tab. 6. BSR’s ports’ break-bulk turnover in 2020-2021 (thousand tonnes) № 1 2 3 4 5 6 7 8 9

Country Sweden Russia Finland Estonia Germany Latvia Poland Denmark Lithuania Total Share of general cargo Share of total

2021 19,383 16,639 15,013 8,248 6,500 5,442 5,060 4,683 3,250 84,218 24.57% 9.22%

2020 19,323 14,500 16,055 3,591 6,358 4,524 5,237 4,688 2,601 76,877 24.40% 8.67%

yoy +0.3% +14.8% -6.5% +130% +2.2% +20.3% -3.4% -0.1% +25.0% +9.5% +0.17pp +0.56pp

Photo: HHLA/Raul Mee

3-4/2022 | Baltic Transport Journal | 67

REPORT Tab. 7. BSR’s ports’ ro-ro cargo units traffic in 2020-2021 (thousand units) № 1 2 3 4 5 6 7 8 9 1

Country Sweden Denmark Germany Finland Estonia Poland Lithuania Russia1 Latvia Total

2021 3,306 2,406 2,160 1,255 967 864 263 248 160 11,629

2020 3,070 2,205 1,885 1,132 879 681 230 216 132 10,430

yoy +7.7% +9.1% +14.6% +10.9% +10.0% +26.9% +14.3% +14.8% +21.2% +11.5%

Share 2021 28.43% 20.69% 18.57% 10.79% 8.32% 7.43% 2.26% 2.13% 1.38%

Share 2020 29.43% 21.14% 18.07% 10.85% 8.43% 6.53% 2.21% 2.07% 1.27%

Share 2021-share 2020 [pp] -1.01pp -0.45pp +0.50pp -0.06pp -0.11pp +0.90pp +0.06pp +0.06pp +0.11pp

yoy +9.2% +3.2% +1.9% -5.4% +13.1% +4.4% -5.0% +32.0% +5.1% +4.5%

Share 2021 28.00% 22.06% 14.41% 12.44% 9.33% 5.86% 3.82% 2.07% 2.00%

Share 2020 26.80% 22.35% 14.78% 13.74% 8.62% 5.87% 4.21% 1.64% 1.99%

Share 2021-share 2020 [pp] +1.20pp -0.28pp -0.37pp -1.30pp +0.71pp -0.01pp -0.39pp +0.43pp +0.01pp

Estimated counting 15 tonnes per one cargo unit

Tab. 8. BSR’s ports’ container traffic in 2020-2021 (thousand TEUs) № 1 2 3 4 5 6 7 8 9

Country Poland Russia Sweden Finland Denmark Lithuania Latvia Germany Estonia Total

2021 3,185 2,509 1,639 1,415 1,061 667 435 235 227 11,373

2020 2,916 2,431 1,608 1,495 938 639 458 178 216 10,879

Tab. 9. BSR’s ports’ Universal Cargo Unit (UCU) traffic in 2020-2021 (thousand UCUs)

1

TEUs 2020

Ro-ro 2021

Ro-ro 2020

Ro-roto-TEU 2021 [x1.5 ratio]

Ro-roto-TEU 2020 [x1.5 ratio]

UCU 2021

UCU 2020

yoy

Share 2021

Share 2020

Share 2021share 2020 [pp]

№

Country

TEUs 2021

1

Sweden

1,639

1,608

3,306

3,070

4,959

4,605

6,598

6,213

+6.2%

22.90%

23.42%

-0.53pp

2

Denmark

1,061

938

2,406

2,205

3,609

3,307.5

4,670

4,245.5

+10.0%

16.21%

16.01%

+0.20pp

3

Poland

3,185

2,916

864

681

1,296

1,021.5

4,481

3,937.5

+13.8%

15.55%

14.85%

+0.71pp

4

Germany

235

178

2,160

1,885

3,240

2,827.5

3,475

3,005.5

+15.6%

12.06%

11.33%

+0.73pp

5

Finland

1,415

1,495

1,255

1,132

1,882.5

1,698

3,297.5

3,193

+3.3%

11.44%

12.04%

-0.60pp

6

Russia1

2,509

2,431

248

216

372

324

2,881

2,755

+4.6%

10.00%

10.39%

-0.39pp

7

Estonia

227

216

967

879

1,450.5

1,318.5

1,677.5

1,534.5

+9.3%

5.82%

5.79%

+0.04pp

8

Lithuania

667

639

263

230

394.5

345

1,061.5

984

+7.9%

3.68%

3.71%

-0.03pp

9

Latvia

435

458

160

132

240

198

675

656

+2.9%

2.34%

2.47%

-0.13pp

Total

11,373

10,879

11,629

10,430

17,443.5 15,645

28,816.5 26,524

+8.6%

Ro-ro traffic estimated by counting 15 tonnes per one cargo unit

Tab. 10. BSR’s ports’ passenger traffic in 2020-2021 (thousand ferry & cruise travellers) №

Country

2021

2020

Yoy

Share 2021

Share 2020

Share 2021-share 2020 [pp]

1

Denmark

22,369

20,572

+8.7%

37.54%

37.15%

+0.39pp

2

Sweden

17,691

14,162

+24.9%

29.69%

25.57%

+4.11pp

3

Finland

7,160

7,250

-1.2%

12.01%

13.09%

-1.08pp

4

Estonia

5,867

6,427

-8.7%

9.84%

11.61%

-1.76pp

5

Germany

4,181

4,638

-9.9%

7.02%

8.38%

-1.36pp

6

Poland

1,764

1,554

+13.5%

2.96%

2.81%

+0.15pp

7

Lithuania

312

309

+1.0%

0.52%

0.56%

-0.03pp

8

Latvia

250

466

-46.4%

0.42%

0.84%

-0.42pp

–

Russia

–

–

Total

59,594

55,378

68 | Baltic Transport Journal | 3-4/2022

+7.6%

REPORT

Port of Trelleborg is granted two EU projects TWO NEW EU PROJECTS Six new Swedish infrastructure projects are granted funding from the EU Fund for a Connected Europe (CEF) whereof two are awarded to the Port of Trelleborg.

Through the projects, we can contribute to a better transport corridor and promote and streamline the infrastructure in the new port to be able to meet tomorrow’s traffic volumes in the best possible way.

The two infrastructure projects have received a grant of approximately SEK 170 million.

One project has the working name “Optimization and greening of traffic flows on the TEN-T corridors connecting Scandinavia and the Continent” and is in collaboration with TT-Line and Lübeck Port Authority, where Port of Trelleborg is the coordinator.

The second project has the working name “Clean and Efficient Multimodal Hub in the Port of Trelleborg”.

WHERE EUROPE MEETS SCANDINAVIA The fact that the EU has approved our two applications highlights our international importance in the transport corridor.

Port of Trelleborg is the largest RoRo port in Scandinavia as well as in the Baltic Sea. It is one of five Swedish core ports, appointed by EU as strategically important. Port of Trelleborg has an unique logistical postion right where Europe meets Scandinavia, and connects no less than four routes to the Continent.

By the expansion of the port we want to be our customers’ customers first choice.

Port of Trelleborg will be ready for the future! www.portoftrelleborg.se

3-4/2022 | Baltic Transport Journal | 69

BPO Digitalization Working Group discusses current projects in Baltic ports

by Andrzej Urbaś, Communication Manager, BPO Members of the Baltic Ports Organization (BPO) Digitalization Working Group met at the beginning of June to discuss the recent developments related to the digitalization process in the Baltic ports. The meeting also featured a preliminary presentation of a report prepared within the Connect2SmallPorts project, focusing on a practical approach to the abovementioned process.

T

he report is based on the findings from a questionnaire conducted between representatives of various Baltic ports, among others: Kaskinen, Klaipėda, Pietarsaari, Riga, Rønne, Rostock, and Stockholm.

Core objectives of the study featured: mapping of the recent digitalization projects in ports within the Baltic Sea region; an analysis of the distribution of said projects according to corresponding port processes and port areas; exploration of reasons behind the implementation of said projects; and preparation of recommendations for future digitalization projects and associated training.

The majority of surveyed ports declared already having a digitalization strategy or being in the development process. Additionally, most of the ports stated that they possess a digital business model currently in its implementation phase. Port representatives agreed that further cooperation and exchange of information regarding the development and implementation of digitalization 70 | Baltic Transport Journal | 3-4/2022

projects is essential and would be of great benefit.

The main difficulties identified by the report were related to a relatively low number of employees with a dedicated IT educational background within the ports. This is undoubtedly a point requiring further attention. Most Baltic port representatives are aware of the importance of the digitalization process and the associated training, but progress could be faster. Especially smaller ports are leaving over the implementation of more advanced digital solutions, as the lower turnover numbers might not warrant such investments.

Digitalization in Baltic ports Members of the group gave a brief overview of the most recent, ongoing digitalization projects. Leading the field are solutions linked to the Internet of Things, big data, artificial intelligence, blockchain, and the digital twin technology.

The Port of HaminaKotka is developing its digital twin together with

GISGRO, integrating various other systems with the solution. The tool is practically operational, but more advanced packages are continuously added. The Port of Kaskinen is working on a similar solution while encouraging operators and partners to get involved in the NEMO project.

NEMO is a maritime traffic notification system, one to eventually replace the Portnet notification system and be implemented in all Finnish ports. It will be utilized in a variety of processes, such as monitoring the border crossings of persons, maritime search & rescue, overseeing the transport of hazardous substances, collecting fairway dues, port operation, safety and security surveillance, planning port state control, and monitoring infectious diseases. Thanks to the new system, notification data on port visits by merchant ships will be sent to many different recipients on a centralized basis through a single system.

Another tool discussed during the meeting was the Port Activity App, already in

Photo: Canva

use in various Finnish ports. The app provides a toolset for ports to improve the overall efficiency of port flow. It is a user interface for port digitalization and communication, strengthening collaboration between various parts of port operations and traffic.

Also worth mentioning is the ongoing implementation of automated solutions

for smart gate systems, estimated time of arrival prediction solutions, and a port community system at the Port of Riga.

The Rostock Port, on the other hand, is actively looking for systems which will allow it to streamline and, in turn, increase the efficiency of tasks related to invoice and document management.

An interesting point was raised by representatives of ION regarding the steps undertaken towards setting an ISO standard for port call optimization solutions. Right now, decision-makers seem to be mainly focused on the ship operators’ perspective, but the point of view of the ports should also be considered, as it is an important piece of the puzzle.

3-4/2022 | Baltic Transport Journal | 71

The latest BPO report analyses the impact of climate policies and regulations on the port sector

by Andrzej Urbaś, Communication Manager, BPO The Baltic Ports Organization (BPO) has recently finalized a new report1 focusing on the influence of the European Green Deal (EGD) and various other climate-related policies and regulations on the future of the port sector (the report will be made available per request upon contact with the BPO Secretariat).

T

he report, focusing first and foremost on Baltic seaports, analyses said impact, considering several aspects. The EGD and the recently introduced Fit for 55 package influence, and will continue to do so, numerous areas relevant to the port sector, such as the cargo structure, role of seaports in the context of energy transition towards renewable energy, development of refuelling infrastructure for unconventional ship fuels, as well as strategies and tools for reducing emissions with the goal of climate neutrality.

Within the report, readers will find numerous examples from seaports around the Baltic Sea region, presenting their activities and procedures related to the abovementioned areas.

The report also includes a handy overview of relevant policies on both the international (dating back to the 1991 Rio Convention) and EU level, with a run-down of the current key targets set by the policymakers.

1

Main findings

The EU climate policy will have a major impact on a broad range of industries in the decades to come, especially because of the planned energy transformation and associated shifts in trade paths and the growing significance of renewable energy sources. These changes will present new opportunities for the port sector but also bring along various challenges.

The expected fall of fossil fuels’ share in primary energy consumption from about 70% (2018) to a projected 39% (2050), mainly crude oil and coal, will affect the cargo handled in ports. While this process may progress at different paces and intensities in various countries and ports, those involved in handling fossil fuels will need to seek new strategies and business opportunities to secure future revenue.

Gas, however, may follow another path, as opposed to oil or coal. Natural gas is expected to overtake oil as the largest primary energy source by 2030 and keep its market

share at approximately 27% within the European energy mix by 2050. Liquefied natural gas (LNG) is set to gain increased importance in the Baltic and beyond in the following decades, also considering the recently introduced REPowerEU initiative. Right now, the Baltic LNG market is only a decade old and still in its development stage.

Due to the expected continuous increase in the demand for new, renewable energy sources, new investments in areas such as wind energy, especially in the offshore sector, will create demand for large port installation bases and small terminals for operational and maintenance functions – thus presenting new opportunities for ports.

Overall, climate policy-driven change will stimulate investments in the whole energy value chain, and ports will have an important role to play – be it production, storage, or their function as energy hubs and logistic distribution centres.

The report was finalised in March 2022, shortly after the outbreak of war in the Ukraine towards February 2022. The geopolitical impact of the conflict has had significant immediate and long-term impact on energy security policies, as well as global energy markets. This effect has not been analysed. However, some consequences have been signalised in the report’s conclusions.

72 | Baltic Transport Journal | 3-4/2022

Baltic Ports Conference 2022

by Andrzej Urbaś, Communication Manager, BPO This year’s Baltic Ports Conference comes to Gdynia, Poland, on 7-8 September. Join us at the Baltic Ports Organization’s (BPO) premium event for a series of insightful presentations and discussions on the main topics shaping the current and future landscape of the maritime industry.

Photo: P. Lewandowski/Port of Gdynia

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his year marks BPC’s return to the physical realm after the 2021 online edition. Together with our host, the Port of Gdynia, we will

look at many topics currently shaping the landscape of the maritime industry.

Recent geopolitical shifts and the associated impact on energy security and trade in

the Baltic Sea region, coupled with Europe’s ongoing effort to make the transport sector more sustainable via a range of green initiatives, such as the European Green Deal and the Fit for 55 package, will be at the centre of discussion in Gdynia in September.

Other topics will include sustainable shipping fuels, green energy-related investments in ports (offshore wind), and the most exciting tech trends to keep an eye on.

We are incredibly eager to see you all once again, gathered in a bustling conference hall.

The BPC returns to the physical realm, and we can’t imagine it happening without you!

Grab your calendars, mark the 7-8 September 2022 and book your flights, one of the Baltic Sea region’s most important events is where you want to be this year!

BALTIC PORTS ORGANIZATION • Secretariat Office – Actia Forum Ltd. ul. Pułaskiego 8, 81-368 Gdynia, POLAND, ph.: +48 58 627 24 67, fax: +48 58 627 24 27, e-mail: bpo.office@actiaforum.pl, bpo.sg@actiaforum.pl, www.bpoports.com 3-4/2022 | Baltic Transport Journal | 73

Using the digital DNA to understand a vessel thoroughly

Sustainable at the core

by Esa Henttinen, Executive Vice President, NAPA Safety Solutions The pursuit of sustainable shipping requires decisive action on two fronts. Ashore, shipyards are challenged to design the more efficient ships of tomorrow, while at sea, crews must ensure each vessel navigating today is operated safely and sustainably. On both fronts, it begins by understanding the data that makes each vessel unique – its ‘digital DNA’ – and making the most of these insights, from design to operations.

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odern ships are made of data just as much as steel. Well before its physical structure is welded together in a shipyard, a vessel exists digitally in the 3D models used to design it – what we call its digital DNA. As no two ships are exactly the same, this digital DNA is key to understanding a vessel’s unique design, containing a wealth of information on its technical characteristics, propulsion systems, and any additional technology on board.

Importantly, these digital models are not fixed in time, and their role doesn’t end once a vessel leaves the shipyard. A ship’s digital twin evolves just like its physical counterpart, incorporating data on its operations, maintenance, and the sea conditions it has experienced to truly reflect its current state. This dynamic understanding of a vessel throughout its lifetime helps us predict its performance in a variety of conditions, which is crucial to making the best possible operational decisions to maximise efficiency while ensuring safety.

The capacity to understand each vessel thoroughly is an ace card for shipping as the sector faces the challenge of a generation: improving sustainability, both immediately and in the long term. On the one hand, already sailing ships need to reduce their emissions right now to meet the International Maritime Organization’s (IMO) Energy Efficiency Existing Ship Index (EEXI) and Carbon Intensity Indicator (CII) requirements that are about to enter into force. On the other, the industry also needs to develop ambitious new designs, using them as efficiently as possible to meet the 2030 and 2050 decarbonisation goals.

In other words, we need a fundamental transformation of global fleets and of the way we operate them. This must begin at the granular level, and insights from digital DNA can help with three key aspects.

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Tailored voyages Firstly, the dynamic, vessel-specific insights provided by digital models represent an exciting opportunity to take weather routing to the next level. By using the ship’s unique digital twin, we can estimate how fast and at what fuel consumption rate it can sail for a number of potential voyages – taking into account its design characteristics and details of its current condition, such as hull fouling and engine wear, for example.

Combining these vessel-specific insights with weather forecasts detailing wind, waves, swell and currents, as well as information on safe routes, our NAPA Voyage Optimization solution can simulate hundreds of possible routes and predict their impact on estimated time of arrival, fuel consumption and emissions. From this, our algorithms can calculate optimal routes and speed profiles that will meet operational needs and desired arrival times, giving captains and operators better visibility of all possible options and enabling them to minimise their emissions for every voyage.

This is already making a tangible difference. NAPA Voyage Optimization cuts fuel consumption and emissions by an average of 5-15%, which has a substantial impact on fuel costs today, while also helping shipowners ‘future-proof’ their fleets for the crucial years ahead. Indeed, these emissions reductions can make the difference between compliance and non-compliance with CII regulations – or in other words, between keeping a vessel trading or seeing it become a ‘stranded asset’ prematurely.

Looking further ahead, the capacity to optimise operations for each vessel’s unique characteristics will be even more valuable. It will enable operators to make the most of the unique combination of technologies on board by tailoring their routes to maximise the benefits of wind propulsion systems, among others.

Safety as a prerequisite The second key contribution of digital models is to provide vital insights to ensure the safety of global f leets throughout this period of rapid innovation. As the worldwide f leet integrates a variety of new fuels and technologies, both as retrofits and on newbuilds, safety must be a prerequisite. Ship-specific digital models also play a critical role here, giving a real-time picture of a vessel’s vulnerability and the risks it faces at any given moment in a voyage.

Our NAPA Stability solution achieves this by combining a ship’s digital DNA with the wealth of data continuously generated by the vessel’s systems. Thanks to the latest advances in connectivity, several variables that may affect a ship’s stability, from deadweight changes (cargo, bunkers, ballast) and loading conditions to the number of water-tight doors left open on the vessel, can be monitored constantly.

This information is fed into a cloud-based system, alongside external data such as location from the automatic identification system, weather and precise maps that help build the most accurate picture possible. As a result, a wide range of calculations related to hydrostatics, intact stability, damage stability, and longitudinal strength can be made in real-time.

Crucially, this means that risk levels can be assessed constantly by the crew and shoreside teams alike, creating a more proactive approach to safety where any potential issues can be flagged and addressed before they ever become a serious problem.

Moreover, if an emergency does happen on board, the shared situational awareness between ship officers, onshore teams, and emergency services will facilitate an immediate and efficient intervention.

As a ship’s safety can never be compromised, green and safety technology

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Photos: NAPA

must work together to pave the way for zero-carbon shipping. For instance, data from NAPA’s loading computer can also support environmental reporting requirements, such as the EU Monitoring, Reporting and Verification and the IMO Data Collection System, which require loading and cargo information. Moving forward, data-powered models will help ensure that innovative vessels remain safe at all times by enabling decisionmaking, implementation and execution of new green technologies that ensure a vessel’s sustainable operations without ever compromising on safety.

Using today’s experience to improve future designs Last but not least, a deeper understanding of vessels’ digital DNA supports shipping’s sustainability transition by empowering shipyards to create the more efficient vessels needed to bring the industry to net zero.

Today, 3D models already support naval engineers and architects as they develop innovative designs by facilitating class approvals and enabling all stakeholders to work on a single ‘source of truth.’ A comprehensive 3D model enables fast design changes and reliable

analyses across the domain: from hydrostatics, stability, ship weight estimation and hydrodynamics to steel structures and Finite Element (FE) analysis.

Quick design iterations and comprehensive analyses are particularly important for innovative designs, enabling engineers to make the right choices early and understand the impact of new features on the integrity, stability, and efficiency of the global structure. It is also key to creating flexible designs, such as vessels ready to be converted to new fuels, that the industry demands in this period of uncertainty.

Moreover, the current digital era provides a goldmine of insights that will help optimise the future f leet. Real-life voyage data links theory and practice, providing shipyards with the unparalleled ability to analyse their vessels once deployed at sea – and further refine and iterate their designs to improve efficiency even more.

Additionally, historical data from thousands of real-life voyages at sea can

be analysed to give a statistical picture of the weather conditions a ship is likely to encounter on specific routes, which helps inform decisions on required engine power for newbuilds that will navigate the same trade lanes. In other words, data from operations at sea helps fine-tune ships’ digital DNA from the very start to make future vessels more sustainable and adapted to the routes and conditions they will encounter.

A tangible effect of the intangible While the impacts of climate change are increasingly visible, one of the most powerful and efficient tools to reduce emissions from shipping – data – is intangible.

By deploying this tool through concerted and widespread action at the granular level, in the world’s shipyards and on the tens of thousands of vessels navigating at sea, the industry can take its first tangible steps to surmount the monumental challenge of decarbonisation.

In its over 30 years of operation, the Helsinki-headquartered NAPA has become a global leader in developing and scaling software, services and data analysis for a safer, smarter, and more sustainable maritime industry. To date, NAPA has 420 user organisations for its design solutions, nearly 3,000 installations onboard vessels, and a growing number of subscribers for its cloud-based fleet services. Make your way to www.napa.fi to see more.

3-4/2022 | Baltic Transport Journal | 75

The role seaports can play in greening shipping – thanks to digitalisation

Data-powered, real-time port sustainability

by Grant Ingram, CEO for the UK and EMEA, Innovez One As volatility is now a feature of life for ports around the globe, becoming ‘smart’ is more than just a buzzword. Digitalisation is at the core of these ports’ sustainability strategy, helping them build resilience to not only improve their efficiency but also meet their long-term decarbonisation goals.

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fter over two years of supply chain disruption, it’s no surprise that someone has developed a digital tool to identify supply chain bottlenecks around the world. CNBC’s new Supply Chain Heat Map was created in partnership with ten of the world’s top maritime and logistics data providers, and it shows global supply chain challenges in real-time.

There are many, and they are expected to continue to impact trade well into next year.

Not only is this causing shocks across global supply chains, but it’s driving up emissions, both as ships idle outside ports and as they race to make the most of the higher rates that congestion brings. This is a major issue for ports around the world, many of whose long-term goals depend on them increasing efficiency and throughput but also developing the regions around them into new technology hubs. In the UK, for example, port areas are looking to play their part in the regional Levelling Up agenda, becoming hubs where supply chains, energy chains, and renewable technology intersect.

On the global stage, ports also have a significant role to play in making green shipping corridors a reality. As countries such as Australia, Japan, the UK, and the US have pledged to develop zero-emission shipping routes between selected port hubs, it is clear that these must be supported by a network of efficient, green ports. Smart ports will also play a key role in enabling just-in-time arrivals, which can curb emissions by 14% on a per voyage basis, according to a recent study by the International Maritime Organization.

As a vital component of global supply chains, ports must be ready to play their part – by reducing their own environmental footprint and by putting the right measures in place to help the visiting ships minimise their emissions in the critical ‘first and last mile’ of their journey at sea. Ports, and particularly the communities they support, cannot afford for congestion to undermine 76 | Baltic Transport Journal | 3-4/2022

these goals. While the challenge is colossal, the starting point is clear: digitalisation.

No easy task It is critical to understand where the bottlenecks are to mitigate the impact of congestion on global trade. With its MarineM solution, Innovez One is contributing its analytical power to a different aspect of the problem – building efficiency at the local level.

By optimising tug, service, and pilot operations, we help ports tackle their emissions.

This is no easy task. More than just places where goods are loaded and unloaded, ports are complex ecosystems of their own, where numerous moving pieces (pilots, tugs, trucks, service boats) are dispatched to welcome vessels as they arrive or depart. Reducing the amount of carbon emitted by these marine service fleets requires organising them in the most efficient way possible to assign the right assets to each job and avoid unnecessary journeys.

We do this by using artificial intelligence (AI) to handle the vast amount of constantlyevolving variables that are essential to optimise all port resources. Where manual processes, spreadsheets and whiteboards fall short, algorithms can solve complex puzzles and calculate optimal resource allocation.

AI can take into account additional constraints such as the need to assign pilots to specific vessel types and sizes depending on their licence, the types and number of tugboats required for each job, and even the shuttles needed to take the pilots to the correct boarding grounds.

By making the most of resources, digital solutions eliminate unnecessary journeys and reduce the overall distance travelled, which makes a significant difference in emissions.

A tangible example is the Indonesian Tanjung Priok, the 22nd busiest port in the world. The implementation of MarineM’s AI-powered scheduling reduced the overall distance travelled during tug/pilot operations by 20%, saving $155k in fuel annually. Not only did

the port see tangible benefits in reducing port congestion, but it was also fiscally savvy, as the payback was a mere six months.

At an unmatched speed Beyond that minute-by-minute, dayby-day logistics management function, our AI-powered MarineM system enables ports to simultaneously reduce emissions caused by having harbour craft and cargo ships idling unnecessarily in port waters.

This makes it a long-term decarbonisation tool as well as a precious instrument to minimise disruption in the first and last mile of shipping logistics chains.

One of the fundamental advantages of AI-powered algorithms is that they learn from historical data to predict the duration of each job based on many factors like weather conditions, vessel type, and the required level of service. This remarkable accuracy helps ensure all the moving pieces fall into place seamlessly, so everything is ready to welcome ships exactly when they arrive. Crucially, these algorithms can adapt to any changes in vessels’ estimated time of arrival, updating schedules, and reallocating resources at a speed unmatched by manual systems.

This gives ports the flexibility needed to respond to problems or delays elsewhere in the supply chain, which is key to minimising the amount of time that vessels spend queueing outside ports with their engines on. Time efficiency-wise, in Tanjung Priok, MarineM has reduced the average waiting times for visiting ships from 2.4 hours to 30.6 minutes.

This increased resilience is even more critical in the context of the unprecedented congestion experienced in ports worldwide.

Just like in traffic jams, congestion inflates idle time as vessels wait on anchorage, which inevitably leads to a spike in emissions. The congestion experienced during the coronavirus pandemic is no exception – emissions have doubled in the ports of Singapore and Los Angeles during this

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Photos: Innovez One

period, according to a study by Singapore’s Nanyang Technological University.

Good governance Digitalisation also helps ports of all sizes overcome some of the most immediate challenges that they face daily. Problems with ordering and scheduling are common: frequent order amendments for pilots, tugs and pilot boards, inaccurate job entries, and inefficient scheduling can all drive down productivity. The manual, paper-based processes still in place in the majority of the world’s ports frequently lead to billing issues, delays, lack of interoperability, and disputes.

One of the main benefits of digitalisation is its impact on good governance principles, another essential part of the sustainable development puzzle. MarineM captures job requests, automatically tracks the progress of each work, and generates invoices automatically – creating transparency and minimising the risk of errors or disputes.

Not only does this help users get paid on time, but the data collected also facilitates audits and accountability. By gathering data on the operation of fleets at a granular

level, ports or service providers can more easily detect any irregularities, thereby preventing misuse of assets (e.g., illegal use of water or fuel theft).

More important than ever The global discussion on how best to achieve a sustainable future will continue to gain momentum as the world looks ahead to the 2022 United Nations Climate Change Conference in Egypt this November.

Shipping has already been identified as a key area of concern. The disruptions of the past few years have demonstrated that ports must play a central role in the decarbonisation of global trade because they provide the efficiency and infrastructure needed for

more sustainable voyages and port stays.

Many ports are already taking the lead, and others are looking to learn from them.

For example, the Baltic Ports Organization’s Digitalization Working Group met in June 2022 to discuss the results of a questionnaire of member seaports. The results indicated that port representatives believe cooperation and exchange of information regarding the development and implementation of digitalisation projects would be of great benefit for all actors in the maritime supply chain.

Globally, it is being recognised that digitalisation is now more important than ever to make ports more resilient to disruptions and to achieve decarbonisation goals, delivering real-time sustainability.

The Singapore-headquartered Innovez One, with offices in Jakarta and London, has been delivering expert maritime software solutions for the world’s busiest ports and towage operators since 2004. That year was also marked by the digitalisation of the Port of Singapore’s pilotage and towage operations by the company.

With a vision to automate complex maritime operations for ports, towage and workboat operators worldwide, the Innovez One team has engineered and developed the marineM platform that helps to optimise critical maritime resource allocations for operations carried out by ports of all sizes. Go to www.innovez-one.com to find out more.

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Terminology critical for developing autonomous ship regulations

The route to regulating MASS

by Fitzwilliam Scott Following the April 2022 meeting of the International Maritime Organization’s (IMO) Maritime Safety Committee, material steps were taken toward formulating an international regulatory framework for Maritime Autonomous Surface Ships (MASS). “However, outstanding questions on terminology and scope must be tackled for regulatory work to progress,” says Capt. Marko Rahikainen, One Sea Ecosystem Lead.

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his year has seen significant progress in the work towards autonomous ship regulation. Three key committees at the IMO are involved in considering regulations for MASS – the Legal Committee (LEG), the Facilitation Committee (FAL), and the Maritime Safety Committee (MSC). After meetings held this spring, the outcomes of the Regulatory Scoping Exercises to assess how MASS could be regulated internationally resulted in work plans for the three committees.

April’s MSC 105th session also agreed on a roadmap for regulating MASS and established the MSC MASS Correspondence Group to take the regulatory work forward. It is a live document that can adapt to change, but it has set the course for developing the much-needed regulations.

Now, the aim is for the IMO delegations to craft a non-mandatory instrument for a goal-based MASS Code by 2025 (for cargo ships in the first instance). Since most of the regulations need to regard maritime safety, the resulting code is envisaged to become mandatory from 2028’s start. By making the code goal-based rather than prescriptive, the IMO seeks to make the instrument covering autonomous ships ‘future-proof.’

That said, creating the MASS code will be a complex process as it requires working across multiple IMO conventions – not just the International Convention for the Safety of Life at Sea. Each IMO convention has its own processes and procedures for approving new regulations. In addition to the roadmap, 78 | Baltic Transport Journal | 3-4/2022

the committees agreed to establish a Joint MSC/LEG/FAL working group to address common issues and ensure communication between the committees as the regulatory process progresses.

Why terminology matters Currently, there is no common terminology for MASS. Terms and technology types are often used interchangeably; in practice, they have very different meanings. This situation is not acceptable in international regulation, where it would leave room for misinterpretation or ‘implementation’ at variance with what the regulators intended.

For instance, remote control and monitoring should not be confused with automation, as remote operations can be executed on ships where systems have various levels of automation. Again, automation and autonomous technologies are distinct concepts. A fully automated ship could still have a crew on board, for example, to manage operations, step in as necessary, or undertake modified duties. A fully autonomous ship could operate with or without a crew on board.

In addition, the general term “autonomous operation” is often used loosely when its intended meaning relates to navigational automation. There are other autonomous ship technologies which seafarers already take for granted – such as a ship’s stabiliser and anti-heeling system.

The complex nature of the regulatory process offers a clue as to the significance of terminology in developing international

regulations: terminology and definitions must be consistent and unambiguous to make progress on automation and autonomous technology regulations.

It is fair to say that, while regulatory developments on autonomous shipping at the global level have gathered pace, they remain behind advancing technology. The UK has already formulated a position on rule development for autonomous ships, while the EU’s SAFEMASS study establishes a forward position on regulation. One Sea’s stance remains focused on contributing to the development of common rules on MASS as the most effective means of avoiding ambiguity and ensuring consistency in maritime safety standards.

Defining the levels of automation Earlier this year, One Sea published a new white paper, Autonomous Ships: Terms of Reference for Rule Development, which offers a route forward for developing and implementing an international regulatory framework for MASS. The publication calls for urgency in developing common terms of reference covering autonomous and highly automated ship operations that can be used across the maritime industry. It examines definitions of ship autonomy and levels of automation, exploring how they can be applied progressively to ship operations.

In his foreword, Capt. Eero Lehtovaara, Chairman of One Sea, writes, “The IMO Conventions which provide the safe operating framework for the entire shipping industry have been developed over many

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Photos: One Sea

years, and amendments to accommodate autonomous ship operations demand painstaking work. Experts in digital technologies and seafarer welfare groups suggest that shipping should therefore establish not only priorities but a series of waypoints on its voyage towards autonomy, to support efficient and safe ship operation in the near-term.”

At the core of the paper is a proposal for a scale for determining automation in shipping, based on the SAE Levels of Driving Automation and further developed by One Sea and its members, which describes six ‘levels’ that can be applied to various ship operations or an entire ship.

For the purpose of the Regulatory Scoping Exercise (MSC 100/20/Add.1 Annex 2), the IMO defined four degrees of autonomy, but many have interpreted this as a preliminary position. Adding to the confusion, class societies have developed their own gradations of autonomy, meaning multiple definitions are in use within the same industry.

However, during the Regulatory Scoping Exercise, it was acknowledged that the levels defined by the IMO required further consideration for regulatory progress to be made on MASS – and a more detailed description of the degrees of autonomy was required.

The human element In One Sea’s industry proposal for defining ship automation levels, it is only the last one that is defined as fully autonomous; others represent different levels of automation. Crucially, One Sea suggests that levels of autonomy should be determined on a scale based on the need for human attention/attendance rather than mixing the definition with crewing levels on-board

a ship. In addition, the location of the human operator in the loop is not considered relevant when discussing the taxonomy of automation and autonomy: the operative can be based on-board the ship, aboard another ship or onshore without affecting the level of automation.

The development of international regulations for MASS is One Sea’s top priority, and discrepancies in terminology are one of the main obstacles that must be overcome. The purpose of the white paper is to

provide clarity and assist rule development and standard definitions for easy application across the industry. Regulations cannot be successfully developed if different definitions and interpretations of how to categorise levels of automation persist.

One Sea presented its proposal for defining the levels of ship autonomy at the latest meeting of the MSC. The Correspondence Group has been asked to consider amending the definitions of MASS and levels of automation.

Established in 2016, One Sea is a high-profile ecosystem with a primary aim to lead the way towards an operating autonomous maritime ecosystem by 2025. The collaboration gathers together leading marine experts and is a strategic combination of top research, state-of-the-art information technology and business. Head to www.oneseaecosystem.net to discover more.

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What benefits will the expansion of remote inspection techniques bring

The best of digital and human

by Laurent Hentges, Vice-President, Digital Solutions and Transformation, Bureau Veritas Marine & Offshore

Ships are not the only ones becoming smarter. Classification services, too, are transformed by the latest advances in digital technology. ‘Digital class’ is emerging, enabling a shift from in-person to remote inspections and from interval-based to increasingly predictive machinery maintenance. This has the potential to reshape the full lifecycle management of vessels, enhancing safety and efficiency across the industry.

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ground-breaking digital transformation is taking place across the maritime sector, from the moment a vessel is designed and built in a shipyard to its operation on the world’s oceans. The various systems onboard a modern ship generate an impressive 20GB of data a day, and vessels’ connectiveness, where data is collected on board and then used by both crew and shore-side personnel to manage day-to-day operations, is expected to grow exponentially in the coming years.

This increased digitalisation is already transforming the way fleets are designed and operated. The use of fully digital 3D models is now widespread in shipyards, facilitating design developments, class approvals, and machinery integration aboard. Several shipping companies are already using data to improve their performance, monitor stability, comply with regulatory requirements, and reduce the environmental impact.

While ships are becoming smarter, the work of classification societies is also being transformed with the rise of ‘digital class,’ where digitalisation helps us optimise class processes and services. In essence, digitalisation enables two major transitions.

Firstly, it makes remote inspections possible.

Secondly, it lays the foundations of a more predictive and preventive approach to ship maintenance. Crucially, shipping companies can benefit from advances in digital class regardless of their own level of digitalisation or how ‘smart’ their fleets are today.

The rise of remote surveying Remote inspection techniques (RIT) are set to become part of everyday life for ship surveys, enabling shipowners to move from physical to partly or wholly remote and augmented surveys. Our marine surveyors can now employ robots – including aerial drones, remotely operated vehicles, and crawlers – to take difficult-to-capture 80 | Baltic Transport Journal | 3-4/2022

measurements and close-up images, often in real-time.

One of the main objectives of using RIT is to limit the use of costly and dangerous means of access by replacing them with safer and more efficient technologies during the structural inspection of the hull. Here, the marine surveyor’s role is augmented by new tools that capture precise images and also by artificial intelligence using pattern-recognition software to bring the surveyor’s attention to specific problems or areas of interest. This leads to safer working conditions for marine surveyors. For shipowners, the use of RIT helps reduce costs and makes the most of the allocated inspection time for each asset.

Far from replacing surveyors, digital tools will enhance their role. The experience and expertise of our surveyors will be critical as we navigate this digital transformation, helping define new operating modes, design advanced digital solutions that are adapted to the realities on the ground, and make the best of digital and human tools in operation.

Lessons from the pandemic Interest in remote inspections has boomed during the pandemic, as lockdowns and port closures made in-person inspections impossible. Working in collaboration with shipowners and managers during this critical period, we learnt some vital lessons that have helped us hone remote surveys – from the importance of the preparation phase, including collecting and reviewing the relevant documentation in advance, to the need to ensure the process does not overburden crews.

Furthermore, for remote surveys to be scaled up, challenges related to onboard Internet connectivity must be addressed, especially in confined spaces or below the waterline, such as machinery spaces where inspection is critical. The pandemic also

highlighted the need for clearer regulatory guidance (a milestone was recently achieved with the publication of a Unified Requirement on Remote Classification Surveys by the International Association of Classification Societies).

Today, around one-fifth of Bureau Veritas’ (BV) surveys have a remote component, in which inspections are conducted from an office rather than on-site. Reflecting our commitment to constantly improving the safety and efficiency of inspections, we recently expanded our RIT capacities.

These include leveraging aerial drones and autonomous underwater vehicles and offering owners and operators new ways to survey their vessels through RIT operated

by BV’s own surveyors in France and across our eight remote service centres, enabling worldwide 24/7 capacity to perform surveys remotely.

Evolving digital twin capabilities A key goal is for RIT to be used to develop 3D models for in-service ships.

The aim would be to virtually reconstruct a 3D model of an existing vessel by using images collected by drones during surveys together with scanning and photogrammetric technologies. This would allow for hotspots and other vulnerable areas to be recorded throughout the ship’s inspection history using 3D visuals.

Ultimately, the development of digital twin technology will create a single source of truth for each vessel, creating a complete asset history and evaluating the current vessel condition. Data generated by the ship’s systems will be combined with the digital model and databases containing information about the ship’s condition. Based on this, surveyors will be able to flag problems like corrosion and plate weakening before they occur.

The digital twin technology will also enable shipowners and classification

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Photo: Canva

societies to anticipate the evolution of regulatory requirements and increase collaboration with real-time access to ship data.

The end goal is to make it easier for owners to monitor their fleets through a wave of web and mobile applications that will enable them to digitally plan surveys, manage their assets, and access documentation.

Optimising machinery maintenance New digital capabilities will also see classification services move from being entirely prescriptive, in-person and interval-based to being more remote, continuous and preventive. For shipowners, this can mean a reduction in both planned and unintended downtime for vessels, which will cut costs, improve performance, and potentially increase the lifetime of their assets.

Most modern ships have over 300 to 1,000 machinery equipment and components covered under the machinery maintenance surveys from classification. The International Safety Management Code requires all shipowners to have a maintenance system in place, defining how and when their equipment will undergo an inspection. For a standard machinery maintenance scheme, this process is done through an in-person inspection by a classification surveyor once every five years during the ship’s certification renewal survey.

Today, a large part of the world’s commercial fleet is applying more optimised survey

schemes such as Continuous Machinery Survey or a Planned Maintenance Survey (PMS), by which each machinery item is given an individual maintenance schedule and scope. Rather than undergoing complete maintenance every five years, owners can take a targeted approach to preserving equipment and inspecting machinery based on actual use.

BV’s PMS is supported by the implementation of a computer-based machinery maintenance system (CMMS), where chief engineers can initiate the PMS process and manage the maintenance tasks for each piece of equipment via a software solution onboard the ship.

Transitioning to a PMS is a pre-requisite for Condition Based Maintenance (CBM), where maintenance is determined through condition-monitoring by performing diagnosis and prognosis on each machinery item’s actual condition. This can open the door to predictive maintenance, an optimised version of CBM where the diagnosis and prognosis are based on complex algorithms instead of singular thresholds

or standards. CBM and predictive maintenance can offer enormous benefits for shipowners, enabling them to take a targeted, based on actual use and condition approach to maintaining and inspecting equipment.

Supporting the transformation As more shipowners and managers embrace digitalisation, there is an opportunity to further optimise maintenance planning, reliability and costs, and at BV, we are proud to support owners throughout the transition. CBM requires a very structured approach to data collection, and crews, managers and surveyors need training on how to make the most of the digital opportunities it presents.

As the smart ships of the future enter into service, the digital era also transforms the role of class – broadening its scope from being survey-focused to providing more technical support to ship managers as they introduce powerful digital solutions. By supporting key digital innovation, BV helps create the backbone of the safer, efficient, and sustainable shipping of the future.

Bureau Veritas is a world leader in laboratory testing, inspection and certification services. Created in 1828, the Group has 80,000 employees located in more than 1,600 offices and laboratories around the globe. Bureau Veritas helps its clients improve their performance by offering services and innovative solutions in order to ensure that their assets, products, infrastructure and processes meet standards and regulations in terms of quality, health and safety, environmental protection and social responsibility. Visit group.bureauveritas.com to discover more.

3-4/2022 | Baltic Transport Journal | 81

Driving innovation – in Europe and abroad

Make it happen!

by Mitja Caboni, Acceleration Manager, PortXL

Established in Rotterdam seven years ago as the world’s first port accelerator, PortXL is dedicated to growing the economy while sustaining the ecology through innovating the port and maritime ecosystems. The organisation’s main activity is running two concurrent yearly programmes. First is an acceleration track to help start-ups scale their business. Second, a business fast-track to assist scale-ups in connecting with potential clients and having a soft landing in the Rotterdam maritime ecosystem. The selections for the 2022 programme will take place on 6-7 September (check the infographic to see our impact over the past six years). Here are some key takeaways from our 2021 PortXL Impact Report (as well as a peek into a recent event when nature has met innovation).

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en companies from eight different countries took part in the 2021 PortXL programme. Last year’s cohort engaged in the first PortXL hybrid programme. With

COVID-19 restrictions in mind, the agenda was planned to have an alternating schedule of live and digital weeks to accommodate the cohort’s international part. This flexibility meant we had people from Australia

tuning in and participating, making them feel part of the community. The 2021 cohort went on to sign nine collaborations during the contract signing ceremony, with four more confirmed in the following months.

Reefy & the Rotterdam Reef project The most recent highlight has been the Rotterdam Reef project, where the start-up Reefy has signed a contract with Boskalis, the Municipality of Rotterdam, and Rijkswaterstaat (the Dutch DirectorateGeneral for Public Works and Water Management) to test a modular artificial reef system that protects the shore from large ship waves, at the same time stimulating nature.

Since the end of 2013, the Municipality of Rotterdam, Rijkswaterstaat, the Port of Rotterdam Authority, and the World Wide Fund for Nature have been working together to create sustainable, natural riverbanks in the Nieuwe Waterweg and Scheur. One way they do this is with clean residual materials from the construction industry. Breakwaters are needed as foreshores to keep these natural

banks in place and protect them from the waves of ships and the currents. Rijkswaterstaat and the Municipality of Rotterdam are looking for more sustainable solutions than the usual quarry stone. By testing these reef innovations in collaboration with Reefy, the Municipality of Rotterdam and Rijkswaterstaat hope to find a resilient and sustainable solution to restore the natural values in the tidal area of the river Maas.

International efforts Global ports are strongly connected and share similar efficiency, sustainability, and digitalisation challenges.

PortXL’s mission to innovate harbours

for sustainable growth is not merely a local ambition; we want to extend our reach to international seaports and help them realise their innovation plans to the fullest.

Furthermore, it is exciting to work on maritime innovation abroad and learn and experience how Rotterdam is valued.

Quebec & Auckland Using our experience with innovation and community building in Rotterdam, we successfully conducted a feasibility study with the Port of Quebec on establishing a port ecosystem in this Canadian city. After a few insightful workshops with the ecosystem, we presented a report with an implementation roadmap. The Port of Quebec is now considering the following steps, and we are

optimistic about continuing our support with their future innovation journey. Quebec Port Authority’s CEO Mario Girard had the following to say, “The open innovation management process is different from procurement processes and is new to most companies. In order to establish more mature open innovation management processes, it will be beneficial to set up a community in the ports and

maritime industry that enables innovation in a collaborative way.”

As in Canada, we conducted a successful feasibility study in New Zealand with the Port of Auckland. The collaboration was challenging, with the time zone difference playing a substantial part, but we persevered and delivered the report after engaging in workshops with the Auckland port community.

Taranto The Faros accelerator lights the way for blue economy innovation in Italy. The organisation is accelerating seven pre-seed & seed phase start-ups this year, helping them grow and validate their business models. The best teams will have access to further investments. The programme will last for four months, during which 82 | Baltic Transport Journal | 3-4/2022

the start-ups will participate in open innovation activities, develop a pilot project with corporate partners, and receive a pre-seed investment in equity up to €65k.

Faros has been set up by CDP Venture Capital with a|cube and with the support of the Port of Taranto, among other partners. A total

of €4.0m has been invested into the accelerator.

PortXL’s previous cooperation with the seaport and our combined efforts to create an innovation hub in the southern Italian city have played a significant part in the start of Faros. PortXL’s role is that of a strategical partner, and we will support operations with our expertise.

TECHNOLOGY

SPEED This European Interreg project aims to build an ecosystem for smart port app development in Belgium, France, the Netherlands, and the UK, bridging the gap between the

worlds of European ports and the nascent data science – IoT market. PortXL is a proud partner of SPEED, and we have been participating in workshops and events organised so

far, as well as hosted expert sessions during the 2021 programme. SPEED’s contribution and support throughout the agenda were greatly appreciated.

AspBAN The EU-supported Atlantic Smart Ports Blue Acceleration Network (AspBAN) is a project focused on developing a dynamic acceleration platform, helping EU Atlantic ports work as blue economy hubs. By becoming the main playground for developing new blue businesses, EU Atlantic Ports have the opportunity to diversify their revenue sources and work towards

a sustainable ocean economy. Ports are one of the primary interfaces with the ocean, which means they will play a strategic role as launchpads for a new generation of blue companies. PortXL is proud to be one of the founding partners of AspBAN, and we look forward to sharing our experiences and working towards stronger maritime innovation in the EU.

Secretary-General of Fórum Oceano, the Portugal Blue Economy Cluster, Ruben Eiras, said of the initiative, “The main idea is to build – metaphorically – a blue Silicon Valley that uses the port as a network base for building a European & Transatlantic connection, using the ports as acceleration platforms, innovation hubs for blue economy business.”

Forward to the future The industry has significant challenges ahead of it, affecting the economy and ecology, the main ones being energy transition and digitalisation. The search for new maritime fuel is an endeavour that will shape shipping in the coming decades. The digitalisation of operations will aid knowledge

transfer from one generation to the next – and improve the quality of work overall.

We all like to fantasise about how wonderful the future will be, with zero-emissions and futuristic appliances, but the journey there is the challenging part. One step at a time, technology development,

testing and piloting are helping us along this path. The key is not to be discouraged by setbacks but to strive. Rotterdam prides itself on being the city with rolled-up sleeves and a ‘Make it Happen’ attitude, and we hope to inspire multiple global clusters to embrace open innovation.

PortXL was founded in 2015 in Rotterdam with the vision of cultivating a spirit of innovation within the global maritime industry. We want to change the way people think about the maritime sector. This is why PortXL is an ecosystem of start- & scale-ups, corporate partners and mentors – all change-makers, creative thinkers and problem solvers who work collaboratively to disrupt the status quo. Click portxl.org to discover more.

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Artificial intelligence and maritime innovation

Digital pivots

by Mark Warner, Head of Marketing, Maritime Performance Services, Lloyd’s Register Maritime companies should see artificial intelligence (AI) as a transforming technology that will allow them to get ahead of the market. Integrating AI in autonomous shipping, navigational support systems, and vessel performance optimisation solutions will deliver value to users when appropriately implemented. Admittedly, the adoption of this technology in the maritime industry is at a nascent phase, and its development will depend on the computing infrastructure and the connectivity solutions available. However, it is likely to be among the technologies that will soon experience industry-wide acceptance, given the level of investment being poured into the disruption of the global supply chain.

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loyd’s Register’s new report, Artificial Intelligence in Maritime, produced in collaboration with Thetius, highlights that the maritime industry is forecast to spend $931m this year on AI solutions. That figure is forecast to more than double in the next five years to $2.7b, a compound annual growth rate of 23%.

This rapid growth is driven in part by investment in the sector. In the last 12 months, $331m has been invested in startups and small- and medium-sized enterprises developing AI solutions for the maritime industry, with a further $43m in grant funding being awarded to develop the technology for the maritime sector around the world.

AI affects all A lot of the initial AI research & development has been focused on autonomy and sustainability, with the ambition of building the capability of a smart fleet of vessels. Many companies have begun by addressing incremental changes such as optimising individual ship performance, while others are experimenting with fleets capable of moving cargo remotely and safely.

As the regulatory landscape shifts the maritime industry’s focus towards sustainability, how the market currently operates and plans to operate in the future will change. This does not only pertain to the environment but also to the people involved in the industry’s growth. From the seafarers to the policymakers, every individual that is involved in enabling the maritime supply chain will be affected by how AI will take its place in the industry.

Currently, there are several use cases for AI in maritime that have begun to gain traction. This includes decision support solutions (autonomous navigation), its use for generating insights into machinery health (digital health management and remote diagnostics), and its integration in autonomous ship systems, which enables an alternative future of commercial fleets without crew (virtual commissioning).

One area where Lloyd’s Register’s (LR) Maritime Performance Services, through its subsidiary i4 Insight, has developed vast

experience is in the use of AI for vessel optimisation and helping to ultimately improve ship performance. “We have found that traditional and legacy data analytics only look at 10% of vessel data, whereas our AI models can now look at close to 100% of vessel data and process this data instantaneously to create extremely accurate vessel performance insights around fuel consumption, speed, trim, hull fouling and power consumption,” highlights Andy McKeran, LR’s Chief Commercial Officer.

Without question, the combination of massive investment and rapidly increasing demand means that AI is one of the fastest growing digital technology sectors in the maritime industry today. However, knowing how to capitalise on the AI opportunity can be difficult and fraught with risk. It calls for trusted advice.

To help maritime stakeholders find suitable AI providers and solutions for their business challenges, LR launched last December a standardised digital register of LR-certified AI providers and solutions – a first of its kind for the maritime industry. Using the AI Register, maritime companies can minimise the risk and cost of investing in AI while successfully benefiting from the technology’s advances, improving business outcomes and their competitive advantage.

Towards digital maturity in shipping Digital transformation is reshaping the global maritime business, bringing a new era of innovative uses of data to help with the decarbonisation and optimisation of shipping. A report by Thetius at the end of last year highlighted that the pandemic accelerated digitalisation by over three years, powered in part by the need to move away from physical or manual processes.

In assessing maritime’s progress on the digitalisation journey I have looked to what senior executives in all industries consider 84 | Baltic Transport Journal | 3-4/2022

necessary for transformation – otherwise known as ‘digital pivots,’ as told by those execs to Deloitte. There are other ‘pivots,’ but I would say from my perspective of working with and talking to a number of shipping companies over the last 25 years, those highlighted below are absolutely key to digital maturity in shipping.

Here, I share an update on why we are closing in on the tipping point for maritime innovation by diving into detail around each pivot and its level of maturity in the sector.

TECHNOLOGY A flexible, secure, and connected communications infrastructure both onboard ship and ashore In a maritime context, this specifically relates to connectivity and the cyber resilience of that infrastructure. Connectivity can mean a lot of different things to different people, but from a commercial maritime perspective, there is a requirement for high-speed broadband as an enabler for digital transformation with at least speeds of between 4-8mbps and ideally more. Don’t forget that until about seven years ago, there was just the Inmarsat L-Band global offering through Fleet Broadband which was only offering speeds of up to 564kbps. Since then, there has been a huge increase in the number of VSAT providers and the speeds and capacity available.

There’s a widespread misperception that satellite communications are hugely expensive and, as a result, not widely used.

In fact, what we’re seeing is a real increase in satcoms usage, especially since the pandemic, both for crew welfare and operations.

Pre-pandemic, the average commercial merchant vessel was transferring around three gigabytes per day, on and off board. Now it’s more like 12-14 gigabytes per day. That’s a fourfold increase in data

consumption per ship over 18 months. Satellite network providers are catering to this trend, with Inmarsat now fine-tuning its new ORCHESTRA all-in-one system, which includes LEO and terrestrial services, plus a host of new low Earth orbit satellite networks such as Starlink and Oneweb now actively targeting the maritime industry.

Capacity for connectivity is just going to increase and increase – Starlink is already offering downloads of over 100mbps for their initial maritime service. And with so much competition, the price of packages will come down as well, which means that we have reached a tipping point for this pivot.

On cyber security, there have been several high-profile maritime issues, so most companies now have their own IT and cyber security department or outsource this to a third party. The International Association of Classification Societies has also set recommendations on cyber security, and there are some very sophisticated cyber resilience packages in place, or they are being put in place; everyone realises you need a tight security blanket around your communications infrastructure.

Intelligent and automated workflows – including moving from digitising processes to full digitalisation and autonomy Here, allow me to explain that merely automating manual processes – or ‘digitising’ – is not enough. Digitalisation requires a changing of business resources and processes as well. There’s still confusion around automating workflows and data collection, but companies are starting to work out what needs to be digitised and what can be digitalised. In other words, change businesses processes, and bring in experts or ‘digital talent’ to assist with this.

Shipping companies are beginning to understand why data

quality is important and maximising their use of data rather than creating data silos where software providers don’t talk to each other. Let me give the example of flexible enterprise resource planning systems which work in an automated and intelligent way – such as that offered by Hanseaticsoft, LR’s cloud-based ship management solution – which can be described as really ‘sweating the data’ and using across multiple functions from planned maintenance to procurement and crewing.

Data maturity – including the collection, transfer and analysis of data from ship to shore, and the avoidance of data silos Transferring data ashore for its analysis and use requires a suitable platform for integrating all the collected inputs, and this is becoming even more important with requirements for emissions reporting and the new Carbon Intensity Indicator. Fuel monitoring, both for

environmental and cost reasons, is going to become increasingly vital.

I would say that we are not quite at the tipping point for this particular pivot, as there’s going to be a real step change in how to get that data and how to get it off vessel quickly and use it in an intelligent manner.

Requirement of digital talent I believe this point is hugely important but often overlooked in a sometimes conservative and inward-looking industry such as shipping. Therefore, it’s probably the furthest away from a significant tipping point. If you haven’t got people who are digital-savvy and understand how to use data and automate workflows, you’re not going to be digitally mature. We’re finding now that companies have digital strategies and positions like

Chief Digital Officer, Digital Transformation Officer, ‘data scientists’ and the like. It is amazing how the conversation changes when you have digital talent in an organisation.

People who are coming in need to have a real understanding from a business perspective, not merely a technical one, of the needs of a shipping company that is undergoing digital transformation. They’re being put there to change digital attitudes internally.

Collaboration and the establishment of digital spin-offs, partner ecosystems, and start-up accelerators There has been a noticeable shift in companies working far more closely in the last five years. It’s not just pairings between comparable businesses. Maritime accelerator programmes are focusing on key topics like decarbonisation or safety – Safetytech Accelerator, established by Lloyd’s Register Foundation and LR, is a fantastic example of this. Others such as Rainmaking and Pier71 have developed their own accelerator programmes around decarbonisation in recent years.

Another trend has been for large- and medium-sized shipping companies and ship managers to spin out their own digital divisions so they can work with other companies – these include OrbitMI, AlphaOri and ZeroNorth. On the quayside, accelerators such as PortXL are doing their job in connecting the port industry with start- and scale-ups.

In short, I believe shipping is making good progress in adopting all five ‘pivot points’ that he sees the industry needs to fully embrace digital transformation, which in turn will prove the ‘tipping point’ for real innovatory change.

Lloyd’s Register is a global professional services company specialising in engineering and technology for the maritime industry. We are the world’s first marine classification society, created more than 260 years ago to improve the safety of ships.

Our technical expertise is offered in more than 70 locations, serving clients based in 182 countries. Go to www.lr.org to learn more.

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How tech-based relays can solve the truck driver shortage

Europe’s road freight market – relayed

by Christophe Saby, Head of Trucksters in Poland Trucksters, a freight transport start-up from Spain, is changing the way freight transport operates by halving transit times and improving the lives of lorry drivers by utilising artificial intelligence (AI) and a big data-integrated relay system.

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rucking is a vital aspect of the EU’s freight transport, accounting for three-quarters of its inland transportation.

However, according to the International Road Transport Union, there is currently a shortage of 400k truck drivers in Europe, and the ever-rising demand for hauliers is catalysing a problematic situation. Many European countries have been impacted by this issue, including Poland, the UK, and Germany. The issue aggravates as the number of lorry drivers is contracting, but demand for transport is increasing.

The current operating system of the transport industry is fundamentally unsustainable. The working conditions have proven unattractive to many new professionals who value a healthy worklife balance, including the younger generations and women (still rarely seen in the sector). Most drivers are forced to spend weeks away from home, sleeping in their 86 | Baltic Transport Journal | 3-4/2022

cabs, eating on the side of the road, and working under very challenging conditions. These circumstances cause individuals to refuse to join the sector.

How does the relay system work?

During the Persian Empire period, messengers would often change their horses on their journey to inform the ruler of news from the remote parts of the realm and around the world – and this is the base model of the modern relay system. What is new is that the Trucksters’ relays system is integrated with innovative technologies, such as AI and big data. These applications allow the relay system to be efficient and effective even when operating over distances of more than 1,500 km and on routes that cross several countries.

By utilising its relay system and the unique driver organisation structure, with the company’s own semi-trailers and

a dedicated fleet of partner companies, Trucksters can optimise the time and cost of the operating route – and the living conditions of the drivers. The system allows the trucker to carry cargo from point A to B, which is then picked up by another driver who can take it to point C. The original driver can then turn around and take a new shipment back to the starting destination, providing them with the possibility to return home and rest.

It has been difficult to set up efficient relay systems in the long-distance freight transport sector due to the complexity of the planning processes. However, with the aid of high-tech algorithms, Trucksters is able to plan, re-plan, and control all resources at every stage of the process.

The technology-integrated operation system allows the company to manage any unforeseen situations that road transport entails: from slow traffic to breakdowns, from inclement weather to human error

LOGISTICS

Photo: Trucksters

while driving. The application of technology in a sector as rigid as transport is what makes Trucksters’ operation scalable and different from the rest.

The advantages of using relays The most notable benefit of the integrated relay system is that it allows drivers to spend more nights resting at home and with their families relative to the status quo. Technology usage also creates a new interest for the younger generations who have grown up using smartphones and other advanced technologies.

Moreover, the relay system drastically shortens the delivery time, reducing transit times by 50% – offering the customers the air freight delivery time but at a road transport price. And by utilising the technology-integrated system, Trucksters can provide real-time feedback on the cargo and its transportation status to the customers at any point during the shipment.

Companies can reduce the number of kilometres driven empty, with 5% kilometres driven by their vehicles without any load, which sits below the industry average of 7%. The empty kilometres result from the hyper fragmentation that the sector has been experiencing for many years. With Trucksters’ corridor model,

the company can further limit empty kilometres, as there are guaranteed customers at the departure and arrival points.

High adaptability is another notable aspect of the system. Trucksters’ operations are easily scalable, as the company can work with third parties and sole traders, who can easily integrate their vehicles into the operational structure.

From anecdote to a paradigm shift As the transportation sector is experiencing a paradigm shift, a pivotal transition – from a traditional transport model to the future semi-autonomous driving – our organisation believes that the relay system will soon become the industry standard for road freight transport. This change will resolve many of the problematic situations the sector is currently facing: from the lack of drivers to wasteful usage of trucks that are spending many hours idle.

Trucksters’ relay system has received significant support from industry experts

and investors. It has also been recognised by different professional organisations like Germany’s Verkehrsrundschau award in digitalisation/service providers, the CEL award of the Spanish Logistics Centre, whilst also shortlisted for the prestigious CILT Awards for Excellence in the UK. The operation model has also attracted the attention of the innovation technology sector, where it was nominated at the recent Energy Tech Summit held in Poland last May. With the announcement of Trucksters’ new corridor, where the link between Spain and the UK is formed, the brand is one step closer to its aim to consolidate and expand the company’s relay network in Europe. Eight more corridors are set for opening by 2023-end, in addition to the company’s other three corridors connecting Central-Northern Spain to Benelux/West Germany, the Spanish Levante to Benelux and West Germany, and to Poland.

Trucksters is a transport operator focused on providing a long-distance full truck load transport service through an innovative relay system based on big data and artificial intelligence. Founded in 2018 by Luis Bardají, Gabor Balogh and Ramón Castro, Trucksters’ goal is to make the global road freight industry more efficient and dignified for professionals in the sector. Visit en.trucksters.io to discover more.

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Instability rules the vehicle logistics sector

ECG aims to create new normal in volatile reality

by Ewa Kochańska The annual General Assembly and Spring Congress of the Association for European Vehicle Logistics (ECG) conference took place on 12-13 May in Malaga, Spain, where speakers discussed the current state of affairs in the sector stuck in a seemingly endless cycle of crises for three years now. Briefly – comparatively speaking – disturbed by the disfunction of Brexit, through the lockdowns and bottlenecks brought about by Covid-19 and the resulting global microchip shortage, to the ultimate pandemonium caused by the war between two significant players in vehicle production – Russia and Ukraine, the automotive sector is desperately seeking stability and cooperation.

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he conference started with the ECG member board meeting, greetings and other annual General Assembly formalities.

They included the formal discharge of the 2021 board and the election of the new member board for the current year, welcoming new members – Andrea Eck of BLG Automobile, Andreas Sundl of Hödlmayr International AG, and Krzysztof Szeligowski of Adampol S.A. The day ended with a gala dinner and the ECG Academy graduation ceremony in the Car and Fashion Museum. In the evening hours, the freshly trained junior and middle managers from the vehicle logistics sector received their Certificates in Automobile Logistics Management.

The course programme was mentioned by speakers during the Spring Congress the following day when it was pointed out that attracting young talent to the finished vehicle logistics sector is essential for the industry to future-proof itself. The next day, the Spring Congress, full of presentations from high-profile speakers and ECG working groups, painted a fittingly spooky – for its Friday the 13th date – picture of the sector’s current state. “The outlook? Havoc in the markets, havoc in sourcing and production, and havoc in transportation,” summarised the global industry circumstances Namrita Chow, an analyst with ECG Business Intelligence.

The never-ending crisis mode The speakers named several disruptors affecting the finished vehicle logistics sector in recent months. Unmistakably, the Russian attack on Ukraine and the ongoing conflict have created adverse economic conditions worldwide, including in the automotive industry in Europe.

Specifically for the vehicle logistics sector, one of the most pressing issues is the soaring price of raw materials and components necessary for vehicle production, with both Russia and Ukraine having been key suppliers. According to the opening presentation by Justin Cox, Director of Global Production, LMC Automotive, about the European market outlook, Russia was the third biggest light vehicle producer in 2021 in Europe, and this year, the production expectations for Russia were cut in half at best.

Ukraine, which had specialized before the attack in electrical cabling, wiring harnesses and other components necessary for vehicle production, has initially halted production, although it has recently seen some restarting of activity. Additionally, Russia is the world’s biggest supplier of palladium and the third biggest producer of nickel needed to produce vehicle batteries, while together, Ukraine and Russia produce 40% of the world’s neon which is vital for the manufacturing of semiconductors.

Clearly, the high energy prices and surging fuel costs following Russia’s aggression in Ukraine have disturbed business in the EU since the block 88 | Baltic Transport Journal | 3-4/2022

Photos: ECG

EVENTS and serious trucking issues around it. “Global chain is significantly affected – trucks cannot get to the ports, trucks cannot get to the factories, factories cannot get parts, and the supply chain just cannot supply,” said Chow.

These issues and their effect on vehicle logistics have been reiterated

by ECG President Wolfgang Gobel, who also mentioned the low level of confidence in the future of the industry. Due to uncertainty of future volumes, investments in the sector are down. Additionally, issues with labour shortages, mainly truck drivers, started about two years ago due to lockdowns and reduction in volumes; most recently, the Ukrainian truck drivers returned home to defend their country, adding to the labour disturbance. So, while wait times for a new truck are extending to now at least a year, it’s becoming increasingly difficult to find someone willing to drive it. Shipbuilding operators are also struggling with skilled worker labour shortages, so the wait times for a new vessel extended to up to five years. That is relevant if companies are even able to finance such investments at this point. “Operators cannot move vehicles without assets such as ships and trucks,” said Gobel. “The automotive industry risks losing its suppliers.” However, Gobel pointed out that in the middle of the turmoil, relationships with stakeholders along the supply chain were good, and customers demonstrated flexibility, particularly when diesel costs saw a drastic hike. He underscored how important it is to keep the communication channels open to face critical issues together.

Finding the way forward

had been sourcing about 40% of its natural gas from Russia before the war. Undoubtedly, the uncertainty of the energy sector is a crucial factor contributing to the current European and global economic and geopolitical instability, also causing inflation to skyrocket in some areas.

For example, the inflation rate in EU member states Lithuania and Belgium was just 1.6% in March 2021 but grew to 15.6% and 9.3%, respectively, in March 2022. In the European Union, the inflation rate for April 2022 was 8.1% compared to 2.0% a year earlier. High inflation rates are a crucially damaging factor in the logistics sector, but in just a smidgen of optimism, Cox stated that economic forecasters believe inflation has peaked and should start coming down, and they don’t expect a recession in Europe in 2022. However, while western Europe is expected to see a strong recovery, Eastern Europe could remain at risk of further economic downfall.

Another key global disruptor continues to be Covid-19, particularly the Omicron variant and particularly in Asia. The Chinese government’s insistence on pursuing a zero-Covid policy prompted large lockdowns in cities such as Shanghai, host to the largest port in the world. This has resulted in components and cars being stuck at ports, large backlogs at the port,

Therefore, one of the critical factors for the vehicle logistics sector is cooperation among stakeholders in this time of volatility. Such an approach aids in increasing standardisation and digitalisation of the sector, which helps share know-how and deal with supply chain disruptions. Rob Exell, Business Services Manager at Odette International, spoke to that when discussing his company, Odette – a pan- European automotive supply chain collaboration platform. The organisation strives to provide tools and services to develop uniform standards and solutions by bringing together supply chain professionals and IT experts. Exell talked about a joint ECG-Odette-VDA project, aiming to develop and provide a set of standard digital messages supporting communication across all finished vehicle logistics processes, allowing OEMs and finished vehicle LSPs to communicate efficiently (via digital FVL messages).

Additionally, Daniele Saba, VDA representative and senior manager of green logistics at Volkswagen, further spoke about Odette, ECG, and VDA teaming up to address the necessity of harmonizing and standardising emissions calculations and reporting in the sector. Saba emphasised that the logistics sector will be the focus area for the EU’s sustainability ambitions for the next few years. “In the future, sustainability reports will become more and more important,” said Saba. “They will be an essential documentation for the future climate-neutral Europe until 2050.” Therefore, cooperation within the logistics sector is not only a helpful tool in times of crisis but will become fundamentally essential in Europe in the coming years.

Future-proofing As disruption becomes the new normal in vehicle logistics, forced on by the geopolitical and economic chaos of the past three years, the automotive stakeholders are scrambling to survive and find some consistency. The war in Ukraine, together with Covid-19 and the resulting inflation and microchip and labour shortages, are threatening further supply-side disruptions. Stabilising and ensuring longevity for the finished vehicle logistics sector hinges on car producers working closely with their logistics and transport providers as well as decision-makers to innovate, resolve labour and equipment shortages, stabilise energy costs, and achieve digitalisation and standardisation of information flow and processes across the sector. “I think no one is expecting that the normal of 2019 will come back,” said ECG President. “What is the new normal?

We need new methods, we need more robust contracts, we need to adapt to these 2020s, which are completely different from anything we have seen.”

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COLLECTOR’S CORNER

A trip down memory lane

by Marek Błuś Imagine it’s 1935. It was the year Gustaf Ericson’s fleet of sailing vessels amounted to 28 ships (the largest ever!). It was also when owners from Scandinavia still operated numerous schooners in domestic and short sea traffic. Visualise embarking as a deck apprentice on one such wooden vessel in Esbjerg (maybe with the intention and hope to join an Ericson’s windjammer next time). Your small, two-masted ship was loaded with bagged grain destined for Gothenburg. Today, as a retired salty dog, you browse a stamp binder, recalling the good old days – and, of course, the sea views! And together with you – we do, too!

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ust after leaving Esbjerg, your boat passed the Blåvandshuk lighthouse (built in 1900) starboard. Still, she didn’t turn north immediately because of the Horns Rev shallows. Your skipper told you that cape Blåvandshuk is the westernmost point of the Danish soil and – obviously – the lighthouse’s square tower is the country’s westernmost building.

The schooner changed course north after passing a lightship that marked the western end of Horns Rev; however, she kept her distance from the shore (called Iron Coast because of the lack of shelters, a setting that wrecked many ships during western storms).

The skip was a teenager when, in 1903, the steamship Avona got stranded nearby the Port of Hvide Sande (sadly, the entire 24-strong crew was lost). The disaster led to the construction of the Lyngvik lighthouse (1906), the flashing light of which you saw only slightly above the horizon, just like the following Bovbjerg lighthouse (1877).

Your schooner approached the shore close by the Port of Hirtshals, marked by a lighthouse bearing the same name and erected (1863) west of the harbour. Skagen was only four hours of sailing, it was late 90 | Baltic Transport Journal | 3-4/2022

afternoon, and you were surprised that there were two towers over the cape. A mate explained that only the taller, called the Grey Lighthouse (1858; with 46 metres, Denmark’s highest at that time), is topped with a strong light. The smaller, the White Lighthouse (1747), was turned into a signalling station after 111 years of service (engraved by Czesław Słania, only the White has a stamp).

With Skagen disappearing aft, you kept a good lookout as the Swedish coast should be visible after midnight. And there it was – first lit by the flashes of the Vinga lighthouse (1890) on the right bow, then the Räbbehuvud lighthouse (1933) began blinking on the port bow. The ship was on the right way but slowed down to reach the skiers at dawn. Passing Vinga by daylight, you noticed a small, round tower. Your tutors explained that it is also a lighthouse: raised in 1854 to accompany an older tower (1841) to cast “double light.” When a fixed flame of fossil fuels was the sole light source, “doubling” the fire at the same height was the only method of distinguishing two adjacent lighthouses.

A few days later, after discharging in Gothenburg, on the way for the next cargo to the Port of Grenaa, your boat passed a unique

example of a “double light.” It was Nidingen (both towers built in 1834, elevated in 1847), the very last active aid to navigation of its kind in the world (you don’t remember the tallest, white tower with a black strip depicted by a stamp engraved by Martin Mörck; it was built in 1946, but you changed your job to brokerage earlier…). Grenaa got marked by the Fornæs lighthouse in 1982, located at the easternmost point of the Jutland peninsula. The next port of call was Trelleborg, with the Falsterbo lighthouse (1795) the closest to passage.

The freight was again booked in Denmark (Aabenraa, to be precise), and your skipper decided to sail via the Storstrøm strait between Zealand and Falster. The Møn lighthouse (1845) welcomed you to Danish waters here, the Omø one (1894) opened the Great Belt, and the Taksensand lighthouse (1905) marked the last miles toward the port of destination. Yet, there’s a difference between the picture on the stamp and the one your memory holds. Yup, the tower was much taller in your youth: it was lowered from 32 to 19 metres in 1953. A very rare operation on a lighthouse tower indeed!

In the 1935’s Aabenraa, you discharged for leave…

COLLECTOR’S CORNER

3-4/2022 | Baltic Transport Journal | 91

TRANSPORT MISCELLANY

The connecting power of art

What’s the time?

After two years of local cooperation – in June 2020, DHL Express became the Official Logistics Partner of the Van Gogh Museum, handling all shipments from the latter’s webshop using DHL GoGreen climate-neutral shipping – the partners have taken their work onto the global level. The two aim to inspire and connect children around the world, for whom (art) education is not always available or accessible, through the art and life story of Van Gogh as a medium. These children will learn about the painter’s life and work and, equally if not more importantly, explore personal development topics such as discovering identity, chasing dreams, and overcoming adversity. DHL will be providing full-service shipping and logistics coordination.

For the Port of Barcelona’s Clock Tower, located in the Old Port on the Fishermen’s Wharf, the bell rang exactly 250 years in 2022!

Its construction – as a lighthouse championing the neoclassical style – began in 1751, with commissioning taking place in 1772.

As the Catalan port grew, the lighthouse found itself farther and farther from the sea. When the Llobregat lighthouse entered into service in 1852, a proposal to demolish the old one hung in the air ominously. Fortunately, the Port Works Board decided to replace the lamp with a four-sphere clock to give the structure a new lease on life. The Clock Tower also has its merits outside the port industry. It was used to measure the length of the meridian arc from Dunkirk to Barcelona, which helped to establish the metric system. In this context, it was used as a reference point for designing in the mid-19 th century the La Meridiana and El Paral·lel avenues. Feliç aniversari!

Photo: The Van Gogh Museum

Quay with men unloading sand barges (1888); photo: Artvee

92 | Baltic Transport Journal | 3-4/2022

Photo: Port of Barcelona

TRANSPORT MISCELLANY

When cars were exported via Gdynia This early July, a special event took place in the Port of Gdynia to commemorate the 50 th anniversary of the production start of the FIAT 126 model. The automobile aficionados from the Polish 126Hooligans club decided to travel from Bielsko-Biała in central-south Poland to Turin in northern Italy, where the Italian manufacturer began putting together the itsy-bitsy car in 1972, which just one year later made its ‘under licence’ way onto assembly belts in Poland (as FIAT 126p, also known as “the Polish Fiat”).

Arguably, it is the vehicle that motorised the country far and wide. Moreover, during the 28 years of production, a lot of 126ps were exported to other pally commie countries, like Cuba and China (serving, a.o., as taxis). Altogether 12 vehicles took part in the 3,126 km long journey, including unorthodox versions (convertible, racing and cabrio). What is positively shocking – the 92 years old Sobiesław Zasada, a three times European rally champion, also partook in the expedition along with his 96 yo pilot, Longin Bielak. What a team! What a car! What a passion!

Photo: Port of Gdynia

Photo: Port of Gdynia

Photo: Paweł Bielak/126Hooligans Photo: Port of Gdynia

Photo: Paweł Bielak/126Hooligans

Photo: Paweł Bielak/126Hooligans

A good working life The Danish Port of Hirtshals, the Norwegian ferry company Fjord Line, and the municipal Lundergård Primary School from Hjørring (North Jutland) have been cooperating in recent years to show eighth and ninth graders what it’s like to work in the transport industry, on- and offshore. The latest instalment of the Brobyg Nord project took the students aboard Fjord Line’s Stavangerfjord to showcase the multitude of jobs needed to run the cruise ferry. “We have had the students from the ship’s top to the bottom – from the bridge to the engine room. It has been a great eye-opener for them, and it is clear that Fjord Line already has some new employees on the way,” said Ditte Gerstrøm Sørensen, the Port of Hirtshals’ Head of Marketing. The Brobyg Nord initiative aims to acquaint students with future job opportunities – by doing it outside the classroom. The goal is also to underscore that transport can provide “a good working life” in a variety of occupations.

Photos: Port of Hirtshals

3-4/2022 | Baltic Transport Journal | 93

WHO IS WHO RUTH BOUMPHREY LRF’s CEO

CELESTE THOMASSON EVP & General Counsel, GEODIS

Professor Richard Clegg, the Lloyd’s Register Foundation’s (LRF) first CEO, has passed the baton to Dr Boumphrey, up to date the organisation’s Director of Research and Strategic Programmes. Within her previous role, Dr Boumphrey had led significant programmes, including with the Alan Turing Institute on data-centric engineering. Among her many far-reaching duties, she is a Leader of Engineering X, a global collaboration bringing together the world’s best problem-solvers to address the great challenges of our age.

Thomasson began her career in 1992 as an Associate at Baker & McKenzie in LA before joining Fournier Laboratories in 1999. She joined the Safran group in 2002 as Legal Counsel.

Afterwards, she worked in multiple posts within the company and its subsidiaries, including Senior VP and General Counsel for Safran USA in July 2008 and then VP Legal Affairs. Thomasson, a Member of the State Bar of California since 1993, holds a Juris Doctor degree from Southwestern Law School – Los Angeles.

PASCALE DUBOIS EVP, Corporate Communications & Brand, GEODIS

HEDI VISSCHER PortXL’s Managing Director

Dubois began her career in 1985 as a journalist. In 1989, she joined Compagnie du BTP as Deputy Communications Manager. In 1994, she became Head of Press Relations and Financial Analyst Relations at Euro RSCG Finances. At the Colas Group in 1996, she was appointed Internal Communications Manager before becoming Head of Communications in 2000. May 2008 saw Dubois as Head of Communications and Philanthropy at the Safran group and an Executive Committee Member in 2015.

Visscher, holding a Bachelor of Arts in Philosophy of Management from the Erasmus University of Rotterdam, is the new head of the world’s first port & maritime accelerator.

Over the years, she has accumulated a vast array of maritime experience, the latest being at InnovationQuarter with the Sustainable Shipping programme. Outside the industry, Visscher was a Socratic Moderator at the Socratic Cafe Netherlands, a meeting place for lovers of meaningful conversation.

HENRIETTE HALLBERG THYGESEN APM Terminals’ Chairperson

KEITH SVENDSEN APM Terminals’ CEO

EVP Henriette Hallberg Thygesen has been with A.P. Møller – Mærsk since 1994, where she has held various senior positions in Spain, China, the US, and Denmark for Svitzer, Maersk Tankers, Maersk Oil, Maersk Logistics/Damco.

In addition to the new role, Hallberg Thygesen will also assume Executive Board responsibility for safety, security, and crisis management across A.P. Møller – Mærsk, including for Maersk Training.

Svendsen has been with APM Terminals as COO since 2017. Prior, he held several senior positions within Maersk, most recently as VP and Head of Operational Execution. He joined A.P. Møller – Mærsk in 1990 as a Cadet. Svendsen holds a Master’s in Business Administration from the London School of Business, has a Board Director Diploma from IMD, and finished Harvard University’s Advanced Management Program.

MIKA HEISKANEN RMC’s CEO & President

KARL THORNGREN ZeroNorth’s CFO

Rauma Marine Constructions (RMC) has recruited a graduate of Aalto University to run the Finnish shipbuilding yard. Most recently, Heiskanen was responsible for production as an Executive Board Member at Meyer Turku.

Earlier, Heiskanen worked for Royal Caribbean Cruises, where he was accountable for newbuilding projects in Papenburg. Heiskanen had also chaired the boards of Shipbuilding Completion and Technology Design and Engineering Eng’Nd.

Thorngren, an alumnus of Stockholm School of Economics (a Master’s in Accounting and Finance) and the University of St. Galen (MSc in Management and Finance), joins the ZeroNorth team as Chief Financial Officer.

Previously, Thorngren worked as, among others, CFO for Maersk Supply Service and in the same position at Svitzer Australia. Before that, he was Head of M&A at A.P. Møller – Mærsk.

94 | Baltic Transport Journal | 3-4/2022

WHO IS WHO KENNETH JUHLS Managing Director, ClearLynx

SOTIRIS RAPTIS ECSA’s Secretary-General

Juhls, a graduate of Copenhagen Business School in Finance Risk and Management and INSEAD’s Leadership Transition programme, has taken the helm of ClearLynx, z ZeroNorthowned bunker optimisation platform. He has spent over 20 years working in the shipping and trading industry, including as Head of Risk Management in Maersk Oil Trading, Maersk Tankers, and Maersk Oil. Juhls had also worked for Maersk Tankers as Chief Risk Officer, Head of Finance, and Chief Strategy & Transformation Officer.

Raptis has extensive EU political and policy experience, having worked for different organisations in Brussels over the last 14 years, such as the European Parliament, the European Sea Ports Organisation, and Transport & Environment. He joined the European Community Shipowners’ Associations (ECSA) as Director of Environment and Safety in 2020.

Sotiris is a Qualified Lawyer with degrees from the University of Thessaloniki, the University of Athens, and King’s College London.

JAN DIELEMAN GMF’s Chairman

ANDERS HERMANSSON CEO, Swedish Shipowners’ Association

The international not-for-profit organisation Global Maritime Forum (GMF) has a new Chair in the person of Cargill’s Business Leader Ocean Transportation. Dieleman has been with the company for more than 23 years, working in different positions, including as Business Unit Leader of Thermal Energy Supply Chain and North America Power and Gas. He has been with GMF since 2018, first as Advisory Board Member and then Board Member.

The up to date Vice CEO has been selected to manage the organisation. Hermansson, a Master of Political Sciences from Lund University, has been connected to the maritime industry for many years. Among others, he had worked as Deputy Director (responsible for maritime safety and security and IMO affairs), for the Swedish Ministry for Enterprise, Energy and Communications, and as Policy Advisor (Maritime Department) and later as Head of Section for Strategy and Development at the Swedish Transport Agency.

GRANT INGRAM CEO, Innovez One EMEA

JESPER MIKKELSEN HEILBUTH Scandlines’ CFO

Innovez One has appointed the tech veteran to lead its UK team, driving digital solutions to improve port efficiency and sustainability across Europe, Africa, and the Middle East (EMEA). Ingram has over two decades of experience developing and deploying software solutions for companies, including M9 Group, DVSI, and DataVisibility. He started his career with Honeywell back in 1978, also working for Bull – Atos Technologies, among others, as Director of Strategic Alliances and Partnerships.

The Danish-German ferry line has a new Chief Financial Officer, responsible for finance, treasury, IT, and procurement. Heilbuth has also joined the Executive Board. Earlier, he was A. Espersen’s Group CFO and a Member of the Management Board. He is a certified Public Accountant and began his career in the auditing and consulting firm KPMG, after which he spent ten years as VP, Head of Group Finance & Tax at the shipping and logistics company DFDS.

DOMINIK LANDA HHLA Intermodal’s Director Strategic Business Development and Intermodal

JACEK JAŻDŻEJEWSKI bMC’s Head of Naval Architecture & Marine Engineering

Landa, a BSc in Informatics and MSc in Transport & Logistics from the University of Gdańsk and an MBA holder from Rotterdam School of Management/Gdańsk Foundation for Management Development, has shifted from DCT Gdańsk, where he had worked for the past 11 years as CCO and Business Development Director. Earlier, he was with Maersk. Landa is also a Podcast Host at ETA(.)fm.

brand MARINE CONSULTANTS (bMC) have hired the Naval Architect Jażdżejewski, no stranger to the company as he has been well-known to the team for many years, having worked for a joint venture partner. He joins bMC from NED-Project Naval Architects & Ship Designers.

Jacek brings a wealth of naval architecture skills, particularly on casualty cases requiring modelling or simulations. Jażdżejewski began his career at the Polish Registry of Shipping.

3-4/2022 | Baltic Transport Journal | 95

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