16 minute read
EMISSIONS
from CSI Spring 2022
by Maritime-AMC
As every segment of the industry seeks to manage emissions output, one question is how data and artificial intelligence can be harnessed to improve sustainability and governance in ports.
David Yeo of Innovez
One considers the options of a digital approach to port sustainability
SMART
SOLUTIONS
David Yeo Chief Executive and Founder, Innovez One
Out of sight, but no longer out of mind – as global supply chains strive to decarbonise, ports are under more scrutiny than ever before. To address the formidable challenge of curbing their own emissions and helping visiting ships reduce theirs, ports need a helping hand from deep tech, algorithms and artificial intelligence.
In March 2021, the world awakened to the vital importance of shipping in a dramatic way, when a giant cargo ship stranded in the Suez Canal threatened to bring much of international trade to a halt. Since then, supply chains have remained steadily in the global spotlight due to ongoing congestion that continues to cause severe backlogs and delays for retailers and manufacturers around the world. For customers, governments and business leaders, shortages and empty shelves are a stark reminder of the importance of shipping, which transports 90% of the world’s trade.
In the past few months, shipping and ports have also been subjected to greater attention and scrutiny for the role they can play in helping the world achieve its decarbonisation ambitions. The latest United Nations’ climate change conference (COP26) was a pivotal moment for maritime transport, which was an integral part of climate talks for the first time ever. More than 130 countries have now set or are considering a target of reducing emissions to net zero by mid-century – and as national governments are stepping up with more ambitious targets on climate change, there is also a growing recognition that maritime transport, including ports, must be part of the solution.
SUSTAINABLE SHIPPING RELIES ON SMART PORTS
One of the main maritime outcomes of COP26 was the Clydebank Declaration for clean shipping corridors, in which more than 20 countries, including the US, Japan, Australia and Canada, pledged to develop zero-emission shipping routes between selected port hubs in the next decade. This
new global network for sustainable shipping will inevitably rely on smart, green ports capable of delivering the necessary infrastructure and efficiency to achieve net zero themselves, and to put the right measures in place to help their visiting ships minimise their emissions. It provides an early glimpse into the cleaner supply chains of the future – and just how interdependent and connected they will have to be to achieve their goals.
For the visionary ports that will successfully reinvent themselves as green ports, this is a formidable opportunity to develop competitiveness and carve out a privileged place for themselves in the supply chains of the future. But for those who fail to complete this vital transition, there is a real risk of falling behind and being unable to deliver efficiency and sustainability to the level that will be expected by their customers, regulators and investors in the near future. A key factor that will make the difference between success and failure in this upcoming playing field is the willingness to embrace digitalisation today.
USING DATA TO REDUCE PORT EMISSIONS
Reducing the amount of carbon emitted in and by ports is no easy task. Ports are more than just places where goods are loaded and unloaded. They are complex ecosystems of their own, with numerous moving pieces such as pilots, tugs, trucks and service boats that are deployed as vessels arrive or depart. The level of greenhouse gas emissions from these service fleets is intrinsically linked to how efficiently they are organised.
This is where digitalisation can make a tremendous difference, by managing all the micro details that are necessary to optimise all port resources, including pilot and tug operations. For example, our MarineM platform uses artificial intelligence to optimise planning and resource allocation, automate scheduling, eliminate unnecessary journeys and curb the overall mileage by these vessels. To achieve all this, we use historical and real-time data to ensure we make the best possible use of each asset to deliver optimal results, while saving time and reducing fuel consumption to a minimum. This is having a direct impact on emissions from these fleets, which are cut by an average of 20%.
Despite the potential of digitalisation, the majority of ports still manage these operations through manual processes, spreadsheets and whiteboards, which inevitably leads to inefficiencies that inflate fuel consumption and emissions. In fact, of the 4,900 ports in the world, we estimate that 80% are still missing out on the benefits of digitalisation, especially smaller and medium-sized ports. This means there is a huge untapped potential to reduce emissions from ports, by digitalising operations through affordable, turn-key digital technology that is already available. ENABLING GREENER PORT VISITS
The impact of AI-driven optimisation solutions does not stop there. By optimising their pilot and tug operations, ports do not only curb their own emissions – they also create the efficient and flexible environment that will enable visiting ships to reduce theirs in the critical “first and last mile” of their journey at sea.
Indeed, emissions from visiting ships directly correlate with the amount of time that they have to queue outside ports, with their engines on. This, in turn, depends on whether everything is in place to welcome a vessel when it arrives. In other words, by ensuring that all marine services are in the right place at the right time, ports will help visiting ships reduce idle time, and therefore the amount of fuel they burn unnecessarily.
This equation is more complex than it seems, given the sheer number of variables that must be considered: pilots must be assigned to specific vessel types and sizes depending on their licence, tugboats must be in sufficient numbers for the job, and shuttles must be planned to take the pilots to the correct boarding grounds. A problem or delay in any of these steps can lead to a domino effect that will increase waiting times, fuel consumption and emissions.
Aligning so many complex moving pieces is akin to solving multiple Rubik’s cubes simultaneously – which is something artificial intelligence is particularly good at.
Artificial intelligence can “learn” from historical data to predict the duration of each job, taking into account variables such as weather conditions, vessel type and the level of services required. The algorithm then assigns people and assets in the most efficient way possible to ensure all the moving pieces fall into place seamlessly.
The results speak for themselves: when we implemented digital solutions in the Indonesian port of Tanjung Priok, average waiting times for marine services dropped from 2.4 hours to around 30.5 minutes. This saves time and fuel for visiting ships, but also means cleaner air for the people working in ports and the communities around them.
CUTTING CONGESTION TO CURB EMISSIONS
Critically, AI-powered algorithms can reallocate resources instantly if a vessel’s ETA changes, giving it the flexibility needed to respond to problems or delays elsewhere in the supply chain.
This increased resilience becomes more important than ever in the current context of unprecedented congestion in ports worldwide, as any increase in congestion inevitably leads to a spike in emissions. According to a study by Singapore’s Nanyang Technological university, emissions have doubled in the ports of Singapore and Los Angeles during the pandemic, as a direct result of congestion.
It is true that the current congestion crisis has deeper roots and digitising port services will not solve all its underlying causes. However, local transformations will be the building blocks of a truly global network of smart ports, where critical information flows seamlessly to improve efficiency, tackle congestion and curb emissions.
This, in turn, has the potential to reduce the need for vessels to “rush to wait” – sailing fast across the ocean to meet an arrival time for a berth that may not be free. Given the exponential relationship between speed and emissions, access to this information when planning could drastically reduce emissions.
DATA AND SOCIAL GOVERNANCE
Cutting greenhouse gas emissions is not the end of the sustainability journey for the ports and shipping sectors. Across the globe, political leaders, consumers and investors are recognising that sustainable development is multifaceted and requires progress on several streams, including environmental, social and governance (ESG). In tangible terms, this means that stakeholders across supply chains, from factories to ships and ports, are under growing pressure to demonstrate ESG credentials to secure contracts and funding. This opportunity is one that ports must seize as a strategic priority.
Good governance and transparency go hand in hand – and data is an essential foundation. Only by having access to comprehensive, reliable data can ports demonstrate their compliance with regulation and demonstrate that they behave as good “corporate citizens”, having a positive impact on the environment and societies in which they evolve.
Replacing paper and whiteboards with digitalised processes leads to reliable records that facilitate audits and accountability. Moreover, by gathering data on the operations of their fleets at a granular level, managers of ports and service providers can more easily detect any potential irregularities.
Digital solutions also play a key role to protect the safety of employees, through incident reporting tools and platforms that collate information and can highlight trends and problematic areas.
The scale of the challenge faced by ports is hard to overstate: in one strike, they are asked to deliver more efficiency to fight congestion, and more sustainability for their local communities and the planet as a whole. The world will be watching the sectors’ next moves closely, but ports are not alone – their dedication to doing the right thing can and should be supplemented by deep tech and artificial intelligence.
Through digitalisation, stakeholders in the maritime value chain already have the ace card that will enable a successful transition towards sustainability.
Rotterdam faces up to a report that finds it the most polluting port in Europe, while Maersk supplies innovative charging points for idle ships
UNDER NEW
MANAGEMENT
The European NGO Transport & Environment has conducted a study of maritime-related CO2 emissions in European seaports. The report states that the port of Rotterdam is the most polluting in Europe, as shipping traffic to and from Rotterdam and the handling of vessels in the port produce 13.7m tonnes of CO2 emissions. The port has responded to the report.
With nearly 30,000 sea-going vessels per year, Rotterdam is by far the largest port in Europe and therefore also has the highest shipping-related CO2 emissions. This conclusion by Transport & Environment comes as no surprise to the Port of Rotterdam Authority.
The Port Authority underlines the necessity for the shipping industry – like the rest of society – to take significant steps to limit climate change. This is not a simple matter because, as yet, hardly any clean fuels are available that can replace polluting fuels and ships have to be adapted to them. Where possible, the Port Authority facilitates the development and use of alternative fuels, such as liquefied natural gas (LNG) and bioethanol.
In other areas, too, the Port Authority is actively working on making shipping more sustainable, for example by building shore power installations and running inland shipping vessels on batteries.
Together with all the players in the port industrial complex, the Port Authority’s ambition is to accelerate sustainability where possible and the necessary steps have been, and are being, taken. It is working hard to ensure the port is carbon-neutral by 2050.
This means that significant steps must also be taken in making the port industrial complex more sustainable and in this, the Port Authority has big ambitions. The Porthos project, for example, involves CO2 capture and storage. The use of green hydrogen in industry and the production of biofuels are in full swing. Many companies are committed to minimising emissions and even to emission-free terminals.
Allard Castelein, CEO of the Port of Rotterdam Authority, says: “We realise
that the port of Rotterdam, being the largest port, has the highest emissions of European seaports. In 2018, we presented our own research into the level of emissions from the logistics chains via Rotterdam and how they can be reduced to zero. Since then, we have been focusing, together with other parties, on targeted projects to reduce emissions.
“We are aware that we can and must make an impact in the port of Rotterdam and be able to make a substantial contribution to the established climate targets. It goes without saying that we feel responsible and assume responsibility.”
MAERSK CHARGES UP
Shipping group Maersk plans to install hundreds of offshore charging stations around the world to allow vessels to power themselves with electricity instead of fossil fuels while waiting outside ports. The aim is to limit carbon emissions and cut air pollution from approximately 3,500 ships idle in ports worldwide.
Congestion and bottlenecks at major ports such as Shanghai, Rotterdam or Los Angeles during the pandemic due to lack of labour and growing import demand has resulted in greater emissions as ships wait to discharge cargo.
Stillstrom, a new company owned by Maersk’s offshore marine service division, has developed technology that will allow vessels to charge while moored to a buoy connected to land via a transmission line.
The group aims to install buoys at up 100 ports by 2028, which the company says will cut carbon emissions by 5m tonnes a year while reducing air and noise pollution.
“We know that air pollution is a big problem at ports near urban areas and these buoys will allow ships to turn off their engines,” Stillstrom manager Sebastian Klasterer Toft told Reuters.
“Our ambition is that ships should use green power instead of fossil fuels while laying idle at ports.”
The first such buoy operating at commercial scale will be installed between July and September this year at an offshore wind farm operated by Orsted.
Coaster vessels consume three to five tonnes of shipping fuel a day while idle, and the largest commercial vessels such as container ships consume up to 10 tonnes, according to Maersk.
ISLE OF MAN SHIP
REGISTRY: A TRUE PIONEER
For an island in the middle of the Irish Sea, just 572km2 in area, the Isle of Man is a major presence in global shipping.
The Isle of Man Ship Registry (IOMSR) accounts for more than half the tonnage sailing under the Red Ensign Group and is ranked 17 in the world by Clarkson Research, just after Italy in tonnage terms – at around 15m – and some way ahead of South Korea and the USA.
Douglas, the island’s capital, is home port to around the same number of gas tankers and bulk carriers as are listed on the Norwegian International Ship Register. The registry currently has a total of 138 oil, gas and chemical tankers alone – amounting to 5.35m GT.
Neither part of the UK nor a member of the EU, IOMSR offers high quality services at competitive rates, without application of any tonnage tax. As a self-governing British Crown Dependency, ships registered here can fly the Red Ensign and can rely on British Royal Navy support anytime, anywhere in the world.
Although the registry’s client base is traditionally European – with Greek owners an important contingent – about two-thirds of Isle of Man tonnage is now managed from Asia, and that is rising.
The IOMSR director Cameron Mitchell is leading the drive to expand flag registrations across Asia, which includes appointing Jon Kingdon – a well-known naval architect and Mandarin speaker – as its first permanent Chinese representative in Shanghai.
The registry has a network of overseas representatives in Greece, Japan and Singapore. Mitchell highlights its “pedigree” as one of the world’s best-performing flag states. The registry has held top spot on the Paris MoU Port State Control whitelist and is firmly on the whitelist in the Tokyo MoU rankings. It is also one of the high-performing flags on the US Coast Guard’s Qualship 21 scheme.
The IOMSR was the first flag state to join the Getting to Zero coalition, an alliance of more than 120 organisations from the maritime, energy, infrastructure and finance sectors working towards decarbonising the international maritime shipping sector.
CREW MATTERS
In another pioneering move, the IOMSR has launched the first seafarer welfare app, in recognition of the challenges facing crew members spending months at sea.
‘Crew Matters’ has many features – such as welfare support, physical and mental wellbeing classes, and educational training – but a key one provides social activities, such as live gym workouts, to get seafarers interacting more on-board to combat isolation, which can so easily turn into full-scale depression.
Seafarers can record shift patterns, port calls and sea service records, and if they feel stressed or unwell, there is a live “SOS“ function giving immediate access to the “Seafarers Help Live Chat”, free, confidential and available 24/7.
Mitchell says: “The feedback from shipowners, clients and non-clients, about ‘Crew Matters’ is really positive. Owners want to find new and better ways to help and protect seafarers and want to embrace digital innovation. We hope this app will be a step forward for the industry and make a positive difference to many thousands of seafarers sailing under the Isle of Man flag, as well as acting as an inspiration for other organisations looking to support seafarers around the world.” DIGITAL PIONEER
The IOSMR is also leading digital innovation. It was one of the first flag states to offer digital certificates and last year conducted the world’s first remote annual survey with DNV as the covid-19 pandemic broke.
The survey was conducted on an IOM-registered bulk carrier anchored off Port Hedland, Australia, with IOMSR monitoring live interactive video streaming from nearly 14,000km away.
Mitchell says: “There will be older ships and those with issues where we will still want to go onboard and, of course, we reserve the right to insist on an in-person inspection if we feel it is necessary. But remote general inspections are here to stay.
“Preparation is critical. Documentation reviewed in advance and a clearly communicated plan for how the survey will be carried out. As there are limitations in using a camera feed, good communication is key, as it is important to go through the process methodically, so nothing is missed.” AMBITIOUS TARGETS
In another recent milestone, the IOMSR was the first flag to issue acceptance of a modification for a very large gas carrier to run on liquefied petroleum gas (LPG) as a greener fuel for Oslolisted shipping company BW LPG.
The innovation, which saw the IOMSR present the paperwork for approval to the International Maritime Organisation, paves the way for ships to be retrofitted to run on LPG. In time this could help align fleets more closely to the International Maritime Organization’s targets to halve greenhouse gas emissions from ships by 2050, compared with 2008 levels.
The IOMSR is working on the project with partners Wartsila Gas Solutions, MAN Energy Solutions and DNV to retrofit 15 BW LPG vessels, with 12 vessels completed in December 2021, three more on course to be completed by 1 April 2022.
