Saving yourself

Can you simply approach the energy issue from behind a wall of hardware - like fuel efficient units, energy recapture devices and controlled-output drives on cranes – when murkier issues are driving developments?

For example, WWL’s high-tech Castor Green Terminal is an automotive one-stop-shop which aims to bring a lot of processing home to a single facility. If built, this will help WWL to grab a whole slice of the supply chain and also push down the energy used for vehicle and heavy mobile equipment processing by 80% per unit. It employs a clever use of multi-level storage areas supported by automatic lifting equipment and conveyer belts, with wind turbines, solar cells and even rain water from the roof playing its part.

All this suddenly makes sense when you realise that Arild Iversen, chief executive of WWL mentions “customer risk” twice when he talks about attention to social and environmental standards.

Robert Minton-Taylor of WWL explains that behind initiatives like the Castor Green terminal, is the drive to give customers a sense of security on the green agenda, because, frankly, it’s an issue that is beginning to make people nervous. “What we are saying is, we can help you guard against somebody pointing an accusatory ecological finger and asking ‘what you going to do about it?’”

He adds: “Driving down costs in the supply chain is one thing but we now have this other, environmental cost and its implications. I believe the industry has to start to talk in these terms, they are upon us and we need to be ahead of the game.”

Debbie Hobbs of Environ concurs: “Since companies are starting to get increasingly worried about corporate image, green issues are no longer something port operations can put on the back burner.” Both she and Del Redvers of BMT Group point out that the far end of the supply chain is starting to make waves.

“What’s pushing much of this from behind are companies like Tesco and Walmart who are beginning to say ‘we want to see your carbon footprint so we can factor it into our eco-labelling’,” says Ms Hobbs. Although at the moment this is voluntary, Ms Hobbs and Mr Redvers think that sooner rather than later this will be mandatory if you want to be part of their global supply chain.

It brings in issues about “green credentials”, which means getting more than brownie points for scoring high on the good-guy agenda. “But it's complicated,” adds Ms Hobbs, “All round the world there are different requirements, and ports are in a difficult position – since the infrastructure they deal with moves around.” So it looks as if “whole supply chain” solutions that can put percentages to the more difficult questions asked by customers will be a winner.

But ports, with their space resources, can dig a little deeper and get more out of green than just customer satisfaction. Further, since legislation is soon going to be biting port’s toes in many places, both in the so-called “mature markets” and (to a lesser extent) the developing economies, there is something to be said for getting ahead of the curve.

And since it looks like there will a lot of “curve” ahead, Mr Redvers adds that a pre-emptive approach can pay. “By being at the cutting edge, not only are you ready for the future, you can gain a public voice. The people at the front drive the legislative agenda, so by being one of those 'up there and trying it out' you can, to a certain extent cut, the material to suit yourself.”

Mr Redvers explains that while ports generally seem to like simple cost-benefit technological solutions that are clearly material in their goals - ie, an item that costs X-amount to implement, Y-amount to maintain, giving a payback that comes from a simple calculation - he says that green moves are, at best, just as much to do with strategy – and therefore ongoing relationships.

For example, Mr Redvers goes on to say there is a niche for ports to generate power and link themselves more firmly with the community in the same sweep. “A port that invests in wind or solar sources could generate subsidised power, not just for operators but for the whole area, helping a community future-proof themselves with energy security.” This is a subject that will, he says, come up with increasing prominence in the coming years. “After all,” he explains, “it’s not a new idea: Nigerian oil companies have been doing it for years.”

APM Terminals, too, seem to be waking up to this community perspective. Henrik Kristensen outlined the increasing prominence of sustainable practices for APMT: "We operate with a 'triple bottom line' principle, under which the facility's human and environmental impacts are just as important as financial results," explains Mr Kristensen, firmly linking “improved relationships” with both growth and an environmental agenda.

So ports may no longer be an uncomfortable, dirty imposition, but a welcome neighbour that generates both income and power.

It extends to both social and business communities: Los Angeles has a track record of developing relationships to pilot eco-technology that shows promise. Phillip Sanfield of LA port explains that the authority has partnered with Foss on the very first hybrid tug, through LA and Long Beach’s Technology Advancement Programme (TAP, and is also funding the testing out of electric trucks with Balqon Corp and Vision Industries. Further, the authority has helped to set up PortTech LA, a non profit technology incubator which aims to bring green-collar jobs into the region.

So, ports can capitalise not just on energy savings but on relationships that grow from the “green grass roots” of innovation.