Can ports be ‘green’ in a recession?

In the current climate of reduced trade and investment, it is becoming increasingly difficult for ports and terminal owners to achieve the necessary environmental improvements being enforced by legislation.

As part of Royal Haskoning’s commitment to helping ports develop environmental strategies as legislation in this area increases, and the importance of good environmental management comes to the fore, the Royal Haskoning Green Ports Conference addressed how European ports can maintain their environmental strategies. Delegates heard about economic and environmental influences, received operational examples to take away and found out how simple environmental changes, that do not cost the earth, can be made now and have a positive impact on the bottom line.

What is a sustainable port?

The keynote speaker, Patrick Verhoeven, Secretary General of European Sea Ports Organisation (ESPO) introduced the ESPO European view and discussed what makes a port sustainable; whether it is its relationship with the local community, its harmony with the natural environment, or both.

To attain sustainability the managerial attitude, governance and policy are vital. He stressed that the diverse nature of ports must be accounted for in legislation; what creates sustainability in one port may not in other.

The rise of the ‘green port’

The ‘Green Ports’ survey, conducted by ICM research, on behalf of Royal Haskoning, of 100 port decision makers in Britain revealed that many ports recognise the growing importance of environmental management with 89% of respondents stating that they already have an environmental policy in place, speaker Sian John, Director, Environment, Royal Haskoning explained.

This shift of priorities within British ports is already underway, thanks to the expected increase in regulatory scrutiny, but also to a growing eco-consciousness and a recognition of the long-term environmental, social and economic benefits achieved by effective environmental management. Despite significant steps having been made in the right direction the research reveals, however, that UK ports are in need of more support in order to meet the increased environmental requirements being placed on them.

John also announced the sustainable port ‘QuickScan’ tool that will give an instant review of sustainability. With an accurate idea of how sustainable the port is it is easier to develop an effective plan for improvement.

Trade contractions – lessons from the past

In a factual presentation, speaker Andrew Penfold, Managing Director of Ocean Shipping Consultants, explained the current global economic situation and its direct impact on the ports and shipping sectors. He estimates the overall contraction of the world economy in 2009 to be 1.1% although advanced economies, such as the UK and Europe showing a greater contraction of 5.4% and 4.2% respectively, whereas, developing countries actually exhibit expansion: China of 8.5% and India of 5.4%.

According to Penfold, container port demand has shown a 12% general decline in 2009, but with large variations at regional levels. Container volumes in China are relatively strong due to a reorientation towards regional trade. In contrast, the US import dependence means demand has contracted by as much as 15%. Europe has also shown decline in demand, with the steepest being in Germany due to declining Baltic transhipment. Penfold referred to historical economic records which demonstrated that after past downturns, recovery has been very sharp. The latest IMP projections show that more developed economies in the north are being led out of recession by the southern economies, however, the relationship between economic growth and trade growth have been modified and the main uncertainty that remains is the strength of the upturn.

Action against climate change

When considering the trend of the global mean temperature it can be seen that we are currently in the position of a steepening increase of mean temperature according to Dr Matthew Hunt, Royal Haskoning’s Senior Environmental Scientist, who proposed how ports must adapt to the effects of this undeniable climate change. Changes to our climate by 2050 include an increase of mean temperature of 2.5 °C, a rise in sea-level of 0.23m and increased winter precipitation and storm surges. It is too late to alter these changes but we can prevent further changes of the more distant future.

It is difficult to know the extent of planning which is necessary. His message here is; plan for the worst but don’t waste money.

Such precautions which may be necessary include:

– Port flood defences against rising sea levels.

– Improved, sustainable drainage systems and surface water management due to increased precipitation.

– Precautions against cracking asphalt due to increase thermal pressure and the buckling of rail tracks in the increased heat.

– Additional cooling water for machinery operating in hotter conditions although water supply may be restricted

– Protection of cranes and gantrys to withstand greater wind speeds.

– Treatment of biological hazards such as toxic levels of algae due to increase temperatures. There will also be insurance implications due to loss and damage of cargo and equipment caused by more violent storms. There are still some uncertainties surrounding climate change and with them comes the risk of a lack of action. It must be realised that adaptation is better implemented when it is planned, focussed and prioritised.

Why adapt?

A study by Hutchinson Ports UK showed a strong positive correlation between environmental governance and financial success. Andrew Harston, Port Development Director, Hutchinson Ports UK, explained that investments such as buying new RTG’s or retrofitting drive controls to existing machines will require financial input but will be valuable investments, it is also explained that initiatives need not be large and costly but measures such as installing better boiler controls, insulation and energy meters are also beneficial. Harston explained that while legislation creates a level playing field and is the only real catalyst for change, implementation varies across Europe, with different attitudes existing in different states. There is a need for international standards and legislation. Charles Haine, Global Environmental Manager with DP World introduced a new carbon calculator for which terminals submit energy data online every month in order to better target their emissions sources. In agreement with Harston, he voiced the need for fewer assumptions to be made when accounting for energy use; improved metering, as used by DP World, should reveal exactly how much electricity is used in each area of the port and by which equipment.

Head of Corporate Responsibility at APM Terminals, Henrik Kristensen, said that ports need to make their case when legislation is being developed. He also stated that environmental opportunities must also be business opportunities, and equipment vendors should do more to offer low cost solutions. He added that yet another benefit of enhanced environmental performance is the safety and health of workers in ports – he stressed that APMT want every one of their workforce to return home safe after every shift.

Particulate matter: under the radar

Of all air emissions particulate matter has the greatest effect on health and yet, none of the action plans of the 240 Air Quality Management Areas across the UK give substantial focus to particulate matter. Uncertainties with particulates lie with knowing the exact health effects, unclear standards for health protection, and unclear methods of measurement. John Drabble, Advice Group Director, Royal Haskoning explained why more focus on particulates is necessary. The size of the particle determines where in the respiratory tract damage will be caused. These particles are small enough to penetrate deep into the lungs. PM10 particles (of diameter less than 10 micrometers) settle in the bronchi and lungs whereas PM2.5 particles (of diameter less than 2.5 micrometers) can penetrate into the gas exchange regions of the lungs where they may pass through the lungs and into other organs.

Improved methods of measurement with better quantification of the health effects are needed when it comes to Particulate matter. The focus of air emissions should not only be on energy and fuel management and CO2 emission reductions.

Control of emissions from marine diesel engines

Tom van den Noortgaete, Royal Haskoning explained how the conditions for combustion in diesel engines can affect the production of Nitrogen Oxides (NOX), Sulphur Oxides (SOX) and Particulate Matter (PM).

A number of technologies, both those currently available and those under development, were given as options for reducing diesel emissions; modifications to the fuel injection equipment to reduce NOX emissions, low sulphur fuels to reduce SOX and filters to reduce PM emission.

The technologies available today are adequate to provide short term solutions in meeting regulatory requirements. More long term solutions are needed, however, and should involve the introduction of hybrid engines, dual fuel engines and gas turbines.

Environmental management

Environmental Manager for the Port of Rotterdam, Resianne Dekker, spoke of how optimising the use of port space, improving the sustainability of transport and improving air quality enables a prioritised response to climate change during recession. For example the use of the existing port area has been intensified by the introduction of a multifunctional sea wall; functioning both as a flood defence and a transport point. In improving the sustainability of transport, the accessibility of the area has been improved to reduce congestion and hence unnecessary emissions. Clean fuels are also encouraged and the access of older trucks with in certain areas is restricted depending on their engines.

Dekker also contended that sustainable entrepreneurship is prerequisite to achieving balanced growth. With growth comes the possibility of further CO2 reductions; reduction methods become more cost effective with economies of scale gained from the collaboration of many businesses.

Implementing an environmental management scheme

To achieve sustainable entrepreneurship Peter Barham, an Environmental Consultant, explained how an Environmental Management Scheme (EMS) is essential.

An EMS raises awareness of environmental issues and actions. Schemes ensure the protection of the environment is part of a company’s culture for all employees. A scheme would introduce guidance and standards, and establish a structural approach to the best environmental practice through working with government conservation bodies.

The benefits of an EMS are numerous to include better corporate governance, enhanced reputation and use of resources, greater cost-effectiveness and increased chance of investment from the city. Delegates were alerted to the fact that acquiring certification such as ISO 14000, ISO 14001 or BS 555 is important in adding recognisable credit to an EMS.

Barham concludes that when it comes to an EMS there is no choice, guidance will be required and standards need to be set, met and monitored; and an EMS is the tool to do this.

The day’s events finished with the concluding comments of Richard Marks, Conference Chairman and Director of Royal Haskoning. Marks commented on the upcoming United Nations Climate Change Conference in Copenhagen this December, saying that significant changes could result, and that a prediction suggesting there could be a decision to reduce carbon amounts by 40% by 2020 could be made. He also highlighted the GreenPort 2010 Conference in Stockholm next February, the theme for which is that ports are facing serious challenges today to achieve acceptable sustainability levels. In the final activity of the day; delegates were given a set of cards; red, amber and green and asked for their opinion, by voting red (no), amber (maybe) or green (yes). The concluding verdict as to whether ports can be green at this time of reduced trade was predominantly voted with green cards; a resounding YES.

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