Capturing corporate credibility

As triple bottom-line reporting has grown in business, sustainable and environmentally-friendly practices are now in the front line of business dealings.

Recently for example, Rightship reported its energy-efficiency index (EVDI) for ships is gaining momentum, with more customers signing up and port authorities using it to offer discounts on harbour fees.

Port Metro Vancouver is one such, offering discounts for vessels rated A, B or C on the EVDI-graded scale, whereby a vessel with a good EVDI value pays silver rate port dues of C$0.061 (US$0.061) per gross registered tonne instead of the bronze rate of C$0.094, a 35% saving. Discounts are also offered to ships certified in the Swedish-based Clean Shipping Index ESI and the North American Green Marine programme.

The Dutch town of Bergen op Zoom has done likewise since January, rewarding Green Award-certified inland barges with a 5% discount on port dues.

On board

While sustainable policies pay off therefore for the customer of the port, what about the ports themselves? The answer appears to be that ports are embracing sustainability big-time, either to establish their own corporate credibility with stakeholders such as neighbouring communities and local authorities, or to carve out a commercial advantage in aligning their practices with those of environmentally-conscious customers.

So much has this become a major initiative that the Global Environment and Technology Foundation (GETF) has established the International Institute for Sustainable Seaports (I2S2) in order to promote sustainable practices by port authorities.

GETF was established in 1988 and promotes development through partnerships, introducing new technologies and managing programmes in three core areas – water and sanitation, energy and sustainability – working with anyone from state agencies to Fortune 500 corporations.

GETF partnered with the American Association of Port Authorities to launch I2S2, a non-profit centre of excellence to focus on sustainable practices which ensure economic vitality while protecting environmental quality and community integrity.

Sharing is caring

Essentially, I2S2 is a peer network for ports and their partners to exchange keys to success, lessons learned and cost effective approaches for implementing sustainable practices. It gathered steam when the Port of Portland gave it a grant to research ports around the world to document how they implement sustainability and environmental best practice and processes.

The upshot was the 2010 research paper ‘Environmental initiatives at seaports worldwide’, and also the presentation of an inventory of innovative technologies for the ports sector at the International Ports Sustainability Seminar in Charleston, South Carolina.

It showed that many sustainable practices used by ports have been successful in multiple locations. Ports have created associations, collaborations, and partnerships to provide the information and tools necessary to support sustainability efforts, swapping information through the International Association of Ports and Harbors, EcoPorts, and the European Seaports Organisation among others.

Each port has taken a slightly different approach to environmental initiatives, based on their unique circumstances such as local regulatory requirements (special air emissions or storm water regulations); their lines of business (cruise, container, breakbulk, bulk, etc.); management style (i.e. landlord port, facility operator, or a combination); the type of operations that are managed (i.e. marine terminals, real estate and industrial developments, bridges and ferries, etc.); and geography (whether the port is on a freshwater river system, estuary or saltwater harbour).

Often, the upgrade or building of a new terminal is the opportunity to replace existing cargo handling equipment with cleaner, more efficient models, as is repowering larger equipment to save energy and reduce emissions or retrofitting older equipment with emission control devices.

Alternative energy

In addition, many ports have considered alternative fuels for their equipment and motor fleets such as all-electric, natural gas, propane and ultra-low sulphur diesel and biodiesel, plus shore power for cold ironing.

A number are members of the World Ports Climate Initiative to manage climate change and greenhouse gases. Members of the WPCI are working on a variety of projects including developing guidance for measurement of a port’s carbon footprint and innovative cargo-handling equipment pilot projects.

Some ports have linked commercial and environmental goals — for example Rotterdam is striving to achieve a 50% reduction in CO2 by 2025 compared with its 1990 baseline.

Water conservation programmes are often focused on addressing landscaping and irrigation issues and using water restriction devices in buildings.

Waste minimisation efforts are often being driven partly by local authority ordinances and most ports have well-established recycling programmes. Recycling of construction material is universally accepted. Construction and demolition projects provide excellent opportunities for cost-effective recovery of large quantities of construction debris including metal, wood, concrete, and asphalt.

As for dredging, several ports note that biological testing for sediments is becoming a very common requirement and several ports have partnered with local companies and universities to find solutions for contaminated dredge materials.

Credit worthy

Many ports purchase renewable energy credits from their energy providers in order to address their energy goals. Others have heavily invested in renewable energy sources such as solar or wind power generation equipment, often in partnership with tenants and electricity providers.

These partnerships benefit the local communities as well as the ports themselves. For example, residual heat from companies in the Rotterdam port complex is used to provide heating and cooling to houses, hospitals, and businesses around the city.

Finally, natural resources are a major area of sustainable development. By virtue of the nature of their business, seaports are located in some of the most environmentally-sensitive areas. Wetland and shoreline concerns are a universal issue encountered in both day-to-day operations and during project development and construction. International laws governing the protection of certain animal species and migratory birds require co-ordination beyond local or in-country authorities.

Salt water, estuary and freshwater port locations present different challenges that prevent the use of a ‘one size fits all’ solution. Several ports have dedicated staff to manage mitigation and shoreline protection programmes, while others handle mitigation issues on a case by case or project by project basis.

A common approach is to partner with local municipalities, state agencies, nature conservancies, and community groups for mitigation projects.

For example, the Port of Brisbane’s Moreton Bay is recognised as a wetland of international significance. Many of the shorebirds that visit the mudflats there are migratory species protected by the Japan Australia Migratory Bird Agreement and the China Australia Migratory Bird Agreement.

In recognition of the significance the port’s reclamation areas play in providing a high tide roost habitat, it created the largest constructed shorebird roost in eastern Australia.

Home to roost

Brisbane’s general manager trade services Peter Keyte tells Port Strategy the thinking behind the 12-hectare roost is that as the Future Port Expansion Area fills up, there will be less available land for the birds in this area. Therefore the roost has been provided in anticipation of this occurring.

The results have shown the value of the project.

“The Future Port Expansion has seen a massive number of migratory water birds utilise this area. Monthly bird counts indicate that numbers range from as few as 1,500 in winter months to 11,000-plus in the summer months,” says Mr Keyte.

Further work is already underway to increase the commercial application of sustainability in ports.

Noeleen Tillman, executive director of I2S2, says the organisation has just received grant funding to update its white paper, the results of which will be available in September.

She says that when the original white paper was done, it was right at the time the economic downturn was happening, causing some ports to put sustainable initiatives on hold pending a better economic climate.

However I2S2 continues to be asked to help port executives to initiate changes to build on a competitive advantage in the marketplace.

“For example, several ports have implemented incentive programmes with shippers that provide a reduction in tariffs and fees in exchange of using low sulphur fuels (e.g. the Ports of LA and Long Beach).

“This has been attractive to clients and provides a competitive edge while also positively impacting the environment. In addition, several ports have developed partnerships with tenants to receive the benefits of energy efficient and renewable energy through reduced utility bills and credits.”

Further initiatives with a practical commercial basis are underway.

Currently, I2P2 is working with a collaboration of seven US west coast ports to develop a compendium of sustainable design and construction guidelines. These will be published in August and will be aimed at serving the industrial objectives of West Coast ports, and the greater world port community, at a cost-effective level.

I2S2 will also be working with the Department of Commerce and Trade to accompany a delegation consisting of leaders from 12 Chinese ports. The purpose is to see US port sustainable practices in progress as well as innovative technologies.

When it comes to individual port initiatives, the I2S2 study highlighted several different examples.

Amsterdam needed to address ballast water concerns, so developed a programme that offers an environmental discount on port dues for tankers with a segregated ballast tank (a ballast tank separated from the cargo).

The Port Authority of Singapore partnered with a local company to develop an award-winning technology that treats contaminated dredged materials and industrial waste, converting them into environmentally-safe construction and reclamation materials. This reduces or eliminates disposal and potential pollution issues arising from port and marine activities such as dredging, and disposal of maritime wastes such as oil sludge and copper slag.

Some ports, including Auckland in New Zealand, use their dredging materials to form new land. The dredged materials are mixed with cement to make mudcrete for the reclamation.

Auckland’s experience with its channel deepening and container terminal expansion was significant in giving consenting authorities, such as the Auckland Regional Council, confidence that there is an alternative to dumping dredgings at sea.

The project created something of enduring value from a product that would otherwise have been treated as waste. It demonstrated a successful means for processing marine sediment and has led to investment by one private firm in technology to facilitate future projects.