{"id":4764,"date":"2011-03-18T11:39:00","date_gmt":"2011-03-18T11:39:00","guid":{"rendered":"https:\/\/portstrategy.nfdtesting.uk\/coastlink\/2011\/03\/18\/how-terminal-operators-deal-with-carbon-management\/"},"modified":"2011-03-18T11:39:00","modified_gmt":"2011-03-18T11:39:00","slug":"how-terminal-operators-deal-with-carbon-management","status":"publish","type":"post","link":"https:\/\/www.portstrategy.com\/coastlink\/2011\/03\/18\/how-terminal-operators-deal-with-carbon-management\/","title":{"rendered":"How terminal operators deal with carbon management"},"content":{"rendered":"<p>DP World\u2019s main focus, in the last 24 months, has been to approach our energy monitoring, data collection procedures and carbon accounting protocols in a more robust manner, and rising to the challenges this complexity poses.<\/p>\n<p>We require our business units to have comprehensive environmental management plans which will be subjected to regular energy audits. This means having good quality documentation and information relating to activities that are included and excluded, energy consumption, financial and carbon data. The time is fast approaching when companies in the supply chain will want to discuss and understand the quantification of carbon emissions and indeed, the general environmental impact of the activities of terminal operators. We are happy to hold those conversations now. The data and carbon outcomes at each facility deserve to be explained and understood.<\/p>\n<\/p>\n<p><strong>Environmental Strategy<\/strong><\/p>\n<p>DP World through its Environmental Strategy, carbon targets and leadership from the Board of Management is progressing the carbon and sustainability agenda for the company. This selfdrive is complemented by external forces, in particular growing legislation (e.g. carbon reporting in Australia) and Environment &amp; Social reporting requirements by financial institutions.<\/p>\n<p>We have had significant successes, such as the placement of 4,000m2 of photovoltaic cells on the warehouse of our Break Bulk 7th Harbour Dock general cargo terminal in Antwerp, low-carbon Prismalense lighting projects (saving 50% of electricity consumption at Southampton, TRP Buenos Airies and Antwerp), electrification projects of diesel plant in the Asia Pacific Region and fuel- zapping retrofit projects on RTGs (e.g. 93 engines replaced in Jebel Ali, Dubai).<\/p>\n<p>But what about the terminals in certain parts of the world where pressures from labour, trading partners and the economy in general are restrictive and at the same time TEU throughput is decreasing? We have to acknowledge that when this happens, job protection becomes paramount and terminal workers are likely to be kept busy on a host of noncore related tasks such as reconfiguring the yard, starting up machines to handle empties, being engaged in maintenance moves so that utilisation hours do not suffer.<\/p>\n<\/p>\n<p><strong>Number one priority<\/strong><\/p>\n<p>Machinery is started-up, useful moves are made, lights go on (after all, Safety is still the number one priority issue at DP World) and workshops and offices remain lit, heated and computers switched on for work, rather than off. All these activities contribute to the baseload of energy consumption. Reducing carbon emissions per TEU when throughput is decreasing and energy consumption is still occurring is more difficult to achieve. We need to think of, and implement, increasingly smart and innovative ways to avoid, eliminate and reduce energy during such scenarios. With some predictions suggesting a doubling of fuel and energy prices within the next five years, there is no business case for wasting these resources.<\/p>\n<p>Reviewing the carbon performance, on a like-forlike basis (i.e. normalized) at an \u201cindividual terminal\u201d, on the other hand, would show what progress is being made on reducing carbon at that facility. Surely it is far more important for a terminal that had a high base year in terms of carbon emissions, to be making significant progress to eliminate, avoid and reduce its green house gas emissions year-upon-year. A terminal that started-off with a good performing and lower baseline \u2013 such as a newer build terminal with the latest equipment in a country with mature environmental legislation \u2013 must also be proactively seeking initiatives to reduce its emissions but is unlikely to have the same scale of opportunities as the higher emitter. The specifics at each terminal is very different and is worthy of a full explanation during discussions with stakeholders. DP World\u2019s Global Safety &amp; Environment and Global Engineering teams are actively assisting the terminals in its portfolio that have the highest baselines within the group. First and foremost, the focus is on continual measurement and monitoring of fuels and energy and calculating the resulting emissions in an online carbon tool, purchased from Greenstone and The CarbonNeutral Company \u2013 called ACCO2UNT.<\/p>\n<\/p>\n<p><strong>Equipment specification<\/strong><\/p>\n<p>The other crucial factors to bear in mind when assessing operators are the numbers, types and age of the equipment portfolio in each terminal. DP World operates rubber-tyred and rail mounted gantry cranes, as well as straddle carrier and automated stacking crane terminals from Peru to China. The equipment specification is tailored to the physical space and morphology of the terminal, including any restrictions imposed by oceanography, local infrastructure, utilities and third party land owners. Having a figure on carbon performance will really tell you very little about why and how an efficient Terminal X in Asia can achieve 7kg CO2e\/TEU or why Terminal Y in America is achieving 30 kgCO2e\/TEU. You can only start to understand why a carbon rating is what it is by delving deep into the technical and organizational boundaries, seeking out the quirks and local restrictions and trying to understand what measures and investments have already been made to reduce that terminal\u2019s impact.<\/p>\n<p>DP World\u2019s robust carbon footprinting methodology follows the best practice international standard \u2013 the Green House Gas Protocol Corporate Standard \u2013 and we seek to include as much of our activities as possible. We seek ways to report on the carbon generated from peripheral site activities, CFS operations, landlocked intermodal depots and our other businesses, which include warehousing. We use the \u201coperational control\u201d method of carbon accounting which tends to be more inclusive than the financial approach. We have documented our carbon footprinting methodology in a detailed report called a Carbon Inventory Management Plan. This spells out the scope and content of how we measure our carbon emissions across the entire business. It is the rulebook for our business &#8211; a version of the GHG Protocol tailored for terminal operators if you like.<\/p>\n<p>Comparing one terminal against another is a risky business. Firstly, any kind of scoring system does not take into account specifications in the concession agreement \u2013 which might be historical, the area of the site, subcontracting arrangements, utility provision etc. What about the total weight of the cargo, the distance travelled by the mobile equipment fleet, and the age and capacity of their engines, the percentage of transshipment etc?<\/p>\n<\/p>\n<p><strong>Variable factors<\/strong><\/p>\n<p>Secondly, why would a stakeholder in the supply chain (Customer A) want to give a score to a terminal on environmental grounds for the purposes of evaluating a contract when there are so many uncontrollable and variable factors? The work a terminal carries out for another (Customer B) may significantly skew the energy and carbon data. Take a terminal that does a lot of reefer trade for instance. The longer a reefer container stays in port, the more electricity is supplied yet as dwell days increase, the CO2e per TEU increases dramatically. That has little to do with Customer A. There is an argument for moving electricity for reefers into Scope 3 emissions as the provision of power is merely a plug-in service, while the technology in the container belongs to another party. There are limited ways in which a terminal operator can reduce energy on reefers without compromising the quality of the service. However, moving emissions from Scope 2 to Scope 3 means that these emissions become someone else\u2019s Scope 2 emissions. This can only be done when agreements, at least in principle, or through a memorandum of understanding has been agreed between all parties, and indeed consensus has been reached amongst the fraternity of terminal operators.<\/p>\n<\/p>\n<p><strong>Common ground<\/strong><\/p>\n<p>DP World is a member of the European Economic &amp; Environment Group, part of the EEIG1, and it is through this forum that terminal operators are discussing the complexities and working towards finding common ground on carbon reporting. This is the most effective way of gaining consensus within the industry on common reporting metrics, initially for carbon, and eventually wider sustainability issues.<\/p>\n<p>Lastly, what about the modal split? Most terminals&#8217; responsibilities for operational activities stop at the quayside and at the security gate at the back if the terminal. Yes, you can score a terminal on its geographical area of responsibility but who and how are you going to take into account the containers transported away from the site, by third party logistics companies via barge, road and rail. That critical element is firmly part of the supply chain and needs to be taken into account in any analysis. However, at the moment, most port authorities do not take into account any of the emissions of their tenants when declaring carbon footprinting information. Logistics companies are not yet requesting information of GHG emissions from ports or terminal operators. It is clear that the requirement for joined-up thinking and discussion is close. DP World is happy to be involved in projects to decarbonise and is keen to proactive in starting to share its carbon data which has markedly improved in the last few years.<\/p>\n<p>But let us also think about \u201cproportionate\u201d, relevant and cost effective responses from terminal operators. We have seen from recent studies, such as the Heriot- Watt University\/Freight Trade Association research project into decarbonisation of the maritime supply chain (2011) that the container handling activities at the outbound and inbound port in combination may contribute approximately 1% of the carbon emissions in the supply chain of moving a consignment from say, China to Europe. The deep sea shipping leg is the largest (70-85%). Furthermore, while a terminal operator may emit around 20 kgCO2e per TEU handled, a modern HGV truck transporting a forty-foot container on the road network will emit that same amount of carbon after driving only 14 kilometres2!<\/p>\n<p>Our progress towards the long-term aim of a lower carbon terminal environment will not occur overnight. It will be the result of both big and small steps taken by every facility and individual at DP World. We do recognise that as a terminal operator, we play an important role in that supply chain and indeed, want to perform above and beyond our minimum responsibilities. We have made significant progress in the company, launching a series of measurement and support tools. The simple message for every participant is that until you are both measuring and reporting your consumption and carbon emissions in a thorough and transparent manner, we cannot expect our customers and stakeholders to believe we are serious about playing any part in tackling climate change.<\/p>\n<\/p>\n<p><strong>Environmental impacts<\/strong><\/p>\n<p>It is vital that we continue to manage our environmental impacts, avoid and eliminate unnecessary energy use, raise awareness of our footprint and invest in best practice in striving for continual improvement. That is the message being reiterated to staff and teams within DP World. Through collaboration, sharing ideas and promoting better ways of transporting and handling containers, we can take carbon out of the supply chain and make a difference.<\/p>\n<\/p>\n<p><em>1 European Economic Investment Group<\/em><\/p>\n<p><em>2 Using the latest UK vehicle emission factors as published within the National Atmospheric Emissions Inventory, a Euro II articulated HGV travelling at an average speed of 70kph would release 1,465gCO2\/km. This refers to &#8216;ultimate CO2&#8217;, from all the carbon in the fuel emitted at the tailpipe as CO2, CO, unburned hydrocarbons and particulate matter which ultimately have the potential in forming CO2. Thus 20kg of CO2would be released within (20,000\/1,465) = 13.7km.<\/em><\/p>\n<\/p>\n<p><em><span>Charles Haine<\/span> <span>is the<\/span> <span>Environmental Manager in the<\/span> <span>corporate group Global Safety &amp;<\/span> <span>Environment, part of DP World\u2019s<\/span> <span>Global Operations team.<\/span><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Charles Haines reports DP World, the international terminal operator, understands that carbon footprinting issues within individual facilities and along the transport and logistics supply chain are complex issues.<\/p>\n","protected":false},"author":8,"featured_media":4765,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[28],"tags":[],"sponsor":[],"class_list":["post-4764","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-projects-initiatives-greenport"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.portstrategy.com\/coastlink\/wp-json\/wp\/v2\/posts\/4764","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.portstrategy.com\/coastlink\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.portstrategy.com\/coastlink\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.portstrategy.com\/coastlink\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.portstrategy.com\/coastlink\/wp-json\/wp\/v2\/comments?post=4764"}],"version-history":[{"count":0,"href":"https:\/\/www.portstrategy.com\/coastlink\/wp-json\/wp\/v2\/posts\/4764\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.portstrategy.com\/coastlink\/wp-json\/wp\/v2\/media\/4765"}],"wp:attachment":[{"href":"https:\/\/www.portstrategy.com\/coastlink\/wp-json\/wp\/v2\/media?parent=4764"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.portstrategy.com\/coastlink\/wp-json\/wp\/v2\/categories?post=4764"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.portstrategy.com\/coastlink\/wp-json\/wp\/v2\/tags?post=4764"},{"taxonomy":"sponsor","embeddable":true,"href":"https:\/\/www.portstrategy.com\/coastlink\/wp-json\/wp\/v2\/sponsor?post=4764"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}