With the developments in climate change in our minds, the Port of Rotterdam is entering a new era. A period of transition with plenty of opportunities for the port and its industrial complex. To be able to take advantage of these opportunities the port will develop new markets and help the existing industry to become more sustainable, writes Victor Schoenmakers, director Corporate strategy and Xander Japin, advisor European Affairs – Port of Rotterdam.
A changing society and economy is not something new. In the 19th and 20th century we perceived the industrialisation, containerisation and globalisation which all had an enormous impact on activities in the port area.
A steel box changed the world economy by standardising the way goods were transported around the world. Before, cargo came in different shapes and sizes, and sometimes the dockworkers had to toil for weeks to load and unload a vessel. Until Malcolm McLean came up with the idea to use an identical container worldwide. This made the transportation and logistics much more safe and efficient. Some may make the comparison with the invention of the wheel. You simply cannot imagine a world without it.
Currently, a variety of factors lead to uncertainty while they might also present opportunities for the Port of Rotterdam. Among others, these include the Paris Agreement on climate change; an ongoing discussion regarding the energy transition, both nationally and internationally; the consequences of a Brexit and increasing protectionism; ongoing pressure on oil prices and the increasing importance of digitalisation and the use of ICT. These developments will be more unpredictable then before, mainly because they follow each other rapidly. Most of them have to do with sustainability and the transition to a green economy.
The task ahead
Because of these developments, several clusters are under pressure including the energy-intensive chemical and refining industry. Also, there is an ongoing discussion about the future of the use of coal-fired power plants for electricity generation. Without further action, these clusters will be faced with stagnation and contraction. As part of the shift towards a low-carbon economy, emissions from transport needs to be reduced as well.
The Port of Rotterdam wants to be at the forefront of sustainability and efficiency, which means working towards a greener industry and logistics and enhancing the quality of our environment. Added value becomes more and more important. To be able to create both economic and social value, the Port of Rotterdam will be more flexible and will show entrepreneurship by putting extra effort in the development of new markets, while helping the existing industry to become more sustainable.
This will be done by making fossil energy less harmful – decreasing pollutants of the energy industry and refineries – while developing sustainable alternatives like wind energy, solar energy and energy from biomass. The Port of Rotterdam will create a vital area offering excellent business conditions for both existing and new customers. Therefore, a joint approach for the future of the industry in Rotterdam is developed. It indicates how the industry cluster can use its favourable position to cope with challenges.
We improve our own performance, for example by using a low sulphur fleet for the patrol activities in the port area. Furthermore, the Port of Rotterdam Authority is helping businesses to work as energy efficient as possible. Industrial processes in the port release heat, steam and CO2. These residual streams are just what chemical companies, greenhouse farming and households in the region need. By exchanging these energy sources, we foster a sustainable industrial cluster.
Finally, the Port of Rotterdam calls for sustainable innovation in the entire supply chain. Research by Panteia into the environmental footprint of logistics chains in Europe proves that the transport of containers via North European ports is already quite sustainable because of economies of scale and efficient hinterland connections. Still, there is room for improvement. Alternative fuels such as LNG and the use of data and ICT could make the logistic chain even more sustainable.
Green strategy
The strategy of the Port of Rotterdam focuses on three elements:
1. The strengthening of the competitiveness of existing companies through chain integration and the pooling of non-core activities like the joint exchange of steam, waste and water. The latter is also applicable to the region, since residual heat and CO2 could be used for houses and greenhouse farming.
Currently, there is a CO2 network from the port to the greenhouse horticulture sector in the Province of South Holland, where the CO2 is used to accelerate plant growth. Only two power plants in the port are connected to this network. There is a potential for expansion here, so that greenhouse market gardeners no longer need to burn gas to produce CO2. Also, a demonstration project for the capture and storage of CO2 (CCS) is under development in the Port of Rotterdam.
2. A modernisation plan focusing on the use of biomass, recycling, renewable electricity and technological innovations. Next to the development of a bio-based cluster, there is also a need to search for innovations that could help the industry to accelerate the transition.
Renewable electricity generation will have its impact on seaports. The large scale development of offshore wind parks will generate new market developments in the production, handling and storage of heavy cargo like monopiles. These terminals prefer deep sea locations with excellent logistic connections, which make seaports the best locations to develop their business. Next to this, developments are expected in the area of storage and the management of supply and demand of energy.
3. Making transport fuels less harmful for the environment by investing in efficiency and LNG. The port of Rotterdam is playing a pioneering role in the introduction of LNG. It is the ambition to develop into the LNG hub for Europe. LNG is an attractive alternative fuel for seagoing vessels, inland vessels and trucks. With the use of LNG fewer polluting substances are emitted and vessels will comply, without additional measures, with the emission standards for the maritime sector in Europe (eg SECA in the North Sea and Baltic Sea).
A necessary condition for the uptake of LNG is good infrastructure in ports. In Rotterdam, the Gate terminal and the breakbulk terminal (which is still under construction), offer possibilities for the distribution of LNG. To accelerate the introduction of LNG the extension of the LNG infrastructure along the main trans-European networks is vital.
Into the future
Digitalisation of the transport chain creates opportunities to increase the utilisation rate of the modalities and infrastructure and to reduce congestion. By improving the cooperation and sharing information between parties through the logistic chain, reliability will increase. In the end this will lead to a reduction in both internal and external costs. In the port of Rotterdam, inventive solutions are conceived and innovators are given support they need to succeed. Rotterdam Logistics Lab is an example with which the Port of Rotterdam aims to accelerate the supply chain efficiency by enabling real time data exchange between involved parties.
The Port of Rotterdam firmly believes that ports play a key role in enabling and accelerating the transition to a more sustainable economy. After all, the presence and scale of a variety of companies offers the possibility of synergies of activities.
