Are Green Ports A Ticket Out Of Global Warming?
Oakwood & Drehem Capital Pte. Ltd.
Founded in 2018, Oakwood & Drehem Capital is a compliance, corporate finance and valuation expert based in Singapore.
Now more than ever, you can consume a diverse selection of clothes, furniture, and food at a click of a button and have them quickly arrive at your door in part by ship. However, whether you are aware of it or not, your fast consumption of goods is directly contributing to global warming (Brown, 2019).?
Acting as an effective mechanism to transport raw materials and finished goods, the shipping industry accounts for 90% of the global trade (OECD, 2022). While the vast number of ports around the globe speaks to the economic efficacy of the shipping industry, there are serious environmental implications. According to S&P Global Platts Analytics, the current maritime industry accounts for 2% of global CO2 emissions (Whieldon, 2022). With the increasing demand for shipping services, scientists have projected the numbers to exponentially rise to 17% by 2050 (Whieldon, 2022). As a result, Green Port practices are crucial to mitigate the environmental pollution caused by port operations (MPA, 2022).?
What are Green Ports?
Green Ports strives to achieve sustainable operations within the port itself, investing in efforts to reduce greenhouse gas emissions, eliminate water pollution, and increase efficiency in waste reception services (MPA, 2022). Port of Long Beach (California, USA), Port Klang (Selangor, Malaysia), and Singapore's very own Tuas Port are some of the most recognized Green Ports around the world.?
Port Waste Reception Facilities
The shipping industry contributes 20% of all marine litter, while some 34% of garbage is discharged into the sea (Columbia Climate School, 2019). On top of that, ships directly harm the marine ecosystem by releasing oily mixtures, sewage, chemicals, and waste to reduce weight (Columbia Climate School, 2019). Thus, the amount and diversity of waste facilities provided by ports are a good indicator of sustainability.?
Reduced Emissions near Ports
For efficiency, ships run on bunker fuel (high-sulfur residual oil), one of the cheapest and dirtiest types of fuel in the market (Columbia Climate School, 2019). Knowing that bunker fuels can lead to respiratory and heart disease, and the production of acid rain, international regulators have enabled ships to choose their source of fuel with limited regulation or care (Columbia Climate School, 2019). Dirty oil alone has been shown to cause approximately 400 000 premature deaths from lung cancer (Columbia Climate School, 2019).?
However, there are multiple ways in which ports can provide clean power alternatives and protect their nearby communities (Columbia Climate School, 2019). For instance, the installation of an onshore power supply (OPOS) is a good indication of environmentally sustainable practice (Columbia Climate School, 2019). OPS allows ships to temporarily shut down and plug into a land-based electrical grid at berth (Columbia Climate School, 2019). Accordingly, the ship will be powered by renewable and clean electrical energy (Columbia Climate School, 2019). As a result, fuel consumption and emissions of NOx and PM will be reduced between 62-90% (Columbia Climate School, 2019).?
In 2020, international regulation was in effect to mandate the use of cleaner fuels (Columbia Climate School, 2019). Locally, our port authorities have also been at the forefront championing greener ports in Singapore (Columbia Climate School, 2019). From 2011 to 2016, the Maritime and Port Authority of Singapore (MPA) had invested up to $100 million in the Maritime Singapore Green Initiative (MPA, 2022). This initiative was further renewed from 2019 to December 31st, 2024, as Singapore continues to promote decarbonization of shipping through these programmes:
-Green Ship Programme
-Green Port Programme
-Green Energy and Technology Programme
-Green Awareness Programme
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The purpose of these programmes is to recognize and provide incentives to companies to adopt green shipping practices above the minimum requirements set by the International Maritime Organization (IMO) Conventions (MPA, 2022).?
IMO regulations and goals have failed to achieve global net-zero emissions by 2050 because environmental change is constantly in tension with varying degrees of interest for sustainable development worldwide (MPA, 2022). However, Singapore’s strong commitment in engaging with clean and green shipping, and upholding its responsibility as a port state gives reason for optimism.?
Under the partnership between the Maritime and Port Authority of Singapore (MPA) and companies such as Eastern Pacific Shipping and BW Group, a total of $120 million will be allocated to fund research and technology development projects to reduce the maritime industry’s greenhouse gas emissions (MPA, 2022).?
The development of the Tuas Port, the increasing adoption of the international convention, green ports, and consumer association with environmentally conscious brands, will undoubtedly pressurize corporations, charterers, and ship owners to strive for greener initiatives?
Built on excavated and dredged materials, the Tuas Port is a reclaimed land that won in the "Community Outreach and Port City Dialogue: Port Development and License to Operate" category of the World Ports Sustainability Awards in 2020 (MPA, 2022). In addition, Our Next Generation Port’s plans to be an intelligent, sustainable, and green port, featuring smart technology will allow more efficient use of resources (MPA, 2022). Such technologies are:?
Automated Guided Vehicles (AGVs) are driverless vehicles powered by electric energy to pick up containers and transport them between the wharf and yard (MPA, 2022). These vehicles produce a 25% lower carbon footprint than standard vehicles, making the port more sustainable and greener (MPA, 2022).
This system utilizes data to help forecast ship arrival timing,? allowing a faster turnaround rate and just-in-time port calls (The Straits Times, 2019). This will reduce a vessel’s stay in port, reducing emissions in Singapore’s port water (The Straits Times, 2019).
Intelligent control systems will also be used to anticipate traffic hotspots for ships, allowing the shipmaster to plan their voyage by preventing accidents in congested waterways and optimizing their sailing speeds (The Straits Times, 2019). Thus, the efficiency of intelligent control systems will reduce overall fuel consumption.?
As the Minister for Transport, Mr. Ong Ye Kung affirmed, "With the launch of the Singapore Green Plan 2030, sustainable development and decarbonisation is now a national imperative (The Straits Times, 2019).” Following suit, many countries and corporations have acknowledged the importance of reducing environmental pollution, hence an increasing number of global green initiatives in the port and shipping industry. However, the ultimate goal of being “green” cannot be achieved without awareness and support from the public.?
What are you doing to take part in the journey to save the world??