A WhitePaper for Global Port Leaders: Collaborative Partnerships for Effective Maritime Decarbonization

Port leaders share experiences on best practices and pitfalls and explore potential collaborations in their decarbonization efforts.

Author: Dr Beatriz Canamary

Powered by: PortXchange [B-Corp]

Corporate Leaders at the Round Tables

The Collaborative Partnerships for Effective Maritime Decarbonization Leadership Roundtable stands out as one of the most compelling and successful events within the U.S. port industry. This exclusive, invite-only event engages U.S. port leaders to share experiences on best practices and pitfalls, and to explore potential collaborations in their decarbonization efforts.

Port of Houston - Trae Camble, Director Of Environmental Affairs

Port of Corpus Christi - Priscila Torres, Manager, Trade Development

Port of Los Angeles - Eric Caris, Director Cargo Marketing & Teresa Pisano Marine, Environmental Supervisor-Air

Port of San Diego - Jason Giffen, Vice President, Planning & Environment & Phillip Gibbons, Program Director, Climate and Sustainability

Port of Hueneme - Giles Pettifor, Environmental Manager

Port of Oakland - Angela Clapp, Port Environmental Supervisor

Port of Cleveland - Matthew Wenham, Chief of Engineering & Capital Development

Port Authority of NYNJ - Laura Malo, Program Manager, Port Sustainability & Resilience & Andrew Lo, Port Sustainability & Resilience

Port of Philadelphia - Lindsay Young, Manager Business Development & Planning

Port of Jacksonville - Nick Primrose, Chief of Regulatory

Port of Tampa Bay - Patrick Blair, Vice President of Engineering

Port Everglades - Roberto Barceló, Senior Manager, Business Development

Alabama Port Authority - Catherine Reaves, VP, Policy and State Affairs

Introduction

As the global maritime sector moves toward full decarbonization by 2050, it is essential to remain receptive to new information in this ever-changing landscape. To meet decarbonization targets, a globally coordinated innovation strategy is essential across the entire maritime value chain. This encompasses ships, future zero-emission fuels, and the necessary supporting infrastructure. Ports, situated at a crossroads, are uniquely positioned as key enablers with multiple avenues to propel transformation.

Through the Department of Energy (DoE), Department of Transportation (DoT), and the Environmental Protection Agency's (EPA) Port Initiative, under the Inflation Reduction Act (IRA), the U.S. is advancing ambitious decarbonization targets for the maritime transportation sector, both domestically and internationally. Among other goals, the country aims to increase the number of large international ships running on zero-emission fuels; increase zero-emission fuels annual production; and increase the number of key ports offering zero-emission bunkering.

The leaders at the roundtables discussed together the direction of maritime industry decarbonization by 2050, the levers of opportunity, the directions of investment needed and other enablers that will be required to achieve the net-zero targets and take the industry forward. Weighing on the landscape of current efforts, as well as systemic challenges, the opportunities to better actualize this collective goal were discussed during the sessions.

Executive Summary

With the global decarbonization mandates, the international maritime transport system must proceed urgently while recognizing its critical role in the global economy.

This effort requires a holistic approach that addresses challenges from multiple perspectives, emphasizing collaboration and mutual learning.

The awareness of this imminent change is unprecedented, prompting industry stakeholders to consider the best strategies for tackling the monumental challenge of reorganizing the maritime industry's energy supply.

With some U.S. ports progressing in their decarbonization goals while others strategizing their milestones according to each one’s ecosystem, the roundtable leaders urged the industry to build on its core business activities while strengthening their capabilities for pursuing the sustainability agenda.

During the meetings, the U.S. industry leaders delved into the strategic levers needed to actualize the ambitious decarbonization goals, which include equipment electrification, shore power technology, scopes 1 and 2 emissions monitoring, operations efficiency/optimization, and integration of digitalization.

The leaders called for the strategic and widespread adoption of sustainability and decarbonization mandates, preserving operational efficiency while driving long-term economic growth. It is an industry's shift, from profit-driven to value-driven approach that goes beyond economic gains, encompassing various environmental advantages with a shared vision for a greener and more resilient future. Thus, the focus should also be on Scope 3 emissions monitoring to drive this decarbonization transformation.

Chapter one

Creating Value Chains for Effective Maritime Decarbonization

In the maritime sector, the value chain is not concentrated within a single company but is distributed across extensive global supply networks. Therefore, efforts to drive sustainability cannot stop at the focal company's borders. It is crucial to understand and assess decarbonization enablers and build partnerships beyond industry boundaries. The maritime operational value chain involves a wide range of players, including ship owners and operators, cargo owners, charterers, marine fuel producers and suppliers, shipbuilders, engine makers, technology providers, port authorities and operators, maritime service providers and policy makers.

Effective, large-scale maritime decarbonization requires alignment and collaboration across the entire ecosystem. Three interrelated value chains from the maritime ecosystem are playing a critical role in decarbonizing shipping: The marine fuel, shipbuilding, and maritime operational value chains.

Although ports are more actively involved in the maritime value chain, they also play a critical role in both the marine and the shipbuilding value chains by providing the necessary infrastructure to operationalize these systems.

To effectively leverage the opportunities presented by these interconnected value chains, it is imperative to explore innovative approaches that can facilitate collaboration among various stakeholders. One such approach that is gaining traction is the concept of Green Corridors. By establishing dedicated routes for vessels that prioritize sustainability, we can enhance the efficiency of operations and significantly reduce emissions throughout the maritime industry. Green Corridors represent not just a technical advancement but also a strategic framework that encourages the integration of eco-friendly practices across the entire supply chain. In the next chapter, we will look further into how green corridors can serve as vital drivers for decarbonization, examining their potential to reshape operational frameworks and align industry goals towards a greener, more sustainable future.

The Benefits of Green Shipping Corridors

To illustrate a type of maritime value chain involving a wide range of players to foster global decarbonization, the Port of Los Angeles discoursed about the Trans-Pacific Green Shipping Corridor – a voluntary partnership of leading maritime goods movement stakeholders, including the Ports of Los Angeles, Long Beach, and Shanghai, some of the largest carriers in the world, and key leading cargo owners.

Aiming at accelerating emissions reductions on one of the world's busiest container shipping routes across the Pacific Ocean, this green shipping corridor stands out as one of the most well-structured and advanced corridors across the globe.

Green Shipping Corridors emphasize partnerships between ports, carriers, and energy providers to create a structured framework and align objectives for decarbonization.

Currently, there are over 50 green shipping corridors announced globally spanning continents and connecting major ports.

These corridors, led by port authorities, governments, industrial players, or public-private partnerships, aim to reduce carbon emissions and advance the digital transformation of maritime transport. They focus on various aspects such as fuel production and infrastructure, technology development, regulatory frameworks, policy development, and meeting market demand.

Similar to the corridor between the Port of Singapore and the Port of Rotterdam, which is recognized as a green and digital corridor, the corridor connecting Shanghai, Los Angeles, and Long Beach is also considered a green and digital corridor. Digitalization is an essential component for these corridors to move from the feasibility stage to effective implementation.

Carbon Intensity Indicator (CII): Collaboration between Ports and the Shipping Industry

Decarbonizing the maritime sector requires a holistic and simultaneous approach, encompassing carbon calculation, design, planning, financing, management, and policymaking. The goal is to decarbonize the entire cluster of value chains, sector by sector, ideally in parallel, to avoid gaps and bottlenecks. These gaps across the chains often discourage more substantial commitments to decarbonization.

By addressing each segment of the value chain collectively and cohesively, the maritime industry can ensure a more efficient and comprehensive transition to sustainable practices.

With the International Maritime Organization (IMO) Carbon Intensity Indicator (CII) regulation in force, shipowners and operators are paying more attention to green fuels, as well as fuel-saving technical and operational measures available today. While many shipowners are taking a wait-and-see approach to ship orders, the fuel choice uncertainty remains.

Fuel availability concerns are very real, with traders facing challenges due to the lack of off-take agreements. Increasingly stringent fuel standards have ruled out the use of lower-emission fuels that were initially poised to be the first alternatives in the market. The timeline for shipping to access green fuels at scale remains uncertain.

Another significant value chain creation that involves marine fuels and shipbuilding is the Zero Emission Maritime Buyers Alliance (ZEMBA), established in 2020. Co-founded by Amazon, Patagonia, Brooks Running, DB Journey, Green Worldwide Shipping, Meta, New Balance, Nike, and REI Co-op, it focuses on Zero Emission Vessels (coZEV). Since its inception, these cargo owners have been actively investigating and implementing innovative solutions to decarbonize the maritime industry.

In September 2021, Maersk, in collaboration with Amazon, transported goods on the first-ever zero-emission capable cargo ship using methanol from Shanghai to Rotterdam, and in June 2024, in collaboration with Vestas and Nike, Maersk announced the addition of two more vessels powered by methanol, set to navigate between Denmark and the U.S., through the Port of Los Angeles.

The port of Hueneme is focusing on the landside infrastructure needed to meet future demand for green fuels and expand bunkering capacity.

So the port is working closely with carriers to understand their energy transfer needs and are fostering the development of bunkering facilities to support the shipping industry.

To facilitate and maintain these facilities, the port is beginning to accommodate barge-based bunkering, ensuring vessel movements are efficient. We are also looking into incorporating barge-based emissions filtration systems to comply with California regulations.

The port is planning capital engineering projects with a ten-year horizon, considering the anticipated global demand for biofuels. This involves understanding where raw materials will come from and where bunkering facilities should be located to optimize supply chains and meet future volume requirements.

According to Phillip Gibbons, Program Director, Climate and Sustainability with the Port of San Diego:

"California currently boasts an estimated 300 commercial drayage trucks and numerous other pieces of zero carbon emissions equipment operating within its ports, underscoring the state's commitment to sustainable practices , and the population is continuing to grow."

Gibbons highlighted that the Port of San Diego, in collaboration with the CEC, is successfully embedding sustainability into port operations with a focus on advanced technologies such as zero emissions equipment. Their primary goal is to advance decarbonization in the land side, with equipment electrification, distributed generation, battery energy storage, and Drayage Trucks.

"Efforts are concentrated on utilizing funding from the California Energy Commission (CEC) to spur innovation in the world of zero emission handling equipment and trucks."

The port is working in collaboration with the CEC, other California ports and major O&Ms players in the state that are building these technologies.

"We are working with the energy commission to figure out the best way to allocate funds, and how to create the appropriate type of grants, so that the ports, or the tenants, or the port operators can apply for these grants." – Gibbons, P.

The Port of San Diego is also working closely with Crowley tugs to facilitate the operation of the United States' first all-electric tugboat, the eWolf. This vessel arrived in San Diego earlier this year, and Crowley is working with the Port and other stakeholders to continue to develop a 3MW solar and battery microgrid system to offset the vessel's charging from the grid.

Decarbonizing Through Collaborative Partnerships

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Meet us at #MDCAMERICAS2024

Dr Beatriz Canamary is a Professor of Business Analytics with a professional career in the Port Industry. Holding a BS and MS in Civil Engineering, a Certificate in M&A from Harvard Business School, and a Doctorate in Business Administration with an emphasis on Sustainability for the US Port Industry, Beatriz brings world-class expertise in sustainability, decarbonization strategies, energy transition, circular economy, infrastructure investment, and climate change solutions. She is an accomplished global business leader with experience spearheading sustainable growth, innovation, and cultural transformation for complex multinational infrastructure projects across different countries.

Matt Swenson With six years of hands-on experience in data, AIS technology, and digital solutions, Matt Swenson is well-equipped to navigate our industry’s challenges and opportunities. His previous roles at Marine Traffic and Lloyd’s List Intelligence honed his skills in collaborating closely with ports, contributing to the development of tailored solutions that enhance visibility, vessel monitoring, and operational efficiency.

In his role as US Account Executive at PortXchange B-Corp, Matt’s mission is clear: to put vital decarbonization tools into the hands of maritime stakeholders throughout North America. With our suite of tools at his disposal, Matt will guide the North American market towards the advantages of reducing carbon footprints through streamlined emissions data collection and facilitating just-in-time arrivals. Additionally, he’ll provide ports with hands-on guidance and support, ensuring the seamless integration of PortXchange solutions into their existing operations.

By understanding the implications and impact of Scope 3 emissions and embracing innovative solutions, ports and terminal operators can address the challenges ahead and make a meaningful start towards a greener, more sustainable future for future generations.

EmissionInsider: Carbon Insight Suite tracks and analyzes a port’s carbon footprint, identifying pollutant sources and hotspots. The solution empowers users to assess multiple “what-if” scenarios based on the port’s specific data, determining a potential decarbonization plan’s impact on improving air quality before implementation.

It helps to build a path toward a zero-emission port by making data-driven decisions on which decarbonization initiatives to prioritize, allowing ports to achieve targets faster and provide data for corrective actions on existing plans.

#MDCAMERICAS2024: Driving decarbonization through strategic planning, pathways and partnerships

The Maritime Decarbonization Conference is part of a successful global event series that brings together vessel owners, operators and ports to connect with the value chain, review their sustainability strategies and gain up-to-date intelligence on the latest low-carbon technologies, regulations and initiatives.

Riviera Maritime Media Ltd & Maritime Decarbonisation Community

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