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Technology 17. sustainability 42. legal 51. economy - editorial - SUBSCRIBE: www.harboursreview.com - Harbours review
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               no. 1/2021 (35) june

               ISSN 2449-6022

                  04. technology
                  17. sustainability
                  42. legal
                  51. economy
Photo: Canva

                  81. editorial
               1 | Harbours Review | 2021/1
Technology 17. sustainability 42. legal 51. economy - editorial - SUBSCRIBE: www.harboursreview.com - Harbours review
Our Innovation
is outside the
Box.
Our constant further development only serves the
goal of being able to handle your boxes even more
efficiently in the future.
liebherr.com

Port Equipment
LHM 600
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05 technology                                                      44 legal
05. Cut a tech-dash
     –     Using modern technologies to monitor & optimize         44. Non-taxation without justification
           energy use in ports                                        –    Tax exemptions for ports before the EU’s General
     Julius Küchle                                                         Court – the end of preferential treatment
08. Where are we today with port digitalisation?                      Kai-Dieter Classen
     –     The pace of adopting modern technologies by             46. Subsidizing maritime transport – also on
           big(ger) and small(er) seaports                            land?
     Graham Howe                                                      –    Tonnage tax schemes and their effects on cargo
10. At the touch of a button                                               handling
     –     The Port of HaminaKotka’s investment in digital            Kai-Dieter Classen
           modelling                                               48. Disruption-to-resilience
     Jaana Niemi                                                      –    Dealing with the COVID crisis: now and in the
12. Still partying as if it was 1999                                       future
     –     The world of buying & selling containers                   Peregrine Storrs-Fox
     Aad Storm                                                     51. COVID-19 and force majeure
14. Why can’t a ship be bought as easily as a car?                    –    Examining the key elements of
     –     Modularisation in the maritime industry                         lodging/defending a delay claim
     Christoph Jürgenhake, Tobias Seidenberg, and Stefan Pfeifer      Nurlan Agayev and Gabrielė Vilemo Gotkovič
17. A game changer
     –     How a Swedish tech-company is helping to

                                                                   53 economy
           transform road freight
     Ragnar Johansson

 19 sustainability
                                                                   53. The scale of investment needed to
                                                                      decarbonize international shipping
                                                                      –    Getting to Zero Coalition’s Insight Brief on the
                                                                           cost of making sea transports emission-free
19. Not enough?                                                       Randall Krantz, Kasper Søgaard, and Dr Tristan Smith
     –     Key takeaways from ABS’ Pathways to sustainable         56. Redrawing the map of global trade
           shipping                                                   –    The Boston Consulting Group’s take on how will
     Przemysław Myszka                                                     the coronavirus alter international trade corridors
31. Energy transition is well on its way (yet not                     Ben Aylor, Megan DeFauw, Marc Gilbert, Claudio Knizek,
                                                                      Nikolaus Lang, Iacob Koch-Weser, and Michael McAdoo
     fast enough)
     –     DNV GL report analyses how the next 30 years            59. New tension to global socio-economic
           will shape the energy sector                               structures
     Ewa Kochańska                                                    –    WBCSD finds the coronavirus pandemic
35. Three steps to sustainability                                          disrupting the present – but inspiring the future
                                                                      Ewa Kochańska
     –     Sweden’s Triple F research & innovation
           programme                                               64. How to win with COVID-19
     Caroline Karlsson                                                –    The post-corona government and business world
37. Charge!                                                           Ewa Kochańska
     –     How to design, produce, use, and re-use                 68. Second fiddle?
           batteries more sustainably                                 –    Europe’s participation in and response to the Belt
     Gabrielė Vilemo Gotkovič                                              and Road Initiative
40. Data-driven sustainability                                        Przemysław Myszka
     –     CO2 offsetting for a climate-friendly transport         74. Time and again
           sector                                                     –    Capturing the economic importance of ports
     Dario Zingariello                                                     across-the-board
42. Return of sail                                                    Ralf Fiedler
     –     Modern sailing ships as the enabling link               78. In search of transparency and fair play
           between ethical production, travel, and                    –    COVID-19, CBER, and tonnage tax
           transportation                                             Nicolette van der Jagt
     Jorne Langelaan

3 | Harbours Review | 2021/1
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The Port of
  Opportunities
 The Port of HaminaKotka is a versatile Finnish seaport
serving trade and industry. The biggest universal port in
       Finland is an important hub in Europe and
                 in the Baltic Sea region.

        Welcome to the Port of HaminaKotka!

                   haminakotka.com
Technology 17. sustainability 42. legal 51. economy - editorial - SUBSCRIBE: www.harboursreview.com - Harbours review
Using modern technologies to monitor
                                                                                  & optimize energy use in ports

                              technology

Photo: NPorts/Christian O. Bruch

                                                                      Cut a tech-dash
                                           by Julius   Küchle, Research Associate Ports and Transport Markets,
                                                       Fraunhofer Center for Maritime Logistics and Services CML

The three-year ongoing IHATEC1-funded project Port Energy Management Dashboard – dashPORT
strives to enable port companies and terminal operators to achieve cost savings through a holistic
energy-management of both the entire port and all parties that operate within. By developing a
working prototype in the German Port of Brake, dashPORT aims to realize efficiency gains by using
Artificial Intelligence (AI) and Internet of Things-applications (IoT) to help optimally sequence the
energy needs of ports, hence improve their ecological and economic bottom line.

                                               m
                                                          ultipurpose ports are highly com-   to forecast, and riddled with peaks, the
                                                          plex and dynamic ecosystems         network has to be operated in a way that
                                                          where     numerous     operations   such peaks can be levelled out. Unsteady
                                                          intersect. This complexity is re-   demand patterns can also make the in-
                                               flected in their energy consumption: elec-     corporation of renewable energy sourc-

t he Fraunhofer Center for Maritime Lo-
  gistics and Services (CML) develops
and optimizes processes and systems
                                               tricity is needed to power cranes, lighting,
                                               pumping stations, locks, ventilation sys-
                                                                                              es, with their inherently irregular input,
                                                                                              even more difficult. To give industrial cus-
                                               tems, charging of electric vehicles, post-     tomers an incentive to avoid load peaks,
along the maritime supply chain. Within        processing systems, gates, winches and         grid operators measure the load in 15
practically oriented research projects,
                                               office buildings.                              minute-intervals and record the highest
CML supports public and private sec-
                                                    Each of these electric consumers          peak in a billing period. This peak is then
tor clients who are involved in port op-
                                               is involved in its own processes, which        used as the base for the network utiliza-
erations, logistics, and shipping. Visit
www.cml.fraunhofer.de/en.html for more         are typically scheduled independently.         tion fee (e.g. € 50 per kW at the peak) for
details.                                       Such processes may be required at any          that billing period.
                                               time, and therefore they often overlap.            Therefore, the motivation to keep peaks
                                               This translates into highly irregular load     as rare as possible in ports is twofold. First,
                                               profiles, i.e., the amount of energy being     there is the direct cost implication, which
                                               consumed at any given time. There may          can greatly affect the overall electric-
                                               be times where energy consumption is           ity costs. Second, optimized load profiles
                                               very low, followed by an extreme peak          make forecasting energy demands easier,
                                               when, e.g., locks need to be opened            allowing energy providers to operate on
                                               while cranes start unloading a vessel.         a more stable basis.
                                                    At the same time, energy providers
                                               need to plan energy production and the         Granular outfitting
                                               grid composition based on the maxi-               The dashPORT project started in
                                               mum load required. If demand is difficult      2019 and aims to tackle this particular

5 | Harbours Review | 2021/1
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issue prototypically in the Port of Brake.       use. Secondly, their controllability, i.e.,
                                                                The team is made up of four parties: the         whether the use can be flexibly sched-
                                                                port owner Niedersachsen Ports GmbH              uled, and if it can be operated in different
                                                                & Co. KG, the terminal operator J.Müller         intensities, and their relevance for data-
                                                                AG, the IT house OFFIS – Institute for In-       consistency and forecasting.
                                                                formatics, and our research foundation               Once the infrastructure is outfitted
                                                                Fraunhofer Center for Maritime Logistics         accordingly, data collection begins.
                                                                CML.                                             Over the span of six months, live data
                                                                    Brake is a multi-purpose port located        from the smart meters will be collected
                                                                between Bremerhaven and the Hanse-               and analysed with the help of deep-
                                                                atic City of Bremen at the river Weser.          learning algorithms. As more and more
                                                                It comprises two quays, northern and             patterns arise in this analysis, the sys-
                                                                southern, and an inner harbour acces-            tem will come up with ideal theoretical
                                                                sible via a sea lock. The southern port          daily load profiles of the port, based on
                                                                area serves as a cargo handling spot for         an everyday energy demand forecast.
                                                                feedstock and grains, while the north-           These optimal load profiles then have to
                                                                ern section, with its heavy load capable         be categorized and adapted regarding
                                                                quay, is utilized for taking care of for-        their operational feasibility. Finally, the
                                                                estry products, iron, steel, and project         researchers will refine the system in co-
                                                                cargo like industrial machinery. In the in-      ordination with the industry partners so
                                                                ner harbour coasters and barges can be           that it can detect deviations of the opti-
                                                                cleared and handled.                             mal load profile and provide recommen-
                                                                    Historically, the involved parties used      dations for action to the operators at the
                                                                to handle their energy management indi-          port as to how to adapt their current en-
                                                                vidually, relying on analogue meters which       ergy use in order to be as close as pos-
                                                                were checked manually, once per billing          sible to an optimal load profile, without
                                                                period. Naturally, this fragmentation caus-      jeopardizing the day-to-day business.
                                                                es an unoptimized load profile, with abun-           It is expected that these recom-
                                                                dant peaks and unpredictable cost. With          mendations would range from shifting
                                                                digitalization in ports still just ramping up,   an energy-intensive process to a later
                                                                it can be assumed that this situation is the     point in time, to such seemingly mun-
                                                                rule rather than the exception among the         dane things like suggesting turning off
                                                                ports of the world.                              a running system that is not currently
                                                                    Within dashPORT, IoT devices are to          used for anything purposeful. After the
                                                                be used to closely observe the granular          development is finalized, dashPORT will
                                                                energy demand per consuming machine              be introduced by both parties, the port
                                                                of both parties in the Port of Brake. The        authority and the terminal operators –
                                                                live data is fed into a dashboard and si-        Niedersachsen Ports and J.Müller.
                                                                multaneously analysed by an AI decision
                                                                support system. Using deep learning              Do your dash
                                                                methods, it can incorporate the process-              DashPORT will help the Port of Brake
                                                                es behind energy demands and thanks              to holistically alter their electric load pro-
                                                                to its algorithms, also forecast the load        file, consequently reducing unneces-
                                                                profile of the port as well as offer advice      sary costs substantially and facilitating
                                                                to operators on how to improve it in the         a more efficient grid operation. All while
                                                                short-term.                                      additionally promoting a rise in aware-
                                                                    To realize this, Fraunhofer CML to-          ness regarding energy consumption in
                                                                gether with OFFIS first analysed the             general by visualizing momentary energy
                                                                processes of Niedersachsen Ports and             demand – as any classic energy monitor-
                                                                J.Müller in the Port of Brake. Mapping           ing system would.
                                                                the processes from the first message of a             The project shows how even low-level
                                                                vessel which plans to arrive at the quay to      IoT devices can simplify time-intensive
                                                                a loaded truck or train leaving the port’s       processes, like in this case the periodic
                                                                premises, and vice versa, is the neces-          control of hundreds of analogue me-
                                                                sary groundwork to identify causal re-           ters, while also collecting the data that is
                                                                lationships between them, as well as to          needed for any kind of further optimiza-
                                                                gauge the optimization potential. Based          tion and efficiency gains.
                                                                on the process analysis, over 500 indi-               When the project ends in 2021, all
                                                                vidual electric machines and equipment           findings and procedures will be pub-
                                                                have been chosen and are currently be-           lished to disseminate and to communi-
1
    Within the Innovative Port Technologies (IHATEC) funding    ing outfitted with smart meters, which can       cate the adoption of such intelligent en-
    programme, the Federal Ministry of Transport and Digital    parse live data into the dashPORT sys-           ergy management systems to ports, but
    Infrastructure (BMVI) supports research and development
    projects that contribute to the development or adaptation   tem. The selection of electrical consum-         also to any kind of other large industrial
    of innovative technologies in German sea and inland ports
    and which help to manage cargo handling volumes and         ers is based on several criteria. First and      infrastructure, by showing their obvious
    improve logistics chains. The BMVI is providing around
    €64m for this purpose in the period 2016-2021.              foremost, their wattage and frequency of         economic and ecological benefits.            ‚

6 | Harbours Review | 2021/1
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LINER SERVICE
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using Spliethoff’s European and American logistic network | Line-supplied
containers, project, heavy lift, steel, forest products and bulk|
Calling various Great Lake ports, including:
- Valleyfield QC       - Cleveland OH - Duluth MN
- Ramey’s Bend ON - Chicago IL              - Monroe MI

 www.spliethoff.com or greatlakes@spliethoff.com
Technology 17. sustainability 42. legal 51. economy - editorial - SUBSCRIBE: www.harboursreview.com - Harbours review
The pace of adopting modern technologies
    by big(ger) and small(er) seaports

Photos: ION

                                                  Where are we today
                                              with port digitalisation?
                        by Graham             Howe, Business Development Director, Operations Optimisation, ION

As we all know, 2020 has been an exceptional year. For all the negatives that the year has resulted in, it
has also demonstrated how essential the port and shipping sectors are to global commerce as well as their
resilience in the face of numerous challenges. One major impact of the pandemic has been to highlight
the increasing need for ports to not only do more work with fewer resources but also the requirement to
carry it out remotely. Now more than ever, the need for information sharing across the sector is of critical
importance to stakeholders and, as a consequence, we have seen port digitalisation accelerating.

                                                  t
                                                       he This hasn’t been brought about               This goes hand in hand with the grow-
                                                       by the pandemic only, of course. Ini-       ing importance of TradeLens launched in
                                                       tiatives such as the IALA S211 and the      August 2018. Two years in, and there has
                                                       Sea Traffic Management have been            been significant adoption of the platform
                                                  gaining momentum for a number of years           across both ports and shippers, numbering

i ON has been a leading technology in-
  novator for over 50 years. While ION’s
traditional focus for its cutting-edge
                                                  now, and 2020 has seen those standards
                                                  begin to bear fruit. There have been two
                                                                                                   market leaders such as Maersk, MSC and
                                                                                                   numerous major seaports around the world
                                                  major developments this year that have           as users. The adoption of a single platform
technology has been on the E&P in-
                                                  highlighted this trend. First, in October,       of this type, combined with the emergence
dustry, the company is now broadening
                                                  the Digital Container Shipping Association       of commonly agreed standards, have ena-
and diversifying its business into relevant
                                                  (DCSA) launched a set of standard data           bled the container port sector to move for-
adjacent markets such as offshore logis-
tics, ports, defense and marine robotics.         definitions for just-in-time (JIT) port calls.   ward with digitalisation at a rapid pace.
Please head to iongeo.com/SmartPort               It includes 17 timestamps covering the
to learn more.                                    JIT port call process and benchmarking           Differences and similarities
                                                  the core dataset within it. While this builds        These developments, however, have
                                                  on the existing work – such as that of the       tended to exacerbate the growing divide
                                                  International Taskforce Port Call Optimiza-      between large and small ports in terms of
                                                  tion, the International Maritime Organiza-       digitalisation. If we use the EU characteri-
                                                  tion, and the International Organization for     sation of ports as Core and Comprehen-
                                                  Standardization – it is important to note        sive, we can see that the advancements
                                                  that the DCSA represents over 70% of the         noted above will immediately appeal to
                                                  world’s container shippers, giving a single      the former, enabling them to move TEUs
                                                  critical voice in support of the development     seamlessly between themselves with
                                                  of these standards.                              maximum efficiency. Yet, the same cannot

8 | Harbours Review | 2021/1
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be said for those listed as TEN-T Com-           to know where to turn for trusted advice.         that small and medium ports are given the
prehensive Ports, which tend to be more              That said, it is also important to note       tools to be able to adopt these standards at
diverse in nature, covering a full range of      that these two port classes face similar          a pace that is suited to their capacity.
multi-purpose activities from the interna-       challenges. All of them need to address               Initiatives such as the EU-funded
tional and local ferry to tramp cargo traffic.   issues created by vessels waiting to come         Connect2Small Ports project, focussed
It is a bit of a simplification to break down    into port and their idle time before and after    on the Baltic Sea, are developing means
ports in this way, but it does enable us to      unloading. The solutions adopted by the           that enable ports to share information
summarise the two separate approaches            larger ports have, therefore, the capacity        with peers regarding digital initiatives.
to digitalisation.                               to benefit small and medium ports, too.           These tools help resource-constrained
     On the one hand, we have large ports                                                          ports to be kept in the loop on these
that have a clear interest in joining a plat­    Trickle-down digitalisation                       large-scale developments and help them
form like TradeLens. Engaging with this              There are two main drivers that will en-      to find ways in which they can affordably
kind of large-scale initiative ensures that      courage small-to-medium ports to adopt            upgrade their operations to ensure that
these ports remain competitive with their        digitalisation. The first is regulation: as the   they remain efficient and competitive in
peers in a sector that needs efficiency to       focus on areas such as the reduction of           the post-pandemic environment.
maximise profit margins and reduce harm-         emissions intensifies, ports will find them-
ful emissions. These ports tend to have          selves facing increasing levels of paper-         Critical mass – achieved, more to come
well-funded IT departments that are able to      work, leading them to find more efficient              Indeed, the year 2020 has by far been
remain up to date with the latest develop-       ways of keeping ahead of their administra-        exceptional, and the port and shipping
ments in the tech field.                         tive load. The second factor is the need          sectors can be justifiably proud of the
     For the medium-to-small port mar-           for greater efficiency that will enable them      role they have played in keeping the lo-
ket, on the other hand, the capacity to          to optimise the use of resources. If a port       gistics chain unbroken and vital supplies
stay ahead of the game in the technology         can halve the time taken to administer a          moving around the world. It is also a year
race is more constrained. These multi-use        port call, they will be able to free up re-       in which port digitalisation in the cargo
ports are required to divide their resources     sources to focus on other areas that are of       container market has achieved a meas-
among a broader range of needs: running          benefit to their operations.                      ure of critical mass. This development
efficient ferry operations does not require          Now that we see digitalisation initiatives    will change the way the sector as a whole
the same skill set as a port specialising in,    gaining pace in the large port sector, we         works as new technologies trickle down
say, barley, wheat, and other such crops.        can expect to see these concepts trickling        across the market.
The IT resources that these ports have           down to smaller ports as solutions become              While none of us knows what 2021
are often required to address a very wide        more trustworthy and reliable. There will         will bring, I think that we can all agree
range of solutions, from number plate rec-       also be growing pressure on the medium            that extreme change is now a constant in
ognition systems to document EDI. Not            and small port sector to adopt standards          our lives, and we can expect to see more
surprisingly, their resources are spread         in order to comply with the requirements of       exciting developments in port digitali-
thin, and it’s difficult for the port managers   global shipping. It is important, therefore,      sation to meet that challenge.           ‚

9 | Harbours Review | 2021/1
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The Port of HaminaKotka’s
                                                      investment in digital
Photos: Port of HaminaKotka
                                                        modelling

                                    At the touch of a button
                                                                                                               by Jaana        Niemi

Digitalization affects every aspect of society, with no exception made for seaports. Various digital
applications have been in use across Finland for years now, such as the port traffic information system
Portnet or various other systems used for, among many, production control and warehouse management.

d
       igital modelling of ports and their   and management tool. “Our entire port           flexibly. Three-dimensional images, on
       structures (surface and underwa-      is digitally modelled. Both aboveground         the other hand, give the opportunity to
       ter) has recently been the subject    and underwater structures are included.         simulate different situations related to
       of a lively debate revolving around   For example, we can view quay areas to-         port operations, such as various driving
maintenance and resource manage-             gether with customers remotely without          routes or even the location of new tracks,
ment. HaaminaKotka has been one of           heavy camera connections. Even though           machines, conveyors and buildings,” Kui-
the pioneers to digitalize its port envi-    nothing can fully replace face-to-face          tunen lists the benefits.
ronment. The 2019-introduced GISGRO          meetings, it is very important that we are           As such, the Port of HaminaKotka can
data system – developed by VRT Finland       able to respond to our customers’ needs         reply to customer inquiries faster than
to make better use of survey data – has      also when normal operations are not pos-        before. To enable efficient operation,
been used to create a virtual port that      sible,” Kuitunen explains.                      customers need different technical infor-
combines conventional 2D imaging with            By logging into the system, an em-          mation on the port infrastructure, and it is
3D technology. “We wanted a system           ployee of the Port of HaminaKotka can ac-       now possible to centralize data storage
that would take us into a new era in one     cess the main view which opens the entire       in a single place. Issues ranging from
go. Our goal is to be the leading digital    port in a virtual form. In addition to ortho-   load-carrying capacities of quay areas
seaport on the Baltic Sea, and we be-        images taken by a drone from a height of        to water depth information and potential
lieve that with GISGRO, we are one giant     100 meters, each part of the port has been      items requiring repairs are all visible in
step closer to this goal. We use the sys-    modelled in 3D, including quays, light          the same digital environment. The expe-
tem not only for maintenance purposes        masts, and warehouses. A uniform model          dited flow of information not only serves
but also to support sales and vessel ser-    has been created of the resulting image         the port itself but also its customers.
vices,” Ville Kuitunen, Sales Manager,       material using point cloud technology. “A            Maintenance work has also been fa-
the Port of HaminaKotka, highlights.         two-dimensional orthoimage is very ac-          cilitated following the inclusion of under-
                                             curate, and details as small as individual      ground pipes, sewers, and other struc-
“To add every asset”                         manhole covers and potential surface            tures in the system. Winter conditions
    The ongoing coronavirus pandemic         cracks can be distinguished in it. The im-      prevailing in Finland often cause prob-
has put the virtual port to even more use    ages can be taken again at any time, and        lems, for example, when manhole covers
than what was originally planned. When       this is actually important because our port     and other equipment placed in the ground
much of the work has to be done remote-      grows and evolves at a very quick pace. It      are covered by snow and ice. The Port of
ly to secure the safety of employees and     is imperative to have access to up-to-date      HaminaKotka encompasses 1,100 hec-
customers, the digital overview of the       material, and as the port changes, we will      tares of land, which is why nobody wants
port serves as an excellent inspection       be able to add new items to the system          to waste time searching for what-is-where.

10 | Harbours Review | 2021/1
When all the information can be found in      the premises and carry out any mainte-           been modelled by means of sonar, after
a virtual format in the GISGRO Building       nance work more efficiently than before,”        which a three-dimensional point cloud im-
Information Modeling model, the custom-       Kuitunen specifies the work ahead.               age has been created from the image ma-
ers’ time and money are saved.                                                                 terial, just like with terrestrial areas.”
    A large port houses many different        “The best outcome”                                    Kirsi Hänninen, CEO, VRT Finland, is
activities, and the maintenance require-           GISGRO also serves vessel traffic at        satisfied with the cooperation conducted
ments are also stringent. Inspecting          the Port of HaminaKotka. The system pro-         with the Port of HaminaKotka, “The best
and reviewing each and every site is a        vides up to date 24/7 weather information,       outcome is always reached in good coop-
challenging task due to long distances        while a link to the Automatic Identification     eration, listening to the customer. The Port
to cover. The virtual port allows any ‘to-    System enables real-time ship traffic mon-       of HaminaKotka is an excellent partner for
deal-with’ situation to be detected re-       itoring at and nearby the port. It is possible   VRT because the port wishes to exploit the
motely. The necessary repair entries and      to enter the dimensions of the arriving ves-     opportunities offered by modern technol-
contract orders are made directly within      sel into the system and create a simulated       ogy in an open-minded manner and be a
the system, sending the work order to the     port call, making it easier and faster to al-    trailblazer in its industry in Europe.”
selected contractor. “The biggest job in      locate a suitable berth. Kuitunen explains,           “We have access to the entire port lit-
the summer of 2020 is to add every asset      “We have also included all the underwater        erally at the touch of a button. By filtering
of the Port of HaminaKotka to the system.     areas of the port in the system. Our port        the system view, we can display all the
Each bollard, track, manhole, firewa-         has more than nine kilometres of quay            necessary features of our port at once,
ter pumping station, gate, waste point,       wall across 76 berths, all of which have         or we can view only the details we have
floodlight, electricity distribution centre   their own specific conditions. The depth         selected. The developments do not stop
– all of these will be digitally available.   of the berths varies from place to place,        here, though; we are constantly looking
Moreover, later on, we will do the same       but with GISGRO we can quickly find the          for new ways in which to serve our custom-
work on all port properties, such as ware-    depth information and share it with, for ex-     ers better and more flexibly. Digital tools
houses. We also want to include interior      ample, the master or pilot of the vessel,        provide a great opportunity for doing ex-
pictures, which can be used to manage         if necessary. The underwater areas have          actly that,” Kuitunen sums up.              ‚

11 | Harbours Review | 2021/1
The world of buying & selling containers

Photos: Eveon

                Still partying as if it was 1999
                                                                 by Aad       Storm, CEO and Founder, Eveon Containers

The container is considered one of the best trade inventions of the past century, an essential enabler of
the globalized economy. Standardization is its key virtue. This makes it possible to use it across different
transportation modes, giving it the possibility to sail, fly, or roll throughout vast expanses. The fact that
it is standardized means that it ticks at least one of the boxes (pun unintended) for being considered
a commodity. And commodity markets are always transparent, right? Unfortunately, they are not!

                                                a
                                                       fter having worked in different com-       project, so they can go about their regular
                                                       modity markets, I got introduced to        work without losing too much time.
                                                       the container one, around 2014, dur-
                                                       ing my work as a consultant. And the       A lot of additional winning
                                                more I learned about this market, the more            The majority of the containers travelling
                                                I got fascinated by it. It is dynamic, prices     the seas, railways, and roads are owned by
                                                are volatile, while the nature of the busi-       shipping lines and leasing companies. As
                                                ness is international in its very essence.        containers age, there comes a time when
                                                Even more fascinating was the fact that           box owners want to sell off parts of their
                                                in this industry, everybody seemed to be          fleet to finance the production of new con-
                                                working as if it still were 1999.                 tainers in order to keep their stock young.
                                                                                                      As selling their used containers to many
                                                Inefficiency galore                               often relatively small end-users is not their

a  ad Storm is the Founder and Chief            and lack of transparency                          core activity, they can only spend limited
   Executive of Eveon Containers, an e-              Even today, many container traders           time on selling their equipment. This also im-
commerce start-up for trading ISO con-          are still laying out their orders printed in      plies that containers that are flagged for sale
tainers. Storm has many years of experi-        the morning on individual paper sheets            keep on being transported around empty
ence in the container business, having          to discuss today’s work and try to keep           while the owner actually wants to sell it.
worked as Vice-President for CARU Con-          track of the inventory in an Excel file that          This causes unnecessary costs for
tainers, leading the Boston office as well      is mailed around. Nobody publishes                repositioning their empty containers and
as the Dutch and Belgian ones. Before           prices. And when a customer calls, the            also generates CO2 emissions that could
CARU, Storm worked for two disruptors in
                                                first thing to do is to find out whether they     have been avoided if the container would
the telecom and the energy markets and
                                                know the market.                                  have been sold at an inland destination
has been ranked multiple times in the up-
per half of the Dutch list of top 100 market-        If not, many traders are trying to get the   right after unloading it.
eers. For more on Eveon, please head to         highest possible price from this customer
www.eveoncontainers.com                         who really needs a container right now.           The impact of digitalization:
                                                Or even worse, this forces customers into         good and fair
                                                time-consuming negotiations even though                In virtually every commodity market, dig-
                                                they just want some boxes for their next          italization has disrupted everything. We are

12 | Harbours Review | 2021/1
now comparing energy suppliers, insurance          empty container transports can be avoid-
                                companies, and many other service provid-          ed, which adds up to an incredible amount
                                ers on the handy devices we carry with us.         of carbon footprint that can be avoided.
                                Anywhen, anywhere, and faster than you                  At the same time, we make the market
                                can read this article. And then we buy, on         more accessible for buyers and offer them a
                                that very same spot. Whenever we want to.          better service as well as fair prices. Custom-
                                    The transparency this digital revolution       ers can, for the first time, go through the en-
                                brought about has cut out players from the         tire ordering procedure in just a few minutes.
                                value chain who added no value, which              And purchasing containers can be done
                                has, in the end, increased efficiency. All in      24/7 on any mobile device. Customers can
                                favour of both sellers, at least those tech-       also choose between a variety of different
                                savvy, and buyers.                                 payment options, ranging from credit card to
                                    The world of container trade will follow       PayPal to prepayment options, and directly
                                inevitably. The impact will be huge and will       plan the delivery date. All these benefits,
                                clean up the value chain, benefiting the en-       which have already been standard in other
                                vironment, container fleet owners, as well         markets for many years, are now finally avail-
                                as end-users who buy containers for stor-          able in the container trading business, too.
                                age or transport. I consider it a very good             For Eveon, the yardstick is not any
                                and fair change.                                   other container trader but the best e-com-
                                                                                   merce players worldwide. As I often tell
                                Knock, knock. Who’s there?                         people: our benchmark is Zalando! Buying
                                The 21st century                                   containers should be as easy as getting a
                                    It was this reasoning that was behind          new pair of shoes on the web. Or better, it
                                the founding of Eveon Containers. Our              ought to be even easier, as containers are
                                company is a new online shop that aims to          standardized products, a commodity.
                                make the buying process of containers as
                                easy and transparent as possible. Eveon            Time for a change
                                sells containers directly to the customer              As we roll out the concept of Eveon to
                                via its shop and cuts out inefficiencies in        more locations, we sometimes notice that
                                the value chain. All prices are listed on          some players try to block the digital trans-
                                the website, and the products can be pur-          formation of the market. We see this as a
                                chased there directly.                             temporary phenomenon, their ‘last hurrah,’
                                    Our way of working allows container            since traditional players will sooner or later
                                fleet owners to sell boxes at multiple inland      have to accept the fact that the digital dis-
                                locations in a transparent way to end-users        ruption of the container market is going to
                                without having to deal with the hassle. The        happen. In certain areas, it’s already afoot.
                                solution’s flexibility allows it to sell to end-   At the moment, the market still largely op-
                                users anywhere in the world within a few           erates as it did two decades ago. However,
                                weeks’ time to react to a surplus in the mar-      the party of the traditional container busi-
                                ket or sell a continuous flow at a multitude       ness, with its outdated pricing practices,
                                of locations while avoiding unnecessary            is over. Container customers deserve to fi-
                                costs for repositioning empty containers.          nally get what they know from other indus-
                                On a global scale, millions of unnecessary         tries – a fully digital experience.          ‚

13 | Harbours Review | 2021/1
Modularisation in the maritime industry
Photo: Kolumbus/NCE Maritime Cleantech

                             Why can’t a ship be bought
                                    as easily as a car?
              by Dr.-Ing.Christoph Jürgenhake, Group Manager Integrated Mechatronic Systems,
                 Tobias Seidenberg, Research Assistant, and Stefan Pfeifer, Head of Development
                         Methodology and Management, Fraunhofer Institute for Mechatronic Systems Design

Imagine you go to a car dealer and ask the manufacturer to produce a vehicle that has a maximum speed
of exactly 218 km/h and must not weigh more than one tonne. Furthermore, it has to have a range of
exactly 1,000 km with one tank filling. Surely, it must also have three airbags on each side, while the trunk
cannot be bigger than 500 litres. Of course, it has to be a three-seater and painted in high gloss candy
pink. Silly, isn’t it? Then why does everybody do that in shipbuilding?

                                             s
                                                    hip design is characterized by indi-       to design a ship. This is a result of today’s
                                                    vidual solutions like hardly any other     extremely specified tender processes,
                                                    industry. Typically, every vessel is de-   which lead to one-off ships due to all the
                                                    veloped from scratch to meet the spe-      requirements vessel owners include in
                                             cific requirements for the planned route, the     their order specifications. As such, the

t  he aim of the TrAM project is to de-
   velop a zero-emission fast going
passenger vessel through advanced
                                             designated operator, and national regula-
                                             tions. This is also because ships are usually
                                                                                               final ship design is the result of an itera-
                                                                                               tive, successive, and cost-intensive opti-
                                             ordered through bidding procedures and            misation process, in which the best solu-
modular production. New manufacturing        tenders, set up for individual cases. The         tion is selected from a range of possible
methods will contribute to 25% and 70%
                                             requirements communicated this way are            alternative solutions. Those variants are
lower production and engineering costs,
                                             fixed; though, there are many ways in which       based on a variety of optimisation criteria
respectively. The project is revolutionary
both in terms of zero-emission technol-      they can be met. One can even go further by       such as stakeholder requirements, target
ogy and manufacturing methods and            stating that there is no transparency in the      speed and route length, or national and in-
will contribute to making electric-pow-      actual intention behind the requirements,         ternational regulations. The resulting ship
ered high-speed vessels competitive in       i.e., what the future owner actually wants        is then a fit-for-purpose design. As an ef-
terms of both cost and environmental         to achieve (e.g., why specify a certain top       fect, small changes in requirements have a
impact. This work has been supported         speed if a vessel only uses it 10-15% of the      strong impact on the final design.
by the TrAM H2020 project, which has         time, while the actual intention was to keep          The connection between compulsory
received funding from the European Un-       the route sailing time according to plan?).       technical requirements and physical re-
ion’s Horizon 2020 research and innova-                                                        strictions is even more evident for bat-
tion programme under grant agreement
                                             Tension                                           tery-powered vessels, as there is a high
No 769303. For more information, please
                                                 There is nowadays a dominant belief           degree of dependency between individual
head to www.tramproject.eu
                                             that complete optimisation is the only way        systems and physical characteristics (e.g.

14 | Harbours Review | 2021/1
Fig. 1. Interaction between System Model and different aspects of the procedure

battery weight, range, speed, the actual      Internal complexity & external variety         subsystems. The subsystems, or ‘mod-
number of passengers on-board, etc.).              Modularisation is an established meth-    ules,’ can be described by different char-
However, battery-powered ships can            odology from other industries (e.g. auto-      acteristics, structured by requirements of
have a significant impact on the emission     motive or aviation), providing the neces-      all product life phases. Moreover, modu-
reduction of the urban transport sector.      sary instruments to solve the contradiction    larisation refers to the targeted develop-
When discussions of decreasing emis-          between individuality and standardisation.     ment of modular product structures and
sion limits began in 2013, the European       By developing modular product architec-        the concrete definition of modules and
Commission presented the first measures       tures, it is possible to combine single mod-   interfaces. An essential aspect of this is
to reduce greenhouse gases in its strat-      ules that adapt the product to individual      to group systems by their functions, links
egy for reducing emissions from the ship-     customer needs or boundary conditions.         and interfaces with other systems – and
ping industry; coastal & river cities such    At the same time, the reuse of modules al-     not according to their shape or proximity.
as London have also adopted their own         lows for the shortening of the development          With the previously described chal-
emission targets.                             and production processes.                      lenges in mind, the development process
    The shipbuilding industry, with its            However, modularisation is tricky and     has to consider incorporating the so-
described one-off design and produc-          should not be mistaken for block con-          called ‘Systems Thinking.’ Model-Based
tion, faces the challenge of supplying        struction. The latter method is used from      Systems Engineering (MBSE), for exam-
many municipalities and cities with envi-     a manufacturing point of view in order to      ple, is an integrated and interdisciplinary
ronment-friendly passenger ships in the       be able to build large ships where crane,      approach to achieve this goal. It defines
short-to-medium-term. This leads to a         weight, or other production limitations        the concept of a consistent description
tension between, on the one hand, com-        are preventing an integral production. In      and analysis of a system to be developed
ing up with (expensive) individually-de-      contrast, utilising modularisation meth-       based on models, from the early phase
signed state-of-the-art ships and, on the     ods is an active decision already made         of conception through the entire product
other hand, the need for quickly available,   during the product design.                     life cycle. The models describe the de-
cheap, and ecological mobility solutions.          From the system theoretical perspec-      velopment object from different perspec-
Shipbuilders, their customers, and urban      tive, modularity is a concept for handling     tives and illustrate different aspects (like
transport companies have a great (public)     internal complexity while allowing external    the system’s functions). For each of these
interest in putting eco-friendly ships into   variety. This complexity can have differ-      aspects, a corresponding model can be
service as soon as possible, hence drive      ent dimensions; one approach to solving        created (also known as a partial model).
up shipbuilding demand. At the same           it is to subdivide complex systems into        The sum of all partial models, together
time, though, the differing use-cases do      individual subsystems, which are func-         with the corresponding links between
not make the task any easier.                 tional mostly independent from other           them, results in a coherent partial model.

15 | Harbours Review | 2021/1
For the modularisation of a product, the       modelling method. In the former, the in-
                                partial models that describe the aspect        tegration of the ‘Ferry’ system into its en-
                                of the system structure are of particular      vironment is systematically analysed. By
                                importance. These models describe the          evaluating the interactions of the ‘Ferry’
                                essential elements of a system and how         system with its environment elements,
                                they relate to each other. This includes       conclusions about required system ele-
                                the interfaces between the system ele-         ments of the logical architecture can be
                                ments and the system boundary. To cre-         derived very easily. In the present case, it
                                ate a system model, there are different        can be concluded from the environment
                                languages (e.g. SysML), methods (e.g.          element ‘Water Station’ of the quay, e.g.,
                                CONSENS, SysMod) and IT tools (e.g.            that the hull requires water to be taken up
                                Enterprise Architect) that can be used in      by the system element ‘Water Tanks’. The
                                combination.                                   requirements part specifies goals and re-
                                                                               strictions for the later solution and might
                                The modularisation alphabet                    thus impose certain limitations (e.g. legal
                                    Within the EU-backed TrAM H2020            requirements of the approval authorities
                                project (Transport Advanced and Modu-          may require that batteries have additional
                                lar), our solution approach is based on        fireproof insulation).
                                the idea of supporting module identifica-          In the next step, functions are derived
                                tion using a consistent, domain-spanning       from the results of the requirements analy-
                                system model. The logical system archi-        sis and, starting from the main function
                                tecture is used to analyse relations and       ‘Generate mobility,’ are transferred to a
                                connections between system elements            function hierarchy (C). The system ele-
                                and to determine the optimal system in-        ments of the logical architecture realize
                                terfaces. We have developed an overall         functions very concretely so that there is
                                three-step procedure to identify the mod-      a link between the functions and the sys-
                                ules and build up a modular architecture       tem elements. Individual functions can be
                                for the vessel-family.                         implemented by one or more logical sys-
                                    The first step is to develop a universal   tem elements. As a high-level example, the
                                ship architecture for a battery-powered        system element ‘Engine’ can provide the
                                fast ferry. In the second step, this logical   function ‘Generate Propulsion.’
                                architecture is adapted to real use cases.         The SFI code (D) describes a design
                                Within TrAM, a demonstrator vessel will be     and production-driven classification
                                built and put into operation in the Norwe-     system. Due to its highly functional sub-
                                gian Stavanger from 2022 (a replicated         division of a ship into generic categories
                                unit will also be developed for London).       (hull, equipment or machinery), it pro-
                                The Stavanger demonstrator will be elab-       vides an ideal basis for the derivation
                                orated in close cooperation with the Fjell-    of the logical ship architecture’s system
                                strand ship-yard. Both use cases differ        elements. After passing through the en-
                                in main requirements, e.g., route length,      vironment and requirements analyses
                                maximum speed, the number of passen-           as well as the establishment of the func-
                                gers to be served, etc. Finally, a change      tional hierarchy, the system elements al-
                                impact analysis will be carried out; by        ready created can be compared with the
                                comparing the individual adapted ship          elements of this quasi-standard, restruc-
                                architectures of the different use cases,      tured and, if necessary, renamed.
                                system elements in the architecture that           In addition to the SFI code, other re-
                                have remained the same will be identified.     sources can be used to develop the logi-
                                These are potential candidates for future      cal architecture. For example, ship archi-
                                modules. It will also be relevant to see       tectures from previous similar projects (E)
                                which systems will change for every use        can be used to supplement the logical
                                case because the definition of standard        architecture. The resulting architecture is
                                interfaces between varying and remaining       finally reviewed through interviews with
                                parts of the architecture is what allows the   ship development experts (F).
                                individualization of the ship.
                                    The development of the general logi-       As simple as
                                cal ship architecture has followed a multi-        Despite the high potential, modularisa-
                                step procedure. Different partial models       tion approaches can hardly be found in the
                                have been developed to create a logical        maritime industry due to the high degree of
                                architecture. In particular, the relation-     dependency between the ship’s individual
                                ship between individual partial models,        system elements. If approaches like the
                                other support tools, and the resulting         presented procedure and Systems Think-
                                system architecture is illustrated in Fig-     ing become more popular, effects on the
                                ure 1. The starting points of the proce-       current tender processes should become
                                dure are the environment analysis (A)          visible – forming a future where you can
                                and requirements (B) of the CONSENS            buy a ship as simple as a car.            ‚

16 | Harbours Review | 2021/1
Photos: Einride
                                   How a Swedish tech-company is helping to transform road freight

                                                                 A game changer
                                                                                                    by Ragnar         Johansson

By rethinking road freight from scratch, the Swedish tech-company Einride is developing a solution
that has the potential to revolutionise transport by being both cost-competitive and sustainable.
Einride’s Autonomous Electric Transport (AET) system is based on self-driving, all-electric vehicles,
the so-called Pods. The company has already attracted global interest for its solution, including
the Port of Helsingborg, Sweden’s record-breaking second-largest container seaport.

                                           h
                                                   eavy-duty road transport is respon-       Building the roster
                                                   sible for around 7% of global CO2              Einride was founded in 2016 by the en-
                                                   emissions. By substituting electric-      gineer and former automotive executive
                                                   ity for diesel, Einride believes it can   Robert Falck and has already had a signifi-
                                           reduce the level of pollution by as much as       cant impact on the transportation industry

e  inride provides the mind and the
   muscle to transform transport. The
company offers a complete Autono-
                                           90% for countries with a low-carbon elec-
                                           tricity mix like Sweden. Emissions of nitro-
                                                                                             since its start. In May 2019, it became the
                                                                                             first company in the world to put an elec-
                                           gen oxides and ultrafine soot particles that      tric, driverless truck on a public road. It
mous Electric Transport (AET) solution
                                           can be harmful to people’s health can be          did so with its customer and partner, DB
consisting of an intelligent shipping
                                           eliminated as well (read more in BTJ 4/14’s       Schenker, at the global logistics provider’s
platform and electrically-powered, driv-
erless vehicles, aka Pods. Einride is      Driving out of last breath. The cost of air       facility in Jönköping. “This day represents
making the movement of goods more          pollution from road transport).                   a major milestone in Einride’s history, and
intelligent: emission-free, safe, cost-         There are also strong business incen-        for our movement to create a safe, efficient
effective, and ultimately sustainable.     tives for transport-intensive companies to        and sustainable transport solution, based
To challenge conventional thinking,        transition to a sustainable electric transport    on autonomous, electric vehicles, that has
please head to www.einride.tech            system. Fleets of Einride’s Pods can be co-       the potential to reduce CO2 emissions from
                                           ordinated by an intelligent routing system,       road freight transport by up to 90%. I can’t
                                           which optimises delivery time, battery life,      begin to describe how proud I am of our
                                           and energy consumption. The company               team that made this happen in collabora-
                                           thinks its solution could reduce operating        tion with our great partner and customer DB
                                           costs by around 60% when compared to a            Schenker,” said Falck about the occasion.
                                           traditional diesel engine truck with a driver.         Einride has to date built an impressive
                                           As such, CB Insights, a cutting-edge re-          roster of customers, apart from DB Schen-
                                           search and technology firm from New York          ker also Coca-Cola European Partners, the
                                           City, has named Einride one of three Sus-         Michelin Group, the Swedish arm of Lidl,
                                           tainable Shippers in its Game Changers            and Svenska Retursystem (a Stockholm-
                                           2020 report, in which it identifies emerging      based company that develops and oper-
                                           trends and high-momentum start-ups with           ates reusable systems used to simplify
                                           world-changing potential.                         and improve the logistics and distribution

17 | Harbours Review | 2021/1
of goods). One of the more recent addi-         Tab. 1. Main characteristics of Einride’s pallet and timber Pods
tions is the Port of Helsingborg. The port is                             Range                                                Weight
                                                            Loading                     Top        Battery
located in a booming part of the Nordic re-       Truck                     per                                    Size          fully
                                                            capacity                   speed       capacity
gion and functions as a rail & road freight                               charge                                               loaded
hub. This is one of the factors that have         Pallet    15 pallets                             200 kWh       7 x 2.5m
                                                                          200 km      85 km/h                                 26 tonnes
made it one of Sweden’s most used sea-           Timber     16 tonnes                              300 kWh      7.3 x 2.5m
ports – its container turnover reached a
new peak in 2019 (+10.8% year-on-year up        solutions, and the combination thereof,       Cooperation (JBIC). Other investors join-
to 267,652 TEUs). “The Innovation Partner-      could reduce CO2 emissions from trans-        ing the round included Ericsson Ventures,
ship with Einride means exploring new and       port in the industry.                         Norrsken Foundation, Plum Alley Invest-
uncharted territory together. In the third                                                    ments, and Plug and Play Ventures.
quarter of 2021, we hope to have a pilot in     Tech-enabled sustainability                        The funds will support both organiza-
place to transport containers between two            Einride’s solution for self-driving,     tional growth and continued investments
different parts in our port area. As the last   electric trucks, is based on a variety of     in Einride’s software platform as well as
level and step three, the vehicles should       technologies, including advanced safety       further international expansion, enabling
be able to drive 4-5 kilometres outside         systems and sensors like lidars, radars,      the company to keep on building demand
the port,” commented Mats Fernebrand,           and cameras used to position the vehicle      for sustainable transport and delivering on
Purchasing Manager, the Port of Helsing-        and observe its surroundings. The pio-        its growing number of customer contracts.
borg. Falck added to this, “The Innovation      neering Pods are equipped with special-       “Our ambition is to disrupt the transport in-
Partnership with the Port of Helsingborg        ized modular trailers for transporting pal-   dustry and closing our series A brings us
will enable us to explore how autonomous,       lets, timber, and perishable goods, while     one step closer to that goal. The funding
electric trucks can contribute to both ef-      future vehicles will be pretty much able to   will allow us to start expanding in the US,
fective and safe transport in harbour areas     take on-board any shipment. Self-driving      deliver on our technology roadmap and
while radically reducing CO2 emissions.         technology for Einride is not an end in it-   to meet rapidly increasing customer de-
We look forward to the partnership with         self but is seen as an important enabler      mand,” sums up Falck.
the Port of Helsingborg and the opportu-        for future sustainable transport. Vehicles         “Robert has a bold vision and a great
nity to be part of their continued journey      without a cab are naturally lighter and       way of attracting the right people,” said
to become the most modern port in the           can be developed and designed for elec-       Claes Hemberg, the man synonymous
Nordic region.”                                 tric propulsion (Tab. 1).                     with personal finance in Sweden for more
     Meanwhile, Einride partakes in other            Another important milestone for the      than 20 years and, for some time now,
eco-friendly undertakings, too. One of          company came just after summer 2019           also one of Einride’s investors. Hemberg
them is a research project – carried out        when Einride announced it had closed its      continued, “He wants to challenge the
within the framework of the Triple F (Fos-      first big funding round of $25m, co-led by    status quo and change road freight trans-
sil Free Freight) initiative – conducted by     the EQT Ventures fund, a European mul-        port by introducing a more intelligent
the Stockholm Environment Institute with        tistage venture capital fund with commit-     system, based on self-driving, electric
the help of the Forestry Research Insti-        ments of over €566m, and NordicNinja VC,      trucks, that is both sustainable and cost-
tute of Sweden and involving players from       a deep tech-focused €101m Nordic & Bal-       efficient. The last part is crucial. Compa-
across the Swedish forest industry that will    tic fund backed by Panasonic, Honda, Om-      nies need a compelling business incentive
study how the most innovative fossil-free       ron, and the Japan Bank for International     to change. Einride has that.”               ‚

18 | Harbours Review | 2021/1
sustainability
   Key takeaways from ABS’ Pathways
   to sustainable shipping
Photo: Elianne Dipp/Pexels

                                                                                                 Not enough?
                                                                                                                     by Przemysław                       Myszka

We’ve been reporting on the topic of cutting down the sea shipping industry’s carbon intensity for a long time now
and have done so from multiple angles – technological, financial, regulatory, and even political. One of the latest
analyses comes from the American Bureau of Shipping (ABS) which has investigated alternative fuel pathways
toward reaching the International Maritime Organization’s (IMO) greenhouse gas (GHG) emission reduction target:
down to half of what was emitted in 2008, by 2050 (meaning to 460.5 million tonnes). Whereas there are a plethora of
more or less mature technologies that promise to supply low- or zero-carbon bunker, that alone won’t be sufficient.
More worryingly, implementing measures that would slow global warming, in line with the +1.65 centigrade goal
(with a 50% probability) set forth by the International Energy Agency (IEA) in its Sustainable Development Actions
(SDA) scenario, hence limit the demand for shipping fossil fuels (even carried in the holds of a green fleet),
probably won’t get the job done either. That said, one is inevitable, ABS observes, “[…] there is consensus that
adapting to the new rules and challenges aimed at lowering its collective carbon footprint will be another period of
uncertainty driven by disruptive environmental legislation, and defined by the innovative solutions which emerge.”

t
     he ABS’ research revolves around three      Fig. 1. Three fuel pathways to carbon-neutral and zero-carbon shipping
     non-mutually exclusive pathways: light
     gas fuels; heavy gas oil and alcohol; and
     bio/synthetic. These are structured into
the framework of two scenarios, base (with
and without the adoption of less carbon-in-
tensive fuels) and the so-called Accelerated
Climate Action (ACA). Both are informed by
the projections made by the Intergovern-
mental Panel on Climate Change, with the
latter assuming the implementation of IEA’s
SDS and their impact on the world trade of
dry and liquid bulk as well as containerized
goods. ABS has partnered with Maritime
Strategies International (MSI) to calculate
how international sea shipping will fare
carbon-wise by 2050 under these scenari-
os, all in order to, “[…] reference available
carbon-reduction strategies and inform the
shipping industry as it enters the uncharted
waters of the […] emissions challenge.”
                                                 Source for all figs. and tabs. (except Fig. 12): American Bureau of Shipping’s Pathways to sustainable shipping
19 | Harbours Review | 2021/1
LIGHT GAS FUELS

    This category comprises fuels made of                                   footprint of LNG can be further lowered                   fossil natural gas. Biomass can be used
small molecules with low-carbon-to-hydro-                                   by blending it with liquefied gases that                  to source SNG/RNG at an efficiency of
gen (C/H) ratio such as hydrogen itself but                                 have been sourced in a more renewable                     up to 70%. There’s also the coal-to-SNG
also liquefied natural gas (LNG) along with                                 way, a solution already explored in Swe-                  option, though, the conversion results in
its variations depending on how they’re                                     den through the addition of sustainable                   more CO 2 emissions than burning coal,
produced, e.g., synthetic natural gas                                       liquefied biogas (LBG) produced in Lid-                   so additional measures would have to be
(SNG) or renewable natural gas (RNG).                                       köping (e.g., by using LBG, the ferry line                implemented to make it climate-friendly
    Compared to other future fuel can-                                      Destination Gotland wants to achieve a                    such as carbon capture and seques-
didates, LNG has over the past several                                      climate goal of reducing its CO 2 emis-                   tration (CCS). Alternatively, there’s the
years established itself as a fairly ma-                                    sions by 70% by 2030). According to a                     power-to-gas lane to explore where hy-
ture bunker not limited to the gas car-                                     2011 analysis prepared by the Gas Tech-                   drogen can be used to react with CO 2
rier segment. On paper, LNG promises                                        nology Institute, RNG produced from                       to produce methane or SNG/RNG, or
a CO 2 emission reduction of up to 21%                                      waste biomass (e.g., agricultural) has                    when hydrogen is used to upgrade low-
vs heavy fuel oil (HFO), provided that                                      the potential to offer up to 2.5 quadrillion              quality biogas. The 4-9% (hydrogen by
methane doesn’t slip from engines (an                                       British thermal units/year, the equiva-                   energy) hydrogen-compressed natural
issue for any shipowner going for a low-                                    lent of what the half of homes in the US                  gas blend can be used either in inter-
pressure Otto cycle engine and who also                                     consume. SNG can be produced from                         nal combustion engines or in fuel cells
makes no investment in methane oxida-                                       biomass, too, yielding >90% methane                       (obviously, the eco-friendliness of this
tion catalysts and other exhaust gas                                        by volume mixtures and with the same                      method depends on the energy source
after-treatment systems). The carbon                                        physical and chemical properties as                       used to produce hydrogen). Because

Fig. 2. Hydrogen production costs for different technologies in 20301
                                    7

                                                                                                                                                    Combined sensitivity
                                    6

                                                                                                                                                    CO₂ price sensitivity
                                    5
                                                                                                                                                    Capex and Opex sensitivity
                                    4
                          USD/kgH

                                                                                                                                                   Fuel cost sensitivity
                                    3
                                                                                                                                                    WACC sensitivity

                                    2
                                                                                                                                                    CO₂ price

                                    1
                                                                                                                                                   Fuel costs

                                    0                                                                                                               Opex

                                                                                                                                                    Capex
                                         Electrolysis    Electrolysis      Natural gas        Natural gas      Coal without        Coal with
                                             grid         renewable         without           with carbon         carbon            carbon
                                                                             carbon             capture          capture            capture
                                                                             capture
1
    WACC – Weighted Average Cost of Capital

Fig. 3. Carbon intensity of hydrogen production with and without utilizing Carbon Capture Utilization and Storage

                                            With CCUS, 90% capture rate
            Hard
            coal

                                                         Without CCUS

                                            With CCUS, 90% capture rate
            Natural gas

                                            With CCUS, 56% capture rate

                                                         Without CCUS

                                        Renewable or nuclear generation
            Electricity

                                                   Gas-fired generation

                                                   Coal-fired generation

                                           World average electricity mix
                                                                           0             5           10           15          20           25      30               35           40

                                                                                                            kgCO₂/kgH

20 | Harbours Review | 2021/1
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