In the era of developing new services to support the decarbonization of the maritime sector, ports play a pivotal role, for enabling the transition to cleaner and more sustainable shipping practices. Thus, as the world seeks to combat climate change, the push for decarbonizing ports has gained momentum.
The goal of this procedure is to make ports more environmentally friendly while maintaining their essential role in global trade, aligning with broader sustainability and climate goals. In this issue, Robban Assafina catches insights from different experts showing the challenges and opportunities of ports’ decarbonization in the light of infrastructure readiness.
Ports’ Challenges
There are many obstacles and operational challenges ports face in transitioning to low-carbon or zero-carbon operations, and in a way, these challenges impact port competitiveness and long-term profitability.
From DP Worlds’ Group Vice President – Energy Programmes, Piotr Konopka viewpoint, one of the major challenges in transitioning to low-carbon or zero-carbon operations is the high capital expenditure (CAPEX) required for new equipment, and these costs are typically recovered over the equipment's lifetime, the initial financial outlay can be a significant barrier for many ports operators, that can impact short-term profitability and make investment decisions more complex. “Historically, the availability of essential equipment has also been a major challenge to transitioning to low or zero carbon operations.
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However, with an increasing number of Chinese manufacturers entering the market, supply chain issues have been largely mitigated, ensuring better availability of low-emission port equipment.” Konopka continues, “another critical issue is the limited supply of low-carbon fuels. While second-generation biofuels such as hydrotreated vegetable oil (HVO) have shown promise in regions like the UK, their availability remains extremely limited or even non-existent in other parts of the world. This disparity in fuel accessibility creates operational inconsistencies and limits the scalability of decarbonization efforts globally. Lastly, the instability of electricity grids in many developing countries presents a major challenge to deploying electric equipment. Without reliable access to electricity, ports in these regions struggle to transition to electric-powered machinery, which in turn limits their ability to achieve significant emission reductions.”
Dr. Abdullah Al Abri, VP Sustainability, Sohar Port and freezone, confirms that ports face numerous challenges in decarbonizing operations. These include the high costs of new infrastructure like electrification and renewable energy, uncertain surroundings, emerging technologies like hydrogen and ammonia, evolving regulations such as the IMO's Carbon Intensity Indicator, potential operational disruptions from integrating new technologies, and the risk of losing business to greener competitors.
Jordi Torrent
From different point of view, Jordi Torrent, Head of Strategy of the Port of Barcelona & General Secretary of MEDPorts Association, says that ports in the Mediterranean are progressing in the decarbonization of their activities. “OPS is being deployed across the region for container ships, ferries and cruise ships. Ports and terminals are developing numerous projects in order to be able to provide alternative fuels to shipping lines”. Torrent adds, “most ports in the MED are also investing a lot in the development of rail infrastructure in order to transfer road traffic to intermodal services. Having said that, the main obstacles in order to become carbon neutral are basically: non availability yet at massive scale of carbon neutral alternative fuels and price of electricity.”
As for Nektarios Demenopoulos, Deputy Manager PR, IR & Company Announcements at Piraeus Port Authority, the transition to sustainable operations is not an easy task. “Ports play a crucial role in global trade, but shifting to low-carbon and zero-carbon solutions comes with significant challenges. High investment costs, energy supply constraints, demand uncertainty, and evolving regulations are some of the biggest hurdles. One of the key concerns is ensuring a return on investment while staying competitive. Ports need to invest in sustainability without compromising their operational efficiency or financial viability. Collaboration across the maritime sector is very important.”
Demenopoulos continues, “while regulations push the industry toward sustainability, they’re still evolving, and the roles of ports, shipping companies, and authorities aren’t always clearly defined. Despite the challenges, Ports that invest in sustainability aren’t just meeting regulations—they’re future-proofing their operations. Being ahead of the curve means attracting environmentally conscious stakeholders, securing long-term business, and strengthening resilience against future regulatory changes.”
Ports Balancing Strategies
In order to balance between economic growth with environmental sustainability in ports, there are lessons to be learned to make significant progress in decarbonization. Dr. Abdullah Al Abri states that balancing economic growth with environmental sustainability is a key challenge for ports. One approach is to adopt a phased approach, gradually implementing green initiatives such as shore power and LNG bunkering to minimize financial strain while demonstrating a commitment to environmental responsibility.
Dr Abdullah Al Abri
Dr. Al Abri explains, “collaboration is also crucial. Leveraging public-private partnerships with governments, shipping companies, and technology providers can help share costs and risks associated with decarbonization efforts. Learning from ports that have successfully integrated sustainability into their growth strategies, such as Rotterdam and Los Angeles, can provide valuable insights. These ports have invested in renewable energy, electrification, and green corridors to achieve significant progress in decarbonization. Incentivizing green practices by offering reduced port fees or priority berthing for low-emission vessels can further encourage the adoption of sustainable technologies.”
From Torrent’s viewpoint, both things go hand in hand nowadays and are not contradictory at all. “International coercive legislation is important in order to advance towards zero carbon solutions and force the industry to accept new solutions that reduce the environmental footprint of supply chains.”
Demenopoulos, also highlights the importance of balancing economic growth with sustainability, saying that “balancing economic growth with sustainability is definitely a challenge, but it’s possible with the right approach. The key is to integrate sustainability into expansion strategies from the start, rather than treating it as an afterthought.”
On the other side, Konopka believes that over the past five years, the business case for decarbonization has improved substantially, driven by significant reductions in the cost of battery-electric port handling equipment and sustainability becoming an integral aspect of our customers’ tender process. “Over the years, we have been able to prove that economic growth and sustainability can go hand in hand, as lower operational costs from electrification contribute to financial viability.” Konopka adds, “switching to alternative electric handling equipment results in a lower total cost of ownership compared to traditional diesel-powered machinery. This shift is further supported by reductions in the cost of electricity sourced from renewable energy, as well as advancements in automation, which improve overall operational efficiency.”
Ports Role Differentiation
In the process of encouraging shipping companies and terminal operators to adopt low-emission solutions, ports play a pivotal role. Torrent says that there are many steps to apply this process, such as deploying OPS in ports and terminals; prioritizing the calls of vessels running on alternative fuels and electric batteries; generating renewable energy in warehouses and buildings for providing electricity operations; providing bunkering solutions for low or zero carbon fuels; offering discounts and rebates on tariffs and port dues to calls from environmentally friendly vessels. Whereas, Konopka states that it is crucial to differentiate between the roles of port authorities and port terminal operators in promoting low-emission solutions. “Port authorities have significant influence in shaping regulations, such as implementing low-emission zones within port areas, mandating shore power connections, or adjusting fee structures to incentivize the use of more sustainable vessels.”
As for Dr. Al Abri, ports can encourage the shipping industry to adopt low-emission solutions through a combination of incentives, regulations, and collaboration. Offering financial incentives like discounts on port dues for vessels using cleaner fuels or shore power can make these options more attractive. Aligning with international regulations, such as the IMO's GHG strategy creates a level playing field and encourages wider adoption of sustainable practices. Dr. Al Abri explains that demonstrating the return on investment (ROI) of low-emission technologies through successful case studies can also persuade companies to invest in greener solutions. “Finally, establishing collaborative platforms for sharing best practices and co-developing green technologies fosters a culture of sustainability and accelerates the transition to a low-carbon maritime sector.”
Expanding on this, Demenopoulos emphasizes the essential role ports play in enabling the transition to sustainable operations, “Ports play a crucial role in driving this change by providing the right infrastructure and making the transition as seamless as possible. One of the most effective ways is ensuring supply network of alternative fuels like LNG. When ports invest in the development of necessary refueling infrastructure, it gives vessel operators the confidence to switch to cleaner energy sources.”
Infrastructure InvestmentsWhile ports decarbonization have different challenges and obstacles to deal with, still there are infrastructure investments that are required to support the growing demand for green shipping corridors, so ports can incorporate carbon capture and storage (CCS) technologies. According to Konopka, strategic partnerships are vital in developing blueprints for best practices in green shipping corridors, and these partnerships ensure that both technical and sustainability aspects are effectively integrated into port operations.
“CCS is most relevant for locations with large-scale electricity production or heavy industrial activities, where carbon emissions can be captured from a single point source. In contrast, emissions at ports come from multiple distributed sources, primarily fossil-fuelled equipment, making CCS less viable as a solution”, Konopka continues. As for Torrent, he believes that to support green shipping corridors, ports need to invest in expanding shore power facilities, enabling vessels to use onshore electricity and reduce emissions while docked. “Developing bunkering infrastructure for alternative fuels like LNG, methanol, hydrogen, and ammonia is also crucial. Integrating CCS technologies to capture and store CO2 emissions from port operations and nearby industries is essential. Finally, upgrading grid connectivity ensures access to sufficient renewable energy to power these initiatives.”
Alternative Energy Sources Integration
The extent of port preparedness for integrating alternative energy sources varies. Dr. Al Abri states that many ports are investing in shore power infrastructure, but widespread adoption requires grid upgrades and vessel retrofitting. “LNG is widely used as a transitional fuel, but bunkering infrastructure remains limited. Methanol, hydrogen, and ammonia are emerging as promising alternatives, but scalability and safety concerns need to be addressed. Renewable energy integration, such as solar and wind power, is increasing to power port operations.”
Piotr Konopka
From Konopka’s point of view, as an industry, there is a need to ensure compatibility of fuel across global ports, ships and supply chains, and the scalability of future fuel production; to make the necessary technology and engineering accessible; and develop appropriate infrastructure. Demenopoulos highlights that “however, the transition isn’t just about technology—it’s about collaboration. Ports, shipping companies, and energy providers all need to align on infrastructure development, fuel availability, and regulatory compliance. Without a coordinated effort, the shift to cleaner fuels will be slower and costlier.”
Carbon Neutrality
There are technologies and advancements in electrification crucial for emerging to port decarbonization and helping ports achieve carbon neutrality. Konopka confirms on this as increased automation and digitalization are maximizing port efficiency, reducing energy consumption, and optimizing overall operations. Konopka continues, “the development, standardization, and cost reductions in electric port equipment are also significant factors. As electric equipment becomes more affordable and widespread, ports can transition away from fossil fuel-based machinery at an accelerated pace. Advancements in the sustainable energy supply, including renewable energy sources and, potentially, nuclear energy in the future, will further support port decarbonization efforts by providing reliable and clean power sources.”
Demenopoulos also discusses the significant influence of international climate policies on their decarbonization strategies: “International climate policies and regulations are major drivers in shaping our decarbonization strategies. The International Maritime Organization (IMO) and the European Union have set ambitious emissions reduction targets.”
As for Dr. Abdullah, he says that advancements in port electrification include transitioning to battery-electric equipment for cranes and vehicles, implementing smart grids to optimize energy use, utilizing AI and IoT for efficiency improvements, and developing hydrogen fuel cells for heavy-duty applications. On the other level, some factors in evolving international regulations influence port decarbonization strategies, for example, enforcing globally (not regionally or nationally) legislation with clear milestones and a timetable that force shipyards and shipping companies to evolve towards low and zero carbon solutions, as Torrent believes.
From Dr. Abdullah viewpoint, the IMO's GHG Strategy sets targets for reducing shipping emissions, pushing ports to adopt greener practices. The EU Emissions Trading System (ETS) is extending to shipping, increasing pressure on ports to reduce emissions.
“National policies in countries like the UK and Singapore are implementing stricter emissions standards for ports. Corporate sustainability goals and net-zero commitments from shipping companies are also driving demand for green ports.”
Nektarios Demenopoulos
In this context, Demenopoulos says, “achieving net-zero emissions by 2050 is an ambitious but attainable goal, provided that all stakeholders work together effectively. Collaboration is key to scaling sustainable solutions, from integrating green energy production to developing alternative fuel supply chains. Continuous innovation, digitalization, and renewable energy integration play a crucial role in accelerating the transition.”
As a conclusion, with all the strategies ports are seeking for, experts believe that the goal of achieving net-zero emissions for ports by 2050 is challenging but highly realistic.
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:To read the full content, click on the following link Robban Assafina, Issue 96, Mar./ Apr. . 2025, Maritime Host, pg. 66-67 |
