Navigating the Green Transition: First Steps for Ports

The International Maritime Organization has now set a target to reduce greenhouse gas emissions from the shipping industry to net zero by or around 2050. As a result, the whole industry must decarbonize. Although so far much of the attention on reducing emissions has been focused on improving vessel efficiency and switching to alternative fuels, ports will play a key role in this transition as they link fuel supply chains and vessels. Ports are also increasingly becoming aware of their position in the transition and have started investigating their:

In this report, we attempt to answer these questions using key insights gained through the work on green shipping corridors conducted at the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping (MMMCZCS). Furthermore, we provide guidance on the critical first steps for ports in the green transition.

Our analysis reveals that ports specializing in handling chemicals—referred to as "chemical ports"—are better positioned to transition to alternative fuels compared to ports with specialized cargo, such as containers. This is due to their existing infrastructure and expertise in managing hazardous substances, which reduces the additional effort required to handle alternative fuels. Conversely, container ports, while commercially significant, face challenges such as proximity to urban areas and limited experience with chemical handling, making the transition to alternative fuels more complex.

To identify ports most suited for early adoption of alternative fuels, we employ the Chemical Port Score (CPS), a metric that rates a port's chemical handling capabilities based on its infrastructure and operations involving chemicals like ammonia, methanol, liquefied petroleum gas (LPG), and liquefied natural gas (LNG). In addition to the CPS, the report discusses the Port Readiness Level (PRL) framework, which assesses a port’s preparedness for bunkering alternative fuels. Combining CPS and PRL scores allows for a nuanced understanding of a port’s readiness for the green transition, guiding strategic decisions and resource allocation for ports aiming to become part of green corridors.

Given the critical role ports will play in the maritime industry’s decarbonization, it is imperative that ports assess their CPS and PRL to gauge their readiness and identify areas needing improvement. Chemical ports, with their inherent advantages, should capitalize on their position as potential first movers by engaging actively in green corridor projects and other decarbonization initiatives. Ports with lower CPS and PRL scores must recognize the challenges ahead but should also begin preparing for the transition by enhancing their infrastructure and capabilities to handle alternative fuels.