Worldwide sustainable chains: how can eco-logistics contribute?
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1 Worldwide sustainable chains: how can eco-logistics contribute? FROM PORT TO NETWORK ORIENTATION Herman Journée Director Strategic Development Port of Amsterdam Seminar The Adriatic-Baltic corridor: the NAPA perspective Venice 18 April 2013
2 Content I. The World of Ports and Logistics is changing II. Sustainability in Practice III. Sustainable Ports and Logistics Policy Conclusions
3 Content I. The World of Ports and Logistics is changing 1. Scale Enlargement
4 Container ships
5 Fishing ships increased too
6 Larger ships require larger cranes And larger terminals And larger quay walls
7 And a wider and deeper port entrance And new IT support systems for nautical safety and security What are the boundaries of a port? physical, technical and financial
8 Content I. The World of Ports and Logistics is changing 2. New Systems for Ports and Logistics
9 Daily Maersk: network: conveyor belt on the seas
10 Daily Maersk: network: conveyor belt on the seas
11 Network: equipment at the sea Results: Cost reductions, CO2 reductions, reliability
12 Network: the equipment in the seaport Results: Cost reductions, CO2 reductions, reliability
13 The Hinterland Transport Network Results: Cost increases, CO2 increases, unreliable
14 Facts 70% = cargo transport: by road in Europe 43% = is the average use of existing capacity of all trains, trucks and barges in Europe 50% of logistic chain cost = document administration (in a number of cases) Last mile of the logistic chain in cities = highest cost, highest pollution
15 Expectation Cargo Transport will double in size
16 Options for solutions
17 Example for sustainable logistics solutions: a network Hub and Spoke Logistics Sustainable (electric) 1 billion passengers per year
18 Metro Logistics System: Circle Lines Combines recent succesful sustainable chain solutions Is a sustainable hinterland logistic system Is succesfully introduced in practice
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26 CIRCLE LINES: INNOVATIVE NETWORK FOR HINTERLAND LOGISTICS
27 Circle Lines Key Elements 1. RESULTS: impressive, compared to truck only solutions: Cost reductions: up till 50% CO2 reductions: up till 80% Reliability: 98% 2. GOOD PRACTICES ARE THE BUILDING STONES: sustainable chain solutions from by large shippers and terminals operators 3. BUNDLING OF CARGO: in main corridors 4. IT DRIVEN: full chain information delivers new products and services 5. SYNCHROMODAL: free choice of modalities and terminals for the chain manager creates better chain result 6. COMBINES COSTS AND ENVIRONMENT: economic and environmental improvements 7. NEW TYPE OF ORGANIZATION: all operational chain partners cooperate in a new way: carriers, terminals, trucking, barging, rail and shippers, port community IT and customs: total chain result is key driver, cost and profits are shared. Environmental cooperation Port authority - Coast Guard Italy 2012 Approach: learning by doing: start now and improve
28 Content I. The World of Ports and Logistics is changing 3. New Public and Private Rules push to sustainability
29 Environmental Port Related EU- Directives (source: ESPO) 1. Birds and Habitats Directive, Natura Sulphur Content of Marine Fuels 3. Pollution from ships 4. Greenhouse Gas Emissions (Decision on GGE, Revision Climate and Energy package, White paper- Road map to a Single European Transport Area) 5. Port Reception Facilities 6. Water Frame Work Directive 7. National Emissions Ceilings 8. Environmental Noise 9. Soil Framework Directive 10. Regulation on Shipment of Waste 11. Waste Framework Directive 12. Marine Strategy Framework 13. Supplementary Directive on Priority Substances 14. Ambient Air Quality 15. Maritime Spatial Planning
30 Legislation stimulates chain management examples Customs Laws: (Autorised Economic Operator certificate) Security: ISPS Food Quality: General Food Laws
31 Sustainable Logistic Chain Management supporting rules Environmental Zones: clean trucks only in some Cities and Regions Ports: land lease contracts: reduction of cargo delivery by trucks (Ports of Rotterdam, Marseille) Some Shippers: no trucks allowed during rush hours
32 Content I. The World of Ports and Logistics is changing II. Sustainability in Practice III. Sustainable Ports and Logistics Policy Concluding remarks
33 Content II. Sustainability in Practice 1. State of the Art Sustainable Ports and Terminals
34 1. Port of Vuosaari, Finland sustainable port Port of Helsinki moved to 40 km outside the city Latest insights in environmental solutions introduced New logistic centre close to the new port Cost and environmental improvements combined
35 1. Port of Vuosaari, Finland sustainable port Overview sustainability issues: environment humans urban structure finances Sea Health Housing Finances City Ground water Amenity Jobs Finances Society Soil Emissions in the air Fauna Flora Services Recreation Traffic Landscape Cultural History
36 2. APMT Terminal 2nd Maasvlakte Rotterdam Zero emission container terminal (CO2, Nox, particulate matter) Crane driving on distance (from office) Environmentally friendly building method for office and workshop
37 3. Port Networking creates national economic structure Port Networking effects Hinterland Logistics Network Port creates transport corridors. Cities/ Regions reliable connected Same network standards Network investments Network cooperation Knowledge sharing The Last Mile: City Logistics: full electric
38 Content I. The World of Ports and Logistics is changing II. Sustainability in Practice III. Sustainable Ports and Logistics Policy Concluding remarks
39 III. Sustainable Ports and Logistics Content 1. Some requirements
40 REQUIREMENTS Environmental Priority issues for ports source: ESPO-Ecoports survey
41 REQUIREMENTS (Port and terminals) effects of larger scale of ships and infrastructure (1) Important improvements, such as Lower chain transport costs per container Lower chain environmental effects per container Important challenges, such as Higher capital cost Higher financial and environmental risks
42 REQUIREMENTS (Port and terminals) effects of larger scale of ships and infrastructure (2) Increased maintenance costs Examples Broader, deeper channels require more dredging larger environmental impact IT systems require frequent renewal of hardware and software
43 REQUIREMENTS Port Stakeholders: Increased sustainability thinking ánd acting
44 14.Labour Inspection REQUIREMENTS Port Stakeholders control ports and terminals: keep them your friend PORT COMPANIES 1. Sea Shipping Line Carriers 2.Logistic Service Providers 15.Police 16.Fire Brigade 3.Transhipment Terminals for 8.Customs 17.Food Inspection 4.Cruise 5.Warehousing Terminals PERSONNEL 8. Employees 10.Citizens 12.NGO s 9.Labor Organisation 11.Tourists 13.Environmentalists GOVERNMENTAL ORGANISATIONS 18.Environment Inspection 19.Veterinary Inspection 21.Port Authority 6.Tug boat Company 20.City Planning 22. Coast Guard 7.ICT Port Community System SOCIETY ASPECT GROUPS
45 REQUIREMENTS New expertise and skills needed for sustainable port and. logistic systems and networks Example Quality management systems and standards for security, safety, environment, logistics
46 REQUIREMENTS But:...reduction of (local) governments personnel and budget
47 Content III. Sustainable Ports and Logistics 2. Public Policies: limitation and stimulation
48 Punishment and reward policies
49 SEAPORT AUTHORITY and PORT MANAGEMENT Public Tasks Nautical, Security Private Tasks Land, water infra PORT COMPANIES COMMUNITY
50 Punishment and reward policies SEAPORT AUTHORITY and PORT MANAGEMENT Public Tasks Nautical, Security Private Tasks Land, water infra 1980 Negative environmental impact PORT COMPANIES COMMUNITY
51 Punishment and reward policies SEAPORT AUTHORITY and PORT MANAGEMENT Public Tasks Nautical, Security Private Tasks Land, water infra 1980 Negative environmental impact Economic Growth Ports and transport PORT COMPANIES COMMUNITY
52 Punishment and reward policies Government: city, region, nation. EUROPEAN UNION PORT POLICY. SEAPORT AUTHORITY and PORT MANAGEMENT Public Tasks Nautical, Security Private Tasks Land, water infra 1980 Negative environmental impact Economic Growth Ports and transport PORT COMPANIES COMMUNITY
53 Punishment and reward policies Government: city, region, nation. EU and national governments: Legal requirements and Control and enforcement For Impact reduction EUROPEAN UNION PORT POLICY. SEAPORT AUTHORITY and PORT MANAGEMENT Public Tasks Nautical, Security Private Tasks Land, water infra 1980 Negative environmental impact Economic Growth Ports and transport PORT COMPANIES COMMUNITY
54 Punishment and reward policies Government: city, region, nation. EU and national governments: Legal requirements and Control and enforcement For Impact reduction EUROPEAN UNION PORT POLICY. SEAPORT AUTHORITY and PORT MANAGEMENT Public Tasks Nautical, Security Private Tasks Land, water infra EU stimulating rules for ports: introducting E-government 1980 Negative environmental impact Economic Growth Ports and transport PORT COMPANIES COMMUNITY
55 Punishment and reward policies Government: city, region, nation. EU and national governments: Legal requirements and Control and enforcement For Impact reduction EUROPEAN UNION PORT POLICY. SEAPORT AUTHORITY and PORT MANAGEMENT Public Tasks Nautical, Security Private Tasks Land, water infra EU stimulating rules for ports: introducting E-government 1980 Negative environmental impact EU: introducing: e- logistics, chain collaboration Economic Growth Ports and transport PORT COMPANIES COMMUNITY
56 Punishment and reward policies Government: city, region, nation. EU and national governments: Legal requirements and Control and enforcement For Impact reduction EUROPEAN UNION PORT POLICY. SEAPORT AUTHORITY and PORT MANAGEMENT Public Tasks Nautical, Security Private Tasks Land, water infra EU stimulating rules for ports: introducting E-government EU stimulating rules for ports: sustainability in ports and logistics Level playing field for competing ports 1980 Negative environmental impact EU: introducing: e- logistics, chain collaboration Economic Growth Ports and transport PORT COMPANIES COMMUNITY
57 Punishment and reward policies Government: city, region, nation. EU and national governments: Legal requirements and Control and enforcement For Impact reduction EUROPEAN UNION PORT POLICY. SEAPORT AUTHORITY and PORT MANAGEMENT Public Tasks Nautical, Security Private Tasks Land, water infra EU stimulating rules for ports: introducting E-government EU stimulating rules for ports: sustainability in ports and logistics Level playing field for competing ports 1980 Negative environmental impact EU: introducing: e- logistics, chain collaboration Economic Growth Ports and transport PORT COMPANIES COMMUNITY TOOLS FOR Quality Management 1. Basic Level: Ecoports, Ecoslc 2. ISO level: Environment Logistics Security Safety Supported by the European Seaports Organisation Certified by Lloyds Register
58 III. Sustainable Ports and Logistics Content 3. Steps for introduction of sustainability
59 TOOLS: Self Diagnosis objective check of your position Ecoports : Port Environmental Self Diagnosis Method ECOSLC: Sustainable Logistic Chain Self Diagnosis Method Check the result objectively: benchmark against the sector s average
60 TOOLS: introduce a first Basic Quality Management System Ecoports: Port Environmental Review System (PERS) ECOSLC: Sustainable Logistic Chain Management Review System Certification is an option, after validation by independent auditor: Lloyds Register
61 III. Sustainable Ports and Logistics Content 4. Elements of a sustainable port strategy
62 Your perception of: a seaport dictates your port strategy 1. Port = Seaside and seaships Strategy: more seaships Investments: dredging, transhipment
63 Your perception of: a seaport dictates your port strategy 2. Port = seaside, port community and city Strategy: example: Integrating Dublin Port with Dublin city is a key objective and a policy imperative of the Masterplan Investments: directed at a large variety of stakeholders
64 Your perception of: a seaport dictates your port strategy 1.Seaport: Seaside orientation 3. Port = part of networks Seaships Sea Terminal But what are the boundaries of this strategy?
65 Port Strategy: what are your boundaries?
66 Port = part of networks 1.Seaport: Seaside orientation 2.Seaport landside orientation Seaships Sea Terminal Connection to inland transport 3. Seaport - Hinterland transport Hinterland transport barge Inland terminal Barge, rail, road Last Mile The city Hinterland transport rail Hinterland transport road Inland terminal Rail road
67 1. PORT Sea Cargo Port Define now the future: the port s logistics network Fishing Port 2. LOGISTIC CENTRE 3. INDUSTRY Marina Cruise Port
68 The future exists already: New Network Structures in ports and logistics Just make a full system of them Integration of port community and nautical port authority systems Commercial Local Ports Cooperation Commercial Joint Venture Seaport-Inland Port Cooperation Seaport-Inland Port Decision to privatise local ports Discussions to start cooperation Seaport-Inland port Recent practice in Sustainable Hinterland Logistics
69 III. Sustainable Ports and Logistics Content 5. Building a sustainable chain network
70 NEW TOOL Sea Port T Step by Step Improvement Start with ECO Sustainable Logistic Chain orientation T Destination Step by Step Start Simple Seaport terminal trucking barging rail Inland terminal trucking barging rail
71 NEW TOOL Sea Port T Step by Step Improvement Improve the chain T destination trucking Seaport terminal barging rail Inland terminal trucking barging rail
72 NEW TOOL T Step by Step Improvement Go for the best performance Sea Port T destination Seaport terminal trucking barging rail Inland terminal trucking barging Sustainable chain cooperation certificate by Lloyds is possible now rail
73 Content I. The World of Ports and Logistics is changing II. Sustainability in Practice III. Sustainable Ports and Logistics Policy Concluding remarks
74 Concluding Remarks 1. The building of new structures to operate ports and logistics in a sustainable way has started: it will change ports. 2. Keywords are: systems, networks and IT driven 3. Basic, first step, Quality Management Systems help Port Company Communities and Port Authorities to start the process towards sustainable ports and logistics networks Such as Ecoports Tools and the recently developed ECOSLC Tools and their certification
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