PortEconomics is at #ESPO2018, the annual conference of the European Sea Ports Association (ESPO) and provides you live coverage of all you want to know about the latest discussions of European port authorities.
Eamonn O’REILLY, Chairman, ESPO: “Developing a basic infrastructure to serve Europe is more than important. Energy and climate challenges change the environment. Building acceptance, societal integration of the projects if we are going to build, is too important. TEN-t networks demand inter-border relations, transnational operations. we need to create conditions for a functional single market. Thus, “investing in ports of tomorrow’ is more than a catchphrase.”
PortEconomics note: The ESPO conference returns to its roots: at Port of Rotterdam , where the very first conference was held in 2004
Allard CASTELEIN, CEO, Port of Rotterdam: “Rotterdam was the busiest port in the world, dung the period1962-2004 and today is the bidget in Europe this is because it has been well connected…
The importance of the “Internet of things” is high in Rotterdam agenda. Everything is coming interconnected. It is important to create an investment climate to make this development relevant for the society….
An application is PROTO, facilitate coming in the port and getting out of the port, this is more efficient in monetary perspectives, but also in terms of contributing to the society by minimising waste and emissions….
Energy is another key issue. We consider three element on our way forward. First, what we cand do right now. Second what we can do in the mid-term, the next 15 years, and then the long term project. Rotterdam is ready to publish a new study on the implications of the emissions profile to the transport sector itself….
Brexit might have huge implications, and for the prosperity of our society and economy. Some 5 m. extra documents and files will have to be filled every year due to Brexit….
Rotterdam faces 25 million tonnes maritime GHG emissions in addition to 30 million tonnes from land-based sources, the world is not served by rules on land-based emissions alone, proposing a carbon price of 50-70 euro per ton…
Ports have a key role in this context. Key issues include infrastructure, the role of EU to facilitate cross-border infrastructure., facilitate innovation to have a global advantage, and creating a level playing field”
Lidewijde ONGERING, Secretary-general Dutch Ministry for Infrastructure and Water Management: “Europe’s ports can win on quality and smart solutions. Level playing field is important for all”
Karel DE GUCHT, Former Minister of Foreign Affairs of Belgium and Former European Commissioner for Trade, State Minister touches the Italian political crisis when presenting the challenges and opportunities of Europe as a global actor. This proves to be a very sensitive issue, at least for Italian ports.
Tim POWER, Managing Director: “US transforms gas and oil markets..….Gas: Qatar was the biggest LNG exporter, challenged by Australia, US emerging strognly, it is expectet to have total capacity of 105mtpa by 2022. In 2022 the US is expected to become the largest LNG exported followed by Australia. Meanwhile, China will rise as a major LNG imported in the Asian market importing 60 million tones of gas per year…..
…Crude oil: The middle East has been largest exporter of crude. US crude production is taking off, form around 5.000 kbpd in 2017 to 9.423 in 2017 and 12.133 in 2022….
..Iron ore shifts East: Demand is growing fast and shifting ist. China accounted more than four-fifths of Asian imports in 2018. Australia and Brazil are top iron ore exporters and contribute 80% of global trade…
Colombia and Russia are the EU’s major coal suppliers…
A very fragmented container industry but we are at a state of transition: In three years we will have a very different industry..First because of major industry consolidation. Second because containership sizes double on most trades. Third because vessel sizes and service frequency declines. Volume is been concentrated….Yet, remarkably extended port coverage is being maintained. Direct calls Asia-North Europe prove that direct calls are maintained. Received wisdom about large vessels=transhipment was wrong…Concentration of volume creates new risks: Volatility, and concentration of power in few clients..”
Round table on “the drivers of port infrastructure”.
René BUCK, CEO, BCI: “External challenges for business include new competitors market shifts, new business models but also geopolitical developments and risks: Companies identify geopolitical challenges among the key one they face.
Companies can’ t wait and see negotiations between Brussels and Westminster. Brexit is here, and business have to decide.
Chances of a future in which growth of ports will be limited are on the rise…..First, because of long term economics trends: Asia’s cost advantages will shrink, new production technologies, mutli-polar growth reshoring of production….Second because of policy shifts: less public support for globalisation, growing protectionism, trade restrictions on the rise, new transport modes (silk routes).. Impacts on ports: ports have to face the risk of loosing to a growing extent. Potential responses of companies on challenges: manufacturing footprint scenarios, based on perspectives like product group allocation, geography”
Michael J. FORD, Chief Compliance Officer, BDP International: “What does the digital supply chain mean ? “The logistics’ ecosystem. Everyone is involved Connections for all parties associated with the movement of efficient trade flows. Digitisation does not correct or improve what has always been bad or inaccurate. approximately 80% of all cargo that arrived in the US is cleared as the vessel arrives: That means ‘predictability’, and this is a good sign…Digitisation is based on ‘single window, centralisation of imports, and Trade facilitation agreements.. There are still concepts to be reviewed: risks, paperless, advanced data, involvement of all government agencies, all industry partners, predictability… Digital transformation is required, not just digitisation, the change of process: Robust process are needed.”
Jan KEMPERS,Heineken Netherlands Supply: “we decided some years ago to go for a carbon neutral supply chain…here in Holland we have a fine example of cooperation between shippers and ports in achieving this carbon neutral supply chain”
Steven LAK, Chairman, Deltalinqs: “Port authority and private sector should have a correct balance, in Rotterdam private sector invests 6 to 8 times what the port authority invests….Cooperation and open dialogue are key to take the important steps we have to take in the port….Decarbonisation and digital transformation are key for the prosperity of the ports……Organizations like ESPO need to cooperate with other associations to coordinate initiatives related to investments. …Governments need to embrace change.”.
Joachim COENS, CEO, Port of Zeebrugge: “The key task of a port authority is to bring people, cargo, infrastructure and – especially also – data together. Discussing about digitalization we realised that we do not really have the people that we need to employ. We need to educate people. In Zeebrugge we think that we need aprox. 600 people to work and we cannot find the right people. New skills are needed.”
Santiago GARCIA-MÍLA, Deputy Executive Director, Port of Barcelona: “create “added value’ is a new way of managing the port, not just moving boxes. This is too important for the ‘port of the future’..We are not looking for people who can understand ‘infrastructure only’, we need people who can understand the need for economic, social, and environmental sustainability.”
Jens MEIER, CEO, Port of Hamburg: “we don’t have the problem to find skilled people in Hamburg. Here the relationship between port and the city is important. The city can attract skilled people that will work for the port… Don’t think that it is easy though, it is difficult because you need to predict the future, educate those already working for your port , and make necessary changes.. ”
Keynote Speech: Climate Change & Shipping
Beatriz YORDI, Director, European Commission, DG Climate Action, Directorate “European & International Carbon Markets”: “Decarbonizing the shipping sector: Efficiency 3030 target will trigger updates of present day technology; Absolute 2050 target will trigger transition to sustainable alternative fuels. Immediate short-term action: priority to agree measures that can help before 2023; revised EU ETS Directive adopted in 2018; measures need to be in operation before 2030. ..Need for support and input from the industry and ports …
Supportive action is needed, reasearch technical cooperation, incentives for first movers to take up new technologies; measures to encourage port developments and activities including optimization of information within the logistical chain; speed optimization; renewable onshore power supply, infrastructure to support alternative low-carbon and zero-carbon fuels.
Port initiatives: Central role in designing logistics & supply chains; great that ports developed the WPSP, “let’s praise the proactive and sustainable ports’ .. I would like to express full support of EU for World Ports Sustainability Program and call ports to improve and harmonise AirQuality GHG incentive schemes, making them more meaningful; EU MRV Regulation supports efforts by providing information on CO2 emissions in EEA ports…
Discussion for long-term solutions.. solutions exist, the key challenges is commercial deployment of technologies in the timescale necessary. Paris Agreement is an important step and motivator for action; crucial role of ports in sustainable and economic development.”
Andreas BOSCHEN, Head of Department, connecting Europe Facility : “Funding possibilities for maritime ports under CEF; maritime portfolio 2014-2017: 83 projects. Priority actions: upgrading of establishing mos links and wider benefits actions addressing industry needs….Implementation issues: delays in obtaining building /environmental permits; Problem to secure the ‘own resources’ for the investments; underestimated costs during application/grant preparation phase; procurement issues; environmental issues… CEF2 regulation proposal to be published on 6thJune 2018…Ports have been active and successful in applying for CEF funding in a competitive environment; CEF provides considerable financial support to ports”
BUILDING ACCEPTANCE FOR FURTHER PORT DEVELOPMENT
Sibrand HASSING, Holland America Group: “stakeholder engagement is a condition for sustainability. We have a sustainability policy with specific goals, the most important goal, to reduce our carbon footprint has been achieved and this is important… Climate change is one of the biggest challenges we have.. Switching from marine diesel to LNG is our target; we hardly had any technical problems for the moment….We need to go beyond the 17 UN sustainability goals, and talk about people, community and the environment… Ports are first and foremost strategic asset of a country; we should promote dialogue.. port management has a role to play to begetter explain how widespread the impact of ports is in the fabric of the society, how they impact the environment, the economy and the society.”
– Malte SIEGERT, Head of Environmental Policy, Naturschutzbund Deutschland (NABU), “persistently high impact of port operations and development on the local economy; we work to develop institutionalised dialogue…Working with stakeholders is a nuisance, it is time consuming, not necessarily always reach the target, needs professional moderation, demands trade-off from all, respect, attitude and trust.”
– Matteu TURRÓ, Professor of Transport at the Polytechnic University of Barcelona: “Cost Benefit analysis should be an integral part of any port investment decision, even though it is a long process, and needs a lot of assumptions, and periodical updates as demands changes. It is difficult but allows a continuous auditing of the process…Projects need to have a real European value added to be funded by EU”.
Eeva HIETANEN, Director of Communications, Port of Helsinki: “We have done exercises with cruise lines, meeting with people, press, politicians, to discuss how much cruise is doing to protect the environment… Noise in Scandinavia is a major issue, when in other places it is not…We need to work closely not only with cruise companies but also ferry lines. We do have an environmental promise…social media is not helping us, as they give a lot of intensity to what we are doing..We get feedback and we work to address.. A port has to be part of the city planning, to be integrated in the planning of the reception of cruising”.
Koen OVERTOOM, CEO, Port of Amsterdam: “We need to remember the value of ports….In the cruise sector it is important to see what it brings to the economy…we need to focus on major effects rather than side effects….We need all together to see what is there in the future and work together to address…People have problem with tourism and they blame cruise, when cruise is just one percent of the tourists that reach Amsterdam… So this is also politics.”
Pino MUSOLINO, President, North Adriatic Sea Port Authority: “we meet stakeholders…we need to work on the social perception…we are blamed for things that we are not producing…innovation and research about new technologies are important… European ports are ‘in the city’ for historical reasons…I would add to the three pillars of sustainability a fourth dimension, this is ‘culture’. We cannot be the port that we were in the past but we have a role to play..
In Venice we have voluntary agreements with stakeholders. I have challenged those questioning the port to sit together to see why the challenge it, what has been their method to reach results about the port’s emissions, but we never received any reply.”
End of Day 1 of the ESPO 2018 Conference – the PortEconomics initiative (Thanos Pallis, Peter de Langen, Larisa van der Lugt, Patrick Verhoeven, and Intra Vonck) will return to the Conference tomorrow to follow the latest in port authorities discussions.
