IAPH &

Challenges facing World’s Ports

Kaohsiung, August 2015 , Susumu Naruse

The International Association of Ports & Harbors

s_naruse@iaphworldports.org

About IAPH (1) Foundation

Only international association of the world’s port authorities and

maritime industries.

Established in 1955,

Headquartered in Tokyo

IAPH Vision Statement:

The Global Ports’ Forum for

Industry Collaboration and Excellence

About IAPH (2)

Missions and Structure of IAPH

Mission Statement

• Promoting the interests of ports worldwide through strong member relationships,

collaboration and information-sharing that help resolve common issues, advance

sustainable practices and continually improve the way ports serve the maritime industries.

Members of IAPH

• --The major members are port authorities.

• --Regular members cover nearly 180 ports in some 90 countries, who handle nearly

• 70% of the world container traffic

Regional Principle

• --Three vice-presidents are elected from 3 regions (Asia/Oceania, Europe/Africa, and

• Americas), and the president is basically elected in rotation of the 3 regions from

• among these vice presidents.

Consultative Status

• --IAPH is given a Consultative Status as NGO from the UN

• organizations such as IMO, UNCTAD, UNEP and ILO.

About IAPH (3)

Activities & Publications of IAPH

Activities

--IAPH holds “World Port Conference” once every

two years.

--Over 900 port people gathered together in

Hamburg for the 29th World Ports in June 2015.

--The next Conference will meet in Bali, Indonesia in

May 2017, and the Mid-term in Panama City, 2016.

--Nine (9) technical committees meet at least once a

year and periodically publish committee reports.

Publications

-- Official Magazine, “Ports & Harbors”, is published

once every two months.

-- IAPH on-line news is sent to the members once

every two weeks.

-- IAPH Membership Directory is published once a

year.

-- Reports of technical Committees are published on

an ad hock basis.

World Seaborne Trade (1)

• World seaborne trade has increased steadily except in year 2009.

• Dry cargo has shown the strongest growth in these years.

• Container, in particular, shows a tremendous increase during last 20 years.

International Seaborne Trade (millions of tons loaded), UNCTAD

0

2000

4000

6000

8000

10000

12000

1980 1985 1990 1995 2000 2005 2010 2011 2012 2013

Container

Other Dry Cargo

Five Major Bulks

Oil and Gas

World Seaborne Trade (2)

Container Throughput by Region/Country • Far East Asia accounts for more than 40% of the total throughput in the world.

• Other Asian regions also a show rapid growth.

• Developed countries in Europe and North America have decreased their shares.

Container Throughput by Region (by Drewry)

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

1980 1990 2000 2009 2010 2011 2012 2013

Others

Africa

Latin America

Mid East

Souht East Asia

Far East

West Europe

North America

Size of Container Ships (1)

Average Container Ship Size

• Size of container ships has been increasing rapidly.

• The size of newly built container ships has become larger to reach a level of more

than 6,000 TEU since 2011.

Average Size of Container Ships (by Drewry)

0

1000

2000

3000

4000

5000

6000

7000

1995 2000 2005 2010 2011 2012 2013

Average Size

Average Newbuilding

Size of Container Ships (2)

Order-book of Container Ships

• Different sizes of container ships have been ordered depending on their uses.

• Container ships with a capacity of 12,000TEU and over account for 40% of the total order-

book in terms of their capacity.

• When these mega container ships are deployed in future, smaller ships in the main sea routes

will be cascading to the secondary sea routes, and then to the tertiary route, and so forth.

Order-book of Container Ships in TEU Capacity as of July 2013 (by Drewry)

-1000

1000-2000

2000-3000

3000-5000

5000-8000

8000-10000

10000-12000

12000+

Size of Container Ships (3)

Large Vessels: Triple-E

• Mærsk line ordered the US$190 million, 400

meter 'Triple-E' class vessels with a

capacity of 18,000 TEU containers.

• Triple-E stands for “Economies of Scale”,

“Energy-efficient” and “Environmentally-

improved”.

• Superior economies of scale will enable the

new vessels to surpass the industry record

for both fuel efficiency and (20% better)

CO2 emissions per container moved.

• 10 Triple-E ships will go into service

between 2013 and 2015.The first ship began

to operate last year (2013).

• Some expect 22,000 TEU ships in 2020.

• Ports need to invest a lot in infrastructure

(length and depth of berths), superstructure

(gantry cranes) and overall operational

efficiency to accommodate this type of ultra

large ship.

Ship Size Growth

and Requirements for Ports & Terminals

Requirements for Ports and Container Terminals

1. Better infrastructure, e.g., deeper channel, wider terminal

2. Larger and more number of cranes to handle larger peaks of

cargo

3. Fragmented terminal capacity is a challenge for ports.

4. Efficient port transaction (EDI, paper-less transaction)

5. Efficient land-side connections (preferably, rail or inland water)

6. Contingency plans for possible accidents of large ships

Expansion of Panama Canal

• Expansion of Panama Canal is now under way.

• When completed in 2016, a traditional concept of “Panamax” will greatly change. Even the

largest container vessels except Triple-E can pass through the canal.

• It will dramatically change container transport between U.S. east coast and Asia.

• Ports in east USA and Latin American will have great benefits for trades with Asian countries.

Locks Panamax New

locks

New

Panamax1

Length

1,050 ft

(320.04

m)

965 ft

(294.13

m)

1,400 ft

(427 m)

1,200 ft

(366 m)

Width 110 ft

(33.53 m)

106 ft

(32.31 m)

180.5 ft

(55 m)

160.7 ft

(49 m)

Depth,

draft2

41.2 ft

(12.56 m)

39.5 ft

(12.04 m)

60 ft (18.3

m)

49.9 ft

(15.2 m)

TEU 5,000 12,000

Port Infrastructure Development

Large-scale expansion projects to meet

increasing cargo demand and ship size

• investing huge resources

• seeking deeper draft & wider space

• overcoming technical challenges

• considering environmental

restrictions

Terminal Automation (1)

• Container terminal automation stared from 1990’s in Europe.

• It could improve port efficiency, save labor cost and upgrade the

safety level of ports.

Yard

Stacking

Horizontal

TransportType 1990

ASC Auto-STR 1-c

Auto-RTG AGV 5

Note:

Man-STR

Man-ShuttleASC

Auto-

OHBC

1-a

1-b

2

3

Fully automated system

Semi automated system

4

Auto-STR Auto-STR

Cantilever

Auto-RMG

Man-Trailer

2010 20202000

ASCAGV and

Lift-AGV

ASC

HHLA-CTA MV2-APM

MV2-RWG

EuromaxECT-DLT

*DPW(London)GWT

TraPac

DPW(Antwerp)GWT

HHLA-CTB

LBCT

TTI(Algeciras)

BNCT

BEST

APMT(Virginia)

DPW(Brisbane)

PPT (Ph-1)

PPT (Ph-4)

Patric (Syd)Patric (Bris)

Evergreen (Kaohsiung)

KMPT(Kaohsiung)

Hanjin (Pusan)

HPNT (Pusan)

TPCT (Taipei)

HIT (Hong Kong)

TCB (Nagoya)

Terminal Automation (2)

- Typical automated terminal

in Europe, “Altenwelder”,

Hamburg, which began

operation in 2002.

- State of the art automated

Terminal (Rotterdam World

Gateway) , which was

competed this year. Ship-shore

gantry cranes do not have any

operator cabins (it is guided by

remote control).

Transforming Ports into Logistics Hubs

Development of Logistics

Industrial Zones

• Integrated logistics services

• Value-added logistics

services

• IT infrastructure

Port Environments and IAPH (1)

Climate Change and IAPH

• Mitigation Measures

-- WPCI (World Ports Climate Initiative) was created under the umbrella of IAPH in 2008.

-- Eight (8) projects were set up.

-- Air Quality and GHG Tool Box

-- Carbon Footprinting for Ports

-- On-shore Power Supply

-- Intermodal Transport

-- Sustainable Lease Agreement Template

-- Cargo-handling Equipment

-- Environmental Ship Index

-- LNG fuelled Vessels and Ports

Adaptation Measures

-- “Seaports and Climate Change - an Analysis of Adaptation Measures - ”, guidelines for

adaptation measures for seaports, was published by IAPH.

Port Environments and IAPH (2)

IAPH Tool Box for Port Clean Programs

• This “Tool Box” provides

information on air and climate issues

of port.

• It has been expanded to include

additional tools on greenhouse gases

(GHG, typically CO2) mitigation.

• The users can prepare a clean air

plan at their own ports by following

the procedures presented in this

web-based tool box.

Port Environments and IAPH (3)

Carbon Footprinting for Port

1. This document serve as a resource guide

for ports wanting to develop or improve

their greenhouse gas emissions

inventories.

2. It provides several different approaches

for developing carbon footprint

inventories for port-related activities.

3. The approaches range from a detailed

one to a simple one (surrogate

approach).

Port Environments and IAPH (4)

On Shore Power Supply (1)

• On-shore power supply is a system to

provide electricity from the local grid

to ships to meet their power demand.

• As some ports have already taken this

measures (US West Coast and North

Europe), interest in the technology is

rapidly growing.

• With the newly revised OPS website,

the users can carry out an initial

feasibility study to introduce OPS in

their own ports.

Port Environments and IAPH (5)

On Shore Power Supply (2)

1. There are currently 120 berths fitted with shore power connections in

the world : 60 in North America; 50 in Europe; and 10 in the Middle

East/Asia-Pacific

2. The new European Union directive, DAFI (development of alternative

fuels infrastructure) wants to see shore power throughout ports in

Europe by 2025.

3. California demands that 50% of container and cruise fleets must now

have shore power connections and must also cut emission by 70% by

2017 and 80% by 2020.

4. In the mainland China, all new container, ro-ro, cruise and bulk

terminals must have shore power in their plans.

5. A question is “Are they financially feasible? ”

(Some experts say the payback period of OPS is just several years,

but some disagree to this.)

Port Environments and IAPH (6)

Environmental Ship Index (ESI) (1)

• The ESI is a measure for the environmental performance of seagoing

ships (air emissions), which is operated and managed by IAPH

• It provides a tool that will assist ports and other parties to promote clean shipping.

• ESI is composed of credits (0 – 100) for above-baseline environmental performance regarding NOx, SOx(indirect PM) and CO2

-- NOx: depending on performance of main- and auxiliary engines

-- SOx: depending of the sulphur content of the fuels used

-- CO2: bonus for monitoring and reporting of CO2 emissions

• Ports develop their own incentive schemes based on ESI points and inform the ESI administration

Port Environments and IAPH (7)

Environmental Ship Index (ESI) (2)

Benefit of each Party

Port Environments and IAPH (8)

Environmental Ship Index (ESI) (3)

• ESI is a system in which we identify ships that perform better than usual ships in reducing

gases emissions and ports give some incentives to these environmentally friendly ships.

• As of July 1st, 2015, about 3,800 ships and 35 incentive providers including 30 ports

(Amsterdam, Rotterdam, Hamburg, Antwerp, Le Havre, Los Angeles, Busan, Tokyo and

others) participate in the system.

• Some examples of incentives are shown in the table below.

Incentive Provider Minimum Requirements Incentives

Port of Amsterdam ESI score 20 or more 6% or more reduction on port dues

Port of Rotterdam ESI score 30 or more 10% or more reduction on port dues

Port of Oslo ESI score 20 or more 30% reduction on port dues (tankers only)

Port of Antwerp ESI score 30 or more, or 25 best

ships

10% or more reduction on port dues

Port of Hamburg ESI score 20 or more 10% or more reduction on port dues

Los Angeles ESI score 25 or more Incentive grant ($250 - $1,250)/call based

on ESI scores

Port Environments and IAPH (9)

LNG fuelled Vessels

• Since ECA (Emission Control Area) was introduced by IMO, North America and North Europe

have been keen to reduce local gases emission such as Sox, Nox and Particulates.

• However, the prices of high quality oil (sulpher content: less that 0.1%) is quite expensive.

• LNG (liquefied natural gas) is much a cleaner energy and less expensive source, which can

almost eliminate sulpher emissions and particulates, reduce CO2 and Nox by 26% and 80-90%

respectively.

• At the moment some seagoing vessels are already fueled by LNG (22 vessels in North Europe)

and new engines are being developed by the manufactures such as Rolls Royce.

• The challenges are future cost associated with LNG as vessel fuel, safety at ports and bunkering

facility at ports.

• IAPH made public a web-site this July, which is comprised of detailed safety checklists of LNG

bunkering at ports (ships to ships, trucks to ships, tanks to ships,

and so forth).

Climate Change -Adaptation- 1

Climate Change Impacts on International Seaports

1. Questionnaire survey to IAPH member ports on how they plan to adapt to climate

change. The survey was carried out in collaboration with AAPA (American Association of

Port Authorities) and Stanford University.

2. Results

--they discuss more frequently mitigation than adaptation measures.

-- most ports prepare port planning on a 5-10 year horizon.

-- design standards of most ports cover 50 year or more historic flood (or storm) events

(but not climate change).

-- about a half ports do not address the climate change issue at this time.

-- Sea Level Rise is the chief concern among ports, which is followed by storm impacts.

-- 38% predicts SLR of 0.5-1.0 m by 2100 and 15% 1.0m or more.

-- 39% feel that 0.5-1.0 m would be a problem and 58% that 1.0-2.0 m would be a problem.

-- ports should be better informed of local SLR and other climate events.

Climate Change -Adaptation- 2

Seaports and Climate Change

- An Analysis of Adaptation Measures-

-- Possible climate change impacts on different types of port facility are addressed.

-- those types are:

1. access channel, vessel mooring area, breakwaters, shore-protection works

and hinterland connections as basic infrastructure;

2. inner channel, revetments, quay walls, mooring buoys as operational

infrastructure;

3. stacking yard, warehouses, silos, and offices as port superstructure;

4. ship and cargo handling equipment as port equipment

-- opportunities and risks caused by possible climate change impacts such as sea level

rise and weather intensification are addressed for each type of facility.

-- a good guidelines for adaptation measures in ports but lacks best practices.