Sustainability is more than just a buzz word for this decade – it represents a significant cultural and business change driven less by regulation than by the recognition that it has meaningful impacts on the bottom line. Ports and terminals, as large consumers of energy – often in sensitive air quality environments – can benefit tremendously by becoming smarter and more efficient to boost their operating profits. The drivers of smart ports are simple: managing energy allows a reduction in operating expenses (Op-Ex), improves the bottom line, meets the growing demand for greener operations and helps the critical areas of SQRA – security, quality reliability and availability. Ports are uniquely positioned to be leaders in this area given the magnitude of energy usage, 24-hour operations, the ability to switch between resources and the amount of control that can be exercised within a defined geographical area. There are also critical market forces at work as cost competitiveness increases a port’s attractiveness. This is particularly true in the extremely competitive container handling market where a difference of a few dollars on box handling rates can cause a shipping line to move its trade to a competitor – sometimes on very short notice. Further, some ports are in ozone non-attainment areas, making them ideal places for air emission reductions which have value. And, as a price is ultimately put on carbon nationally, as it has been in eleven states in the United States, there is a real financial benefit to measure, monitor and reduce. Rather than taking a fragmented approach, forward-thinking ports are developing integrated energy roadmaps which look over a ten-year horizon and link the various parts into a comprehensive energy plan. While it is certainly possible to take a piecemeal approach, linking the port’s vision to specific capital expenses with a goal of reducing Op-Ex allows increased savings and improved performance. A well-constructed roadmap also puts a port in a stronger negotiating position with its current energy suppliers, provides “destinations” which can be known and measured in terms of performance and establishes a long term view of one of the largest Op-Ex expenses. The roadmap can also be amalgamated with the needs of other industries close to the port such as warehousing and chemical production plants that can also be large consumers of energy.
Ports in Remote Locations
Ports in remote locations are typically served by one energy supplier and there is little incentive for the suppliers to provide competitive energy rates. Added to the cost pressures are SQRA issues as the port (and surrounding industrial users) suffer from repeated outages, fluctuations in quality of power and the fundamental challenge of availability at critical times. Frequency fluctuations are of particular concern for major items of equipment such as ship-to-shore cranes and rail-mounted gantry cranes with sensitive electronic components. Improvements in terms of energy efficiency and load management can be fairly straightforward to implement and can include:
* Upgrading yard lighting to LED fixtures
* Upgrading office and warehouse lighting with more efficient fixtures, occupancy sensors and day-lighting
* Integrating building and HVAC management systems with conventional or smart electric meters for demand response
* Smart charging of forklifts and other plug-in electric motors/equipment
* Integrating distributed generation (e.g. solar photovoltaics, diesel generators and microturbines)
* Managed control of reefer containers’ startup and cooling
Many port authority and port operators are considering renewable energy, including wind, wave and solar power, but quite often they do not tie to the port’s true power consumption or electric load profile. In addition, most ports make huge assumptions as to the renewable resource’s availability. This is particularly critical as wind and solar resources have capacity factor issues; that is, they cannot be relied upon full time. For example, solar and wind power are available to produce electricity approximately 20%-30% of the time while conventional power resources are available 85% or more of the time. To address this difference, the port must integrate with the local utility and/or provide energy storage. Such issues can be coupled with an in-depth discussion of the port’s goals and desires as well as a view of its sustainability goals. More than a dozen generation options can be evaluated when preparing the port’s Energy Roadmap including renewables, traditional diesel generation, turning trash to oil for electric generation as well as other vehicles and load control/energy management. The purpose of the Energy Roadmap is to identify elements of technology and energy infrastructure that will augment financial stability and sustainability performance for the port. The concept is to view any individual technology or project not as an endpoint, but rather as a part of a larger process, and to make decisions on the longer term strategic need rather than react only to current urgencies such as equipment breakdowns that require immediate replacement. The Energy Roadmap results in a strategic summary document, incorporating the results of an energy efficiency and alternative energy prioritisation and allowing the port to navigate the projects and energy issues on the path to achieving a sustainable energy strategy. Once c
ompleted, the Roadmap provides the port with a strategic view of choices, goals and desired outcomes to facilitate energy decision-making over the next five to ten years. The Energy Roadmap identifies the technology elements, energy infrastructure, markets and efficiency projects that will shape the future of port operations. The Roadmap also brings a perspective to total costs, improvements to financial performance, develops an understanding of expectations and can provide opportunities for capital budgeting optimisation.
Ports can use the Roadmap for five fundamental purposes:
* Reducing operating costs
* Improving carbon and sustainability performance
* Improving power quality and reliability
* Negotiating power with its utility provider
* Focusing capital investments
Bottom line on the bottom line
In the highly competitive container terminal operating environment, ports and terminals are in a unique position to improve their sustainability performance while lowering operating costs and increasing profits. This is a “win-win” situation and forward thinking ports are planning for the future now. In the highly competitive container terminal operating environment, energy operating costs are a major part of the bottom line. The preparation of an energy roadmap can be prepared for both existing facilities and new greenfield developments. Planning ahead is the key to success.
In a box
This paper is based on a presentation given by Quentin Holland at the Port & Terminal Technology Conference and Exhibition 2011, held in Houston Texas in April 2011. Quentin Holland has led numerous container terminal development projects from inception through construction and commissioning both in the United States and around the world. The author acknowledges special thanks to Mark Gabriel and Tony Georgis who assisted in the preparation of this paper.