Port of Gothenburg driving towards a more sustainable infrastructure

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2 Port of Gothenburg driving towards a more sustainable infrastructure Sara Sköld Port of Gothenburg Sustainability sara.skold@portgot.se Introduction Environmentally differentiated port due The reference group Programs to improve the environment

3 Location Port of Gothenburg

4 Excellent location Short approach 3 capitals within 6 hours 70% of Swedish industry within 500 km Rail shuttles to the most important Swedish logistical nodes Well-developed feeder network High-frequency systems for European transport

5 About the Port of Gothenburg 564,000 ro/ro units in ,000 Container TEU s in 2010 From 2 to 26 rail shuttles in seven years 233,000 new cars in million tonnes of oil in ,75 million passengers/year, in international services

6 Largest port in Scandinavia Göteborg Malmö/Cph Trelleborg 44* Aarhus 12.6 Helsinki 11.8 Helsingborg 7.5 Oslo Stockholm Million ton, 2008 *) Million ton, 2010 Page 1 (2)

7 but smaller in Europe Page 2 (2)

8 Most important environmental impact from shipping Global warming Eutrophication, CO2, NOx, SOx, PM Acidification, Refrigerants Photochemical smog Respiratory problems, premature deaths Depletion of the ozone layer Oils, wastes, bilge water Oils Antifouling, ballast water, sewage. Damage of our oceans and the aquatic life DDT, Hg, PCB, TBT Invasive species

9 Additional environmental impact from ports Noise Odours (for instance from oil harbour) Dredging waste material

10 Differentiated port tariff 0,05 SEK/GT Tariff 0,20 SEK/GT SEK/GT NOx rebate ,9 g NOx/kWh 0,20 SEK/GT 2,0-5,9 g NOx/kWh 0,1 SEK/GT 6,0-9,9 g NOx/kWh 0,05 SEK/GT NOx rebate 0,10 SEK/GT 14 g NOx/kWh SEK/GT Tariff 0,0% S charge 0,1% 0,2% 0,3% 0,4% 0,5% 0,00-0,20 %S 0 SEK/GT >0,50 %S 0,1 SEK/GT 0,6% Sulphur content in fuel 0,7% 0,8% 0,9% Sulphur charge 0,20 SEK/GT 1,0% Net revenue dedicated for environmental purposes

11 Development of a reference group Inviting clients, representatives from the shipbrokers, county administrative board, environmental NGO s etc Aim to give guidance in the future environmental efforts/investments for sustainable development of transport, through the port of Gothenburg Aim to discuss the next review of the differentiated port tariff

12 The processing of the ideas Aug 2010 meeting Introduction Nov 2010 meeting GHAB Evaluation - should be cost Brainstorming - summarize all ideas effective related to environmental benefit - should give an 1. Measures to added value to minimize air shipping and port emissions from related activities shipping (S & NOx - should be possible ) to finish before the 2. Measures to mitigate end of 2012 other impacts from shipping Final ranking of the investments Discuss reviewed differentiation of the port dues GHAB Feasibility study of the top ideas (Reviewing the port dues) Dec 2010 report Final proposal for investment 3. Other measures for more sustainable shipping and port Annual process until zero emission!

13 Suggestions from the reference group 1. Program to refund investments in improved fuel quality 2. Refunding good performing ships according to Clean Shipping Index 3. More Onshore Power Supply for container, car carrier and cruise ships segment 4. Reduction of volatile organic compounds in the port of Gothenburg 5. Retrofit vessels which frequently call at the port of Gothenburg with LNG propulsion 6. Investment in black- and grey water purification equipment 7. Reduction of smell and volatile organic compounds in the oil harbour of port of Gothenburg and many more.

14 1. Program to refund investments in improved fuel quality Port of Gothenburg supports shipping companies that contribute to a cleaner air in Gothenburg A shipping company or operator can be reimbursed for the extra fuel costs incurred by investing in fuel that is cleaner than prescribed by law. To qualify: max 0.1 % sulphur main engine, auxillary engine and boilers Up to SEK 250,000 per vessel during 2011

15 2. Refunding good performing ships according to the Clean Shipping Index Holistic view - CO2, NOx, SOx & PM, water & waste, chemicals. Goes further than laws and regulation Covering main type of vessels from all ages, operational factors included Strong economic driving force by cargo owners money talks Vessels verified by independent third party 20 first ships verified as good performing vessels share 0.6 million SEK.

16 Examples of good performing vessels

17 3. Onshore Power Supply Shore-side electricity Shore-connected electricity supply Shore power Ship-to-shore Cold ironing Alternative Maritime Power (AMP) o n b o a rd tra n s fo rm e r s u b s ta tio n k V c o n n e c t io n k V p o in t k V OPS means that ships use dockside k V electricity instead of burning bunker fuel to keep their own generators running Emission reduction more than 90% Energy source can be fossil free Noise reduction

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19 85 % of ports replying to the questionnaire are planning to connect or investigating the feasibilities to connect > 20 30% of calls in Port of Gothenburg are able to connect

20 4. Vapor Recovery Unit Reduce the emissions of hydrocarbons with >90% investment 2 million SEK Petrol Gas recycling Petrol fumes Vessel tank

21 5. Retrofit vessels with LNG propulsion Retrofit vessels that frequently call on the Port of Gothenburg Investment include max 2 million SEK per vessel

22 5. Retrofit vessels with LNG propulsion Fuel type Marine bunker fuel 3.5 % sulphur SOx (g/kwh) 13 Marine 2 diesel 0.5 % sulphur Marine gas 0.4 oil, 0.1 % sulphur LNG 0 NOx (g/kwh) 9-12 Particles (g/kwh) 1.5 CO2 (g/kwh) About Source: Report from SWECO LNG for propulsion of vessels in Sweden,

23 6. Investment in black- and grey water purification equipment Procurement of purification system for black- and grey water. The investment include up to 0.5 million SEK during 2011 and 0.5 million SEK during Investing in purification of black- and grey water leads to less emission of nutrients in the port of Gothenburg. This increases the water quality and lowers the local problems with lack of oxygen in the seabeds.

24 7. Reduction of smell and volatile organic compounds in the oil harbour The reference group suggests to invest 0.2 million SEK in investigation and development of a filter. If this will be determined as feasible the reference group finds it motivated to spend up to 2 million SEK between the years The obvious environmental benefit is the lowering of odours when loading bunker oil in the oil harbor. Emissions of VOC lead to increased amounts of ground level ozone. High concentrations of ozone near ground level can be harmful to people, animals, crops, and other materials.

25 Conclusions from working with the reference group Greatly appreciated by customers and other involved parties Increased transparency and dialogue Economic steering seems effective Continued development of the port due using the Clean Shipping Index and perhaps the ESI The Port of Gothenburg supports cleaner shipping

26 Thank you for your attention

27 RailPort increases service and reduces environmental load 26 daily cargo shuttles Motivates a concentrated focus on infrastructure Reduces environmental load Fulfils industry demands for swift service Reduces impact on rural roads Raises efficiency of railway Reduces transport costs

28 Why Göteborg? Central location with 70% of Nordic industry and population within 500 km 25% of Sweden s foreign trade passes through the Port Capacity to grow Customised systems 1.5 hours from open sea to quay 24 h/day, 7 days/week, 365 days/year Daily rail shuttles to 26 destinations Quality and environmental certification to ISO 9001 and ISO US Container Security Initiative CSI

29 Our services Ro/ro Containers, incl short-sea Rail Logistics Cars Oil Passengers Cruise Storage

30 Our terminals Oil Terminal Container Terminal Ro/Pax Terminal Ro/ro Terminal Car Terminal Cruise Terminal Expansion Area

31 Maritime safety Two independent fairways 1.5 hours from open sea to quay Depth at quay 15 metres (19.6 m at oil pier) No tide, no ice Port Control Port Information Guide; marine queries gathered

32 We will be an environmentally strong link in the logistics chain Schenker Logistic prize 2008 We will contribute to a long term sustainable development by an integrated and proactive environmental work to achieve a minimum of negative environmental impact....and proud winner of Lloyd s Lists Clean Seas Award 2008, the FUTURE TRANSPORT AWARD 2009 the PEGASUS prize!

33 A responsible Port Safety/Security Greatest possible security for customer cargo thanks to container X-rays (CSI) fenced-off area ISPS classification Environment Vapour recovery unit Shore-side electricity Differentiated harbour dues ISO Quality ISO 9002:2000

34 Göteborg is the natural Freight Hub of northern Europe