INITIAL GREEN SHIPPING CORRIDOR NETWORK DISCUSSIONS

Chart Course For Future Collaboration

BY JULIE GEDEON

Initial discussions towards establishing a binational Green Shipping Corridor Network (GSCN) within the St. Lawrence and Great Lakes region indicate a genuine willingness by maritime stakeholders to work towards decarbonization, but opinions still vary on the best ways to proceed, the elements to prioritize, and the resources that will be required. “The Canadian and U.S. governments committed at the COP27 Climate Change Summit last November to facilitate the development of this network and later called on both Seaway authorities to begin these discussions,” Terence Bowles, the President and CEO of the St. Lawrence Seaway Management Corporation (SLSMC), shares. “This forum was an opportunity to identify voluntary collaboration efforts and implementation strategies for decarbonization of marine shipping.” Nearly 100 representatives from government agencies, maritime industry organizations, as well as individual ports and ship owners attended the initial Collaborative Forum co-hosted by the U.S. Great Lakes St. Lawrence Seaway Development Corporation (GLS) and Canada’s SLSMC on April 4th at a hotel near Chicago’s O’Hare International Airport. “I think we’re off to a good start with many of those involved already working hard at decarbonizing maritime operations, so we’re definitely not starting from scratch here,” Bowles says. “There was a lot of good information exchanged.”

High level support

Administrator Adam Tindall-Schlicht at the GLS likewise welcomed the receptiveness to the Forum’s approach of open and collaborative panel discussions. “One of the most significant takeaways in terms of feedback was that the way to realize this network – given the international conversations at both COP26 and COP27 and since then –is recognition that unlike other green shipping corridors being developed around the world this clearly has to be a network,” he says. “Ours must be a multi-faceted approach towards achieving broad-based decarbonization of the Great Lakes Seaway System.”

Tindall-Schlicht adds that the international momentum behind the development of green shipping corridors at the highest levels of government is reflected in the billions of dollars being allocated by the U.S. Inflation Reduction Act and the Bipartisan Infrastructure Act, as well as recent announcements of initial funding by the Canadian government.

“U.S. Transportation Secretary Pete Buttigieg reiterated at the latest G7 meetings the belief that green shipping corridors are both key to reducing maritime emissions and to creating a rare generational economic opportunity by transitioning industry with paired government financing and support,” he adds.

Bruce Burrows, the President and CEO of the Chamber of Marine Commerce (CMC), was among those glad to see discussions get under way. “We came away with the establishment of a couple of working groups and a lot to consider in preparation for when we meet again,” he notes.

Showcase opportunity

Burrows regards the GSCN as an ideal opportunity to showcase what the marine mode – or what he notes is “the green mode” when compared to rail and trucking – is progressively doing to decarbonize transportation as ship owners, port authorities and terminal operators work towards a net zero carbon goal. “I see this network as being a series of more cleanly powered routes that are often interconnected, but we still have to formally establish where it extends and what exactly constitutes a part of it.”

The CMC welcomed the Canadian government’s establishment of a Green Shipping Corridor Program in the federal spring budget with $165.4 million to be delivered by Transport Canada over the next seven years. “It’s a good starting point for the large investments that will be essential to research and develop the cleaner energy sources required to transition to full decarbonization,” Burrows says. “The investment tax credits announced for producers of clean hydrogen, along with other clean technologies such as carbon capture, are also good news, and we look forward to seeing how fuel producers and ports might be able to use them to advance the corridor’s decarbonization.”

In keeping with the pursuit of decarbonization, the CMC has welcomed the suggestion by Gregg Ruhl, Algoma Central Corporation’s President and CEO, at the Forum in Chicago to take five years to examine future energy options, while focusing on the immediate extensive use of biofuels and/or other currently available renewables.

Route analyses

Mathieu St-Pierre, the President and CEO of the St. Lawrence Economic Development Council (SODES), says the current binational governmental directives could be interpreted in various ways, and it’s imperative to analyse data to determine the ideal routes in tandem with their respective best energy sources and logical connections within the network.

“We have a unique opportunity here to decarbonize maritime trade along with a lot of the overall transportation sector with ports already being a gateway for vessels, railcars and trucks,” St-Pierre says. “But we have to identify the best opportunities to decarbonize within this corridor to ensure there’s the sufficient reliable long-term customer base to merit the large investments required.” SODES has been working since last year with Innovation Maritime on a report about maritime transportation that could help to identify the best routes. “We have to look at whether the stops we make today are the ones that make the most sense going forward,” St-Pierre emphasizes. “And the answer is probably no, based on evolving trade patterns and the realities of cleaner energy sources that might lead to certain ports serving a much greater role as new fuel stops rather than cargo points.”

St-Pierre says there’s also a need by the key stakeholders to fill information gaps about current and potentially future best routes along the way. “For instance, we might have the overall data on vessels travelling between Montreal and Thunder Bay, but lack details about stops along the way,” he explains. “We need to look closely at the ideal transits to support with new infrastructure based on expert data analyses and the input of fuel producers regarding available supplies, logistics and storage potential.”

Making sure that everyone is behind the decisions ultimately made, including the cleaner energy suppliers, is crucial, according to St-Pierre, who adds that the shipping industry must also undertake to be as efficient as possible to minimize the required amount of fuel in the first place.

He also notes that it’s ultimately shippers who decide how everything is transported. “That’s why it’s so important to collect and clearly present the data on the corridor’s decarbonization going forward,” he says. “We need to establish a solid baseline and subsequently relate progress.”

Benchmarking credibility

Green Marine’s President David Bolduc says the voluntary environmental certification program might be able to help in terms of providing a clear framework for the corridor’s ultimately agreed-upon criteria. “It’s certainly been our program’s mission over the past 15 years to minimize the maritime industry’s environmental footprint with many of our industry members already measurably reducing their air emissions,” he says. “Green Marine can offer the credibility we’ve established from our experience in developing the criteria to measure and transparently relate this kind of environmental progress.”

Bolduc notes that many of the key stakeholders from both sides of the border already belong to Green Marine which originated with ship owners, ports and terminals in the St. Lawrence and Great Lakes corridor to address pressing environmental issues that included polluting air emissions. “We can also help to arrange the expertise from more than 100 Green Marine supporters involved in the scientific research community, NGOs and government agencies who are concerned with these matters.”

He commends the GLS and SLSMC for organizing a good start to the discussions and says it’ll be interesting to see where things go next. “One of the many unique features of the Great Lakes market structure is its reliance on privately owned ports and terminal operators whose representatives should be invited to future meetings,” he notes. “We also have to reach out to fuel suppliers who aren’t usually a part of our shipping community’s discussions.”

Definitive goals

The first major task in Bolduc’s view is to reach consensus on a definitive goal for the network’s decarbonization. “Then let’s talk next about how we want to measure its progressive achievement so that we can properly funnel the related government funding and other required investments for this major transition,” he adds. “And I think we have to move as quickly as possible on this front because we’re hearing about new corridors and projects for them every other week nowadays.”

Bolduc recommends looking at how decarbonization is being approached in other inland waterways, such as the Rhine which also runs through various jurisdictions with a series of locks and draught limitations. The Central Commission for the Navigation of the Rhine has been tasked with identifying the greener technologies best for achieving a 35% carbon reduction by 2035 (compared to a 2015 baseline) and to largely eliminate emissions by 2050.

Canada Steamship Lines is among those hoping for precise definitions and objectives for the GSCN sooner rather than later. “We would like to see a green shipping region distinct from a port-to-port corridor, as this would better suit the unique nature of operating on the Great Lakes and St. Lawrence,” says Emily Pointon, the CSL Group’s Global ESG Director. “Determining what this will look in practice will be the next challenge.” Based on the company’s successful biofuel trials, CSL envisions the St. Lawrence and Great Lakes as a region where biofuels could quickly become a commercially viable solution if initially supported with specific incentives and infrastructure investments.

“When calculating emissions from biofuel on a lifecycle basis, results immediately show the carbon emission reduction benefits of this drop-in fuel,” Pointon notes. “While research and development continue on future fuels such as hydrogen, biofuels provide a proven and practical green alternative to support the decarbonization of the marine industry.”

Commercial viability

Pointon immediately adds that at least initial support is required to make biofuels, which are nearly double the cost of fossil fuels, competitively feasible. She notes that Canadian ship owners already find themselves at a disadvantage in terms of tax and carbon credits, along with equivalent subsidies for biofuels amounting to approximately $1.50 per litre in the United States compared to only 50 cents in Canada.

“Canada needs to provide biofuels at a level that is cost competitive with the United States,” Pointon emphasizes. “Every day we’re seeing production increase in the U.S. and Canada slowly falling behind.”

Ad hoc approvals for still unregulated biofuels on a yearly basis also make it uncertain for suppliers to invest in stockpiles that might ensure ample supply and possibly reduce costs through the economies of scale.

The CSL Group is currently researching the feasibility of using battery-operated vessels for some repeated journeys. “Shortsea shipping routes lend themselves to battery solutions if shore infrastructure and renewable electricity is available to support the operations,” Pointon says.

Possible AI applications

At Global Spatial Technology Solutions (GSTS), Chief Executive Officer Richard Kolacz says the means to oversee, coordinate and track all of the corridor’s traffic to maximize energy efficiencies and record emission reductions, no matter the energy source used, already exists. GSTS created OCIANA TM for the international green shipping corridors being established to achieve decarbonization, such as the one pledged between the Port of Antwerp and Montreal Port Authority (MPA) in November 2021.

“The Port of Montreal and CSL participated in our very first demonstration of the platform for ocean corridors,” says Richard Kolacz. “It’s a platform that we could definitely adapt for the St. Lawrence and Great Lakes network as well.”

For the last five years, CSL has been pioneering biofuel testing in the Canadian maritime industry and publicly sharing the success of its trials. Ship owners have taken notice and started to show a keen interest by actively exploring and conducting their own tests with the drop-in fuel.

“We know we can’t do this alone,” Pointon emphasizes. “We need ports, ship owners, fuel providers and the various levels of government to all come together in support of viable solutions to decarbonize our industry or it won’t happen.”

Like others, Pointon anticipates that several alternative energy sources might progressively be used in future.

In March, the MPA and GSTS announced the launch of this new initiative that applies artificial intelligence to analyse satellite and other data to specifically measure and reduce the carbon footprint of vessels using the Port of Montreal. The online platform has been providing real-time data on the route, speed and position of vessels heading to the port with the data analysed to estimate and coordinate ship arrivals to coincide with berth availability.

OCIANA’sTM subscription-based service is currently being rolled out worldwide to provide ship captains, port officials, charterers, navigational pilots and terminal operators with the real-time information to dynamically manage corridor vessels in a similar fashion.

“It’s like Google Maps or air traffic control

“It’s like Google Maps or air traffic control for maritime transportation with OCIANA already managing real-time information for 200,000 vessels worldwide every few seconds,” Kolacz says.

Subscribers can log into the web-based system to find out the information relevant to their part of a transit whether it’s a ship’s captain wanting to know when pilotage will be available, or areas to avoid because of shallower waters or the presence of whales. Shippers can obtain updates regarding cargo arrivals. Operating under the Canadian Remote Sensing Act, the service provides anonymized information to the people authorized to receive it.

“Just like Google Maps tells you when there’s traffic but doesn’t give you vehicle license plates, we provide decision-related information to those with a need to know,” Kolacz explains.

Kolacz says the platform has been developed and verified in conjunction with ports, shipping lines, terminal operators, the Canadian Coast Guard, the Royal Canadian Navy, and the Canadian Border Services Agency.

The primary goal is to save energy, regardless of fuel type, by avoiding delays of any sort. “Going forward, we can inform vessels where new refueling or electric charging stations are available,” Kolacz adds. “As new datasets become available, we can also create additional energy savings by monitoring and analysing the way that railways and trucks handle cargo.” Kolacz says GSTS is currently in some preliminary discussions with stakeholders in the St. Lawrence and Great Lakes to determine how OCIANA can address the region’s uniqueness. **

A summary of the initial Collaborative Forum is available online with an invitation to anyone interested in attending future meetings to contact the GLS or SLSMC: https://www.seaway. dot.gov/GSCNForum n