Coastlink 2024 Handbook by Mercator Media

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contact: +44 1329 825335

email: info@coastlink.co.uk

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APRIL

2024

25 TO The

sustainable

Hotel

Amsterdam, The

promotion

short sea feeder shipping

sustainable intermodal

logistics networks through the ports that support the sector.

Nick Lambert,

Director, NLA International Ltd

Hosted by:

Port of Amsterdam

The Netherlands 24

short sea shipping &

logistics network Conference Handbook

Jakarta

Netherlands A neutral pan-European network dedicated to the

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Chairman:

Co-Founder &

Gold

Sponsor

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Promote

Welcome to the Coastlink 2024 Conference - we are delighted to meet you all.

I am pleased to welcome you to our 2024 venue, Hotel Jakarta Amsterdam, one of the first energy-neutral hotels in The Netherlands. Built on the former location where ships left for Jakarta, the hotel boasts an energy-neutral status in addition to an indoor subtropical garden. I am sure that this impressive building will add to your Coastlink experience and overall enjoyment of the event.

Firstly, I would like to extend our sincere thanks to the Port of Amsterdam for hosting this year’s event including both the technical visit aboard the ‘Het Wapen van Amsterdam’ and the conference dinner.

As the fourth largest port in Northwest Europe, the Port of Amsterdam is a leading player in the international world of transport and logistics, and is historically characterised by a strong energy cluster. During the technical visit, delegates will enjoy a tour through the Amsterdam port area, providing an unrivalled opportunity to see firsthand the dynamic metropolitan hub. I am sure that you will find the tour insightful, whilst also enjoying the Evening Drinks Reception aboard.

The strategic and central location within Europe makes the port region widely accessible and ensures excellent connections to the major European market. With an annual cargo turnover of more than 80 million tonnes and a total economic added value of EUR 7.2 billion, the port economy in the North Sea Canal Area (NCSA) makes a strong contribution to the Amsterdam metropolitan region. I am also delighted to confirm that Dorine Bosman, Chief Investment Officer at the Port of Amsterdam will be delivering the welcome address.

The 22nd Coastlink remains focussed on the vital role of short sea and feeder shipping and the intermodal transport networks that support the sector. Over the 2-days we will cover pertinent topics with a varied and diverse programme including: Advancing supply chain resilience with modal shift, Smart operations - Digitalisation, Automation, & Innovation Ports - Enabling the Energy Transition, Green corridors - collaboration to drive sustainable growth and Short Sea Shipping - how the market is adapting.

I am also so pleased that our esteemed chairman Nick Lambert, Co-Founder and Director at NLA International returns to Coastlink for the third year in a row. I know that Nick and our moderators will promote active debate and discussion throughout the event, whilst introducing you to our schedule of expert speakers. I hope that you enjoy the sessions and the networking opportunities on offer.

I would like to give a sincere thank you to The Port of Bilbao for being our Gold Sponsor, to Royal HaskoningDHV for also sponsoring, and to all the supporters and speakers who have helped to make Coastlink 2024 possible. Last, but not least, to you, our delegates for joining this year’s conference where we hope you will meet, discuss, and develop key partnerships that will help build a sustainable future.

On behalf of the Coastlink team I hope that you enjoy the Conference. We look forward to meeting you all throughout the 2 days.

Marianne Rasmussen-Coulling Events Director

Mercator Media Welcome 3

Amsterdam, your global hub for fuels

Thanks to its central location and good hinterland connections by land, rail and water, the port of Amsterdam is a world class hub for fuel storage and distribution. Together with our partners in the port we are making the transition to sustainable energy and fuels. We are continuously investing in high-quality fuel storage and infrastructure. With an increased focus on attracting alternative fuel producers, constructing hydrogen pipeline connections, and making use of the available CO2 sources.

Please scan QR code for more info.

Dear Delegate,

Coincidentally and appropriately, I’m enjoying the fabulous snow-clad views of the Norwegian fjords from 9 deck of the M/S Havila Castor enroute to Tromso as I apply pen to paper (or fingers to keyboard) welcoming you to the programme for Coastlink 2024. What better background to ponder the challenges and opportunities of operating short sea shipping routes and logistics networks in complex sea spaces such as the North Sea, Baltic, English Channel and the approaches to northwest Europe?

Commissioned two years ago, the Havila Castor is a very modern LNG and battery hybrid platform reflecting the evolution of ship design in tackling the global concern about shipping emissions. On passage from Bergen, we’ve seen numerous wind and fish farms, one of Ocean Infinity’s new autonomous survey ships in the approaches to Alesund and witnessed the remarkable technologies and processes that support and enable Norway’s sophisticated maritime and coastal infrastructure and communities. It is an obviously national, holistic approach to obtaining socio-economic benefit from the resources of the coastal zone whilst minimising impact on the marine environment. The ship’s approach is also holistic, building on the LNG hybrid propulsion system to include waste recycling of all kinds, table service restaurants (thus reducing waste from conventional food buffets) and describing passengers as ‘eco-travellers’ who can chose environmentally sustainable cabin services and so forth.

So, contrary to the prevailing view that ports and shipping are behind other industry sectors such as aviation and agriculture, here is clear evidence that maritime has world leading technologies and leadership; it can change and is changing. I will happily argue that the Coastlink community has been in the vanguard of these developments over the past five years and has influenced the debate. Our agenda for CL24 is no exception, demonstrating a commitment to environmentally sensitive, regenerative and sustainable port and shipping operations. I therefore look forward to reviewing the short sea market drivers and the potential for the short sea fleet to enable a modal shift in global logistics, addressing the need for green, sustainable end-to-end supply chains in our Day One topics followed by a discussion of the role of ports in driving and supporting the transition to net zero emissions energy solutions on Day Two.

I also much anticipate welcoming you all to the Port of Amsterdam which is, of course, a fabulous example of a technologically advanced port and intermodal logistics operation. Thank you in advance to our delegates, our sponsors (Port of Amsterdam, Bilbao Port and Royal HaskoningDHV), our supporters (British Ports Association, Workboats Association, Logistics UK, BIMCO, UK Chamber of Shipping and the UK Major Ports Group) and (not to be forgotten!) the Mercator Media team. It will be great to see everyone and I’ve no doubt that we’ll have a meaningful debate!

Nick Lambert Co-Founder & Director, NLA International Ltd

Chairman’s Welcome 5

A warm welcome to Amsterdam

Dear Coastlink 2024 participants,

On behalf of Port of Amsterdam, it is my distinct pleasure to extend a warm welcome to all participants of the Coastlink Conference 2024.

As we gather in this vibrant city, known for its rich maritime heritage and dynamic port infrastructure, we recognize the importance of collaboration within an international network of renowned experts, allowing for high-level discussions on the latest trends and developments in our industry.

Short sea shipping, with its inherent advantages in cost-effectiveness, environmental sustainability, and congestion mitigation, presents a compelling opportunity to unlock new opportunities for trade and connectivity across Europe. As we navigate the complexities of global trade dynamics, the potential for short sea shipping to serve as a vital link in the multimodal transport chain is significant.

Our port communities serve as indispensable enablers in facilitating the energy transition towards a more sustainable future. From shore power infrastructure and modern bunkering facilities to import of renewable energy carriers and carbon-neutral port operations, ports play a pivotal role in advancing the transition towards cleaner and more sustainable future.

The Coastlink Conference covers all these relevant topics, igniting discussions on the emerging opportunities for short sea shipping, enhancing supply chain resilience and harnessing the transformative power of ports in facilitating the energy transition.

For several years, Port of Amsterdam is part of this unique network of experts from the maritime and logistics industry. We are therefore proud to host this year’s conference in our home port. On behalf of our entire team, I would like to sincerely thank Mercator Media Ltd. for putting tireless efforts in the organization and planning of this year’s conference.

Once again, welcome to the Coastlink Conference 2024 in Amsterdam. May our collective efforts during the next two days lead to lasting partnerships and meaningful outcomes that propel the maritime industry forward.

Warm regards,

Dorine Bosman Chief Investment Officer Port of Amsterdam

Sponsor Welcome 6

Host

DORINE BOSMAN Chief Investment Officer, Port

of Amsterdam

BIOGRAPHY

Dorine Bosman joined the Port of Amsterdam board in October 2021. As Chief Investment Officer, Bosman provides direction in boosting Amsterdam as a sustainable European seaport and in stimulating and accelerating the energy transition, circular activities and industries, to reduce CO2 emissions in the port and in the region.

Within Port of Amsterdam, Bosman is responsible for infrastructure, maintenance, environmental management, innovations and commercial participations.

Bosman joined Port of Amsterdam after a career in the offshore energy sector – both oil & gas and renewables. Bosman held several technical and commercial positions in the Upstream business, including positions as Vice President Social Performance, and Vice President Offshore Wind for the Shell Group of companies.

Boman likes to work on the touch points of disciplines, finding value in working interfaces and fostering collaboration and integration. Bosman holds an MSc in geophysics from Delft University, and graduated with distinction from the Partnership Brokering Accreditation Scheme (pbas). Dorine is a former board member of the Australian CO2 Cooperative Research Centre and of the UK.

Sponsor Welcome 7

Host

ANDIMA ORMAETXE

Director - Operations, Commercial, Logistics and Strategy, Port of Bilbao

BIOGRAPHY

Andima Ormaetxe has been the Director - Operations, Commercial, Logistics and Strategy at the Port of Bilbao Authority since 2018.

He is a member of the Board of Directors of several Dry Ports and Intermodal Platforms such as Azuqueca de Henares (Guadalajara), Coslada (Madrid), Villafria (Burgos), CSP Iberian Zaragoza Terminal and Sibport.

He is also a member of the Board of Directors of Deposito Franco de Bilbao as well as a member of the Shipping Council Port of Bilbao.

He has held management positions in companies such as ‘Maritima Candina’, ‘Berge Maritima Bilbao’, and ’Agencia Perez y Cia’.

n Degree in Nautical Science

n Merchant Navy Officer

n Masters Degree in Maritime-Port Business Management - University of Deusto

n MBA - University of Basque Country

n Management positions in companies such as ‘Maritima Candina’, ‘Berge Maritima Bilbao’, and ’Agencia Perez y Cia’.

n 2018 to present - Port of Bilbao Authority currently holding the position of DirectorOperations, Commercial, Logistics and Strategy.

Gold Sponsor Address 8

Contents 9 Contents Day 1 3 Opening & Keynote Addresses Session 1 - Emerging Opportunities for Short Sea Shipping –How is the market adapting to economic & market pressures to sustain future growth 10 Session 1.1: Panel Discussion – Green corridors – collaboration to drive sustainable growth .......................................................................................................... 28 Session 2 - Advancing Supply Chain Resilience & Embracing the Benefits Of Modal Shift....................................................................................................................... 35 Session 3 - Ports As Enablers – Facilitating the Energy Transition for Shipping & the Supply Chain ............................................................................. 58 Session 3.1: Panel Discussion – Shore Power – Overcoming the barriers to infrastructure and delivery .................................................................................. 73 Session 3.2: Panel Discussion – Smart operations & logisticsWhat’s next in Digitalisation, Automation and Innovation to drive efficiency? 81

Emerging opportunities for short sea shipping – how is the market adapting to economic & market pressures to sustain future growth

SESSION 1 10

JOHAN-PAUL VERSCHUURE

Senior Port & Transport Economist & Director of Rebel Ports and Logistics

BIOGRAPHY

Johan-Paul Verschuure is a senior port & transport economist and director at Rebel Ports and Logistics. He has extensive experience with market studies and business case development in the port and shipping sector, in particular in the shortsea domain. He combines a technical background as a port engineer with financial economic expertise for developing business cases from a commercial, technical, and financial point of view.

In the shortsea domain he has particular experience in Northwest Europe and the UK. Recent studies in the shortsea domain he was involved in include the shortsea strategy for the port of Amsterdam, shortsea market study for Zeebrugge, Brexit Impact study for ABP, transaction support for a shortsea container terminal in Rotterdam, shortsea fleet analysis North Sea operators and port pricing analysis for the shortsea domain in Northwest Europe. In addition, he carried out studies on the supply of shore-power in the shortsea domain and looking at supporting the uptake of low carbon fuels in the Netherlands.

Before joining Rebel, He has been with WSP Maritime for almost 4 years where he was a Technical Director based in London, being responsible for the contents of the business cases which are delivered by the team. Prior to this position, he gained experience with Royal HaskoningDHV and Ocean Shipping Consultants for over 8 years, part of which being based in London.

1 - Keynote Presentation 11

Session

Shortsea its revival will need a revival in public support

For a long time ‘globalisation’ was dominating the headlines. Stories were focused on increased shares of deepsea trade, growing Asian trade and outsourcing of production. This resulted in closing down shortsea terminals and limited investments in the sector – ports and shipping. And then protectionism, trade wars, geopolitical tension happened. Add to this Covid and an increased focus on sustainable and social responsible trade and the shortsea sector is back making waves.

Shortsea Share on the rise

Container volumes across the board dropped as a consequence of the sanctions on Russian trades, slowing macro-economic conditions and poor export performance in particular. Looking at the North-West European range volumes are roughly back at 2016 levels. In particular the last two years have been surprising. It is unprecedented that such a decrease in volumes happens without a major or deep economic recession.

Source port authorities, statistical offices, Rebel

When zooming in on the shortsea trade the picture is actually different in several ways. First of all last two years were more positive for shortsea than for deepsea trades. This even when accounting for large Russian volumes dropping out form the shortsea Lo-Lo sector. In Port of Rotterdam roughly 6% of the volumes were going to/coming from Russia. However, accompanied and unaccompanied Ro-ro traffic fared much better, compensating for most of this decline. This trend is expected to continue.

Rebel Ports & Logistics NL bv

Expressing the share of shortsea trades as the overall traffic through ports or as share of the gateway traffic only, the reverse in fortune since the covid pandemic is clear. In the aftermath of the Brexit referendum, very low mainline shipping rates and with globalisation dominating the headlines, shortsea’s traffic declined. However the last three years has seen the share rising again.

Wijnhaven 23

3011 WH Rotterdam

The Netherlands

+31 10 275 59 95 info.rpl@rebelgroup.com www.rebelgroup.com

Session 1 - Conference Paper

Favourable Winds

Session 1 - Conference Paper

The shortsea sector is enjoying favourable winds when excluding the sanctioned Russian volumes The first month of 2024 were extending the positive trend started late 2023 with growth again for a range of months. This is expected to continue the coming year with the destocking process slowing down and reversing to its longer term trend.

The shortsea sector is enjoying favourable winds when excluding the sanctioned Russian volumes. The first month of 2024 were extending the positive trend started late 2023 with growth again for a range of months. This is expected to continue the coming year with the destocking process slowing down and reversing to its longer term trend.

And there can be even further upside surprises. Global supply chains keep struggling in the fragile geopolitical context, further highlighting the case for more resilient and shorter supply chains. However, although trade protectionism with in particular China could push more shippers to more local supply chain solutions, alternatives in South East Asia may provide a cushion for global supply chains. Also cost advantages of outsourcing keep being attractive to reconsider. The net direction of these forces has to be seen.

UK-European trade has shown resilience after the first negative post-Brexit reaction. With smoother customs procedures and slowly warming trade relationships again, there may even be upside potential for the intra-European trade. After the 2016 referendum UK shortsea trdae volumes declined. In the slowing macro-economic conditions and struggles which the deepsea segment is experiencing, the shortsea sector stable performance stands out. More remarkable is the shift in modality in the UK trades. The decline in popularity of accompanied trades since 2016 is clear, driving up the Lo-Lo and unaccompanied Ro-Ro sector and therefore the port requirements for storage facilities on both side of the North Sea.

Source: Uk Department for Trade, Rebel

Supporting policy coming in place

The reversal in popularity of shortsea trades is due to the fact that shortsea trades seem the right mode of traffic for the current time:

First of all policy makers in Europe will prefer Intra-European trades over other trades. They result in less dependency on foreign production (in particular favourable for strategic products), result in employment and there are less concerns on production circumstances and/or pollution when the trade stays within Europe. However also the shipper seems to realise that the low cost production concept results in supply chain risks. Naturally the logistic issues during the global pandemic clearly highlighted the vulnerabilities in this regard.

Less often advocated are the sustainability benefits of shortsea trades over the deepsea ones and over direct trucking. Global supply chains reduce the visilibity of what is happening in the supply chains. With the shipping sector being more scrutinised on social and environmental responsibility shippers have an increased preference for more local production. When CSRD requirements for large shippers will come into effect, it will require them to report on the impact of their sourcing and supply chains.

rising again.

Secondly maritime transport results in the lowest emissions per container per mile transported. Shipping cargoes rather than trucking them all the way reduces the environmental impact. The introduction of the ETS system to both trucking and shipping later this decade will make distribution over local shortsea ports preferable. The sector will need to do its best to increase flexibility, visibility and journey times to match that of road transport as much as possible. Naturally putting more containers on shortsea vessels will result in less road congestion –a large problem around major cities such as London. North West European ports are well positioned to take over this land bridge function. Introducing carbon pricing will cause shifts in both the balance between the all-trucking routes and shortsea shipping, but will also change the competitive position between ports and terminals. Terminals closer to the end market will be more competitive in the direct hinterland and thereby fragmenting the market more, though the impact depends greatly on the carbon price. However, in particular options with long distance trucking will feel the costs of emission taxation as long as the vehicles are not electric.

Change in competitive cost position of shortsea terminals in Rotterdam to Hull when introducing carbon pricing

Source: Rebel

Promising, but...

Promising, but…

Despite the positive noises from a strategic, trade policy and geopolitical context, the sector faces challenges to realise its potential. Most important hurdles are the ageing fleet, low levels of digitisation/transparency and pressure on port capacity. The latter can be attributed to both lower investment levels the past decade, but also less possibilities to expand. Increasing investment levels remains difficult in a sector in which margins are relatively thin and which is dominated by a larger number of liners. A pity with regard to the low margins is that a lot of the benefits of shortsea trade are economic or environmental in nature. Monetising these benefits is difficult for private market players, but the EU and national governments can play an important role in this.

Table 1 Average age of shortsea container fleet calling in ZARA range (shortsea up until 3,000 TEU typically)

Source: Rebel

Session 1 - Conference Paper

4/5

TEU Vessels Depl Capacity Average of Age 0 - 500 30 8,385 21 500 - 1000 105 83,926 19 1000 - 1500 53 62,673 13 1500 - 2000 19 33,116 14 2000 - 3000 6 14,830 20 3000 - 4000 7 24,383 11 4000 - 5500 3 14,397 13 223 241,710

Source: Rebel

The second big problem is the competition for space in ports which threatens the ability for the shortsea sector to grow. With most port authorities lining up for the energy transition and a more circular economy, there is a large competition for space. In many places there will be very limited possibilities the next decade for developing large new shortsea terminals. Deepsea terminals will not provide a solution for this problem as the nature of the shortsea business and size of vessels and containers are significantly different from the deepsea sector. Rather than adding terminals, there is an increasing pressure to squeeze out more capacity from the same footprint. The energy density of ammonia and hydrogen is such that the storage space will be a factor 2 to even 5 more for the same imported amount of energy. On top of this additional safety margins will need to be implemented. Considering the vast sizes of the liquid bulk terminals in North West Europe, it is not hard to imagine the pressure on space in ports in the future. In ports where this trade-off is strongest, concession fees are likely to increase in the near future. Also as port authorities will struggle to finance the large reinvestments involved in the energy transition.

On top of this, ports and shipping gets more scrutiny from the public for its environmental footprint. Despite being the greenest mode of transport on a per mile basis, getting the permits for realising new port capacity is increasingly difficult. Also increasing negative sentiment towards industrial complexes and ability to file objections to permitting have its implecation on development lead times. With longer permitting processes and frequent delays, utilisation rates in the European and UK port sector will increase. As a consequence the sector will be more vulnerable for fluctuations and congestion at terminals. We all remember from recent events what that can lead into.

Shortsea needs some breathing space

The shortsea sector is back in the spot light with the share of shortsea trade in (North West European) ports to rise. Port demand is on the up and more favourable drivers for further growth are on the horizon and policy supporting the shift in broader terms. Both the ageing fleet and highly utilised terminals need fresh investments to keep pace with the growth in demand. These investments are difficult to realise as a result of an increasing competition for space and complexity of monetising some benefits of shortsea trade. The one thing which should be easiest to change it to make the permitting and realising port developments easier with policy and even subsidy support to unlock environmental gains. Governments should do more to facilitate the growth in the shortsea sector and put it higher on the agenda. However, so far ‘short’ in shortsea stands for that the sector got the “short end of the stick”.

Session 1 - Conference Paper 15 Table 1 Average age of shortsea container fleet calling in ZARA range (shortsea up until 3,000 TEU typically) TEU Vessels Depl Capacity Average of Age 0 - 500 30 8,385 21 500 - 1000 105 83,926 19 1000 - 1500 53 62,673 13 1500 - 2000 19 33,116 14 2000 - 3000 6 14,830 20 3000 - 4000 7 24,383 11 4000 - 5500 3 14,397 13 223 241,710

KARI-PEKKA LAAKSONEN Group CEO, Samskip

BIOGRAPHY

Kari-Pekka Laaksonen is responsible for reinforcing the company’s strategy of aligning its sustainable logistics services more closely with the business objectives of its customer base. He is dedicated to ensuring the unique balance of delivering scale economies through Samskip’s shortsea, rail, barge and trucking network while maintaining the privately owned culture that responds to opportunities quickly and decisively.

Samskip is a global logistics company offering transport and related services by land, sea, rail and air with a particular focus on cost-efficient, reliable and environmentally friendly transport. With an annual turnover of over EUR 900 million, Samskip is one of the larger European transport companies, with offices in more than 24 countries. We consider sustainability to be one of the fundamentals of doing business as it stands for the long‐term continuity of our business, and of society as a whole. The company has truly committed to reduce the carbon density of its activities in the coming years by creating and offering low-to-zero transport services.

1 - Keynote Presentation 16

Session

SABINE KILPER Senior Research Analyst, Toepfer Transport GmbH

BIOGRAPHY

Sabine Kilper is a shipping expert with profound experience over more than 30 years in the multipurpose (MPP) / heavy lift and general cargo segment through various positions in chartering and research with recognized ship owners, ship brokers and ship operators. Since 2021 Sabine has been dedicated to the short sea shipping market, undertaking analysis of the short sea fleet, newbuilding activities and the publication of short sea shipping reports and relevant market index.

Current duties and responsibilities

n market analysis in the field of MPP and short sea shipping

n research and publication of the monthly Toepfer Transport Short Sea Shipping Report, the Toepfer Transport Short Sea Index (TSI) as well as bespoke research products.

Session 1 - Speaker

The European Short Sea Market

1. INTRODUCTION

In 2022, almost 60 per cent of all cargo shipped from or to the EU was short sea cargo.1 Short sea ships are thus an essential component of Europe’s logistical transport system. They have been developed over centuries and until today offer a fast, cost- and energy-efficient way of carrying imported and exported cargoes from and to every corner of the European continent. However, short sea shipping is currently facing huge challenges. For one thing, global climate goals and European Union (EU) directives are asking for significant reductions in greenhouse gas (GHG) emissions, which is putting increasing pressure on shipping companies to take action. Also, a large part of the short sea fleet is too old to transition to energy-efficient operations. About 53 per cent of the short sea fleet is more than 20 years old with a significant part needing to be replaced in the next 10 to 15 years.

The circumstances are not exactly ideal. The strong need for new fuel-efficient vessels has come at a time when newbuilding prices are high, there is limited shipyard capacity, and the dampened economic outlook is threating to lower cargo volumes and earnings.

This paper provides insights into the current state of the short sea fleet, the short sea shipping market as well as the development of the kind of new designs that are needed to adapt to the requirements for environmentally friendly, sustainable growth in European short sea trades.

2. SHORT SEA MARKET ENVIRONMENT

The European short sea market is fragmented with a multitude of owners and operators transporting goods from various regions across the continent. The ships they use range in designs from the 40-year-old vintage models - high construction quality, high fuel consumption and still riding the waves of the rough North Sea - to the small number of state-of-the-art creations from pioneers in ship design and zero-emissions fuel systems that are slowly entering the market.

Europe is a global leader when it comes to setting decarbonization regulations. The European ‘Green Deal’ calls for net-zero GHG-emissions by 2050. And, since 1 January 2024, the EU Emissions Trading System (EU ETS) requires shipping companies to surrender their GHG emissions allowances for vessels above 5000 gross tonnage (GT) that trade in European waters, which is increasing voyage related costs.

At the same time, major industries in Europe appear to be struggling with the new normal brought about by having turned away from cheap (Russian) gas and fossil fuels. Those fuels were a vital part of Europe’s economic strength, enabling it to deal cost-effectively with high export quotas and a steady flow of cargo. According to the European Central Bank (ECB), the annual average real gross domestic product (GDP) growth is expected to be only 0.6 per cent in 2024 - in March 2024 it revised the figure downwards by 0.2 percentage points from its December 2023 projections.2

The short sea market is thus navigating a fragile environment. While it is more stable and less volatile than other shipping segments, thanks generally to the large variety of goods and opportunities available, it still has a number of challenges to resolve.

1 See: https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Maritime_transport_statistics_-_ short_sea_shipping_of_goods

2 See: https://www.ecb.europa.eu/pub/projections/html/ecb.projections202403_ecbstaff~f2f2d34d5a. en.html#toc2

- Conference Paper

Session 1

3. SHORT SEA FLEET

a. Short Sea Fleet Definition

Toepfer Transport defines the short sea fleet as:

n general cargo vessels / mini bulkers

n built in 1980 or later

n gearless or geared up to 99 mt combined

n a minimum 1,000 tons deadweight tons (dwt)

n a maximum 9,999 tons dwt

n owned or managed by a stakeholder from Europe, including the Mediterranean and the Black Seas.

b. Trading Fleet

The European short sea trading fleet has grown from 3,037 vessels in Q1 2024 to 3,054 ships, equalling 14,516.710 dwt in April 2024 (average age: 24.45 years !). This corresponds to a 0.9 per cent increase in deadweight. Looking at it annually, there has been 4.1 per cent deadweight growth since April 2023, when there were 2,974 ships, equalling 13,950,155 dwt.

1 - Trading short sea fleet

c. Short Sea Fleet Age Structure

Currently, about 53 per cent of the fleet is 20 years old or older and about 28 per cent of the fleet is at least 30 years old. More than 8 per cent of the vessels still trading in Europe have reached an age of 40 years and beyond.

Table 2 - Fleet age distribution

Session 1 - Conference Paper

Trading Short Sea Fleet by dwt ranges DWAT range No. of Ships DWAT cum. DWAT rel. trading Avg. Age 1000-1999 204 316.997 2,18% 36,24 2000-2999 339 856.928 5,90% 29,81 3000-3999 793 2.747.319 18,93% 27,64 4000-4999 504 2.265.560 15,66% 23,95 5000-5999 386 2.070.108 14,26% 20,25 6000-6999 283 1.814.665 12,50% 21,23 7000-7999 224 1.680.764 11,58% 18,88 8000-8999 233 1.934.979 13,33% 14,58 9000-10000 88 829.390 5,71% 19,84 Total 3,054 14,516.710 100,00% 24,45 Fleet Age Distribution (trading) Age No. of Ships DWAT cum. DWAT rel. trading 0-4 179 1.131.266 7,79% 5-9 91 541.479 3,73% 10-14 350 1.988.386 13,70% 15-19 582 3.221.110 22,19% 20-24 314 1.543.264 10,63% 25-29 430 2.084.333 14,36% 30-34 367 1.580.251 10,89% 35-40 367 1.224.433 8,43% 40-43 281 977.609 6,73% 44 62 224.579 1,55% Total fleet 3,054 14,516.710 100,00%

Table

Session 1 - Conference Paper

PAPER Toepfer Transport – Short Sea Shipping Coastlink 2024 4

Graph 1 - Fleet distribution by year of delivery Graph 1 - Fleet distribution by year of delivery

Session 1 - Conference Paper

Short Sea Orderbook

d. Short Sea Orderbook

Demand for newbuilt vessels was strong in 2023 and the orderbook is continuing to grow steadily. It currently stands at 194 vessels or 7.69 per cent of the trading fleet (compared with the October 2021 level of 4.42 per cent). We are expecting a steady influx of newly delivered vessels to the market primarily in the first half of 2024, though some of these are delayed 2023 deliveries. Altogether, 60 ships are slated for delivery in the first half of 2024, 27 of which have already launched from shipyards in the Netherlands, China and India (data as of March 2024).

Demand for newbuilt vessels was strong in 2023 and the orderbook is continuing to grow steadily. It currently stands at 216 vessels or 8.55 per cent of the trading fleet (compared with the October 2021 level of 4.42 per cent). We are expecting a steady influx of newly delivered vessels to the market primarily in Q1 2024, though some of these are delayed 2023 deliveries. Altogether, 60 ships are slated for delivery in the first half of 2024, 27 of which have already launched from shipyards in the Netherlands, China and India.

Demolition Activities

In 2023, 22 European short sea vessels representing 0.5 per cent of the trading fleet were sent to the scrapyards They were mostly Russian river-sea ships and smaller ships of under 5,000 dwt. The average age was 49 years, though the oldest was 62, having been built in Romania in 1961. The majority of demolished vessels was sent to Turkish shipyards. Other European scrapyards which are compliant according to EU Ship Recycling Regulation do not play a role yet.

e. Demolition Activities

Table 3 - The short sea orderbook

d. Demolition Activities

In 2023, 22 European short sea vessels representing 0.5 per cent of the trading fleet were sent to the scrapyards. They were mostly Russian river-sea ships and smaller ships of under 5,000 dwt. The average age was 49 years, though the oldest was 62, having been built in Romania in 1961. The majority of demolished vessels was sent to Turkish shipyards. Other European scrapyards which are compliant according to EU Ship Recycling Regulation do not play a role yet.

2 - Age profile of demolished ships

Short Sea Orderbook by dwt ranges DWAT range No. of Ships DWAT cum. DWAT rel. trading 1000-1999 3 4.232 0,03% 2000-2999 0 0 0,02% 3000-3999 48 181.100 1,25% 4000-4999 11 48.390 0,33% 5000-5999 59 322.094 2,22% 6000-6999 15 94.500 0,65% 7000-7999 30 223.381 1,54% 8000-8999 16 134.262 0,92% 9000-10000 15 109.500 0,75% Total 194 1.117.059 7,69% PAPER Toepfer Transport – Short Sea Shipping Coastlink 2024 5

Table 3 - The short sea orderbook

hips 2023

Graph 3 - Scrapyard countries Table 3 - The short sea orderbook Graph

2023

Graph 3 - Scrapyard countries Graph

2 - Age profile of demolished ships 2023

Graph 3 - Scrapyard countries

4. SHORT SEA MARKET

a. Short Sea Earnings – Toepfer Transport’s Short Sea Index (TSI)

The TSI represents the shortsea earnings per day in a monthly average time charter equivalent (TCE) assessment established by a panel of operators, owners and brokers for two index vessel types with the following criteria:

4. SHORT SEA MARKET

a. Short Sea Earnings – Toepfer Transport’s Short Sea Index (TSI)

TSI-35 index vessel:

n general cargo vessel or bulker

The TSI represents the monthly average time charter equivalent (TCE) assessment established by a panel of operators, owners and brokers for two index vessel types with the following criteria:

n employed in European short sea trades

TSI-35 index vessel:

n 3,200 – 3,800 dwt gearless singledecker

- general cargo vessel or bulker

n well maintained, fully workable, afloat, with all documents and class in good order

- employed in European short sea trades

- 3,200 – 3,800 dwt gearless singledecker

TSI-52 index vessel:

- well maintained, fully workable, afloat, with all documents and class in good order

n general cargo vessel or bulker

TSI-52 index vessel:

n employed in European short sea trades

- general cargo vessel or bulker

n 4,800 – 5,600 dwt gearless singledecker

- employed in European short sea trades

- 4,800 – 5,600 dwt gearless singledecker

n well maintained, fully workable, afloat, with all documents and class in good order

- well maintained, fully workable, afloat, with all documents and class in good order

b. Development of Short Sea Earnings

Short sea vessel earnings, after a long period of being low in the aftermath of the 2008 Lehman crisis, picked up sharply in Q4 2021 as a consequence of pandemic-related supply chain disruptions amid high demand and overspill cargo from the container, dry bulk and multipurpose segments. TCE results have peaked in February 2022: vessels with 3,200 to 3,800 dwt reached 7.110 euros; ships with 4,800 to 5,600 dwt achieved 9,077 euros on average.

The last 24 months have seen a moderate market correction: rate levels reached a temporary floor in August 2023. As of March 2024, the TCEs stand at 4.843 and 6.626 euros, respectively, which are still healthy levels compared with the historical average.

The last 24 months have seen a moderate market correction: rate levels reached a temporary floor in August 2023. As of January 2024 the TCEs stand at 4 658 and 6.023 euros, respectively, which are still healthy levels compared with the historical average.

Graph 3 - TSI from October 2020 to date

Conference Paper 22

Session 1 -

October 2020

date PAPER Toepfer Transport – Short Sea Shipping Coastlink 2024 6

Graph 3 - TSI from

c. Sale and Purchase (S&P) Market

4 - Second hand price development of 5,000 dwt short sea vessels

Graph 4 - Second hand price development of 5,000 dwt short sea vessels

In 2021, second hand price levels for short sea ships started to soar on the back of high demand for tonnage, profitable voyage results and scarce availability of sales candidates.

The last six months have seen a market correction with prices slowly decreasing though remaining on a firm level. As of March 2024, the price for a 10-year-old coaster with a deadweight of 5,000 tons built in Europe is around 6.00 million euros

d. Development of Newbuilding Prices

d. Development of Newbuilding

Graph 5 - Newbuilding price development of 5,000 dwt short sea vessels

High demand for new vessels, particularly from the container segment with owners reinvesting substantial profits from 2021 and 2022, and limited shipyard capacity have seen prices for newbuilt ships increase sharply over the last three years. The rising prices have been further fuelled by spiralling inflation driven by high energy and material prices in the wake of the Ukraine war despite evident market corrections in the container, bulk, MPP and short sea segments in the last 12 months. Increased equipment and labour costs are adding to the pressure on prices. With high costs, full orderbooks and low profit margins, shipyards have no reason to reduce their price level; if anything, we can expect prices to go up in the next 12 to 24 months.

High demand for new vessels, particularly from the container segment with owners reinvesting substantial profits from 2021 and 2022, and limited shipyard capacity have seen prices for newbuilt ships increase sharply over the last three years The rising prices have been further fuelled by spiralling inflation driven by high energy and material prices in the wake of the Ukraine war despite evident market corrections in the container, bulk, MPP and short sea segments in the last 12 months. Increased equipment and labour costs are adding to the pressure on prices. With high costs, full orderbooks and low profit margins, shipyards have no reason to reduce their price level; if anything, we can expect prices to go up in the next 12 to 24 months.

- Conference Paper 23

Session 1

PAPER Toepfer Transport – Short Sea Shipping Coastlink 2024 7

Graph

5. TYPICAL TRADITIONAL AND NEW SHORT SEA DESIGNS

In the last decade, a number of European shipyards, design houses and engineering companies have been working to address the need for more fuel-efficient short sea ships that reduce consumption and GHG emissions.

Dutch shipyards Royal Bodewes, Ferus Smit and Damen Shipyard Group have been adapting their traditional most recognized standard designs to the new requirements. And, pioneering naval architects and design houses like Conoship International, Groot Design and Norwegian Ship Design have been working on innovative short sea ship designs that feature wind-assisted propulsion, battery solutions and alternative fuel and engine concepts

The result of these projects have been coming to the market over the past three years, with several series either under construction or already delivered to major short sea owners and operators Below we present popular designs in the two dominant size segments: 3,800 and 5,200 dwt

The result of these projects have been coming to the market over the past three years, with several series either under construction or already delivered to major short sea owners and operators. Below we present popular designs in the two dominant size segments: 3,800 and 5,200 dwt.

a. Designs of Smaller-Sized Coasters with 3.800 dwt

European short sea vessels of 3,000 to 3,999 dwt have been in heavy demand over the last 30 years. With a fleet share of 19.12 percent by deadweight or 795 ships, they represent the largest portion of the short sea fleet currently trading.

European short sea vessels of 3,000 to 3,999 dwt have been in heavy demand over the last 30 years. With a fleet share of 18.93 percent by deadweight or 793 ships, they represent the largest portion of the short sea fleet currently trading.

DAMEN CF 3850 II

In 1999, Damen Shipyards Group began building a new standard ship series, the Combi Freighter (CF) 3850. It has a deadweight of about 3,850 tons, a grain capacity of about 5,250 cubic metres, an overall length of 88 60 metres and a beam of 12 50 metres. Up until 2013, more than 40 ships had been delivered by East European shipbuilding facilities under the umbrella of the Damen Group.

In 1999, Damen Shipyards Group began building a new standard ship series, the Combi Freighter (CF) 3850. It has a deadweight of about 3,850 tons, a grain capacity of about 5,250 cubic metres, an overall length of 88.60 metres and a beam of 12.50 metres. Up until 2013, more than 40 ships had been delivered by East European shipbuilding facilities under the umbrella of the Damen Group.

In January 2021, Damen Shipyards Yichang in China delivered the first unit of the CF 3850 II, an improved, more fuel-efficient design with an optimized hull. This marked the beginning of a new standardized shipbuilding series - more than 30 units are expected to be built by the end of 2026.3 The vessel has a deadweight of 3,800 tons, is 89.70 metres long and complies with International Maritime Organization (IMO) Tier III emission requirements.

In January 2021, Damen Cargo Vessels delivered the first unit of the CF 3850 II, an improved, more fuel-efficient design with an optimized hull. This marked the beginning of a new standardized shipbuilding series - more than 30 units are expected to be built by the end of 2026.3 The vessel has a deadweight of 3,800 tons, is 89.70 metres long and complies with International Maritime Organization (IMO) Tier III emission requirements.

Image 1 – A CF 3850 combi-freighter (source www.damen.com)

3 See: www.damen.com

Session 1 - Conference Paper 24

PAPER Toepfer Transport – Short Sea Shipping Coastlink 2024 8

TYPICAL TRADITIONAL AND NEW SHORT SEA DESIGNS

Session 1 - Conference Paper

CONOSHIP CIP 3800

The vessels in the CIP 3800 series developed by Conoship International Projects (CIP) have a deadweight of 3.800 tons and a length of 89,43 metres. They are equipped with a dieselelectric propulsion system, a large-diameter propeller, optimized hull lines and a single cargo hold with high cubic capacity, which makes them ideal for carrying a varieta of heavy and light cargo. Fuel consumption is low in the CIP 3800 vessels, but they also come with the option to install VentoFoil units to reduce even further and to change the fuel type in the future.4

The vessels in the CIP 3800 series developed by Conoship International Projects (CIP), with 20 units on order, have a deadweight of 3.800 tons and a length of 89,43 metres. They are equipped with a diesel-electric propulsion system, a large-diameter propeller, optimized hull lines and a single cargo hold with high cubic capacity, which makes them ideal for carrying a variety of heavy and light cargo. Fuel consumption is low in the CIP 3800 vessels, but they also come with the option to install VentoFoil units to reduce even further and to change the fuel type in the future.4

b. Design of medium-sized coaster with 5.200 tdw

a. Design of medium-sized coaster with 5.200 tdw

Short sea vessels with a deadweight of 5,000 to 5,999 tons account for 14.26 percent of the short sea fleet or 386 ships. The size of ship is currently in the highest demand with 59 units on order.

Short sea vessels with a deadweight of 5,000 to 5,999 tons account for 20 54 percent of the short sea fleet or 377 ships. The size of ship is currently in the highest demand with 62 units on order.

GROOT 5200 XL

Groot Ship Design’s 5200XL is a versatile mini bulker that combines a large cargo hold, 1A iceclass, a modern layout and efficient powering.5 The ship has a deadweight of about 5,200 tons, a length of 89.99 metres and is optimised for low fuel consumption.

Groot Ship Design’s 5200XL is versatile mini bulker that combines a large cargo, 1A iceclass, a modern layout and efficient powering 5 The ship has a deadweight of about 5,200 tons, a length of 89 99 metres and

www.grootshipdesign.com)

4 See: https://www.conoship.com/2023/12/04/cip-series-the-advantages-of-conoships-new-standarddesigns/

5 See: https://www.grootshipdesign.com/posts/steelcutting-5200xl-series-commenced-1098/

4 See: https://www.conoship.com/2023/12/04/cip-series-the-advantages-of-conoships-new-standarddesigns/

5 See: https://www.grootshipdesign.com/posts/steelcutting-5200xl-series-commenced-1098/

4 See: https://www.conoship.com/2023/12/04/cip-series-the-advantages-of-conoships-new-standarddesigns/

5 See: https://www.grootshipdesign.com/posts/steelcutting-5200xl-series-commenced-1098/

Image 2 – A Conoship 3800 single-cargo vessel (Source www.conoship.com)

PAPER Toepfer Transport – Short Sea Shipping Coastlink 2024 9

a. Design of medium-sized coaster with 5.200 tdw

Image 2 – A Conoship 3800 single-cargo vessel (Source www.conoship.com)

Image

3 – A Groot 5200 XL mini bulker (Source www.grootshipdesign.com)

PAPER Toepfer Transport – Short Sea Shipping Coastlink 2024 9

Image 2 – A Conoship 3800 single-cargo vessel (Source www.conoship.com)

www.grootshipdesign.com)

Image 3 – A Groot 5200 XL mini bulker (Source

Image 3 – A Groot 5200 XL mini bulker (Source

SUMMARY

n After many years of very low earnings and newbuilding activities in the wake of the 2008 Lehman crisis, the last three years have seen the short sea segment attracting new investors, shipyards and operators.

n Big steps have been taken to renew the aging fleet, in view of the scant availability of second hand tonnage, the increased environmental requirements and the option to reinvest post-pandemic peak profits. The orderbook share of the trading fleet (3,054 ships) has risen from only 4.42 per cent (by deadweight) in October 2021, to 7.69 per cent as of March 2024 with 194 ships currently on order.

n We still need to replace a large portion of old coaster tonnage as almost a third of the fleet, about 28 per cent, is 30 years old or more.

n Only 0,5 per cent of the trading fleet was demolished in 2023. Scrapping activity is highly focused on Turkey at the moment, but other demolition yards will need to be used to keep up with the demand to remove the old fleet from the market.

n Innovative ship designs featuring new fuel concepts and covering the two major coaster sizes (3.800 and 5.000 dwt) have been implemented as far as possible in small but decisive steps. Expertise and willingness to build new short sea vessels is largely available.

n New designs - like the Damen’s CF 3850 II, the Conoship CIP 3800 series and the Groot 5200 XL are set to significantly reduce GHG emissions, and some can be operated with alternative fuels or wind-assisted propulsion.

n Although a market correction has taken place in the last 18 months, short sea earnings are still hovering at a healthy level to ensure reasonable returns on investments.

n Risks remain amid dampened economic outlook, geopolitical tensions, high interest rates and high costs for material and labour which are leading to elevated newbuilding prices.

n We can expect the need for green transportation solutions, fuelled by global political climate goals, GHG reduction measures like the EU ETS and the emission targets and pathways set by individual industries and cargo owners to continue to drive efforts to renew the short sea fleet.

Transforming the short sea fleet will happen only with the ongoing mutual engagement of all market stakeholders and governments. To enable sustainable growth that will benefit the environment as well as all market stakeholders also needs:

a. demolishing the overaged ships, which also requires additional demolition infrastructure and a realistic political framework to allow environmental friendly and safe scrapping;

b. governments’ funding to support research and innovative newbuilding activities;

c. cooperation between ship and cargo owners to develop business cases that makes investments in new tonnage viable for a good part of the lifecycle of a ship;

d. ongoing adaption to technical developments including retrofitting existing short sea vessels as far as possible.

Session 1 - Conference Paper

BOUTIQUE SALE & PURCHASE AND NEWBUILDING SHIPBROKERS

SHIPPING MARKET RESEARCH AND ANALYS IS • VESSEL VALUATIONS

Expertise and ma rket intelligence that add value to your business.

Quarterly Multipurpose Shipping Report

Monthly European Shortsea Shipping Report

Leading Market Indices (MPP/HL and Shortsea)

Tailormade Market Analysis Vessel Valuations Sale and Purchase Shipbrokers Newbuilding Shipbrokers

Toepfer Transport GmbH

Alstertor 1 • 20095 Hamburg • Germany research@toepfer-transport.com • snp@toepfer-transport.com Website: www.toepfer-transport.com

SHANGHAI

SHIPBROKERS

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PASSIONATE

SINCE 1974

SESSION 1 - PANEL DISCUSSION

Green corridors –collaboration to drive sustainable growth

RICHARD BALLANTYNE OBE Chief Executive, British Ports Association

BIOGRAPHY

Richard Ballantyne joined the British Ports Association in 2007 and became the Chief Executive in 2016.

Richard has in-depth expertise in ports, transport, trade and environmental policy matters as well as a wide experience of the legislative process around the UK. He is a champion of sustainable development and is also a passionate advocate of the value of the UK ports industry both to the regions in which they are based but also as national gateways.

He is a Director of Maritime UK, a Trustee of the Merchant Navy Welfare Board charity and was previously a Director of Port Skills and Safety Ltd.

Before joining the BPA Richard spent five years at a Westminster political consultancy and was previously an MP’s researcher in the House of Commons.

Richard was also awarded an OBE in the 2022 New Year’s Honours for his services to the maritime sector.

Session 1.1 - Panel Moderator 29

JESPER CHRISTENSEN Operations Director, DFDS

We keep Europe moving through a wide range of freight services from ferry transport to complex logistics solutions

n 12,300 employees

n DKK 26.9bn revenue

n 20+ countries connected by our ferry routes and logistics solutions

DFDS has since its foundation in 1866 built a unique infrastructure of ferry routes connecting European countries with each other as well as with Türkiye. We mostly transport freight units on the routes in addition to around 5 million passengers in normal years.

We also offer logistics services rooted in the regions served by our ferry routes. They range from door-door transports of full-loads to complex solutions for major industrials.

Session 1.1 - Panellist

ANDIMA ORMAETXE

Director - Operations, Commercial, Logistics and Strategy, Port of Bilbao

BIOGRAPHY

Andima Ormaetxe has been the Director - Operations, Commercial, Logistics and Strategy at the Port of Bilbao Authority since 2018.

He is also a member of the Board of Directors of Deposito Franco de Bilbao as well as a member of the Shipping Council Port of Bilbao.

He has held management positions in companies such as ‘Maritima Candina’, ‘Berge Maritima Bilbao’, and ’Agencia Perez y Cia’.

n Degree in Nautical Science

n Merchant Navy Officer

n Masters Degree in Maritime-Port Business Management - University of Deusto

n MBA - University of Basque Country

n Management positions in companies such as ‘Maritima Candina’, ‘Berge Maritima Bilbao’, and ’Agencia Perez y Cia’.

n 2018 to present - Port of Bilbao Authority currently holding the position of DirectorOperations, Commercial, Logistics and Strategy.

Session 1.1 - Panellist 31

KATRINA ROSS

Policy Director, Commercial and Governance, UK Chamber of Shipping

BIOGRAPHY

Katrina Ross is Policy Director, Commercial and Governance at the UK Chamber of Shipping. Her responsibilities include tax and economics, international trade, commercial shipping policy and, in particular, green and sustainable finance. She works closely with the UK Chamber’s Environment team on policy relating to GHG/carbon pricing and sustainability reporting.

Katrina started her career in financial services, before moving into policy for the shipping industry. Katrina is a member of the Institute of Chartered Shipbrokers (MICS), with a Masters in Commercial Law (LLM). Before returning to the UK Chamber in 2023, she worked for a UKbased financial services trade body as the policy lead on green finance and tax issues.

Session 1.1 - Panellist 32

NILS MINOR Head of Key Account Management, P&O Ferrymasters

BIOGRAPHY

Responsible for Key Account Management within P&O Ferrymasters, a Joint Venture between Unifeeder and P&O Ferrymasters.

In 2022, P&O Ferrymasters joined forces with sister company Unifeeder, which operates Europe’s largest feeder and shortsea network. The result is a multimodal transportation engine delivering cost efficiencies, broad geographic reach, and guaranteed access to capacity on key maritime routes.

P&O is a leading pan-European ferry and logistics group at the heart of Europe’s economy and a part of DP World, the leading provider of smart logistics solutions and enabler of the flow of trade across the globe. P&O Ferries is a major provider of freight transport and passenger travel services, sailing on eight major routes between Britain, France, Northern Ireland, the Republic of Ireland, Holland and Belgium. Its logistics business, P&O Ferrymasters, operates integrated road and rail links to countries across the continent including Italy, Poland, Germany, Spain and Romania, and facilitates the onward movement of goods to Europe from Asian countries via the Silk Road.

Session 1.1 - Panellist 33

Advancing supply chain resilience & embracing the benefits of modal shift

SESSION 2 35

Session 2 -

MARIJN MOESBERGEN

Cocoa Sourcing Lead, Cargill

BIOGRAPHY

Marijn Moesbergen is the Cocoa Sourcing Lead for Cargill’s Cocoa & Chocolate business based in Amsterdam, the Netherlands. He spent 15 years at Cargill in different commercial roles. Moving from a Commercial Management Trainee in Amsterdam to Freight Trader in Geneva, Switzerland, and back to the Netherlands to work for Cargills Grain Terminal in the Port of Amsterdam. In 2017 Marijn moved to the cocoa business and has worked for the past 6 years in the Trading & Risk Management team. Marijn is the Project Manager for the Kotug E-Pusher implementation into Cargills supply chain.

ALMAR VAN HERK Senior Business Development Manager, KOTUG International BV

BIOGRAPHY

Almar has been fundamental in the development of the revolutionary E-Pusher Series. Having 15+ years of experience working at leading shipping company KOTUG, he jointly managed to develop a modular pusher tug capable of handling a variety of energy sources around an AC/DC switchboard. Main features of the E-Pusher Series are the usage of an Electric Vessel (EV) frame, a polyethylene (PE) floating body and the modular use of components resulting in a one-of-a-kind electric powered pusher tug. Having a background in innovation, business development and strategic positioning, Almar will present a narrative how this vessel came to life and is now sailing 100% zero emission for account of Cargill in the port of Amsterdam.

Keynote Presentation

Session 2 - Conference Paper

E-Pusher™ Series

COASTLINK_PAPER_08 April 2024

E-Pusher™ Series

Abstract:

The inland waterway industry faces significant challenges in transitioning towards sustainable energy sources while remaining competitive against vessels powered by fossil fuels. This paper explores these challenges through two main questions: "What will be the energy of the future?" and "How do we remain competitive against fossil fuel vessels?" A proposed solution is presented by the adoption of modular electric pusher tugs equipped with sw appable energy containers, offering versatility, efficiency, and environmental sustainability.

The inland waterway industry faces significant challenges in transitioning towards sustainable energy sources while remaining competitive against vessels powered by fossil fuels. This paper explores these challenges through two main questions: “What will be the energy of the future?” and “How do we remain competitive against fossil fuel vessels?” A proposed solution is presented by the adoption of modular electric pusher tugs equipped with swappable energy containers, offering versatility, efficiency, and environmental sustainability.

Introduction:

As the global focus shifts towards sustainable energy solutions, industries reliant on fossil fuels, including the inland waterway sector, face mounting pressure to adapt. The transition to renewable energy sources presents both opportunities and challenges. This paper addresses two primary questions: "What will power the vessels of tomorrow?" and "How can we compete against fossil fueled vessels?" A solution to these questions can be found in the adoption of the E-Pusher™ Series – a range of modular electric pusher tugs with swappable energy containers, offering adaptability, efficiency, and environmental responsibility.

As the global focus shifts towards sustainable energy solutions, industries reliant on fossil fuels, including the inland waterway sector, face mounting pressure to adapt. The transition to renewable energy sources presents both opportunities and challenges. This paper addresses two primary questions: “What will power the vessels of tomorrow?” and “How can we compete against fossil fueled vessels?” A solution to these questions can be found in the adoption of the E-Pusher™ Series – a range of modular electric pusher tugs with swappable energy containers, offering adaptability, efficiency, and environmental responsibility.

Energy of the Future:

The first question touches upon the choice of energy sources that will power vessels in the future. While several alternatives, such as hydrogen fuel cells, batteries, and biofuels, have emerged, each comes with its own set of advantages and limitations. H ydrogen fuel cells offer zero-emission operation but face challenges related to infrastructure and cost. Batteries provide a clean energy solution but suffer from limited energy density and lengthy recharge times. Biofuels offer a potential bridge to renewable energy but raise concerns about land use and sustainability.

The first question touches upon the choice of energy sources that will power vessels in the future. While several alternatives, such as hydrogen fuel cells, batteries, and biofuels, have emerged, each comes with its own set of advantages and limitations. Hydrogen fuel cells offer zero-emission operation but face challenges related to infrastructure and cost. Batteries provide a clean energy solution but suffer from limited energy density and lengthy recharge times. Biofuels offer a potential bridge to renewable energy but raise concerns about land use and sustainability.

Managing the uncertainties surrounding the type of energy for long-term investments poses a significant risk for shippers in the maritime industry. As the landscape of sustainable energy solutions continues to evolve, shippers face the challenge of selecting the optimal energy for their vessels over the long term. The decision to invest in a particular energy infrastructure carries inherent uncertainties regarding future advancements, regulatory frameworks, and market adoption rates. Additionally, fluctuations in energy prices and availability of infrastructure could impact the cost-effectiveness and feasibility of long-term investments, further complicating decision-making processes.

The E-Pusher™ design:

Session 2 - Conference Paper

To address these challenges, a range of modular electric pusher tugs equipped with swappable energy containers have been developed as a viable solution. This innovative approach combines the benefits of electric propulsion with the flexibility of modular design and energy container swapping. The pusher tug serves as the primary power unit, having a smart onboard switchboard which can handle both AC and DC power intake, and is equipped with electric motors to operate the vessel.

Having the option to replace its energy units at any time, no long term commitment is required and switching to a new type of energy can be aligned with operational requirement, available infrastructure, demand and legislation.

Competitiveness

An additional advantage offered by the E-Pusher™ Series lies in its substantial cost efficiencies, further mitigating risks for shippers considering long-term investments. Beyond its environmental benefits, the modular electric pusher tugs feature a streamlined construction process facilitated by a robust steel framework and Polyethylene (PE) hull design. This assembly line production approach translates to significant time and cost savings, with construction times reduced by over 50% compared to traditional methods. Moreover, the modular design allows for scalability and customization, enabling shippers to optimize vessel configurations based on specific operational requirements and budget constraints. By capitalizing on economies of scale and minimizing labor and material costs, the E-Pusher™ Series offers a compelling value proposition for shippers seeking to enhance their competitiveness while achieving sustainability goals in a competitive way against existing older generation fossil fueled vessels.

An additional advantage offered by the E-Pusher™ Series lies in its substantial cost efficiencies, further mitigating risks for shippers considering long-term investments. Beyond its environmental benefits, the modular electric pusher tugs feature a streamlined construction process facilitated by a robust steel framework and Polyethylene (PE) hull design. This assembly line production approach translates to significant time and cost savings, with construction times reduced by over 50% compared to traditional methods. Moreover, the modular design allows for scalability and customization, enabling shippers to optimize vessel configurations based on specific operational requirements and budget constraints. By capitalizing on economies of scale and minimizing la bor and material costs, the E-Pusher™ Series offers a compelling value proposition for shippers seeking to enhance their competitiveness while achieving sustainability goals in a competitive way against existing older generation fossil fueled vessels.

Specifications:

The E-Pusher Series comprises three models (S, M and L) ranging from 9 to 22 meters in length, with a maximum depth of 0.85 to 1.35 meters. It features variable electric propulsion up to 1,500kW able to push cargo barges of up to 6,000 dwt.

Session 2 - Conference Paper

customization, enabling shippers to optimize vessel configurations based on specific operational requirements and budget constraints. By capitalizing on economies of scale and minimizing la bor and material costs, the E-Pusher™ Series offers a compelling value proposition for shippers seeking to enhance their competitiveness while achieving sustainability goals in a competitive way against existing older generation fossil fueled vessels.

Specifications:

1. Versatility: The modular design allows for easy adaptation to different energy sources, including batteries, hydrogen fuel cells, or biofuels, depending on availability and infrastructure

2. Efficiency: Electric energy systems offer high efficiency and lower costs compared to traditional diesel engines, reducing energy consumption and maintenance costs

3. Sustainability: By utilizing renewable energy sources and reducing emissions, modular electric pusher tugs contribute to environmental sustainability and align with global efforts to combat climate change

4. Competitiveness: Despite increased capital investment costs the long -term benefits of reduced fuel consumption, lower maintenance requirements, and compliance with environmental regulations ensure the competitiveness of these vessels against fossil fuelpowered counterparts.

4. Competitiveness: Despite increased capital investment costs the long-term benefits of reduced fuel consumption, lower maintenance requirements, and compliance with environmental regulations ensure the competitiveness of these vessels against fossil fuel-powered counterparts.

Start operations:

As per 2023 the first E-Pusher M and four self-propelled and battery powered barges started operations in the Port of Amsterdam, The Netherlands transporting cocoa beans between the storage facilities at the port to the production facilities on the river Zaan on behalf of Cargill. The EPusher M is powered by a lithium battery container which will be charged overnight using green energy from Windpark Hanze. The fully electric pusher tug and barges are projected to reduce CO2 emissions by 190.000 kg per year, the equivalent of 15 000 one-way trips by truck from the Port of Amsterdam to Cargill’s cocoa factory in Zaandam.

As per 2023 the first E-Pusher M and four self-propelled and battery powered barges started operations in the Port of Amsterdam, The Netherlands transporting cocoa beans between the storage facilities at the port to the production facilities on the river Zaan on behalf of Cargill. The E-Pusher M is powered by a lithium battery container which will be charged overnight using green energy from Windpark Hanze. The fully electric pusher tug and barges are projected to reduce CO2 emissions by 190.000 kg per year, the equivalent of 15 000 one-way trips by truck from the Port of Amsterdam to Cargill’s cocoa factory in Zaandam.

Conclusion: The transition to sustainable energy sources poses challenges for the inland waterway industry, requiring innovative solutions to remain competitive while minimizing environmental impact. The adoption of modular electric pusher tugs with swappable energy c ontainers offers a promising path forward. By embracing versatility, efficiency, and sustainability, this approach addresses the dual challenges of determining the energy of the future and competing against fossil fuel vessels, paving

E-Pusher S E-Pusher M E-Pusher L E-Pusher S E-Pusher M E-Pusher L

the way for a greener and more resilient inland waterway industry.

Conclusion:

The transition to sustainable energy sources poses challenges for the inland waterway industry, requiring innovative solutions to remain competitive while minimizing environmental impact. The adoption of modular electric pusher tugs with swappable energy containers offers a promising path forward. By embracing versatility, efficiency, and sustainability, this approach addresses the dual challenges of determining the energy of the future and competing against fossil fuel vessels, paving the way for a greener and more resilient inland waterway industry.

About KOTUG:

KOTUG is a leading maritime family-owned company, offering its innovative towage and maritime related services on a global scale. KOTUG is firmly committed to the highest industry standards of health, safety, environment, quality, and security. Adding value by sustainabilityfocused innovations, KOTUG provides the complete portfolio based on a combination of long-standing knowledge and advanced technologies. From designing, building, chartering and operating vessels to training people and providing innovative consultancy services. The company’s expertise is divided across five pillars: Towage, Training & Consultancy, Intelligence, Subsea and Maritime Excellence. KOTUG is active in Europe, Asia, Australia, Africa, Middle East, North and South America and the Caribbean and continues to expand its operations worldwide.

Session 2 - Conference Paper

BIOGRAPHY

ANDIMA ORMAETXE

Director for Operations, Commercial, Logistics and Strategy, Port of Bilbao

Andima Ormaetxe is the Operations, Commercial, Logistics and Strategy Director of the Port of Bilbao Authority since 2018.

He is member of the Board of Directors of several Dry Ports and Intermodal Platforms, such as Azuqueca de Henares (Guadalajara), Coslada (Madrid), Villafria (Burgos), CSP Iberian Zaragoza Terminal and Sibport.

He is also member of the Board of Directors of Dep6sito Franco de Bilbao as well as member of the Shipping Council P01i of Bilbao.

He has held management positions in companies such as “Maritima Candina”, “Berge Maritima Bilbao” and “Agencia Perez y Cia.”.

n Degree in Nautical Science

n Merchant Navy Officer

n Master’s Degree in Maritime-Port Business Management: University of Deusto

n MBA: University of the Basque Country

n Management positions in companies such as “Maritima Candina”, “Berge Maritima Bilbao” and “Agencia Perez y Cia.”

n 2018 - Present: Pmi of Bilbao Authority, currently holding the position of Operations, Commercial, Logistics and Strategy Director

Session 2 - Speaker

PORTS AS ENABLERS: facilitating the energy transition for shipping and the supply chain.

The contribution of the Port of Bilbao for a more environmentally responsible business model.

INTRODUCTION

Ports have a key role to play in the transition to a more sustainable economy in Europe. The promotion of short sea shipping and rail-port intermodality are contributory factors to reducing transport emissions in Europe, whilst digitalisation and the use of renewable energies in ports also need to be further developed and rolled out if Europe’s greenhouse gas reduction targets are to be met.

The deployment of strategies to help deliver this transition is a challenge that ports need to meet head on.

BACKGROUND

According to the report of the European Commission’s Directorate-General for Mobility and Transport, “EU transport in figures. Statistical pocketbook 2021”1, the transport sector accounts for almost a quarter of greenhouse gas emissions in Europe. Almost three quarters of this figure (72% in 2019) is attributable to road transport.

Greenhouse gas emissions are considered to be one of the main causes of climate change. In 2019, in its document “The European Green Deal”2, the Commission called for an even greater reduction of greenhouse gas emissions from transport (90% by 2050, specifically) for the EU to become a climate-neutral economy by 2050.

Subsequently, in 2020, the Commission published its “Sustainable and Smart Mobility Strategy”3, calling for a major modal shift to rail, inland waterways and short sea shipping.

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In 2021, the European Commission adopted the “Fit for 55” package, which proposes a series of measures to reduce greenhouse gas emissions by 55% by 2030. Regarding obligations for ports, the aim is to encourage a transition towards a more sustainable and environmentally friendly economy. This implies the implementation of measures such as the electrification of docks to reduce dependence on fossil fuels, the promotion of clean and green fuels, and the uptake of more efficient and environmentally friendly technologies.

THE ROLE OF INTERMODAL SHORT SEA SHIPPING

Short sea shipping means the movement of cargo by sea between ports situated in geographical Europe, or between those ports and ports situated in non-European countries having a coastline on the enclosed seas bordering Europe.

According to the Annual Report 2022 published by the Observatory of Transport and Logistics in Spain, international road freight transport in Spain reached 119 million tonnes in 2021. This mode of transport generates the most CO2 emissions, whilst maritime transport generates the least. According to the report published by the European Court of Auditors with data from the European Environment Agency, road transport emits 137 grams of CO2 per tonne-km, whilst maritime transport only emits 7 grams of CO2 per tonne-km.4

A modal shift away from road transport and towards increased use of intermodal transport can be decisive in making freight transport in Europe more environmentally friendly. A modal mix with rail will also impact positively on the decarbonisation of supply chains: if goods are routed to port by rail instead of road, 130 grams of CO2 per tonne-km less will be emitted.4

STRATEGIES FOR DEVELOPING MORE SUSTAINABLE SUPPLY CHAINS

As key hubs, ports must take on a leadership role and dynamise new supply chains, enabling intermodal transport within networks and corridors that must be increasingly sustainable and digital.

The promotion of renewable energy and green fuels in ports and the electrification of their terminals will contribute to providing a maritime transport service that meets European objectives.

More digitalisation is also required to further develop the concept of smart ports which, through optimum management of the large volume of data they handle, will contribute to the automation, optimisation and transparency of processes and services. In short, increasingly efficient ports.

And last but not least, ensuring good maritime and land connectivity with a corridor vision.

1 Directorate-General for Mobility and Transport (European Commission), EU transport in figures. Statistical pocketbook 2021, 2021

2 European Commission Communication «The European Green Deal», COM/2019/640 final.

3 European Commission Communication «Sustainable and Smart Mobility Strategy: putting European transport on track for the future», COM/2020/789 final.

4 Special Report 2023, Intermodal freight transport: EU still far from getting freight off the road.

MARILYNE VAN HOEY SMITH

Senior Commercial Executive & Head of Sales EGS, Hutchison Ports ECT Rotterdam

BIOGRAPHY

Marilyne van Hoey Smith brings over a decade of expertise in the maritime and logistics industry, with specialized knowledge in container transport systems and intermodal networks. With a modular executive MBA, focused on Sustainability & Systemic Change and various roles in Germany and Hong Kong she has significant experience in the sector. Since joining the industry, she has demonstrated strategic leadership and a steadfast dedication to innovation within global logistics.

Current Duties and Responsibilities:

n Oversees sales strategy and commercial activities at HPEI.

n Directs initiatives to improve efficiency and sustainability in container transportation.

n Leads a robust sales team to achieve targets, cultivating a culture of success.

Marilyne’s strategic acumen and adept leadership continue to drive Hutchison Ports Europe Intermodal’s growth, ensuring its status as a powerhouse in the intermodal transport sector.

Session 2 - Speaker

1 Introduction

Pioneering Sustainable Hinterland Transport

Hutchison Ports Europe Intermodal (HPEI) is an intermodal network operator and a subsidiary of Hutchison Ports ECT Rotterdam (ECT). HPEI offers shipping lines, logistic service providers and shippers high-frequency rail and barge services which connect an extensive network of inland terminals with all deepsea terminals in Rotterdam and other ports. In addition, HPEI also offers many extra benefits, such as customs facilities, inland terminal services, storage, empty depot and last mile trucking delivery.

1 Introduction

2 Background

2.1 Part of ECT

2 Background

2.1 Part of ECT

2 Background

Hutchison Ports Europe Intermodal is part of Hutchison Ports ECT Rotterdam, one of Europe’s leading and most advanced container terminal operators. Via HPEI, the knowledge and experience that is available within ECT is linked with intermodal transport services. ECT handles most of the containers in the port of Rotterdam, where it operates the ECT Delta terminal , which are situated at the Maasvlakte, directly the North Sea.

Hutchison Ports Europe Intermodal is part of Hutchison Ports ECT Rotterdam, one of Europe’s leading and most advanced container terminal operators. Via HPEI, the knowledge and experience that is available within ECT is linked with intermodal transport services. ECT handles most of the containers in the port of Rotterdam, where it operates the ECT Delta terminal and ECT Euromax terminals, which are situated at the Maasvlakte, directly at the North Sea.

2.1 Part of ECT Hutchison Ports Europe Intermodal is part of Hutchison Ports ECT Rotterdam, one of Europe’s leading and most advanced container terminal operators. Via HPEI, the knowledge and experience that is available within ECT is linked with intermodal transport services. ECT handles most of the containers in the port of Rotterdam, where it operates the ECT Delta terminal and ECT Euromax terminals, which are situated at the Maasvlakte, directly at the North Sea.

Fig. 1 – Logo Hutchison Ports Europe Intermodal

Fig. 2 – Logo Hutchison Ports ECT Rotterdam

Fig. 1 – Logo Hutchison Ports Europe

2.2 Hutchison Ports

Fig. 1 – Logo Hutchison Ports Europe Intermodal

2.2 Hutchison Ports

2 – Logo Hutchison Ports ECT

Fig. 2 – Logo Hutchison Ports ECT Rotterdam

Hutchison Ports ECT Rotterdam is part of Hutchison Ports, a subsidiary of the multinational conglomerate CK Hutchison Holdings from Hong Kong. Hutchison Ports is the world’s largest port investor, developer and operator. At present, Hutchison Ports is active in 53 ports across 24 countries throughout Asia, the Middle East, Africa, Europe, the Americas and Australia (shown in fig.3). Hutchison Ports has globally expanded its logistics and transport -related activities, which among other things comprise cruise ship terminals, airports, distribution centres, rail services and ship repair facilities.

Hutchison Ports ECT Rotterdam is part of Hutchison Ports, a subsidiary of the multinational conglomerate CK Hutchison Holdings from Hong Kong. Hutchison Ports is the world’s largest port investor, developer and operator. At present, Hutchison Ports is active in 53 ports across 24 countries throughout Asia, the Middle East, Africa, Europe, the Americas and Australia (shown in fig.3). Hutchison Ports has globally expanded its logistics and transport-related activities, which among other things comprise cruise ship terminals, airports, distribution centres, rail services and ship repair facilities.

Hutchison Ports ECT Rotterdam is part of Hutchison Ports, a subsidiary of the multinational conglomerate CK Hutchison Holdings from Hong Kong. Hutchison Ports is the world’s largest port investor, developer and operator. At present, Hutchison Ports is active in 53 ports across 24 countries throughout Asia, the Middle East, Africa, Europe, the Americas and Australia (shown in fig.3) related activities, which among other things comprise cruise ship terminals, airports, distribution centres, rail services and ship repair facilities.

Fig. 3 – Hutchison Ports locations throughout the world

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Fig.

2.3 Rebranding HPEI

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In May 2023 Hutchison Ports Europe Intermodal , formerly known as European Gateway Services (EGS), was rebranded. The new name immediately makes it clear which activities are being carried out. It also emphasizes that Hutchison Ports Europe Intermodal forms part of an integrated range of port-to-door services from Hutchison Ports ECT Rotterdam.

3 Our network

The HPEI network reaches from the port of Rotterdam deep into Germany. HPEI facilitates direct barge connections and point to point rail shuttles. This network is crucial as it ensures efficient and sustainable transport .

The HPEI network reaches from the port of Rotterdam deep into Germany. HPEI facilitates direct barge connections and point to point rail shuttles. This network is crucial as it ensures

Fig. 6 – HPEI Hinterland network Fig. 4 – Previous brand name Fig. 5 – New brand name Fig. 4 – Previous brand name Fig. 5 – New brand name Fig. 6 – HPEI Hinterland network Fig. 6 – HPEI Hinterland network Fig. 4 – Previous brand name Fig. 5 – New brand name

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4 Intermodal Forwarding

In addition to our own rail and barge connections, we also offer Intermodal Forwarding for destinations outside our own network. In that case, we organize the transport of your containers through the networks of our intermodal partners whereby you can still rely on our intermodal expertise and familiar working methods. For example, your container status can be monitored via our customer portal and we can organize local trucking and port transfers.

5 Sustainability

Container transport by train or inland vessel will significantly reduce your CO2 footprint. HPEI will gladly think along with you about the implementation of the appropriate intermodal and synchromodal concepts. Via our frequent rail and barge connections, we quickly, efficiently and sustainably transport your containers between seaports and hinterland. Climate and cost benefits often go hand in hand in that respect.

6 Digital Solutions through MyTerminal

HPEI offers direct access to real-time information via API’s. With an API, information can be integrated directly from HPEI systems into the customers planning system. This provides realtime data in the planning system, without having to search and enter it manually. This will save time and prevent errors. All of this can be facilitated via our API connections which allow the user to track their containers from port-to-door where possible. Hutchison Ports ECT Delta and ECT Euromax offer real-time and accurate monitoring of deepsea vessels, feeders, inland vessels and trains. And with detailed updates you’re always aware of your container status, and never lose track of what’s important.

Hutchison Ports ECT Delta and ECT Euromax offer real-time and accurate monitoring of deep-sea vessels, feeders, inland vessels and trains. And with detailed updates you're always aware of your container status, and never lose track of what’s important.

Fig. 7 – Intermodal forwarding connections through various partners Fig. 7 – Intermodal forwarding connections through various partners

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Fig. 8 - MyTerminal Fig. 8 - MyTerminal

ALEXANDRA HERDMAN Senior Policy Manager,

Logistics UK

BIOGRAPHY

Alexandra Herdman is a Senior Policy Manager at Logisitcs UK, representing members across all modes of the logistics sector. Her portfolio includes air, water, skills and planning. Her current policy work includes campaigning for additional funding for level 2 training and increasing freight on rail and water.

A qualified project manager, Alexandra has an MSc in Global Challenges from the University of Edinburgh, which had a strong focus on climate change mitigation and adaptation, decarbonisation, global health and international development.

Prior to Logistics UK, spent five years as a Senior Researcher in the Scottish Parliament, working on public policy and legislative scrutiny.

Session 2 - Speaker

is a Senior Policy Manager at Logistics UK, the leading voice of the UK's logistics over eight years of experience in policy and public affairs, spanning the Scottish and UK transport industry. She holds an MSc in Global Challenges from Edinburgh University.

Manager, Alexandra engages with key stakeholders, influences government decisions, the interests and needs of the logistics sector.

The role of modal shift in the supply chain

UK of the country’s groups, supporting, standing up for safe and We are the only representing the entire sector delivering an innovative, productive and of essential national system ensures the products that businesses and public every day, and is transformation for the membership of over 20,000 national and regional SMEs spanning the road, industries as well as the services, such as manufacturers.

About Logistics UK

shift in the supply chain

Logistics UK is one of the country’s largest business groups, supporting, shaping and standing up for safe and efficient logistics. We are the only organisation representing the entire logistics sector.

plays a pivotal role in modern economies, serving as the backbone for the movement of production to consumption. In recent years, the concept of modal shift has gained traction as a supply chain efficiency and sustainability. Modal shift refers to the transition from one transportation to another, such as shifting from road to rail or sea transport. conditions, overrunning works, capacity constraints and a lack of network capacity make journey planning highly unpredictable, increasing business costs such as through unnecessary overtime, increased fuel consumption, inefficient fleet utilisation and In the United Kingdom, having an HGV stuck in congestion costs £1.30 per minute to the overall, congestion cost the UK economy £9.5 billion in 2022 alone1

We represent a sector delivering an increasingly innovative, productive and sustainable system of essential national infrastructure. This system ensures the availability of the products that households, businesses and public services rely on every day, and is supporting the UK’s transformation for the future. Our membership of over 20,000 includes global, national and regional businesses and SMEs spanning the road, rail, sea and air industries as well as the buyers of freight services, such as retailers and manufacturers.

The role of modal shift in the supply chain

Manager’s Guide to Distribution Costs: October 2023 Update, 2024

The supply chain plays a pivotal role in modern economies, serving as the backbone for the movement of goods from production to consumption. In recent years, the concept of modal shift has gained traction as a strategy to optimise supply chain efficiency and sustainability. Modal shift refers to the transition from one mode of transportation to another, such as shifting from road to rail or sea transport.

1 Logistics UK, Manager’s Guide to Distribution Costs: October 2023 Update, 2024

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Poor transport conditions, overrunning works, capacity constraints and a lack of network capacity optimisation can make journey planning highly unpredictable, increasing business costs such as through missed deliveries, unnecessary overtime, increased fuel consumption, inefficient fleet utilisation and damaged vehicles. In the United Kingdom, having an HGV stuck in congestion costs £1.30 per minute to the operator and, overall, congestion cost the UK economy £9.5 billion in 2022 alone1 .

Understanding Modal Shift

shift is driven by various factors, including cost considerations, environmental concerns, and regulatory requirements. Historically, road transport has been the dominant mode due to its flexibility, accessibility and cost Road will remain the central mode but there is significant scope to increase freight by modes. Reliance on one mode can limit resilience, sustainability and efficiency. By utilising other such as rail, sea, and inland waterways, there are benefits to be gained including additional capacity, energy efficiency, and emissions reductions. By shifting freight from road to these alternative operators can achieve cost savings, reduce environmental impact, and enhance resilience.

Benefits of Modal Shift

Modal shift is driven by various factors, including cost considerations, environmental concerns, and regulatory requirements. Historically, road transport has been the dominant mode due to its flexibility, accessibility and cost. Road will remain the central mode but there is significant scope to increase freight by other modes. Reliance on one mode can limit resilience, sustainability and efficiency. By utilising other modes, such as rail, sea, and inland waterways, there are benefits to be gained including additional capacity, energy efficiency, and emissions reductions. By shifting freight from road to these alternative modes, operators can achieve cost savings, reduce environmental impact, and enhance resilience.

the primary benefits of shift is emissions

reductions Modal shift contributes to sustainability by reducing greenhouse emissions and alleviating congestion on roads. This is particularly significant in urban where traffic congestion pressing issue. Rail freight reduces CO2 emissions by up compared to road, single rail freight can remove up to 129 movements2 An inland barge uses only 17% of energy required to move by road and 50% of the required to move goods by rail3 Rail and water provide sensible alternatives for heavy and bulky such as aggregates, machinery and grain.

Benefits of Modal Shift

shift can enhance supply chain resilience by diversifying transportation routes and modes. By integrating multiple modes into their logistics network, operators can mitigate risks and ensure continuity of operations. Modal shift promotes intermodal transportation solutions, where different modes are seamlessly integrated, optimizing efficiency and reliability.

in time deliveries, road and air provide the speedier service required for this market, illustrating the and integrated system in the supply chain and highlighting there is no one size fits all solution.

One of the primary benefits of modal shift is emissions reductions. Modal shift contributes to sustainability goals by reducing greenhouse gas emissions and alleviating congestion on roads. This is particularly significant in urban areas where traffic congestion is a pressing issue. Rail freight reduces CO2 emissions by up to 76% compared to road, whilst a single rail freight service can remove up to 129 HGV movements2. An inland water barge uses only 17% of the energy required to move goods by road and 50% of the energy required to move goods by rail3 Rail and water provide sensible alternatives for heavy and bulky goods such as aggregates, machinery and grain.

Challenges and Considerations

Despite its benefits, modal shift poses several challenges that need to be addressed. Infrastructure limitations, such as inadequate rail or port facilities, may hinder the expansion of alternative modes. These exacerbated by the planning system or lack of available land, piers or wharves. Additionally, interoperability issues between different modes can complicate logistics operations and increase costs. ransitioning to alternative modes requires investments in technology, equipment, and workforce training, may pose financial and operational challenges for businesses.

2 Rail Partners, Freight Expectations, 2023

3 European Parliament, Inland waterway transport in the EU https://www.europarl.europa.eu/thinktank/ en/document/EPRS_BRI(2022)698918, 2022

egulatory frameworks and policy incentives play a crucial role in facilitating modal shift. Governments can encourage the adoption of sustainable transportation modes through measures such as grants, subsidies, incentives, or emissions regulations. Similarly, industry stakeholders need to collaborate on

Partners, Freight Expectations, 2023

European Parliament, Inland waterway transport in the EU

Session 2 - Conference

Modal shift can enhance supply chain resilience by diversifying transportation routes and modes. By integrating multiple modes into their logistics network, operators can mitigate risks and ensure continuity of operations. Modal shift promotes intermodal transportation solutions, where different modes are seamlessly integrated, optimizing efficiency and reliability.

For just in time deliveries, road and air provide the speedier service required for this market, illustrating the holistic and integrated system in the supply chain and highlighting there is no one size fits all solution.

Challenges and Considerations

Despite its benefits, modal shift poses several challenges that need to be addressed. Infrastructure limitations, such as inadequate rail or port facilities, may hinder the expansion of alternative modes. These can be exacerbated by the planning system or lack of available land, piers or wharves. Additionally, interoperability issues between different modes can complicate logistics operations and increase costs. Transitioning to alternative modes requires investments in technology, equipment, and workforce training, which may pose financial and operational challenges for businesses.

Regulatory frameworks and policy incentives play a crucial role in facilitating modal shift. Governments can encourage the adoption of sustainable transportation modes through measures such as grants, subsidies, tax incentives, or emissions regulations. Similarly, industry stakeholders need to collaborate on standardising processes, improving connectivity, and harmonizing regulations to enable seamless intermodal operations.

Implications for Supply Chain Management

Modal shift necessitates a holistic approach to logistics planning, encompassing route optimisation, mode selection, and inventory management. Supply chain managers must assess the trade-offs between cost, speed, and sustainability objectives when making transportation decisions. Some of these decisions may be consumer led, such as those with ESG policies with a focus on supply chain emissions.

Modal shift requires collaboration across the supply chain ecosystem, including shippers, carriers, logistics providers, and policymakers. Strategic partnerships and alliances can facilitate the integration of different modes and streamline operations.

Improvements to supply chain efficiency strengthens connections between businesses and their customers, facilitates market expansion, boosts competition, and encourages innovation.

Next steps for modal shift

Modal shift represents a strategic opportunity to optimise supply chains by adding resilience and modal options, especially for non time-sensitive goods. By diversifying transportation modes and reducing reliance on one mode, businesses can achieve cost savings, environmental benefits, and enhanced resilience. However, realising the full potential of modal shift requires overcoming infrastructure constraints, regulatory barriers, and operational challenges. Through collaborative efforts and innovative solutions, supply chain stakeholders can unlock the transformative potential of modal shift and build more efficient, resilient, and sustainable logistics networks.

Paper

MARIA MATUSZEK

Commercial Manager, Associated British Ports (ABP)

BIOGRAPHY

Matuszek joined Associated British Ports (ABP) in December 2023 as Commercial Manager and is responsible for promoting ABP ports as key enablers of the UK zero emission solutions for both ocean and land transportation. Seasoned supply chain and business development professional (held various commercial roles in the shipping and logistics industry, including two global high profile roles for IKEA and A.P. Moller-Maersk). Passionate about decarbonisation of the UK supply chains which can only be achieved at scale through strategic collaboration and partnerships. Enjoys the challenge on redefining what Keeping Britain Trading Sustainably means in the green economy of tomorrow.

ANDRÉ MAST

Commercial Director, A2B-online

BIOGRAPHY

André Mast in 2013 became one of the founding members of A2B-online Container in Moerdijk. Working previously for P&O Ferrymasters, Norfolkline and DFDS he has more than 38 years experience in Shortsea Shipping.

A2B-online is a multimodal shortsea operator between the Continent and the UK. Operating 7 owned vessels, 500 Tautliners, 2400 45ft pallet wide high cube containers as well as 200 of our own trucks. We are in partnership in Moerdijk with other shortsea barge and rail operators to offer the most sustainable multimodal.

- Speakers 53

Session 2

ABP – Keeping Britain Trading Sustainably

Associated British Ports (ABP) is the UK’s leading ports group, with 21 ports handling around a quarter of the UK’s seaborne trade worth £157 billion. Together with our customers, our ports contribute more than £15 billion to the UK economy and support 200,000+ jobs. Our ports provide essential gateways for trade, enable green infrastructure and catalyse investment and good jobs in coastal communities. We continue to invest in capacity in the Humber region, such as in short sea container handling, which is particularly important for customers post Brexit and in sustainability terms.

Enabling the UK’s Energy Transition

We are redefining what Keeping Britain Trading means in the greener, cleaner economy of the future. This is reflected in the launch of our sustainability strategy, ‘Ready for Tomorrow’, which sets out our plan to reach net zero greenhouse gas emissions from our own operations by 2040 by the latest. Building on strong connections with a wide range of industries and authorities, ABP is in a unique position to play a pivotal role in delivering a more sustainable UK. This is through our own activities but also through working with a range of different organisations to share and accelerate progress. ABP is planning to invest around £1.4bn in infrastructure and facilities to support customers involved in the energy transition. This includes working with businesses in key UK industrial clusters such as the Humber and South Wales, as well as playing our part in reducing emissions in global shipping. To make Net Zero a reality, it is essential that there is a partnership approach, both between industry players, but also between governments and industry itself.

Session

2 - Conference Paper

Your first port of call for maritime excellence

Royal HaskoningDHV is a world leader in maritime consultancy, with over 140 years’ experience in maritime strategy, development and operations. Our design and engineering expertise helps private and public sector clients achieve – and exceed – their goals. We’re dedicated to optimising ports, terminals, and shipyards across the globe.

Whatever your focus, we have a specialist team ready to help

n Our Green Ports team recommends impactful initiatives aligned to your sustainability goals

n Our Smart Ports team establishes your digital maturity and identifies ways to maximise efficiency

n Our Wind Ports team finds the best ways to adapt your facility to seize this evolving opportunity

Find out how we can support you with our expert consultancy services:

Green Ports Smart Ports Wind Ports

DAY TWO

NICK LAMBERT Co-Founder & Director, NLA International Ltd

BIOGRAPHY

A master mariner and a committed proponent of the maritime users’ perspective, Rear Admiral Nick Lambert concluded a long naval operational career as the UK National Hydrographer in December 2012. He advises on a wide range of maritime issues including the growing potential of the blue economy concept, the importance of spatial data infrastructures and hydrography for maritime economies, the evolution of eNavigation and GNSS vulnerability, near or real time situational awareness (especially that derived from space based assets and applications), maritime connectivity and cyber security, human factors, and training and education in the maritime sector.

He has a particular interest in the Polar Regions and is also engaged in a variety of situational awareness, fisheries and aquaculture management, marine autonomous systems and vessel efficiency projects.

Chairman’s Opening 57

Ports as enablers –facilitating the energy transition for shipping & the supply chain SESSION

PAVAN CHHABRA

Head

of Hubs,

Europe, A.P. Moller – Maersk A/S

BIOGRAPHY

A master mariner by profession, Pavan has been with A.P. Moller Maersk for over 25 years in various executive roles, and locations across their global organisation.

Currently serving as Head of Hubs, Europe. Pavan is responsible for driving strategy, delivering client outcomes and transformation.

Stints in Singapore, Panama, Copenhagen and Mumbai have offered Pavan exposure in various aspects of shipping & logistics encompassing network execution, strategy, transformation and process excellence.

His strategic vision and operational prowess has contributed significantly to Maersk’s overall strategy.

Pavan is not only a seasoned maritime professional but also a distinguished scholar, having earned his MBA (Singapore) and various leadership programmes at IMD and Harvard.

Keynote Presentation

Session 3 -

MAURICE DELATTRE

Area Manager, Port of Amsterdam

BIOGRAPHY

Maurice is a business professional with a strong aspiration for business development, supply chain management and strategic projects in the context of energy transition.

Maurice joined Port of Amsterdam in 2019 as Area Manager for Germany, Scandinavia & Baltics following various commercial positions at shipping lines and global logistics companies across Europe. In his current role, Maurice is responsible for business development of short sea and hinterland connections, growth of sustainable cargo segments, as well as strategic initiatives focusing on the development of green value chains.

Maurice holds a master’s degree as MSc in Supply Chain Management from Rotterdam School of Management, Erasmus University.

Session 3 - Speaker

Port of Amsterdam taking the lead in the energy transition

Port of Amsterdam – proud host of Coastlink 2024

As the fourth largest port in Northwest Europe, the port of Amsterdam is a leading player in the international world of transport and logistics, and is historically characterized by a strong energy cluster.

Due to the presence of industry, Schiphol airport, as well as a dynamic seaport, the North Sea Canal Area (NCSA) has a unique geographical proposition. The strategic and central location within Europe makes the port region widely accessible and ensures excellent connections to all major European markets.

With an annual cargo turnover of more than 80 million tonnes and a total economic added value of EUR 7.2 billion, the port economy in the North Sea Canal Area (NSCA) makes a strong contribution to the Amsterdam metropolitan region.

Renewable energy and raw materials are the essential pillars for a new energy eco-system to be built. By forming strategic partnerships between public and private stakeholders and by fostering collaboration along the entire value chain, ports play an increasingly important role in accelerating the energy transition.

In this respect, Port of Amsterdam puts great efforts in establishing itself as a sustainable and economic engine for the region following the aim to realize significant growth of alternative fuels, expansion of renewable energy sources and ultimately contributing to the reduction of CO2 emissions in the region.

In order to expand its strategic function as a European energy port in the future, Port of Amsterdam is continuously seeking to develop new cargo flows, expand its global network via sea, inland shipping and rail connections. Therefore, we are very proud to be the host port of this year’s edition of the Coastlink Conference 2024.

Back in 2021, Port of Amsterdam joined forces with a variety of partners such as Schiphol Airport, Tata Steel, Gasunie, Nobian, Vattenfall, Alliander, the Province of Noord-Holland, the Municipality of Amsterdam, the Municipality of Zaanstad, the Amsterdam Metropolitan Area, ORAM and the agency for the North Sea Canal region to accelerate the transition to hydrogen. The ambition of these partners is to develop the Amsterdam Metropolitan Area and the North Sea Canal Area into an international Hydrogen Hub in the coming decades.

The unique characteristics of the Amsterdam and North Sea Canal regions mean the utilization of hydrogen has an excellent starting position to provide new, sustainable and unique value chains for the Netherlands, such as CO2-free steel and clean fuels for sea and air transport. The ideal ingredients are present for the transition to hydrogen, with Port of Amsterdam being one of the largest fuel ports in the world, leading industry in the North Sea Canal Area, Schiphol airport, the North Sea close by, the connections to the hinterland, the extensive gas and fuel infrastructure in the region, and the presence of the world’s top scientists in the field of hydrogen and renewable energies.

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The ideal ingredients are present for the transition to hydrogen, with Port of Amsterdam being one of the largest fuel ports in the world, leading industry in the North Sea Canal Area, Schiphol airport, the North Sea close by, the connections to the hinterland, the extensive gas and fuel infrastructure in the region, and the presence of the world's top scientists in the field of hydrogen and renewable energies.

Image 1: Development of a hub for hydrogen and its derivatives

The Amsterdam Metropolitan Region and the North Sea Canal Area can only achieve the climate goals by fully committing to hydrogen developments. Therefore, hydrogen is essential for the continued existence of the air and sea ports and industry. By working together with various partners, important steps can be taken in the region towards a strong and energyneutral industry and economy.

The province of North Holland is strongly committed to developing hydrogen as a promising alternative to coal, natural gas and diesel. This commitment to hydrogen is a crucial step towards achieving climate neutrality and reducing CO2 emissions. The benefits extend beyond cleaner air; hydrogen also reduces particulate matter and nitrogen emissions, contributing to a healthier living environment. Moreover, this deployment stimulates the economy and creates new jobs in the province.

North Holland’s port areas act as essential hydrogen hubs for import, storage, transit and export of sustainable hydrogen. Amsterdam, as the fourth largest port in Europe, is shifting its focus from currently fossil fuels to green hydrogen and synthetic paraffin for aviation and shipping. The port of Den Helder, due to its strategic location, can also play a key role in the large-scale import of green hydrogen from the North Sea or neighboring countries. The strategic location of the ports in the North Sea Canal area and Den Helder thus make these regions crucial in the hydrogen transition for North-Holland, the Netherlands and North-West Europe.

During the European Hydrogen Week in Brussels last year, the Hydrogen Hub Noord-Holland was awarded European Hydrogen Valley of the year 2023. On behalf of the province, Programme Director Energy Transition North Sea Canal Area Ingrid Post accepted the award. Last year, the award went to Hydrogen Valley Noord-Nederland.

Image 1: Development of a hub for hydrogen and its derivatives

Session 3 - Conference Paper

The Hydrogen Valley status is a European award for regions with a distinctive commitment to developing an energy system based on sustainable hydrogen. Worldwide, there are 84 regions with Hydrogen Valley status and in Europe, 60 regions have Hydrogen Valley status. Now in its sixth year, the European Hydrogen Valley of the Year award provides an additional incentive for project beneficiaries to bring research and innovation to market. Hydrogen Hub Noord-Holland is a collaboration between a large number of partners including the province of Noord-Holland, North Sea Canal Area, Development Agency Noord-Holland and various municipalities, grid operators and private parties.

“This recognition underscores the efforts of both public and private partners to make Hydrogen Hub North Holland a success story and thus occupy a leading position in the hydrogen transition within North-West Europe” said Ingrid Post.

Image 2: European Hydrogen Valley of the year 2023 Image 2: European Hydrogen Valley of the year 2023

“This

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Image 3: Hydrogen to Amsterdam (H2A) consortium

In the coming decades, the demand for green hydrogen in Northwest Europe is expected to grow exponentially and will exceed the local production potential. In order to meet this growing demand, the import of green hydrogen from countries around the world will be necessary.

To make use of its regional characteristics and to further accelerate the transition towards an increasing share of renewable energies, Port of Amsterdam actively collaborates with various international partners along the entire hydrogen value chain.

For this purpose, the hydrogen to Amsterdam (H2A) consortium was officially launched in July, 2023. The H2A consortium consists of a number local companies and international partners, who joined forces to import green hydrogen via the port of Amsterdam and has been initiated by Evos, SkyNRG, Port of Amsterdam, Zenith Energy Terminals, Hydrogenious (Germany), Electriq Global (Israel), the Municipality of Amsterdam and the Project Office North Sea Canal Area; all significant players in the hydrogen value chain. The consortium partners are keen to further develop and demonstrate the use of safe and cost-effective hydrogen technologies, supported by concrete projects in hard-to-abate transport and industrial sectors.

Based on the shared ambition to import large volumes of green hydrogen via the port of Amsterdam in the future, the H2A partners offer suppliers a route to market to meet the growing European demand for green hydrogen. With an open platform, H2A offers parties maximum benefit from the complementary areas of expertise and experience of the partners in the regional, national and international green hydrogen value chain. This covers shipping, storage, release and distribution of green hydrogen, independent of the modality it is bonded to.

To bring together all international partners, H2A organizes its yearly symposium on 4th of July in Amsterdam.

recognition underscores the efforts of both public and private partners to make Hydrogen Hub North Holland a success story and thus occupy a leading position in the hydrogen transition within North-West Europe” said Ingrid Post.

Image 3: Hydrogen to Amsterdam (H2A) consortium

regional, national and international green hydrogen value chain. This covers shipping, storage, release and distribution of green hydrogen, independent of the modality it is bonded to.

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To bring together all international partners, H2A organizes its yearly symposium on 4th of July in Amsterdam.

Image 4: H2A Symposium 2023 Image 4: H2A Symposium 2023

PATRICK WALISON Senior Consultant Maritime Strategy & Economics, Royal HaskoningDHV

BIOGRAPHY

Patrick is an experienced consultant on maritime strategy and economics within Royal HaskoningDHV.

He has built up his international business experience within the technological sector while further developing his economic, commercial, and strategic expertise at international marine and offshore wind contractor Van Oord.

He has recently been leading Royal HaskoningDHV’s work for the RenewableUK Floating Offshore Wind Industry Roadmap 2040 and the stakeholder engagement process of the NSEC Offshore Wind Port Capacity Study, and has executed multiple market study, due diligence, financial and economic modelling projects in the port sector, with a main focus on the impact of the energy transition on European ports.

Recent work has focused on the developing the commercial business case for offshore wind port infrastructure.

Session 3 - Speaker

Port as enabler: Facilitating the Energy Transition for Shipping and the Supply Chain

Reason for this contribution

The energy landscape of the future is poised to significantly transform the shipping and port industry. The energy transition, while presenting opportunities for ports, also introduces new challenges and uncertainties in future shipping activities and routes, and with that impacting port infrastructure developments. The role of ports is expected to evolve from a spatial, infrastructure, commercial, and economic perspective.

In this paper, the following aspects will be discussed and some initial approaches that will help position ports as enabler for these changes will be highlighted.

a) The future of ports & shipping: A brief overview of the impact of the energy transition on ports and shipping;

b) Potential roles of ports: The opportunities, changes, and development needs for ports;

c) Current and upcoming challenges: The challenges, considerations, and needs, with practical examples from offshore wind (OW) and hydrogen (H2) in ports;

d) Commercial Potential: An initial approach to determine the commercial potential and how to consider this in port planning activities.

Impact of energy transition on shipping and ports

The energy transition is expected to alter future activities in the following ways:

1. Within and near the port area through energy savings, electrification and use of hydrogen in port equipment and transport, on-site renewables, shore power, and bunkering of alternative fuels.

2. In the wider port area in industrial clusters and port-city links, through industry decarbonization, a changing offshore industry, new industry processes, conversion and storage of new energy sources, and the use of a mix of energy sources in the wider area and towards cities, including links to the ports with pipelines and cables.

3. In the overall economy and wider community, through green supply chains and business models, by means of decarbonization of transport and the development of green supply chains.

These changes are emerging from a combination of climate and energy policy frameworks, the changing energy mix, technology innovations, and market developments. With the impact on shipping expecting to be significant. For example, when looking at the expected impact of hydrogen. Shifts in producing and user countries will result in changing export-import locations and routes. Over 100 million tonnes of green H2, and 50 million tonnes of blue H2, are forecasted to be traded internationally each year by mid-century — by pipeline or ammonia vessels. Chile, North Africa, and Spain would potentially together represent almost 75% of the global pipeline hydrogen trade. Morocco, Australia, and the US would together account for three quarters of the global ammonia trade market7). More local production of renewable energy and hydrogen is also expected, accompanied with the slow phase out of fossil-related activities. Currently, ports are already securing volumes to stimulate and assure future activities.

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The impact on ports will be profound. Spatial planning will be severely impacted and new land trade-offs need to be made while space is scarce. Investments in new facilities and equipment are required for handling, bunkering, storage, conversion, equipment, and transport. New or modified port and energy infrastructure needs to be developed, like dedicated terminals & quays, new on-/off loading facilities, power connections, and infrastructure for energy conversion and storage. This is driven by growing LNG streams and large renewable power inflow, and the emergence of alternative fuel imports, exports and production.

The industry landscape, often located in or connected to the port will change due to changing energy needs, process innovations, changing industry players in the port, and the localisation of new industry and local production. This will potentially create new energy hubs in ports that connect production and transport, urban areas and new industry clusters.

Challenges

The challenges are manifold. Land-use in ports is expected to be different, requiring longterm, integrated spatial planning. Renewable energy and new energy carriers will require more and safe storage. Dedicated corridors for cables and pipelines and hinterland connections will be needed, which could naturally come together in ports to optimally connect value chains.

High investment levels, difficulties in securing funding, and complexity in investment decisions are currently already encountered. Energy and project development skills will need to be secured to deal with energy transition developments. While operational implementation will be complex, risky, and potentially interfering. If port developments don’t start in time, energy transition developments are expected to be delayed, as significant port infrastructure often takes about 5-7 years to be operational. Market and demand uncertainty is limiting ports to act in time.

Example offshore wind

The global offshore wind capacity is projected to grow from over 60 GW at the end of 2022 to 240 GW by 2030, and further to over 410 GW by 2035. Europe, in particular, is targeting a capacity of 300 GW by 2050 8). This burgeoning offshore wind market is confronted with three core supply chain challenges: 1) securing access to raw and rare materials and components at commercially attractive prices, 2) scaling manufacturing capacity, and 3) building and optimizing logistics and installation capacity and processes.

Ports play a pivotal role in bolstering the supply chain and achieving these targets. The feasibility of different roles that ports can take on is contingent upon specific sector demands. Offshore wind imposes substantial demands on port infrastructure, while the proximity of projects is a crucial determinant of their competitiveness.

At present, port investments are stagnant, despite the centrality of adequate infrastructure to efficient and scalable offshore wind construction. Port capacity could potentially become a significant bottleneck for European offshore wind ambitions. Without prompt action to develop new port infrastructure and upgrade existing facilities, offshore wind energy targets are unlikely to be met. The offshore wind sector necessitates support from a port sector and supply chain capable of handling peak demand in fixed bottom towards 2030, driving industrialization, and ensuring long-term operations of a large offshore wind asset base.5)

Example hydrogen and alternative fuels

In the context of hydrogen and zero-carbon fuels, ports are gearing up for hydrogen transport, production, bunkering, and system integration. Ports could potentially function as transport, production, alternative fuel bunkering hub, and regional/end-user hub, for both hydrogen as well as related carriers like ammonia and methanol.

Session 3 - Conference Paper

The potential hydrogen value chain in or connected to the port needs to be integrated into existing port activities. This will have direct impact on the port’s infrastructure and its position, affecting port safety, environment, spatial planning, and economic position. It is crucial to identify what is possible, feasible, and how to mitigate potential issues.

Activities, scale and attractiveness of renewable energy production (being for example onshore and offshore wind and solar) are increasingly related to the development of value chain for the production of hydrogen and hydrogen carriers. Offering the challenge of how to optimally integrate in the port planning, both from an optimal spatial planning of these activities as well as in line with existing activities.

Port and business case development

From an economic perspective, there are several opportunities for ports. Ports can secure new energy trade flows and future-proof their current activities or venture into new business. They could offer decarbonized services that contribute to the emission reduction of clients, and realize long-term cost savings and returns from energy efficiency and decarbonization investments. Ports can attract future industry and business by proactively developing the port area and secure or grow long-term land-use returns. They can also develop a crucial role in supply chains by creating dedicated terminals and corridors, assume a utility-type role by managing energy flows in the port, and create dedicated services for new revenue streams by servicing industries, terminal operators, and shipping liners with specific transport and energy flow services.

However, the current lack of price competitiveness and the high investment levels combined with uncertain returns form a constrained for green energy related infrastructure investments. While on the other hand existing technologies and activities offer a certain and more attractive alternative.

Several important enablers can facilitate the process of securing dedicated facilities in ports. In this stage of the energy transition, public funding support is required to stimulate investments and mitigate risks. In port strategy and port planning dedicated space can be appointed by port authorities to provide room for new energy developments. Investments in upgraded and new enabling energy infrastructure in the port are needed to enable the industry in the port (e.g., adequate power grids). Furthermore, engagement and advanced cooperation with other ports, industry players, utilities and the public sectors is key to progress system steps needed. And off course regulations, policy structures and governance will enforce compliance and support decisions to create a future-oriented port (e.g. the EU AFIR directive).

Depending on its position and ambitions, port authorities can play a proactive role in stimulating the energy transition, ranging from their more traditional landlord role, as a demand-driven facilitator, to an early-stage enabler, investor, and even a co-developer. But is off course also very much dependent on the ambitions, plans, projects and investments coming from port players.

The development of a business case is a critical process which is enabled by a strong integrated port development process. From a port planning process this can be broken down into the 5 key elements:

1. Goal Identification - Identify the energy specific objectives of your port at various levels, ranging from strategic to operational, including a clear identification of roles.

2 Port-Specific Assessment - Conduct an assessment of your port to evaluate your opportunities, exposure, and the specific dynamics and surroundings of your port related to energy specific activities. This may potentially include an economic impact assessment.

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3. Pre-Feasibility Assessment - Carry out a pre-feasibility assessment of the potential options using a multi-criteria analysis that considers economic, spatial, safety, technical, environmental, social and commercial indicators.

4. Port Master Planning – Step 1-3 could be part of, or should flow into, the development and implement of a more tailored and integrated port master planning process.

5. When following these steps, business cases can be developed more adequately.

This entails a good understanding of the size and fit of the opportunity. Which includes providing insights in the market dynamics and timing. Translated into clear demand and supply signals, requirements and a logistic planning. Key is also the formulation of the value proposition. This involves understanding roles and options, the competitive position, resulting in a clear market positioning, a view on alternative & adjacent markets, and company goals.

From understanding the market and the value proposition, the business model should be identified. This includes a proper understanding of the revenue drivers, expectations on volumes and frequencies, tariffs & rates benchmarking, willingness to pay, and the viability of multi-function use options.

Finally, the financial feasibility needs to be determined. This involves understanding the investment need, financial structuring & modelling, volumes and revenue forecast, scenarios, sensitivities and risk analysis, and economic impact/cost-benefit analysis.

Conclusion

In conclusion, the energy transition is highly complex, diverse, and uncertain. It will significantly impact port infrastructure such as quays, networks, and storage space. Many port authorities are mission-driven and aim to enable the transition by playing an essential role in connecting future flows of energy and resources. Taking on such a role is demanding, with challenges pertaining to investment decisions, allocation of space, skills, and operations. However, getting involved early creates opportunities for cost savings, new revenue sources, and future-proofing the port. We observe port authorities increasingly taking on a broader and more proactive role towards energy transition topics, in line with their profile and working with key stakeholders. A strategic assessment of your port is key: find a set of activities that is viable and feasible for your port and tackle uncertainties with more advanced port planning and business case development.

References

1. “The New Energy Landscape”, ESPO – RHDHV, March 2022

2. “Opportunities in Offshore Wind, Hydrogen and Ports in Ireland”, Dutch Embassy in Ireland –RHDHV, August 2022

3. “Building UK Port Infrastructure to Unlock the Floating Offshore Wind Potential”, RenewableUK –RHDHV, OREC, Biggare Economics, March 2023

4. “Pre-feasibility Study of Alternative Fuel Bunkering in the Port of Den Helder”, New Energy Coalition – RHDHV, April 2023

5. “NSEC Offshore Wind Port Capacity Study”, NSEC – RHDHV, RVO, October 2023

6. “The Impact of Hydrogen on Dutch Seaports”, January 2024

7. “World Energy Transitions Outlook 2022”, IRENA, March 2022

8. “Global Offshore Wind Report 2023”, GWEC, August 2023

KIERAN MORTON

Business Development Manager, Port of Aberdeen

BIOGRAPHY

Kieran is an established industry professional with almost 20 years’ experience across multiple sectors.

His role at Port of Aberdeen involves leading the organisations growth across its diverse client base, supporting established clients in Oil & Gas, Cargo and Cruise while also developing to support new industry sectors such as offshore wind and Hydrogen. Understanding how Port of Aberdeen adapts to support these new industries will be key to the nation’s energy transition, supporting security of supply and the Port’s own Net Zero targets, while continuing to support the Ports existing users.

Prior to his current role at Port of Aberdeen, Kieran held several roles for major international energy companies, beginning with roles in Engineering before transitioning to Operations Management and latterly Business Development.

As Scotland’s largest and busiest Port, Port of Aberdeen plays a large role across Oil & Gas and Cargo industries and has a huge opportunity to be a deciding factor in the success of Scotland offshore wind ambitions.

Port of Aberdeen is the UK’s oldest business and Kieran will be driving the growth for the next phase of its long history.

Session 3 - Speaker

Learn from C-suite keynote panel

Er Tham Wai Wah Chief Sustainability

Oﬃcer

The Maritime and Port Authority of Singapore (MPA)

Dr Sanjay Kuttan Chief Technology Oﬃcer

Global Centre for Maritime Decarbonisation (GCMD)

Lars Robert Pedersen Deputy Secretary General BIMCO

Discussing Ports and Shipping- collaboration to achieve 2050 goals

Captain K. Subramaniam General Manager Port Klang Authority

Antonis Michail WPSP Technical Director International Association of Ports and Harbours (IAPH)

Eva Liu Head of Shipment

Product

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Gain insights from industry experts on: Green Shipping Corridors

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isa must-attend event for policy makers, ports and terminal operators, shipping companies, shippers and logistics companies, fuel& propulsion providers, classiﬁcation societies and associated decarbonisation clusters.

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Shore Power –

Overcoming the barriers to infrastructure and delivery

PANEL DISCUSSION 73

KERRIE FORSTER Chief Executive Officer, The Workboat Association

BIOGRAPHY

After 17 years working both on/offshore within various maritime industries, Kerrie is an industry Consultant and CEO of the Workboat Association - “The trade association for Workboat Owners, Operators, Stakeholders and Professionals.”

Once a workboat vessel Master, he has substantial offshore experience onboard CTVs, Survey Vessels, Dive support and Anchor Handlers. Kerrie spent a number of years managing a fleet of workboats for an International company based in the Netherlands and has gained experience from working across the globe.

Kerrie has a strong background in promoting a well-accepted safety culture, responsible work ethics and cross organisation understanding. He has designed QHSE documentation, systems/ controls and has led significant incident and accident investigations. Organising and providing training and technical advice to on/offshore workforces, he is an ISM lead auditor, certified in the International Maritime Dangerous Goods code and has developed and implemented ISO/ OHSAS/IMO certification of various company Safety Management Systems.

Currently living in Rotterdam NL, Kerrie actively represents the Workboat Industry and wider Offshore Contracting Sector speaking at and Chairing working groups and conferences, providing guidance and research to many National and International publications, campaigns and Government strategies. Kerrie is motivated in supporting all industry stakeholders from Regulators to Apprentices.

“The availability of reliable shore power is fixing itself as the key-stone in maritime decarbonisation requirements.

Whether it is used for cold-ironing, battery charging, system startup or to supply the auxiliary equipment used to attend a vessel in port (cranes, road vehicles, retracting linkspans etc.).

I am looking forward to discussing with others as they share their case studies, concerns, requirements, solutions and ambitions when it comes to providing and benefiting from suitably powered, reliable and sustainable electrical shore connections.”

Session 3.1 - Panel Moderator

JOHAN-PAUL VERSCHUURE

Senior Port & Transport Economist & Director, Rebel Ports & Logistics

BIOGRAPHY

Session 3.1 - Panellist

ARJAN MEIJER

Area Sales Manager BeNeLux and Central Europe, Ports & Maritime Division at Cavotec

BIOGRAPHY

Over ten years’ experience in the Port Industry, mainly in the project equipment sales in the EMEA region. Passionate about supporting terminal operators, port authorities electrifying, automating their operations to make it sustainable, safer, more efficient, and future proof!

Shore power implementation presents a transformative opportunity for ports worldwide, yet it is not without its challenges. Addressing these barriers demands a strategic approach and collaborative effort.

Access to grid power stands as a primary consideration. Ports often face a substantial increase in power consumption, necessitating significant upgrades to existing infrastructure. Engaging energy companies is key; they play a pivotal role in constructing a compelling business case for additional investments and navigating regulatory frameworks.

Working with experienced partners, such as industry associations and seasoned suppliers like Cavotec, ensures access to invaluable insights and proven solutions. With over 1000 vessel and 100 port installations, Cavotec brings unparalleled expertise to the table.

Timeliness is crucial. Ports must assess their capacity to build requisite infrastructure within specified timelines while anticipating and mitigating potential challenges. Conducting comprehensive studies and meticulous tender preparations are paramount.

Securing funding remains a pivotal concern. Ports can explore various avenues, including EU, national, or regional funding, and leverage specialized support services for subsidy applications. Notably, substantial funding opportunities remain untapped.

In navigating these complexities, ports can effectively overcome barriers and realize the immense benefits of shore power adoption.

Session 3.1 - Panellist

JAMES EVANS Head of Operations, Portsmouth International Port

BIOGRAPHY

With over 30 years’ experience exclusively in the maritime sector, James has extensive knowledge of the ports industry.

After working in every aspect of operations throughout his career, James was recently promoted to head of operations at Portsmouth International Port. Focussing on coordinating complex operations and trade requirements, James is responsible for managing stakeholder needs from the ports main ferry and cruise customers and key suppliers, as well as the delivery of shore-side operations to ensure the port continues to meet industry standards and deliver a high quality service.

In 2023, Portsmouth was successfully awarded funding to embark on a ground-breaking decarbonisation project which will see the port design, build and operate a shore power system across its three busiest berths. This investment in infrastructure has the potential to revolutionise the UK’s maritime sector, and further establishes Portsmouth International Port’s reputation as a living laboratory of green technology with industry-leading sustainability credentials.

Session 3.1 - Panellist

Portsmouth International Port is the UK’s most successful municipal port, responsible for handling millions of customers and vital cargo across the globe. With the most routes to Europe and easy access to major shipping lanes, Portsmouth is ideally placed for ferries, cruise and freight.

As a port owned by the city, Portsmouth’s municipal model comes with a duty to be a responsible neighbour and give back to the residents - with plans to become one of the UK’s first zero emission ports by 2050, and reach net-zero by 2030.

In 2023, Portsmouth International Port was awarded £19.8m by the UK Government to allow them to embark on a groundbreaking decarbonisation project. The Sea Change project will see the design, build and operation of a ‘shore power’ system across the three busiest berths at the port. This will allow visiting ferry and cruise ships to turn off their engines when in the port, as they will be able to ‘plug-in’ and use green electricity to run their onboard systems.

The installation will serve two ferry berths and an additional berth shared by ferries and cruise ships. The system is due for installation in the fourth quarter of 2024 and expected to be operational by the second quarter of 2025.

Sea Change has the potential to revolutionise the UK’s maritime sector, and further establishes Portsmouth International Port’s reputation as a living laboratory of green technology with industry-leading sustainability credentials. This project realises the full potential of two new LNG-electric hybrid ships from the port’s main customer, Brittany Ferries, which will begin sailing from Portsmouth starting in spring 2025 and will be shore-power ready. The port’s new system will allow them to manoeuvre in and out of the harbour on battery power, significantly improving air quality across the city.

Session

- Abstract

3.1

GERAINT EVANS Chief Executive, UK Major Ports Group

BIOGRAPHY

The UK Major Ports Group is the industry voice for the UK’s major port operators and represents nine of the top ten port operators in UK. Members collectively handle 75% of the UK’s port volumes through 40 ports and invest over £600million per annum in UK ports and infrastructure. These include the largest ports in England, Scotland and Northern Ireland in areas of economic significance across the United Kingdom. Evans works with members, policy and law makers to navigate the changing policy landscape and represent their interests to Government, political parties and officials across the UK.

Evans joined the UK Major Ports Group in May 2023 from the global consulting firm, Stonehaven where he was a Partner. Prior to Stonehaven, Evans served as a Special Adviser under three consecutive Prime Ministers – David Cameron, Theresa May and latterly Boris Johnson.

Evans has extensive experience of cross-Government Whitehall departments and Parliament having been an early champion of the ‘Levelling Up’ agenda and joined the UKMPG having been at the centre of British politics during a historic period of three general elections and an EU referendum in five years.

Session 3.1 - Panellist

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PANEL DISCUSSION 81

Smart operations & logistics -

Automation, and Innovation to drive efficiency?

LARS ROBERT PEDERSEN Deputy Secretary General, BIMCO

BIOGRAPHY

In early 2010, Lars Robert Pedersen joined BIMCO as Deputy Secretary General. He is responsible for BIMCO’s technical and operational activities involving membership services, technical and nautical issues as well as security. Lars Robert is further responsible regulatory developments related to ship operation at international, regional and national levels.

Before joining BIMCO he had a career at A.P. Moller-Maersk involving technical management of the Maersk fleet of container ships and prior to that as seagoing engineer officer. Lars Robert holds an unlimited Chief Engineers license.

Session 3.2 - Panel Moderator 82

MARK WOOTTON Deputy Director, Royal HaskoningDHV

BIOGRAPHY

Years of experience: 25 Mark has over 25 years of experience within the shipping and ports industry. His background has been primarily in roles responsible for delivery of systems, technology solutions and optimization to support and improve operations and supply chains in and around the ports.

Mark has experience in terminal automation and has been involved in senior roles in projects for the design and implementation of automated equipment, as well as automating operational and administrative processes at several container terminals. In addition, he has been responsible for terminal development including equipment, civil works and technology deployment to expand terminal capacity.

Session 3.2 - Panellist 83

ROB TONISSEN Business Manager, Routescanner

BIOGRAPHY

Rob Tonissen, a seasoned professional at the crossroads of digital innovation and container logistics, brings a wealth of expertise to Coastlink. With a solid foundation of 9 years of carrier experience at CMA-CGM, one of the leading global shipping companies, Rob gained a deep understanding of the intricacies of maritime operations. His journey into the realm of digital innovation began when he transitioned to the Port of Rotterdam, where he played a pivotal role in driving digital initiatives forward. Currently serving as the Director of Supply at Routescanner, a subsidiary of the Port of Rotterdam, Rob continues to be at the forefront of transformative developments in the industry.

Rob’s dual expertise in both the digital landscape and carrier operations uniquely positions him to offer a comprehensive perspective on the broader discussions at Coastlink. His experience at Routescanner encompasses a range of digitalization and innovation initiatives, making him a valuable source of knowledge for anyone seeking insights into the future of container logistics.

To connect with Rob and explore the intersection of digital innovation and maritime logistics, visit his LinkedIn profile. Don’t miss the opportunity to engage with a thought leader who is actively shaping the future of the industry.

Session 3.2 - Panellist 84

Session 3.2 - Conference Paper

Routescanner has developed the largest overview of global ocean and intermodal container schedules, that brings transparency in routing options by harmonising schedule data from sea, rail and barge operators. This improved visibility of routing options, including emissions, will support decision making by cargo owners and forwarding companies, with the aim to drive an optimization in sustainability and efficiency in global container transport.

For ports and terminals Routescanner has developed a digital application, called Direct Connections, that can be embed on the ports/terminals website to promote its connectivity. The solution helps cargo owners, forwarders, and other industry participants to find the best and most efficient way to transport container cargo to/from your port. It provides a great marketing opportunity to promote international container networks, sustainable solutions and modal shifts.

MO DUALEH

EMEA Sales Manager, TBA Group

BIOGRAPHY

Mo Dualeh has worked as an Enterprise Technology professional for over twenty years across the EMEA region, primarily with Deloitte & US Tech Corporations. Recently, I have joined TBA Group (a division of Konecranes Software) and am responsible for Business Development and sales of CommTrac TOS (Terminal Operating System) throughout Europe, the Middle East, and Africa.

CommTrac is an award-winning system that simplifies the planning, tracking, and management of non-containerised bulk and breakbulk cargo. It is highly scalable and capable of managing manual machinery and people while controlling automated assets in real-time. CommTrac provides the tools and management information needed to streamline cargo operations, maximise revenue and profitability, ensure compliance, and reduce risk.

Before joining the technology sales industry, I had maritime experience serving as a crew member on an RNLI Inshore Lifeboat in the Bristol Channel for two years and as an Officer in the Royal Navy for four years.

TBA focuses on delivering software solutions to bulk and general cargo terminals. In this sector, we recognise that digitisation plays a crucial role in driving operational efficiencies by improving resource utilisation. During my presentation, I will provide a couple of real-world examples of technology that delivers a return on investment.

Session 3.2 - Panellist 86

JAN EGBERTSEN

Strategy & Innovation Manager, Port of Amsterdam

BIOGRAPHY

Jan Egbertsen (1964) has studied management and logistics at the Technical University of Twente. Jan works for the Port of Amsterdam as manager strategy and innovation. He is among others responsible for energy transition, digitalization and transport.

Session 3.2 - Panellist 87

Snapback Characterization for Arresting Structure Design SPONSORED CONTENT 88

Snapback Characterisation for Arresting Structure Design: Physical Testing Insights

Ben Poulter 1; Ray Keane 2 Andrew Diehl3 Choon Wong 4 1Holmes Solutions, Christchurch, NEW ZEALAND email: benp@holmessolutions.com 2,3,4 Holmes Solutions, Christchurch, NEW ZEALAND

Summary

Mooring line snapback presents a dynamic challenge, transferring significant kinetic energy to any structure in its path. Despite its importance, specific design guidelines for mitigating snapback risk remain absent. Current analogies from related industries offer some guidance but fall short of fully capturing the impact of high-velocity mooring line events, potentially leading to inadequate solutions. This paper emphasizes the necessity of understanding snapback characteristics to inform the effective design of arresting structures. Through detailed exploration of mooring line behaviour during a snapback event based on physical testing as discussed by Hodgins K (2023) in her paper “Validating Snapback Risk”, this study aims to build on existing theory and fill gaps in knowledge. By grasping these dynamics, the paper seeks to facilitate the development of practical solutions to mitigate risks associated with high- energy snapback events. Ultimately, this research contributes to enhancing personnel safety, productivity, and efficiency in maritime operations.

Keywords: snapback, mooring lines, life safety, ports, arresting structures

1. Introduction

Assessing the impact severity resulting from a snapback event poses a multifaceted challenge. Various factors contribute to the magnitude and characteristics of these impacts, including the mooring line material, composition, and manufacturer, rupture location, breaking tension, and trajectory. Additionally, the way the line fails, often influenced by the mooring configuration, heavily influences the nature of the impact event Sweeping failures (ref. Figure 1), prevalent in spring or breast lines, often travel along a threedimensional trajectory, generating complex sideswiping impact events and unpredictable hazard zones, over expansive areas. This is discussed by Butler J, (2023) in his paper “Loose Ends: Computational Modelling of Snapback Paths”

Meanwhile, direct line failures in head lines or stern lines often travel along a two-dimensional trajectory, at least initially, following the path of the moored line toward their termination point and generating concentrated impact events within confined areas However, if the ruptured line collides with obstacles in its path, deflects off a surface, or is propelled off accumulated ruptured rope at the termination point, it can suddenly shift into a three-dimensional trajectory, resulting in impacts and hazard zones more like a sweeping failure.

Relying solely on conventional methodologies and parameters to gauge impact severity, risks oversimplification of the event, and may lead to ineffective arresting structures. For instance, the mere consideration of the weight and velocity of the tail section, or the deceleration of a ruptured line alone, fails to provide a comprehensive understanding of the impact dynamics. This approach, relying on analogies from neighbouring industries, may overlook crucial factors, potentially leading to inaccurate assumptions regarding the severity of impacts that result in over-engineered structures or unforeseen failures (ref. Figure 2)

2. Conventional structure design

Most structures that are required to withstand large loads are typically designed with a linear response to statically or dynamically applied loads. These structures operate predominantly in the elastic response region of the materials and structure. Excess plastic deformation, or rupture, is considered a failure of the structure’s performance. Conventional structures are often designed to withstand large static loads over a long duration throughout their design life, which typically spans many years. They do so by using specifically selected combinations of material strengths and structural layouts for component-to-component load transfer. Examples of such structures include buildings or bridges.

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Figure 1: A snapback event penetrating a conventionally designed operator cabin with multilayered toughened glass during base line testing - Keane R, (2024) Figure 2: A temporary arresting structure developed using conventional methods, unsuccessfully arresting ruptured line - Smith A.S, (2021)

Such structures may be required to withstand large dynamic loads, such as seismic loads on buildings, or bridges with significant applied ‘live’ loads. These structures do so with a predominantly linear response, with some provision for small-scale, localised, low strain plastic deformation Significant plastic deformation of the material or large, non-linear response of the system is typically considered as an unacceptable characteristic. Consequently, conventional engineering methods used to design these structures employ first principles of elastic response, low displacement analysis, and low strain-rates to predict responses of the structure. Tools such as engineering calculation, implicit (linear) FEA and small or medium scale physical testing are used to apply static or pseudo-static point loads to predict linear response.

2.1 Assumptions

Conventional approaches to the design of structures often require simplification or assumptions to be made for the loading applied to the structure. In an attempt to predict the severity of a mooring line impact and the likely performance of the arresting structure, current general practice in the industry is to utilise conventional methods of linear response, with certain key assumptions about the applied load. These in turn have some notable limitations For example:

 Predicting response using force �� = �� (1)

Where �� = force, �� = mass and �� = acceleration

Assumptions are made on the stopping distance and linear reduction in impact speed, to determine acceleration

Limitation - does not easily account for forces that may change over the time of impact (e.g. when a structure is designed to flex or move during loading)

 Predicting response using stress �� = ��/�� (2)

Where σ = stress, f = force and a = acceleration

Assumptions are made on the cross-sectional area of loading

Limitation - does not easily account for compounding loading events from a single snapback impact.

3. Practical considerations

To accommodate for inaccuracy inherent in key assumptions, conventional methods often apply a large safety factor to accommodate for the uncertainty of actual loading applied. For designs with a life safety component, factors of up to 10 x may be applied With this approach, the instinct may be to design structures with unlimited strength and size to withstand snapback events. However, such a design approach results in bulk, weight, and cost Practical considerations within environments such as commercial terminals (ref. Figure 3), operating ports, offshore platforms, and vessels, present significant challenges to such an approach. The following are some examples of these considerations:

 The need to maintain high visibility for personnel through any arresting structure.

 The need for personnel movement in, and around the structure to enable mooring operations.

 A limited footprint or space to install an arresting structure.

 A limited exiting structural capacity for the installation of an arresting structure.

 The need to keep operations online, meaning short windows of time for installation

 A limited access for heavy equipment to install locations.

 Harsh metocean conditions such as high wind loading, extreme UV, and saltwater.

3.1 Debris

Debris resulting from a snapback event presents a danger of causing significant injury or death. Even when a mooring line fails to penetrate an arresting structure, resulting debris can pose a significant danger as seen in Figure 4; a small metal segment broken from a structure due to an impact with a ruptured mooring line can travel at exceptionally high speeds, more akin to a fired bullet.

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Figure 3: Hay Point coal terminal (BHP Mitsubishi Alliance - BMA, Hay Point Mackay)

Examples below that were observed in testing illustrate the weight and velocities of debris from a broken structure (Table 1). A .22LR rifle projectile is included for comparison.

4. Energy methods

Anecdotally there is recognition in the industry that conventional structural methods may not be well suited to analysis and engineering of snapback arresting structures. In an attempt to recognise the energy nature of these events, an approach of analysis by considering the kinetic energy of the ruptured rope’s end (to be arrested) is applied. The force response of the arresting structure, with respect to distance deflected, might then be used to determine the energy capacity of the structure to withstand the impact energy.

While energy methods are valid for the analysis of deformable systems under loading from moving objects, the approach has significant limitations when considering high-rate impacts with a flexible whip element.

For example:

 Predicting response using kinetic energy �� = 1/2��^2 (3)

Where �� = kinetic energy, �� = mass and �� = velocity.

Assumptions are made on the mass of the impacting section, previously assumed as approximately 2m in length, and that the impact event is a singular event. The velocity of the section is determined at a single time point (i.e. initial impact)

Limitation – the effective size of the impacting section can be defined in multiple ways (i.e. elbow, tip or complete tail). This can also vary significantly, depending on the type of failure, the resulting trajectory of the line, and the consequential contact length of the ruptured section with the arresting structure. In turn, this heavily influences the mass of the impacting section and the resulting tip velocity, thereby effecting the predicted impact severity when applying this method. Further, the concentration (or spread) of loading on any given region is also not accounted for, where properties of the following line segment continue to impact the arresting structure

 Absorption by bulk deformation of structure

1/2 �� ^2 = �� (4)

Where �� = mass, �� = velocity, �� = force and �� = distance

An assumption is made that the structure’s bulk strain response (pseudo-dynamic loading) can absorb the kinetic energy.

Limitation – while true under low impact rates, during highly dynamic events the inertial effects of the structure’s material and elements significantly affect the dynamic deformation of the arresting structure Where a low loading rate has time to move and deform surrounding elements and distribute the deformation (absorbing energy) through the bulk structure, the rapid nature of the snapback event sees inertial effects limit the deformation to a more localised region. The assumption does not account for the absorption of the impact energy over a smaller region with the effect of increased strain on a localised region.

 Application of ‘tensile data’ in high strain events.

The assumption is that the stress-strain response (and data) of materials tested in pseudo-static loading apply at high strain rates

Limitation – This assumption does not appreciate that some materials exhibit differing stress-strain responses as the strain rate of loading increases. At high rates material strengths and/or failure deformation limits may change, reducing the energy absorption capacity of the material compared to that suggested by the ‘tensile data’

5. An alternative approach to structure design When considering the highly dynamic, high-energy nature of a snapback impact, an alternative approach to designing structures by utilising nonlinear loading and response provides a more suitable option Unlike conventional structural designs, structures with a nonlinear response are best designed to withstand and absorb energy, and large dynamic loads over much shorter periods of

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Figure 4: Debris 5 recovered during snapback testing of a non-proprietary rigid arresting structure - Keane R, (2024)

Debris Code Max Velocity (m/s) Weight (g) Max Energy (J)

Table 1: Recorded snapback debris from testing of a non-proprietary rigid arresting structure - max velocity, weight and max energy (Keane R, 2024)

57.7 53 88.3

152.5 46 534.9

143.7 52 536.9

76.6 38.5 113.0

110.5 101.5 619.7

67.7 46.0 105.5 .22LR Projectile 330.0 2.6 163.0

time (seconds), using controlled plastic deformation in addition to a combination of material strength and component-to-component load transfer. Examples of applications where such methods are applied effectively include roadside safety barriers or crash rated security barriers. These methods do not rely on calculations and engineering analysis where the use of simplifications and assumptions, surrounding the loading event and precited response, is afforded. Consequently, the engineering methods by which they are designed are more complex. In addition to elasto-plastic material properties, largedisplacement engineering calculation tools include explicit (nonlinear) FEA and full-scale physical testing to apply complex dynamic loads and accurately validate nonlinear responses (ref. Figure 5, 6)

6. Understanding snapback impact severity

There are some significant differences between the types of impacts that structures such as roadside safety barriers or crash rated security barriers are designed to absorb, and the types of impacts resulting from a snapback event. Specifically, impacts resulting from a snapback event occur at much higher velocities and within an extremely brief timeframe (milliseconds), and in more highly concentrated areas on the structure. These factors mean that a resisting structure has far less time in which to respond to the impact.

When subjected to the impact of a ruptured mooring line, an arresting structure’s material is accelerated at a high rate at the immediate impact site. The surrounding structure, with its inherent inertia, provides resistance to acceleration. Under the high impact rate, the surrounding material lags the

motion of that at the impact site, with it being accelerated solely by the strain force of the material The high impact nature of these events over a small effective cross-sectional area, results in high stresses, that must be accommodated by the material properties. The short duration of the snapback event results in a high rate of strain on the materials. Often materials subjected to high strain rates exhibit an increase in strength (5-15%) due to the phenomenon known as ‘strain rate sensitivity’ and show significant reductions in available plastic strain capacity.

The material behaviour effectively ‘weakens’ the arresting structure when subject to impact conditions. The outcome is a situation where the structure is unable to deform controllably to arrest the impact, leading to penetration or rupture, and emission of dangerous debris.

This can be further demonstrated by a real-world test, which directly compares the impact severities of a car (a large object) to a section of a ruptured mooring line (a much smaller object) and the observed responses of an identical barrier. A 1000 kg car travelling at 150km/hr impacting a barrier at 20 degrees has an impact severity of 101 kJ. When it impacts a barrier that energy is distributed over a large area, enabling the barrier to contain the vehicle. (ref. Figure 8)

Comparatively, a mooring line with an assumed impacting section of ~2 m (in the example case the elbow) weighs 5.16 kg With an impact speed of 648km/hr, the elbow section has an impact severity of 83 kJ (Note: if the whole tail section is included as the mass, in the example case 7.8 m, the impact

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Figure 5: Non-Linear FEA snapback simulation result - Wong C, (2023) Figure 6: Universal full-scale snapback test setup during research test examining impacts with vehicles on berths - Holmes Solutions, (2024) Figure 7: “Stress strain curve with different strain hardening rate” Avril S, Pierron F, Sutton M, Yan J (2008) Figure 8: Geobrugg F1 Debris Fence during FIA test, successfully arresting a 1000 kg vehicle @150 km/hr – Geobrugg, (2022)

severity is then calculated as 325kJ) When the section impacts an arresting structure that energy is concentrated in a very small area, enabling penetration of the arresting structure (ref. Figure 9)

6.1 Distinct loading events

When assessing the impact of a mooring line tail on an arresting structure, it is essential to recognize three distinct loading events (ref. Figure 10 and 11):

1. Elbow Impact: Initially, the mooring line elbow strikes the arresting structure, covering a length of approximately 300 mm.

2. Tail Impact: Subsequently, the tail of the mooring line exerts sustained loading on the arresting structure, with the specific contact length dependent on length and trajectory of the tail.

3. Tip Impact: Finally, the tip of the mooring line makes contact, covering a length of around 200 mm.

6.2 Key impact characteristics

These distinct events vary in characteristics such as speed and impact location. Their sequential occurrence and diverse properties can lead to different loading patterns on the arresting structure

The performance of the arresting structure is heavily dependent on variations in these characteristics, specifically:

6.2.1 Velocity of each critical impact event

When a mooring line fails under tension, it behaves like a series of stretched springs suddenly allowed to contract. As the line accelerates (due to force applied by the tension at rupture), its momentum, represented by: �� = �� (5)

Where �� = momentum, �� =mass, and �� = velocity �� remains constant if there is no net external force acting on it (Newton's 2nd law) Considering mass, only the impacting tail section (measured from elbow to tip) matters. In sweeping failures, this section reduces in size as the line unravels like a whip, causing velocity to increase, until impact (conservation of momentum). Even when the elbow impacts the arresting structure, the velocity of the tip may continue to increase. (ref. Figure 12 and 13):

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Figure 9: Geobrugg F1 Debris Fence during Research + Development snapback test to establish baseline, unsuccessfully arresting ruptured mooring line - Smith A.S, (2021). Figure 10: Different impacting segments during a snapback event - Keane R, (2024) Figure 11: Simulated distinct loading events (1-3) during a snapback event Wong C, (2023) Figure 12: Typical recorded velocities of the elbow, tail and tip during a snapback event with an 85T synthetic mooring line ruptured at 50 tonneKeane R, (2024)

100 150 200 250 300 0.01 0.015 0.02 0.025 0.03 0.035 0.04 0.045 Velocity (m/s) Time (ms)

Figure 13: Elbow Vs. Tip velocity results when impacting an arresting structure with an 85T synthetic mooring line ruptured at 50 tonne - Keane R, (2024)

Elbow Velocity Tail Velocity Tip Velocity 1 2 3

Typical Recorded Elbow, Tail & Tip Velocity

6.2.2

Duration between critical impact events

When struck by a ruptured mooring line, arresting structures face limited reaction time compared to traditional energy-absorbing designs. snapback impacts occur rapidly, causing immediate changes in material states like strain hardening. This quick impact, akin to a speeding bullet, can lead to penetration or rupture of the arresting structure, and release of dangerous debris. The double impact of the elbow followed by the tip further heightens this risk, with shorter durations between events increasing the danger. To expand, under the initial impact from a ruptured mooring line, the impacted material is typically loaded into the plastic region (refer to state 1 in Figure 14) Previously this load was assumed to be applied from a single impact event Using this assumption, providing the impact load does not exceed the failure strain, a suitably strong material can theoretically recover and relax into the zero-load region, with residual plastic strain (refer to state 2 in Figure 14) However, as previously stated there can be multiple loading events from a single snapback event In this case, following the first impact of the ruptured mooring line (from the elbow), the material may only have time to unload to state 2 before the secondary impact, meaning that properties of that material is much lower capacity compared to the theoretical capacity.

Short tails result in rapid, high-loading impact events of millisecond duration, while longer tails result in more sustained loads as shown in (ref. Figure 15):

6.2.3 Position of critical impact events

When a mooring line tail collides with an arresting structure, the positioning of each impact event may vary, leading to differing loading points. The overall impact size is a composite of the positions and sizes of all impact events the elbow, tail and tip. The location of the initial impact (elbow) is determined by previously discussed variables Conversely, the size and location of the second and third impact events depend on the tail's length and trajectory. A shorter tail leads to the tip impacting closer to the initial impact point. The tip's impact position on the structure may deviate to the left, right, or even overlap with the initial impact location (ref. Figure 16) resulting in a smaller overall impact area and heightened concentrated loads.

The successive impact events elevate the risk of material failure, as the impacted area is already stressed and damaged from the initial impact and may already be approaching capacity. Particularly, if the second tip impact occurs near the weakened area from the first event, compounded by shorter durations between impact events due to the truncated tail, it increases the likelihood of catastrophic failure (ref. Figure 17):

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Figure 14: Material response from double impact of a snapback eventWong C, (2023) Figure 15: Impact results comparing between Elbow and Tip vs Tip impact length from an 85T synthetic mooring line ruptured at 50 tonne - Keane R, (2024) Figure 16: Left tip impact, Centre tip impact (piling) and Right tip impactWong C, (2023)

1 2 3

Figure 17: 1. Elbow impact (red track) 2. Tail impact, same location (blue track) & arresting structure penetration 3. Tip impacts to the left (green track) - Keane R, (2024)

7. Conclusion

In conclusion, this study emphasizes the importance of understanding the dynamics of snapback to develop better structures that can handle the risks of high-energy snapback events. Traditional design methods based on static assumptions fall short when dealing with the complex nature of snapback impacts. By using advanced testing and design approaches, like nonlinear FEA and full-scale physical tests, we can predict and improve the performance of structures designed to stop snapback (ref. Figure 18):

This research not only offers a path to safer maritime operations but also calls for the industry to adopt these advanced methods. Moving forward, it's crucial to apply our understanding of snapback in practical ways to protect people and assets at sea. (ref. Figure 19):

Acknowledgements

Holmes Solutions would like to acknowledge the teams at BMA and Geobrugg for their input and collaboration.

References

Keane R, (2024) “BHP Mitsubishi Alliance Hay Point Ships Line Protection – Phase 2”.

Butler J, (2023) “Loose Ends: Computational Modelling of Snapback Paths”

Hodgins K, (2023) “Validating Snapback Risk”

Other Sources

Smith A.S, (2021) “BHP Mitsubishi Alliance Snapback Barrier System Validation Testing”.

Holmes Solutions (2022) “Understanding Marine Snapback. BMA Video Case Study” You Tube

Wong C, (2023) “Snapback + Arresting Structure

Simulation Modelling”.

Avril S, Pierron F, Sutton M, Yan J (2008) “Identification of elasto-visco-plastic parameters and Characterisation of Lüders behaviour using digital image correlation and the virtual fields method”. International Journal of Mechanics of Materials 40, Pg729 - 742

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Figure 18: Geobrugg Fixed Foundation Snapback Protection Structure during validation testing, successfully redirecting ruptured mooring lineSmith A, (2021) Figure 19: Geobrugg Snapback Free Standing Protection Structure installed at Hay Point coal terminal - BHP Mitsubishi Alliance (BMA), Hay Point Mackay, (2021)

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