Port electrification – The challenges and opportunities of an electrified port industry 

Globally, the port industry is responsible for emitting 10-15 MtCO2e per year – equalling the annual emissions of the whole country of Slovenia. With the International Maritime Organisation committing to a 20-30% reduction in shipping emissions by 2030, progressing to a 70-80% reduction by 2040, and the success of the electric transition on the roads demonstrating the benefits to be gained from switching to electric power, port electrification is inevitable. The marine industry is nearing a tipping point, but this will require cooperation from the entire ports ecosystem, from operators, OEMs, port authorities and policy makers. 

Why should ports electrify? 

The foremost advantage of electrifying ports is reducing emissions. Building upon the Paris Agreement, many ports are committing to their own net zero targets, as industry leaders accept that a ports industry powered by fossil fuels will soon be untenable. As regulations tighten and we move closer to surpassing the crucial 1.5°C threshold target, port operators need to invest in a greener port industry now, before it is too late.  

By electrifying the many heavy-duty machines that serve the port industry, including delivery trucks, straddle carriers and terminal tractors, entire supply chains will be decarbonized, helping businesses and nations achieve emissions reduction targets. 

But the move towards electrifying ports is not only being driven by the race against climate change. There are many benefits to be gained for operators and local communities. The U.S. Maritime Administration’s 2020 report finds that port electrification can produce increased economic output and employment in most regions. In addition, the local noise and air pollution reduction will improve the quality of life of port workers and local people. Meanwhile, operators will benefit from lower operating and maintenance costs. 

What’s more, electrification solutions are available right now. Battery electric power is the most affordable and accessible form of decarbonization technology available to vehicles in the ports industry, and charging infrastructure can easily be incorporated into the closed areas that ports offer. Battery electric’s main competitor – hydrogen electric power – won’t be available commercially until 2030, and carries higher costs, including a higher TCO. Furthermore, green hydrogen is widely unavailable, today representing less than 1% of global hydrogen supply, whereas battery electric power relies on the existing electrical grid. 

Overcoming obstacles on the path to port electrification 

The benefits of port electrification are clear. So why are ports not already completely electrified? There are still some barriers to the transition which are causing port operators to hesitate before fully committing to the transition. The good news is that all of these obstacles can be overcome, with Kempower developing solutions to many of these issues. 

1. Cost efficiency

The most common concern for port operators is cost. Ports terminal operator APM Terminals, which has recently committed to become net zero by 2040, predicts that battery electric vehicles (BEVs) will cost on average 14 – 34% more than a diesel equivalent in 2030. This is largely due to the periods of downtime associated with battery electric vehicles. 

From the charging perspective, the key to closing the total cost of ownership gap between diesel vehicles and BEVs is to reduce downtime. Reducing downtime can be achieved through efficient charging design. At Kempower, this includes modular charging design, a responsive software backend and ultra-fast and megawatt charging options. 

Moreover, equipment prices are set to fall as developments in battery technology advance and OEM batch sizes increase. Once introduced, new technology standards for battery packs, management systems and charging solutions will help streamline production and deployment processes. Standardization of charging equipment, which many key port players support – including Kempower – will also decrease TCO calculations. Therefore prices associated with BEVs could drop significantly within just a few years: APM Terminals and DP World predict that battery-electric terminal tractors, reach stackers and straddle carriers can all achieve TCO parity within this decade. 

2. Diverse port operations 

Another unique challenge to the ports is the fact that they are home to many different operations at any one time. Ports are sites to freight trucks delivering goods, terminal tractors transporting containers and straddle carriers organizing shipping containers, to name a few. When all of these vehicles are battery electric, they have different charging needs and need to be kept moving. 

This is where an advanced charging management system is crucial. For example, Kempower ChargEye charging management system offers remote monitoring, enabling operators to maintain a constant overview of charging activities at a site and respond quickly to charging issues – all leading to a decrease in charging downtime. Furthermore, charging software’s ability to optimize uptime means that, when combined with high power charging, it can unlock a competitive TCO.   

Automatic connection devices (ACDs) are another solution to the range of different opearations at ports. In a fast-moving environment, transitions between charging sessions need to be quick. This is particularly true in opportunity charging scenarios, such as a 15 minute charging window as buses load up for their next journey. ACDs, by eliminating the need to manually connect and disconnect chargers from the vehicles, optimize precious charging time. Moreover, ACDs are essential in some countries where regulation prevents drivers from connecting chargers themselves as a safety precaution. 

3. Future-proofing port electrification 

As technology develops, ports that invest in electrification are only going to encounter more opportunities to boost productivity. It is therefore important that port operators have the flexibility to invest in the best charging technology for their site. To achieve this, the current charging set-up of ports needs to be adjusted. 

Among ports that have already adopted battery electric charging, many have invested in tailor-made chargers specific to certain BEVs. This is not sustainable for an industry with such diverse operations, as it creates interoperability issues between machines and chargers and can limit the choice of electric vehicles ports can invest in as they grow. Instead, operators should invest in standardized charging solutions that can serve a range of vehicles.  

Open charging standards will remove this issue, by making it compulsory for all vehicle OEMs and charging manufacturers to use only approved open standards across all vehicles. Kempower aligns itself with standardization groups trying to make these open standards the law. Open standards will give port operators more flexibility and enable the electric port industry to evolve at pace. 

An electrified ports industry is on the horizon 

The port industry’s potential to contribute significantly to net zero goals and unlock productivity gains for port operators is huge. Innovative vehicle OEMs and charging manufacturers like Kempower have already laid the groundwork for widespread port electrification. The technology for an efficient transition already exists, meaning now is a great time for port operators to commit to an electrified port industry. 

Written by

Jesse Makkonen

Segment Owner, Marine & Port, Kempower 

Written by

Joseph Moore

Sales Manager