07th July 2023
Hutchison Ports is committed to developing a decarbonisation strategy across the group to support its sustainable business operations. Globally, public and private organisations are working together to mitigate the consequences of climate change.
The Intergovernmental Panel on Climate Change (IPCC), a body of the United Nations, stated that limiting global warming to 1.5 °C above preindustrial levels will help reduce increasingly severe weather conditions and climate changes.
However, it requires immediate and ambitious emissions reductions across the globe to achieve net-zero global greenhouse gas (GHG) emissions in the early 2050s.
As a leading global terminal operator, Hutchison Ports is officially committed to setting both near term and net-zero targets in line with the Science Based Targets initiative’s (SBTi) net-zero standard.
Through this commitment, Hutchison Ports also becomes part of the Business Ambition for 1.5°C and Race to Zero campaigns.
The net-zero targets cover scope 1 and scope 2 GHG emissions and scope 3 emissions along the supply chain. Analysis has been completed on past emissions patterns, future plans for electrification of the fleet, adoption of renewable energy and other sources of alternative fuels to develop a smooth and achievable net-zero strategic roadmap.
With the concerted effort of business partners, customers and suppliers, the group is confident to reach the targets set in accordance with the SBTi net-zero standard, to reduce the impact of climate change by 2050.
To raise awareness about climate change among people in the community where Hutchison Ports
operates, the group has launched a new community campaign initiative called the ‘Hutchison Ports Global Climate Fresk Online Card Game.’
Climate Fresk is an educational tool based on the conclusions of the IPCC report. It explains the climate system and the consequences of its disruption. In 2018, the founder of the game officially formed an NGO based in France to promote the game and train facilitators.
A set of climate change related photo cards are assigned to the participants, who collaborate and identify the cause and effect between the cards. After identifying the mechanisms and consequences, the participants will learn the scientific basis that led to the causes of climate change.
The fun-filled, lively and interactive online game attracted 168 staff representatives from 47 ports in 21 countries. These representatives will help to raise awareness about the impact of climate change by sharing the knowledge they learnt from the Climate Fresk game to other colleagues in the company, friends and family; and the community via Dock School and Go Green events, which turns plans into action.
Through this game, the group has achieved SDGs 4 Quality Education and 13 Climate Action.
Hutchison Ports BEST terminal is considered one of the greenest semi-automated terminals in the Mediterranean.
BEST is taking the lead in combating climate change by eliminating scope 2 emissions through opting to use electricity as the terminal’s main source of power generated from 100 percent renewable energy.
Compared to other conventional terminal operations, BEST has successfully reduced its carbon emissions to nearly 65 percent since commencing operation in 2012.
The latest green project is the installation of 1,832 solar panels on the roofs of BEST office buildings. The solar energy captured can generate approximately 1.18GWh of electricity, equivalent to the annual electricity consumption of about 200 households.
In collaboration with the Barcelona Port Authority, BEST is scheduled to provide shore power to ships at berth using electrical power generated by renewable energy to reduce emissions. It is also exploring ways to provide power for refrigerated containers at the terminal’s storage area by the end of 2024.
BEST will continue to contribute and roll out efficient environmental initiatives to meet European Union and International Maritime Organization (IMO) GHG strategies.
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Hutchison Ports of Felixstowe Green Hydrogen Project is among the fifteen successful projects that will be supported by the UK government’s Net Zero Hydrogen Fund.
The Port of Felixstowe, the UK’s busiest port, is one of eight new freeports in England, designated by the UK government. The aim is to generate 100 MW of electrolytic hydrogen production at the Port of Felixstowe by 2026.
Hutchison Ports and Scottish Power have identified the Port of Felixstowe as a highly strategic location for a large-scale green hydrogen hub. The project will provide a significant contribution to the UK Government low-carbon hydrogen production capacity targets of 10GW by 2030.
The system will use 100 percent renewable electricity to power electrolysers, which take in water and produce carbon-free green hydrogen. The production of green hydrogen will help the Port of Felixstowe and Freeport East realise its ambitions of reducing its greenhouse gas emissions whilst facilitating trade and economic development.
It will also benefit the terminal by providing carbon-free fuel to power machinery, including terminal tractors, cranes, rail shunters and on-site vehicles.
The development also opens new opportunities for surrounding industries to decarbonise their operations, with local demand growing for hydrogen liquefaction and ammonia production. The project is located at an optimal site for future refuelling facilities for road hauliers and rail freight operators, providing the capacity to meet additional demand.
As a key connection point for global trade, the Port of Felixstowe has excellent connections to achieve future expansion of green hydrogen production, through development of export infrastructure serving national and international markets.
What’s more, Hutchison Ports has set a target of 2035 for its three UK ports to achieve Net-Zero for Scope 1 and Scope 2 emissions at the Port of Felixstowe, Harwich International and London Thamesport.
To reach the ambitious emissions reduction target the Port of Felixstowe will take delivery of its next batch of 22 electric tractors in July 2023 with a further 24 arriving in November 2023, two electric tractors were delivered in November 2022 as part of the pilot scheme. There are plans to acquire 150 electric tractors over the next two years.
In addition, the port has taken delivery of six new automated rubber-tyred gantry cranes (ARTGC) as part of an order for 17 new cranes.
All new terminal equipment across the three UK ports will be sustainable, there will also be a programme to replace the entire vehicle fleet with battery-powered or alternative fuel options by 2033. Equally important, to tackle Scope 2 emissions and ensure that sustainable electricity is used to power port equipment, the Port of Felixstowe signed a new deal in April to guarantee all purchased electricity only comes from certified renewable sources, such as solar and offshore wind.
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In Poland, a high-level green project launched with the conversion of seven diesel-powered rubber-tyred gantry cranes to electrical power at Hutchison Ports Gdynia. The project will significantly reduce the terminal’s diesel consumption by nearly 45 percent and reduce the terminal’s scope 1 direct CO2 emissions by approximately 1,700 tonnes annually.
What follows for Hutchison Ports Gdynia is to replace its terminal tractors and reach stackers with electrically powered or hydrogen-based technologies when the technology is safe and mature to operate in container yards according to local standards. While the introduction of artificial intelligence (AI) autonomous trucks and a feasibility study on onshore power supply has also been initiated.
To learn more, click here.
Hutchison Ports Thailand has taken delivery of a further nine new autonomous trucks (AT) to add to the existing fleet of six. These AT with upgraded features will further enhance safety and service levels to Terminal D at Laem Chabang Port.
Terminal D is one of the most advanced container terminals in the world to successfully implement mixed traffic mode terminal operations. Since 2020, the existing fleet of AT have already handled over 334,000 TEU (twenty-foot equivalent units) move since their introduction.
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Nine new autonomous trucks arrived at Hutchison Ports Thailand Terminal D
The terminal will also introduce a battery replacement station as an alternative to the AT recharging hubs to reduce the downtime the AT spend when powering up.
In the UK, Hutchison Ports’ Port of Felixstowe is believed to be the first port in Europe to introduce AT into mixed traffic container terminal operations. The two new AT represent a significant technological step forward for the Port of Felixstowe. The artificial intelligence (AI) trucks have a range of advanced built-in safety features which will allow them to navigate effectively and safely within the terminal.
The new AT have been through a thorough commissioning and testing programme and will be used initially to transport containers between the port’s Trinity and North Rail terminals.
With successful results to the testing of AT in mixed traffic, on 5th June 2023, the Port of Felixstowe and Shanghai Westwell Technology Co., Ltd (Westwell) signed an agreement for an additional 100 ATs.
Commenting on the agreement, Clemence Cheng, Chief Executive Officer of the Port of Felixstowe and Executive Director of Hutchison Ports, said: “We are really excited to be working in partnership with Westwell to bring their groundbreaking and AI-driven technology to the Port of Felixstowe. Following the positive introduction of autonomous trucks at our terminal in Thailand and after thorough and successful testing in Felixstowe, we are rolling the system out in the UK. The new trucks will increase the efficiency and operational consistency of our container handling as well as making a significant contribution to decarbonising operations at the port.”
Delivery of the first ATs to Felixstowe will commence in September 2023.
Besides acquiring the 100 ATs, the port will also invest in electric tractor units which will be added to the current fleet as well as replacing and reengineering yard cranes which will be powered by renewable energy. The new equipment will accelerate the ports to achieve Scope 1 and Scope 2 net-zero by 2035.
Although the tools underpinning port operations have evolved continuously, at Hutchison Ports safety is the foremost priority. This applies equally to technological developments and especially when introducing new equipment into live terminal operations.
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Fleet of new equipment at the Port of Felixstowe (AT, electric tractor, ARTGC and electric vehicle)
Hutchison Port Holdings Trust (HPH Trust) has deployed 5G technology at the container terminals under its Hong Kong operations – the first container terminals to become 5G-operated in Hong Kong, setting industry benchmarks for innovation and technology.
Working with 3HK, a leading mobile service provider in Hong Kong, and the mobile division of Hutchison Telecommunications Hong Kong Holdings Limited, five 5G base stations have been set up within HPH Trust Hong Kong terminals. These stations enable ultra-high-speed, low latency and massive machine type communications, resulting in greater remote execution capabilities to more connected devices and the possibility to implement virtual private real-time networks.
The terminals are running three 5G pilot projects including building a secure and reliable communications channel to control remote rubber-tyred gantry cranes, a CCTV system with AI intrusion detection features at the gatehouse to strengthen the terminals’ security and another CCTV system on quay cranes to monitor berth traffic and operations on vessels.
These projects were kickstarted with the funding from the ‘Subsidy Scheme of Encouraging Early Deployment of 5G’ by Hong Kong’s Office of the Communications Authority and are expected to result in reduced operating costs, improved accuracy, safety performance and operational efficiency.
As digitalisation continues to shape the maritime industry, HPH Trust appreciates 5G’s potential as an enabler for greater automation and digitalisation and understands that technology and innovation are the keys to success. The Trust will take the lead to invest in more infrastructure development to maintain competitive advantage, introducing more remote-control operations, automated systems, integrated platforms and AI applications.
There has been solid progress in the first half of 2023 in moving green and sustainable projects from the drawing board and putting them into action. From introducing electrically powered equipment in Asia and Europe to harnessing the clean energy source of hydrogen in the UK.
The group is also working in partnership with the broader shipping industry and global inter-governmental organisations to drive down emissions and contribute to a cleaner and safer environment.
Hutchison Ports is committed to taking the necessary steps to leverage smart technology to co-create a green supply chain.
To learn more, click here.