An old hand and a new start
A report from this year’s IAPH World Ports Conference in Hamburg. The World Ports Conference of the International Association of Ports and Harbors (IAPH) took place in high spirits at the CCH in Hamburg from 8-10 October this year. Around 600 members from all over the world came for the festivities and discussions. Organiser Patrick Verhoeven praised the hub on the river Elbe as the “finest port city of the world” with its own pride.
Hamburg’s port senator, Melanie Leonhard, followed IAPH managing director Patrick Verhoeven in welcoming the guests to the city. The challenges are the same all over the world – but so are the opportunities, she said, so there’s plenty to discuss. She thanked the head of the Hamburg Port Authority HPA and IAPH chairman Jens Meier for their ‘Hamburg mission’.
Arsenio Dominguez, the secretary general of the IMO since the start of this year, arrived from London. He was happy to come to Hamburg from the Thames, he said, even if only because the weather is similar to that in his adopted home. He said he’d come to learn from the assembled port experts there.
From his point of view resilience is important for maritime gateways, as can be seen in the Red Sea, for example. The IMO can intervene as a mediator, if desired.
In shipping, effectiveness is of great importance, on a par with risk awareness, foremost for the lives of seafarers. Decarbonisation is another overarching task of the same strategic importance as nurturing young talent, according to the secretary general.
Good for the environment, good for growth
The keynote speaker was Søren Toft, the new No. 1 of industry leader MSC. He focused on an orientation towards global supply chains. These are changing and the shipping industry has to adapt.
His company operates in approximately 1,800 ports worldwide “to serve our customers.” This is also why MSC, the world’s largest carrier, keeps itself free of alliances.
Toft had a delicate job in Hamburg, as MSC bought 49% of the largest local port group HHLA recently. Some parts of the Hanseatic port world didn’t approve. The state senate and parliament agreed to the move, however. MSC is present with around 1.500 employees on the river Elbe. It is very important to be well-positioned in view of double-digit growth rates for trade to and from Asia.
Toft sees efficiency reserves of 20 to 30% in the port industry globally. Green shipping would only be possible with an always available supply of required fuel. MSC has over 150 ships in its order book, most of them on a dual-fuel basis. In each port, there has to be a supply of one or two types of fuel. Toft cited the saying “what’s good for the environment is good for growth!”as a leitmotif of his corporate strategy.
A panel on ports and world trade was dedicated to the (global) political environment. The lively Margi Van Gogh from the World Economic Forum looked at global supply chains. “Economic issues in shipping and ports are all-encompassing,” as IAPH president Jens Meier put it. Decarbonisation has to take precedence over competition between individual market participants.
Large ports, according to Bimco president Nikolaus Schües, must form networks with access for all. After all, problems such as “the Hutis” and drug smuggling concern everyone. HHLA CEO Angela Titzrath and Noel Hacegaba, COO of the US port of Long Beach, voiced a similar opinion – “from collateration to coordination.” Discussions then continued with regulations. The head of the port of Antwerp-Bruges, Jaques Vandermeiren, warned against too many and too rapid changes. He extolled players to “keep it simple!”
Climate protection leadership
The second day’s topics were energy and the environment. Implementing ‘clean’ energy systems, which made a breakthrough in IMO affairs in 2022, involves investments of USD 55 - 83 billion.
Hamburg port senator Leonhard was in her element there. By 2040, she said, her port wants to reduce its greenhouse-gas emissions by 70%. The gateway is of great interest for big energy guzzlers, including the steel, aluminum and chemicals industries, xxxxwhere the production of wind power, hydrogen and ammonia can take place simultaneously.
The port has initiated the necessary planning permission applications, such as one in the Moorburg area near the port, for hydrogen production, which is also open for private investment.
Ports play leading roles in climate protection efforts, according to Rotterdam’s port CEO and COO Boudewijn Siemons, who sees no alternative to this fact. The Brazilian port of Açu’s Vinícius Patel wants to bring all stakeholders into line on these matters, even with huge price differences involved. Ports are also called crystallisation points of new economic approaches. Antwerp-Bruges’s Patrick Van Cauwenberghe referred to his gateway, the No. 2 in Europe, as one good example. There’s a chemical industry cluster around the hub that produces a lot of process heat that can be further used, for example for the areas breweries and their energy requirements.
Similar news was outlined by the port of London. According to Grace Rawnsley, its ‘Thames 2050’ plan will make the entire regional transport of goods in the 150 km long Thames Estuary CO2-free. Small businesses and air traffic zones, in turn, will be built around Muara Port, a gateway in the Sultanate of Brunei, according to Azimah Ahman.
Sveinung Oftedal, who works on green shipping matters in Norway’s ministry of climate and the environment and is a member of the IMO’s ‘Environment Action Group’, said succinctly that in the energy industry “it’s no longer a question of whether or not – now it’s time for technical details.”
A bombshell and Kobe
The World Bank’s Dominik Englert is concerned about the global food situation and the pressure on governments. Fields that are distant far from maritime shipping, such as agriculture, mustn’t be forgotten.
On the last day, however, Drewry manager Tim Power provided a bombshell, taking on maritime risks. His credo – “seafaring is a business of natural risks.” In the case of energy, they’ve now lasted half a decade. The main crisis points are the Panama Canal, the Black Sea, the Suez Canal, the Strait of Hormuz and the China Sea.
At the same time, there are a total of eight risk groups, whether geo-political ones or economic ones, including freight costs or excessive regulations. He sees the “green fuel” future as bleak. This was followed by contributions on nuclear drives, amongst other things. Digitalisation in African ports representats a ray of hope.
“Global port markets in motion” was the theme of the final talk, which saw the Port Authority of New York and New Jersey’s Michael Bozza, and Supramaniam Karuppiah, from Port Klang in Malaysia, review the pandemic period, with the clsoed supply chain on US coasts in recent memory.
Michael Luguje of the Ghana Ports and Harbours Authority (GPHA), on the other hand, brimmed with optimism. “Africa is booming!” and becoming more attractive.
At the end of this world ports meeting IAPH president Meier thanked the participants and sponsors, which included the ITJ, for their commitment.
The next meeting in Kobe (Japan) will mark the IAPH’s 75th anniversary. Kobe city councillor Tomohisa Izumi was on hand to sing the praises of his city with fine words and pictures.