SUSTAINABILITY CHALLENGES IN PORTS: COST VS. ENVIRONMENT?
The Executive Chairman of Malaysia’s Westports, Datuk Ruben Emir Gnanalingham, highlighted the challenges in achieving sustainable practices in container shipping due to cost sensitivity. Speaking at TOC Asia, he noted that reduced emissions by terminal operators often lack support because both shipping lines and their customers prioritize low costs over environmental concerns.
Gnanalingham emphasized that only a small percentage of consumers are willing to pay more for sustainability, and this reluctance trickles down the supply chain. Container shipping, characterized as a “low-cost carrier” industry, sees shippers focusing primarily on price, making it hard for terminal operators like Westports to justify investments in sustainability without a solid return on investment (ROI).
Westports is exploring alternative fuels and electrification for decarbonization but faces challenges. For example, the use of electric trucks in Malaysia has resulted in higher emissions compared to diesel trucks due to the country’s reliance on a carbon-intensive power grid. However, electrifying certain equipment, such as rubber-tired gantry cranes (RTGs), has shown more promise. The port has also implemented solar panels and is exploring wind energy for Scope 2 emissions while awaiting clearer commitments from shipping lines on alternative fuels for Scope 3 emissions.
Source: Seatrade Maritime News
