Resilience4Ports Gateways to a resilient future - The Resilience Shift
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A U T HOR S A B O U T T H E R E S I L I E NC E S HI F T Oliver Davey, Maritime Engineer at Arup. The Resilience Shift exists to inspire and empower a global community to Mark Button, Project Leader at The Resilience Shift and Senior make the world safer through resilient infrastructure. More people than Engineer at Arup. ever depend on the critical infrastructure systems that provide essential Amy Leitch, Head of Partnerships at The Resilience Shift. energy, water, transport and communications services, and underpin Published by The Resilience Shift. food, healthcare and education. When this infrastructure fails the January 2021. consequences can be catastrophic. Supported by Lloyd’s Register Foundation and Arup, the Resilience Shift provides knowledge and tools for those responsible for planning, CI TAT ION R E F ER ENCE financing, designing, delivering, operating and maintaining critical infrastructure systems. Our aim is to ensure infrastructure systems are Button, M., Davey, O., Leitch, A., (March 2021), able to withstand, adapt to, and recover quickly from anticipated or ‘Resilience4Ports: Gateways to a resilient future’. unexpected shocks and stresses - now and in the future. Resilience Shift, UK DE F I N I NG R E S I L I E NC E Resilience is the ability to withstand, adapt to changing conditions, and recover positively from shocks and stresses. This applies to physical infrastructure assets, and to the wider system that these assets are part of including the natural environment, the organisations that own and operate these systems, and the humans who make decisions across the value chains for these systems. H O W I S R E S I L I E NC E S HI F T C O N T R I B U T I NG T O T H E A C CE L E R AT I O N OF R E S I L I E N T I N F R A S T R U C T U R E I N P R A C T I CE ? The Resilience Shift is contributing to a global community equipped with a body of knowledge and tools needed to drive a global shift towards more resilient critical infrastructure. We are focusing on tools and approaches to put this shift in resilience thinking into practice, identifying the drivers and enablers for infrastructure resilience, and advancing a common understanding of resilient systems, both within and between critical infrastructure sectors. This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted non-commercial use, distribution, and reproduction in any medium, CC BY-NC -N D 4. 0 provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made. B 1
A C K NOW LEDGEMEN T S CONTENTS The authors give thanks to project partners, Lloyd’s Register Foundation and Arup, for all their valuable input during the scoping study. The authors also would like to extend their gratitude to all the stakeholders from the organisations below who contributed their advice and expertise. · AGWA · Lloyd’s Register Group Executive summary 4 · Asian Development Bank · Macquarie Why Resilience4Ports? 8 · Bloomberg Associates · Maritime and Port Authority of · Bloomberg Philanthropy Singapore Ports as a hub of systems 10 · C40 Cities · PIANC Navigating a Changing Climate · Climate Neutral Consulting Existing resilience challenges 14 (CNC) · Port of Cork · Port of Rotterdam Drivers of change 16 · Cityzenith · Connected Places Catapult · Port of Tyne Decarbonisation18 · European Bank of · Resilience First Reconstruction and · Siemens Technology and Digital 20 Development (EBRD) · Transnet South Africa · Global Covenant of Mayors for · University Maritime Advisory Port Communities and Environment 22 Climate and Energy (GCOM) Services (UMAS) · Resilient Cities Network (RCN) Exploring resilience with the port value chain 24 · UN Global Compact · Green Climate Fund · United Nations Conference on How can we enable a shift toward ports resilience? 30 · Intel Trade and Development · International Association of (UNCTAD) Previous work 32 Ports and Harbours (IAPH) · University of York · ITM Power · Wood Group 2 3
Executive summary In a complex and uncertain world, resilience is essential to T H E D R I V E R S O F C H A NG E A N D T R A N S F O R M AT I O N S T H E A C T I O N S T H AT C A N DELI V ER A F F E C T I NG P O R T S R E S I L I E NC E R E S I L I E NCE the business continuity of ports and the critical Through our engagement work with the ports value We have shaped four key action areas for cross- infrastructure systems that ports connect. Society needs chain we identified the multiple drivers of change industry collaboration. These actions have the resilient, low carbon gateways to prosper. affecting ports resilience. potential to: The main messages we heard were: • Help ensure ports can deliver critical functions to • Port transformation – whether through cities and communities, in an increasingly uncertain decarbonisation, technological change or future. becoming more sustainable – has the potential to • Reduce risks in the short and long term: address existing resilience challenges, but also accelerating port transformation and improving the create new vulnerabilities. economic resilience of port organisations. In September 2020, the Resilience Shift launched P O R T S : T H E G AT E WAY S T O W H O L E-S Y S T E M • There is a fragmented nature to both port • Unlock port investment by demonstrating the broad Resilience4Ports, a collaborative initiative to enhance R E S IL IE NC E governance and the approach to the multiple value of port resilience. the resilience of ports. After an extensive scoping Ports can become a leading global example of the transformative agendas. • Maximise the value from port decarbonisation and exercise, engaging the entire ports value-chain, we transition to a carbon neutral world by mid-century. • Port communities’ role in resilience is critical and digitalisation. are launching the Resilience4Ports phase one report, This approach requires planning and delivering must be strengthened and nourished. identifying the trends and transformations affecting transformation in a holistic manner – one which the resilience of ports. • There is a need to demonstrate the broad value of enhances resilience of the broad elements of the port system, recognising future as well as current port resilience and promote the right type of port pressures. investments. How do we define port resilience? The ability of ports, and the systems that they are This report describes our case for port resilience – part of, to withstand and adapt to changing including the key action areas where cross-industry conditions, and recover positively from shocks collaboration is required. Our approach to developing and stresses. Resilient ports will continue to this report hinges on the following: provide essential services, whatever shocks and • Defining the whole port system, in terms of its stresses they may face now, and in the future. elements, functions and interdependencies, Our work has identified that these collaborative action areas • Considering multiple drivers of change and broad are key to enhancing port What is meant by the ‘value chain’ for ports? The Resilience Shift uses a value chain approach resilience challenges – encompassing known and unknown risks. resilience: 2 4 to identify the many stakeholders involved in • Broad engagement with stakeholders from across Developing Convening a port’s delivering a service to end-users. This includes the ports value chain. guidance for value chain to those responsible for planning, financing, integrated port understand and shape designing, delivering, operating and maintaining transformation resilience critical infrastructure systems. Each stakeholder 3 can add resilience value to benefit the resilience of the whole system. 1 Promoting port Learning lessons from Covid-19 investment that and Brexit enhances whole- system resilience 4 5
Communities globally depend on resilient, low carbon ports to prosper. With our partners, we have been exploring opportunities for resilient, system-wide, transformation through the lenses of decarbonisation, technology, port communities and the environment. H2 H2 H2 H2 H2 H2 H2 H2 CO2 6 7
Why Resilience4Ports? Ports are resilience gateways. They are intermodal hubs for freight and passenger transport, representing a nexus of critical infrastructure systems. Ports serve as critical linkages between global What are critical infrastructure systems? There is a risk that a lack of progress or lack of Resilience is not a solo effort; it requires a village. To economies, handling nearly 90% of internationally Why are they so important? integration of these agendas will create fragility in meet the challenges above, the port value chain will traded goods. Ports also provide value-added Critical infrastructure protects communities from ports rather than enhancing their critical functions. need to come together to connect, share knowledge services to goods that they handle and act as bases a variety of hazards; provides essential services The world around us is changing faster than ever, and and collaborate; to bounce back from adversity and for an array of marine and terrestrial activities. This such as energy and water; and connects the speed of change is not going to slow down. As be prepared for the future. agglomeration effect means they often act a hub for communities via transport and communications such, we cannot delay action. research and development, for piloting new networks, enabling the flow of goods and By approaching these challenges through the lens of technologies and for innovation more broadly. information. resilience we can: As such, their reliability and performance are essential More people than ever before depend on the • Ensure a holistic not siloed transformation to the flourishing of the economy, and society at large. critical services provided by infrastructure • Focus on what ports do, not just what they are In the UK, recent port congestion resulting from systems due to the growth of the world’s made up of Covid-19 and Brexit related stresses, has had far population and its transition from rural to urban reaching effects beyond the port: from empty areas. If any of these systems fail, consequences • Take a whole systems approach bookshops to shutdown car manufacturing. As the can be catastrophic for public safety and • Bring together the broad port value chain. world becomes more connected and complex, we wellbeing, the environment and the economy. will see more stories like this – unless we act now. This approach can deliver improved outcomes for society and the environment, as well as for port Ports are facing multiple transformations: towards low businesses. carbon, smart logistics hubs that act in harmony with the environment, delivering increased value for communities. We are increasingly looking at ports as gateways for resilience. Ports must be prepared for the threats we can anticipate, As ports evolve to become low carbon and smart mobility and be able to respond to those we cannot predict or hubs around the world, they are becoming a catalyst for avoid, so that they continue to provide the essential enhancing resilience, with far reaching benefits for supply services on which society depends” chains, local communities and businesses at a global level.” J AN R E IE R HU SE Vice President at Lloyd’s Register Foundation S E T H S C H U LT Z CEO, The Resilience Shift 8 9
Port system internal interdependencies Port strategies, targets, budgets Ports as a hub Operational procedures, standards, guidance, staff hierarchies Local culture and normal, staff relationships of systems Flows of people, freight, energy, water Flows of data (stock, imports, exports, costs, fees, environmental) Port system boundary Marine interface City energy systems Interdependencies with external systems Power generation Heating and cooling Transport Inland interface Energy storage Industry Other city systems Port communities Hinterland logistics & Shipping systems distribution systems Inner port Approach Upstream Cruise ships Passenger vessels navigation Downstream Pipelines Rail Road Vehicles Inland barges Passenger transport systems Fishing vessels Dry Bulk Natural systems Container Liquid bulk Construction vessels Digital systems and utilities The port system and its key interdependencies P O R T ELEM EN T S Social Environmental Economic Political or Technological Port workers The ocean Investors institutional Port infrastructure Dredged navigation Workers unions Rivers, estuaries and Financers International Maritime Terminal operators • Harbours channels deltas Organisation (IMO) Customs and excises Vessels Seafarers Insurers • Quays Natural harbours Government bodies Marine security/policing Bunkering facilities Blue bond market • Cargo handling Intertidal areas City authorities Importers/exporters Ship building and repair Governments – tax and • Storage Port land – natural and regulatory regime Logistics companies Shippers facilities • Transport reclaimed Port Authorities Shipping lanes • Utilities Port owners/landlords Global navigation / • Customs and comms system security • Energy systems 10 11
Ports as a hub of systems Ports connect shipping to in-land Ports connect people with marine freight and logistics supply chains. transport systems, which are used for Transport – freight This links with a diverse range of domestic and international travel. and passengers – inland systems. Ports protect ships during storms. infrastructure systems Ports connect people with in-land Transhipment hub ports connect C H A R A C T ER I S I NG P OR T S A S A S Y S T EM A S Y S T E M- L E D AP P R O A C H transport systems and airports. freight with other ports. Resilience needs the whole system to function, not We recognise that very few organisations have the just individual assets within the system. A port is a remit to take a whole system view – boundaries are complex system of connected elements, itself often there for a reason. But by bringing together the embedded in an array of external systems. Ports are value chain from across the port system, and by a confluence of the natural world and man-made demonstrating resilience value to everyone – not just systems. end users - we can realise change. When we think about the elements that make up a We have shaped action themes by considering port, we have to consider the physical aspects, but resilience challenges – both those that ports currently Ports connect energy systems with shipping – for import and export of also the wider social, environmental, political and experience, and those that they may experience in Ports also provide value-added materials. economic features. A port’s resilience is deeply the future. activities to energy supply chains. Energy – infrastructure Ports provide fuels for shipping. connected to the community and natural ecosystem Ports connect energy products with These shocks and stresses are short term events or in-land transport systems systems Ports provides services for and connects that it is part of, as much as its physical infrastructure. long term pressures that could affect the functionality near and offshore energy facilities over Ports generate, store and use energy. How these elements relate to each other is critical. of the system. This chapter shows how broad those their lifecycle (construction, operation, decommissioning). Their interdependencies derive from the rules, functions can be. norms and procedures aswell as flows of data, freight, energy and people. As important as the elements, are the functions of the port: what role the port plays for society as well as the organisations governing the port. How does a port connect, provide or protect? In particular for the four critical infrastructure systems of transport, Ports are users of water systems energy, water and communications. – e.g. portable, waste, stormwater. Water – Ports provide Resilience is not one size fits-all. By framing the Via transport functions, ports are a infrastructure systems water to ships. challenge from a systems perspective, we can unlock water supply chain link e.g. long-lasting change. The images on the following chemicals. pages set out some of the general characteristics of a port system that we have used to consider resilience challenges and opportunities. Ports are users of communication Ports provide and digital systems. Communications – communications Ports can be early adopters of new infrastructure systems functions for digital systems. shipping. The function of ports in critical infrastructure systems 12 13
Existing resilience 13 challenges 12 ? ? ? 10 Here we present some of the key existing resilience challenges – we later explore drivers for change £? 14 and the opportunities and threats 05 they present. 03 17 16 15 18 04 07 CUSTOMS 06 01 08 NO WRK MORE WRK LNG LNG LNG LNG 11 09 WRK MULA! THIS IS A SIGN LNG UNION £££ STRIKE PETROLEUM COAL 02 1 – Hinterland connectivity and capacity 6 – Increased barriers to trade 11 – Fragmented governance 15 – Smuggling and security 2 – Labour challenges and human factors 7 – Man-made hazards 12 – Lack of strategic oversight at regional national or 16 – Lack of space for expansion, or port city conflict 3 – Changing shipping routes and competition 8 – Natural coastal hazards international level 17 – Managing port energy needs 4 – Changing vessel characteristics 9 – Business model and market constraints 13 – Infrastructure asset management 18 – Conflicting use of approach navigation 5 – Cyber security and technology failures 10 – Ability to access finance & investment 14 – Reducing environmental impacts
Drivers of change To enhance port resilience, now DE C AR B O N IS AT IO N T E C H NO L O G I C A L C H A NG E P O R T C O M M U N I T I E S A N D T HE E NV I R ONME N T and into the future, it is critical to The global shift to net-zero greenhouse gas emissions The 4th Industrial revolution is upon us. The rate of Ports rely on ecosystem services and have a duty to will have far reaching implications for ports. This change in technological and digital applications protect and enhance nature. These pressures will consider the drivers for change transformation affects ports on different levels: across society and industries has never been so accelerate with time, affecting port development, affecting port systems and their • port operations will change; rapid. Throughout history technology has provided a operations and importantly ports’ public perception. catalyst for step changes in society. So, what does A changing climate will put additional pressure on the interdependencies. • ports will facilitate decarbonisation of connected the digital age of the Fourth Industrial Revolution transport, energy and industrial systems; biosphere, and present increased threats to ports; mean for ports? from rising sea levels, more frequent extreme storm These drivers present both • and the changes in our cities will affect the There is a swathe of new technologies providing events and extreme heatwaves. This is already opportunities for enhancing demands on ports. innovative means of generating data at a greater creating a range of hazard ports are experiencing.1 The port governance structures and business models frequency, more cheaply. Large datasets, from resilience and the risk of creating Ports are linked to a diverse and large ecosystem of will affect the approach to this transformation, as will sensors offshore, on vessels and attached to port communities, that extend beyond port workers to new vulnerabilities. By taking a the port geography. assets have the ability to provide real-time neighbours, those reliant on ports’ functions and holistic approach to these The barriers to decarbonisations are interlinked with understanding of the environment, equipment status beyond. These communities are critical to a port’s resilience. For example, the challenge of fragmented and operating conditions. Generating and sharing this success, without them a port cannot ‘survive and multiple, intersecting agendas, governance, the requirement for a whole system data has huge value across port functions. The thrive’ - the essence of port resilience. ports can reduce risks, amplify approach to change and the need to manage insights generated can unlock efficiencies not only in Trust in the port’s management by these communities uncertainty. It is therefore important to recognise the operations and maintenance, but also in informing synergies, and thus accelerate more efficient planning and design of the interfacing is important. Engagement with the community different roles the many actors in the port value chain through awareness campaigns, trades and skills their transformations. will have in overcoming these barriers. infrastructure. training, community outreach programmes (including The regulations and incentives required for system- Communication systems (such as 5G) are also volunteering), charities, youth groups, etc, will be an The following pages highlight wide decarbonisation will affect port business models; providing the chance to quickly, remotely and indicator of that trust. Often, ports are linked with some of the key trends and with access to green finance, green recovery efficiently transfer data, allowing rapid and increasingly disadvantaged communities that require special investment, and evolving shareholder concerns all automated decision making. The Internet of Things attention and commitment. developments for these three key playing a role. (IoT) will transform procedures, with direct machine to As we decarbonise, a just transition for those currently themes. Below we summarise the Ports will play a significant convening role; brokering machine communication improving efficiency, safety employed in fossil fuel reliant jobs will be critical, and reliability – aiding decision making. significance for ports. partnerships between transport, energy, industry and overlaying with the impact of Covid-19 on the cities to realise broader change. Through all this These technological developments can be enablers to economy and jobs, and the need to create more good change, the need for partnerships, collaboration and broader outcomes: to greater efficiency and reliability, quality jobs and apprenticeships. This creates integration across the port value chain will increase. to safer operations, to services better integrated with pressures for ports but also an opportunity; where land and ocean-side infrastructure, to greener ports. port developments can be shown to deliver on these At the same time, these developments risk creating needs it can be a catalyst to investment and to new vulnerabilities, and significant challenges to growing ports’ reputations and relations with the implementation – from human factors to integration community. across a fragmented port system. (1) https://www.resilienceshift.org/wp-content/uploads/2019/10/RP-Ports_Final_Pages.pdf 16 17
Decarbonisation LOW EMISSIONS PORT LOW EMISSIONS PORT SEQUESTRATION OF SHIFT TO LOWCARBON, VESSELS HANDLING EQUIPMENT CARBON DISTRIBUTED ENERGY PORT OPER ATIONS Smaller port vessels Cargo handling Intertidal areas can Ports themselves will may offer an equipment will likely have significant need to adopt secure, opportunity to pilot transition to hydrogen capacity for low carbon and technologies before and electric fuel sequestration of affordable energy they are used at scale sources. carbon through natural systems, which are for seagoing vessels. means. This can play a likely to include in-port part in ports’ transition generation and to net-zero. storage. PROVISION OF LOW CARBON FACILITATING OFFSHORE GREEN HYDROGEN LOW-CARBON VESSEL FUELS ENERGY GENERATION PRODUCTION RE-FUELLING FOR HGVS/ S H IP P I N G & H I N T E R L A N D LOCOMOTIVES Ports will play a key The demand port For some ports, local role in the facilities for the generation and storage Ports can play a role in decarbonisation of construction and of hydrogen from decarbonising shipping via low operation of offshore renewable-based hinterland transport carbon bunkering fuels wind continues to electricity will facilitate systems, having a and shorepower grow, this could a resilient low-carbon significant impact on systems. expand to tidal or wave energy system. emissions reductions. energy projects. MODAL SHIFT FROM ROAD HYDROGEN IMPORT / CHANGES TO TRADED CARBON RELATED TO SEA EXPORT GOODS BARRIERS TO TRADE WIDER CIT Y / REGION The long timescales As hydrogen emerges As the world shifts Differential and costs associated as a commodity traded away from the use of decarbonisation with decarbonisation globally at scale, fossil fuels, the between different of HGVs could create a demand for associated patterns of traded global regions will stronger case for infrastructure will grow goods will also potentially reduce the domestic transport of at certain ports. change. ability to trade freely, goods by sea. for example due to border tariff adjustments. 18 19
Technology and Digital REMOTE/ SEMI- VESSEL AUTOMATION AUTOMATION OF SMART SENSOR AUTONOMOUS VEHICLES LAND-BASED OPERATIONS TECHNOLOGY Moving from auto-pilot For example, the use to fully automated Automated tacking Improved information of semi-automated vessels. Ports adopting cranes, driverless and data gathering. vehicles, remote new navigation vehicles, image Early warning of piloted vehicles and systems, new recognition technology. incidents, predictive drones for inspections regulations and Opportunity to improve maintenance. Real- and security. certifications. efficiency and safety time status of and reduce downtime. operations, improved efficiency. New skills. BLOCKCHAIN TECHNOLOGY 3D-PRINTING (RAPID AUGMENTED REALITY AND 5G NETWORKS PRODUCTION) SIMULATION Implications for Wide coverage and governance and trust Potential for reduced Simulation currently real-time sharing of created. Opportunity to global container trade used in navigation critical information. improve document through reshoring and design and pilot Better connections management systems, increase in bulk trade training. Extended to between the port and supply chain and to service domestic augmented reality for port users or financial transactions. manufacturing. navigation, operations, interdependent maintenance, asset systems. management. DIGITAL TWINS ARTIFICIAL INTELLIGENCE/ INTERNET OF THINGS (IOT)/ BIG DATA ANALYTICS MACHINE LEARNING CLOUD TECHNOLOGY Use in asset The ability to pool large management and port Building decision- Transition to cloud- amounts of data for planning. Use of making support based system to drawing insights and modelling systems, systems based on a improve accessible Need for agreed photogrammetry and predictive model of and inclusive data uniform standardised digital data. behaviour. Use in sharing. Integrated method of data maintenance or operating systems. generation at global security, future Potential to reduce scale. equipment needs, long shipping administrative term utilisation, costs. potential optimised logistics scheduling. 20 21
Port Communities and Environment CLIMATE HAZARD, SEA CLIMATE HAZARD, EXTREME MARINE DEBRIS LOSS OF NATURAL COASTAL LEVEL RISE EVENTS AND TEMPERATURE ECOSYSTEM There has been an Potential for up to Global warming increase in plastic Over the last decades around 1.2m of sea causing rising ocean pollution within the the world has level rise by 2100, temperatures, and marine environment expanded towards and depending on climate therefore more energy and there is a need for developed many mitigation. Impact on for hurricanes and greater management of coastal areas removing coastal erosion and cyclones. Increase of the life cycle to prevent the protection they flood risk. Loss of average temperatures, the damaging effects provide. intertidal areas. as well as extreme to the ocean. heat. URBANISATION AND PORT CHANGING JOBS GROWING CRUISE INDUSTRY SKILLS SHORTAGE CITY GROWTH Jobs crisis post-covid Ten years of high Developing the relevant Growth of world city and the transition growth has been and available skills as dwelling population, as through severely impacted by well as diversity is an well as urban growth decarbonisation as the Covid-19 crisis. important part of the around city-centre well as technological How the industry Port developing ports will result in port development will recovers will have a organically with the city conflict as both significantly change significant impact on port communities. expand. the port jobs market. communities, jobs and The human factors the environment. linked with this change are critical. AIR QUALITY POLLUTION RESOURCE CONSUMPTION BIO-DIVERSITY LOSS AQUACULTURE GROWTH GROWTH Air pollution has an The biodiversity crisis Port communities rely impact both on the There is forecast will change the way the on aquaculture for both health and wellbeing of growth of resource world’s ocean and economic benefit and the port communities consumption across coastal spaces are nutrition, maintaining as well as the public the world, driven by used and managed. the growth whilst perception of the port. both population rise Ports and shipping can remaining sustainable and an increase in help enable a is an important balance consumerism and productive yet healthy to be managed. tempered only by ocean environment. increased awareness and stewardship. 22 23
Exploring resilience with the port value chain To enable a shift in the practice of ports, we are working across the value chain to ensure different actors have the tools, knowledge and information to make the right decisions. The Resilience4Ports initiative aims to complement In October 2020, we held two workshops attended work already taking place by industry organisations, by over thirty organisations representing different by integrating themes, using whole-systems thinking parts of the value chain. The workshops explored the and outcome-led approaches that aim to manage three ‘drivers of change’ themes at a global and deep uncertainties, as well as address known risks. regional level, as well as what cross-industry action was needed to shift port practice toward resilience. This section gives a summary of what we heard at the sessions. Cross Cutting Finance Cities Ports Sustainable Sustainable Sustainable Sustainable Ocean Business Ocean Business Ocean Action Ocean Business Business Platform Action Platform Action Action Platform Platform Decarbonisation Technology & Digital Port Communities & Environment Future Fuels Network GreenVoyage-2050 MASSPorts Future Future Fuels Future Fuels Fuels Network NetworkNetworkGreenVoyage-2050 GreenVoyage-2050 GreenVoyage-2050 MASSPorts MASSPorts MASSPorts SmartPorts Research and consultancy Non-profit initiatives Energy SmartPorts SmartPorts SmartPorts Figure 9 - Existing port groups linked to change and resilience Value chain stakeholders engaged across port and interdependent sectors 24 25
Exploring resilience with the port value chain What are the most important trends What new resilience challenges Where can change help address and developments? could we see? existing resilience challenges? As well as the key trends highlighted here, a range of DE C A R B O N I S AT I O N DE C A R B O N I S AT I O N others were selected, demonstrating the need for an • Uncertain techno-economic pathways and short- • New revenue streams through on-site generation of integrated, broad approach to change. term planning resulting in stranded assets, delayed low carbon energy and bunkering fuels. action and a segregated approach. • New functions and roles can help attract a new • Need for a shake-up of business models, diverse workforce. Port communities and partnerships and port policy landscape, as well as • Long term planning required can unlock new Decarbonisation Technology and digital the environment competition from other transport modes and business models, collaborations and a strategic changing patterns of traded goods. approach – with the right support. Technology pathways Artificial intelligence and machine Climate hazards • An increased need to integrate a fragmented port learning system and its interdependencies. T E C H NO L O G Y Port business models and Urbanisation and growth investment Digital twins of port cities • Spatial constraints compounding the • Can use technology to help map and quantify decarbonisation challenge. benefits beyond the port boundary, broadening Provision of low carbon energy/ Big data analytics Air quality case for investment. fuels for vessels PORT COMMUNITIES AND ENVIRONMENT Automation Collaboration with communities • Opportunity to use data for predictive maintenance Changes to traded goods • Risk of incoherent, competing responses to a and better analysis of root cause. Automated changing climate. Acute threats to low-lying coastal technology could reduce exposure to hazards. areas and small island states. • Digital twins provide opportunity to stress test port • A lack of focus on the non-physical aspects of systems, expand multi-stakeholder collaboration at resilience – a need to embrace community-focused scale and plan for transformation. response too. P O R T C O M M U N I T I E S A N D ENV I R ONMEN T • A lack of data to demonstrate the economic benefits of climate resilience restricting investment. • Opportunity to create new jobs through nature- Need for more long-sighted funding models. based solutions to climate adaptation, and creation • Increased urbanisation constricting port operation of smart mobility and low-carbon energy hubs. and growth, requiring better integration with • Opportunity for smart asset management systems communities and a focus on deprived to integrate climate risk management, upgrading of communities. ageing infrastructure and green agenda. • Technologies affecting ports operations • Increased role for social capital and communities, if • A need to focus on the human-element of the nurtured and strengthened. transformation: skills, training and trust. Labour challenges with transition from traditional roles. • Risk of over-reliance on sophisticated models – highlighting the need to manage deep uncertainty as well as known risks. • Increased fragmentation from new tools and datasets. New vulnerabilities from systems lacking redundancy or reliability. 26 27
Exploring resilience with the port value chain What actions do we need to enhance port resilience, now and into the future? “We need guidance on how investments can be “Technology can enable evidence-based “We have to learn from Covid-19 and Brexit “People are the most important element in appraised at a systems-level” decision making to unlock resilience” – not by focusing on causes (threats), but on resilience, we need to build social capital of trust consequences (impacts) and what this tells us and leadership” “Financing must support low carbon, resilient “We need to reduce fragmentation across the about resilience” ports” value chain” “We need to train the new generation of port “We need adaptation pathways for ports: communities with the introduction of “To deal with uncertainty and avoid “From a technology point of view, what flexibility and scalability in solutions, avoiding technologies” maladaptation, there is a need to better align standards and assurance processes are needed being locked into a particular plan as conditions financing criteria with delivery of flexible and to support the resilience shift in ports?” change” “We need to promote the port sector as an adaptive solutions that can be modified as innovative industry to attract and engage with conditions change.” “Is there a space to pull best practices from “Ports need guidance for the future technology technology” other port standards/tools and help drive pathways, and how to plan in a way that reduces “We need to identify funding opportunities for scalable solutions?” risks. A roadmap can guide activities through the “We must assess risks across the system, emerging technology, especially around clean infrastructure life cycle” including overlapping jurisdictions – there’s a energy” “We need practical guidance on dealing with need for co-ordinated planning” climate change uncertainties – including “Ports are embracing tech in different ways – we “We need to collaborate with leading investors preparedness, flexibility and adaptive capacity” need standardisation, to work together and “We must have a structured way of analysing for ports that are driving ESG” speak the same language” specific ports, hazards, risks and consequences, “Resilience standards could provide quality to find priorities for further development” “We need to quantify whole value chain impacts assurance for investment and accelerate “Is part of the output a ports system model that – the cost of inaction” adoption of green fuels” can drive resilience across the range of “We could use shared vision planning, including stakeholders?” structured technical and stakeholder dialogues “We need a business case for resilience, to shift to define the art of the possible – develop a filter from cost minimisation towards longer term that future projects can be checked against” success over short-term profits” 28 29
How can we enable a shift toward ports resilience? There are approaches that we know can enhance resilience. 1 LE AR NING LE S S ONS FR OM C O V ID -19 AND BR E XI T 3 P R OMO T ING P OR T INV E S T MEN T T H AT ENH ANCE S W HOLE S Y S T EM R E SILIENCE Ports around the world have been subject to a To realise the huge opportunity resilient, low-carbon Our work to date has shown the importance of: • managing deep uncertainty – moving from diverse range of shocks and stresses from the ports can deliver to society, a step-change in finance, • thinking about whole systems – looking beyond managing known risks to unknowns; Covid-19 crisis; from sudden changes in volumes of investment and insurance is needed. This involves the boundaries and considering • focussing on outcome-led approaches – goods transported to worker shortages and the increasing the flow of finance to where it is most interdependencies; thinking what system do rather than what it is; seafarer crisis. We must learn from this period of needed, but also enabling financial appraisal of • overcoming fragmented governance – • and stresses they may face now, and in the intense difficulties. projects in a manner which maximises system-level encouraging collaboration and moving away future. Additionally, as the UK leaves the transition period for benefits. from siloed decision making; departure from the EU, the response of ports – in the UK and EU - to these significant changes can tell us a lot about resilience. Reflecting on this period could show us what good looks like for resilience, in a way that is transferable to 4 C ONV ENING A P OR T ’S VAL UE C H AIN T O UNDER S TAND AND SH AP E R E SILIENCE As well the port knowledge and guidance described future crises, whatever their form; from responding to above, which could be developed for multi-port a changing climate to technology-related shocks. F O U R A R E A S W HE R E A C T ION IS N EEDED application, there is a need for a common approach to port specific resilience appraisal and enhancements. Such an approach needs to focus on Using the outputs of the workshop, as well as our own research and analysis, we have identified four thematic 2 DE V EL OP ING GUID ANCE F OR IN T EGR AT ED P OR T T R ANSF OR M AT ION convening the value chain for the whole port system, as well as the actors associated with key external interdependencies. areas where action is needed to enhance port resilience. Ports are undergoing simultaneous transformations – to become both low carbon energy and smart There’s a need for this approach to capture – and mobility hubs. Both of these agendas are associated eventually quantify – resilience value outside of as well with uncertain technology pathways, new business as within the port system. A common tool and models and human factor challenges around new framework for port resilience appraisal could be skills, new ways of working and adopting new structured to assist port transformational planning 2 4 technology. and implementation. At the same time, ports need to adapt to a changing Developing Convening a port’s value chain to climate, respond to the global biodiversity emergency guidance for and enhance social value. integrated port understand transformation and shape There is significant risk that these intersecting The insights captured in this report are a resilience agendas, if not treated holistically, result in more snapshot of the collective outcomes from fragility and vulnerability in port systems – affecting 3 the first phase of the Resilience4Ports 1 port businesses and the communities that depend upon their critical functions. initiative. We look forward to continuing this journey together with our partners and the Learning lessons Promoting port There is a need for practical guidance on how to take wider ports community. from Covid-19 investment that and Brexit enhances whole- an integrated approach to these challenges, system resilience acknowledging uncertainty and enhancing resilience. 30 31
Previous work For further reading on the port as a system from our portfolio of RESILIENCE PRIMER work, please refer to the ‘Ports Ports An industry guide to enhancing resilience primer’ that captures best practice for resilience, and the ‘Ports and logistics’ round-table report that explores the resilience challenges For further information please refer to facing ports. Related research was www.resilience4ports.org also conducted into global food or email supply chain logistics, and mark.button@resilienceshift.org captured in the project report and workshop findings, shown here. https://www.resilienceshift.org/publication/ https://www.resilienceshift.org/publication/ primer-ports resilience-shift-round-table-ports-and-logistics/ H2 H2 H2 H2 H2 H2 CO2 You can find all Resilience Shift publications at https://www.resilienceshift.org/ https://www.resilienceshift.org/publication/ https://www.resilienceshift.org/publication/ publications/ supply-chain-resilience/ supply-chain-workshops/ 32
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