Resilience4Ports Gateways to a resilient future - The Resilience Shift

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Resilience4Ports Gateways to a resilient future - The Resilience Shift
Resilience4Ports
Gateways to a resilient future
Resilience4Ports Gateways to a resilient future - The Resilience Shift
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
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CC BY-NC -N D 4. 0
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Resilience4Ports Gateways to a resilient future - The Resilience Shift
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
Resilience4Ports Gateways to a resilient future - The Resilience Shift
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
Resilience4Ports Gateways to a resilient future - The Resilience Shift
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

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Resilience4Ports Gateways to a resilient future - The Resilience Shift
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

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Resilience4Ports Gateways to a resilient future - The Resilience Shift
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
Resilience4Ports Gateways to a resilient future - The Resilience Shift
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

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Resilience4Ports Gateways to a resilient future - The Resilience Shift
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.

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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
Resilience4Ports Gateways to a resilient future - The Resilience Shift
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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