PortXchange: Driving positive change in the maritime sector

News
05-08-2024

In an exclusive interview with SAFETY4SEA, Sjoerd de Jager, CEO and co-founder of PortXchange, stated that the maritime industry will become more environmentally responsible through research, innovative products, and sustainable practices.

Leading by example, PortXchange fosters collaborations and takes action to keep pace with the industry’s biggest-ever transformation, moving away from fossil fuels toward a new era of sustainable fuels. This is actually a fascinating era to live in, Sjoerd de Jager argues, where seafarers need to be heard. In that regard, apart from only discussing how the new reality will impact them, we need to implement concrete measures and involve them in the decision-making processes. Above all, we need to prioritize their safety and job security as we move towards digitalization and decarbonization, he said.

SAFETY4SEA: What is PortXchange’s philosophy for the maritime industry, and what are the top priorities on your agenda for the next five years?

Sjoerd de Jager: At PortXchange, our philosophy is rooted in the belief that digitalization, operational efficiency, and sustainability are intrinsically linked and will collectively shape the maritime industry’s future. The industry is undergoing the most significant transformation it has ever faced, moving away from fossil fuels towards a new era of sustainable fuels. This will require substantial investment for infrastructure changes and a new security paradigm to reduce the impact of shipping on its global greenhouse gas emissions. In the next five years, we should witness significant improvements in data quality worldwide, which will lead to a heightened awareness of the industry’s good and bad impact. Despite increased awareness, there will still be a need for increased regulations to decrease the harmful effect port activities have on air quality and the livelihoods of local communities. Hopefully, we continue to see growing scrutiny and a stronger sense of stewardship from port authorities, acknowledging their economic and social responsibilities.

S4S: What are the biggest challenges for the maritime industry from your perspective, and what are your suggestions for moving forward?

SdJ.: There is currently a tendency to test various future fuel types without committing to the necessary infrastructure investments to support a global supply chain. This indecisiveness is counterproductive. Immediate decisions need to be made now to enable the investment of infrastructure rollout over the coming decades. As it is often quoted, ‘today the shipping industry is responsible for 3% of greenhouse gas emissions, but with the current rate of change, this will be 17% in 2050 because other industries are decarbonizing faster’.  However, one cannot blame a single entity; it is a systematic problem. I feel the IMO needs to adopt a more aggressive stance; we continue to see the lobbying work of all kinds of groups that try to get their advantage and ensure that their initiatives are covered first. Therefore, to move forward, we need greater collaboration and decisiveness. The benefits of different technologies must be harnessed collectively rather than fighting climate change with one hand tied behind our backs.

S4S: How can Digitalisation optimize port operations and reduce emissions? What is your feedback so far?

SdJ.: Digitalization can significantly optimize port operations and reduce emissions by connecting operational planning and enabling just-in-time sailing. This is an easy solution; it’s a low-hanging fruit that can be implemented today. Although not every ship will arrive precisely on time, many inefficiencies—such as the prevalent “sail fast, then wait” behaviour—can be entirely avoided. We can drive meaningful change by aligning operational plans and adjusting contract clauses, specifically through initiatives like the virtual arrival clause by BIMCO and the Blue Visby Consortium. Data sharing among ports, shipping lines, and operators is crucial. When these entities collaborate in a structured manner and share data, inefficiencies can be mitigated. For example, vessels can be informed of future port delays, allowing them to optimize speed, reduce waiting times and lower emissions. Additionally, gaining better insights into emissions from ships in transit and at berth and understanding the connection to hinterland transportation will help ports make informed decisions about decarbonization investments. I am encouraged by our positive dialogues with ports, particularly several American ports. These ports recognize their role in the value chain and their potential contribution to solutions. They collaborate with land-side customers to electrify operations and seaside operators to minimize greenhouse gas emissions. This holistic approach is crucial for sustainable port operations.

S4S: How do you see the role of digitalization solutions evolving in the push for sustainability within the maritime sector?

SdJ.: Due to substantial government funding, there is a clear trend towards open-source tooling in Europe, particularly regarding sustainability. For example, Spain has developed a government-based emission calculation tool and several Scandinavian universities are exploring similar tools. This regulatory environment prompts governments to mandate emissions reporting while ensuring the necessary tools are available for accurate calculations. I applaud this move towards open-source solutions as it democratizes access to essential tools, allowing all ports to use them. This fosters greater transparency in emissions reporting, enabling ports to better manage and reduce their emissions. However, this development also pressures vendors like us to innovate and add value. It challenges us to ensure that our premium products offer superior ease of use, accuracy and additional features that justify their cost. I welcome this challenge because it drives us to excel and deliver the best possible solutions.

S4S: Can you discuss the significance of your partnership with leading Ports? What criteria do you consider when selecting new ports or regions to collaborate with?

SdJ.: As a company, we have a clear target, which is that we want to create as much impact in maritime decarbonization as possible. So, when it comes to partnering with ports, we do not have particular criteria we follow; we are not particularly selective about which ports to support. We believe that any port with initiatives aimed at decarbonization can count on us, and we are committed to assisting ports in their efforts to reduce emissions. In essence, we focus on the substantial impact we can achieve together rather than the financial benefits. This approach ensures that our efforts are directed towards creating the most significant positive change in the industry.

S4S: You recently launched the “in-port Vessel Emissions Report” for 2023. What trends in ship emissions have you observed over the past year?

SdJ.: As we launched the Port Vessel Emissions Report for 2023, several notable trends in ship emissions came to light. One significant observation was the substantial contribution tugboats make to port emissions. Despite their critical role in manoeuvring large vessels, tugboats stand out as essential sources of emissions due to their continuous operation and heavy engine requirements. Another key trend is the composition of the current shipbuilding order book. Most new builds are hybrid or dual-fuel vessels rather than fully transitioning to future fuels. Furthermore, on the land side, despite advancements such as Shell’s hydrogen plant in Rotterdam, there remains a stark underutilization of potential hydrogen production capacity. This limited uptake also underscores the broader maritime challenge in transitioning to new energy sources.

S4S: How do ship types and movements influence the emission levels recorded in your report?

SdJ.: Our report considers various factors, including the type of cargo being transported, the connection to the hinterland, and the specific nature of the port, for example, whether it is a bulk or a container-based port. These elements collectively drive the energy demand and, thus, the emissions. For instance, bulk ports often have higher emission profiles due to the presence of oil tankers and other large vessels. In contrast, container ports with extensive hinterland connections tend to have more emissions from the truck side of things. However, these ports also present more opportunities for decarbonization, such as electrifying trucks and shifting cargo from road to rail or inland barges, which can also be electrified. Scandinavian ports are doing a lot with the electrification of trucks and moving cargo from the road onto barges, which could also be electrified. I think there are great examples of this in the Rhine region.

S4S: In what ways does PortXchange contribute to making the shipping industry more environmentally responsible and sustainable?

SdJ.: At PortXchange, we pride ourselves on pushing the boundaries in the maritime industry by actively contributing to environmental responsibility and sustainability. Despite our small size, we take an activist approach based on rigorous research. So, we pride ourselves on employing leading university interns to help study these big shifts. I am excited; this is a fascinating time to work in maritime during this transition. This is tempered by the fact that we are acutely aware of the inertia and xenophobia that often hinder progress within the industry. Therefore, we strive to be assertive and active in our research, shoutouts and call-outs, aiming to change the tone of the discussion around sustainability. PortXchange is committed to making the shipping industry more environmentally responsible and sustainable through research, innovative products, sustainable practices and leading by example. We are excited about the future and remain dedicated to driving positive change in the maritime sector.

S4S: As we move forward with the challenges of Digitalisation and decarbonization, what can the industry do to help engage seafarers who feel they may not have a voice in the energy transition?

SdJ.: First, we need to give seafarers a voice. Everyone talks about a just transition that includes everyone, but in reality, seafarers are often left out of the conversation. This issue was also highlighted at the last COP session. When discussing pathways for transitioning, seafarers need to be represented. They are currently not a voice in the room; they are not on stage. Even though there is an annual Seafarers’ Day and a section in every conference about decarbonization and the transition that touches on workforce issues, it often repeats the same concerns. We repeatedly hear that there are fewer seafarers, and their voices are not being listened to. Their jobs are under threat due to trends like autonomous shipping, and the industry’s choices about fuel types can have massive effects on them. For instance, ammonia is being pushed by engine providers, but it is highly toxic. Seafarers will be most affected by this, making their already hazardous jobs even more dangerous. They are often away from their families for long periods, and climate change makes their work environment even more unpredictable and risky.

While I am not a seafarer myself, and although we employ seafarers with pride and give them a platform to share their views within our company, our overall impact on amplifying their voice in the broader industry is limited. We need to move beyond just talking about what needs to happen and make it happen. This, of course, is easier said than done. As an industry, we must stop acknowledging the issues and implement concrete measures to ensure seafarers are represented and heard in the energy transition. This could involve creating more forums for their voices, actively involving them in decision-making processes, and prioritizing their safety and job security as we move towards Digitalisation and decarbonization.

S4S: Do you have any new developments or projects in the pipeline that you want to share with the industry?

SdJ.: Yes, we are building on our data reporting capabilities; one of our unique selling points includes producing harder-to-get data types. We will also be able to start simulating specific scenarios in our emissions dashboards; these are just some exciting developments that we believe will significantly benefit the industry.

S4S: If you could change one thing across the industry from your perspective, what would it be and why?

SdJ.: If I could change one thing across the industry from my perspective, it would be to enhance collaboration and change in the maritime sector. The maritime industry is currently at a standstill due to its complex multi-party and multi-country nature. The industry must make definitive decisions regarding future fuel types and invest in the necessary infrastructure to support these changes. This is crucial to ensure we meet our decarbonization goals by 2050.

S4S: What is your Key Message to industry stakeholders to foster a more sustainable future in shipping?

SdJ.: My key message to industry stakeholders to foster a more sustainable future in shipping would be, ‘We need to start making a change now.’ We as an industry need to take more responsibility and take the steps necessary to decarbonize the sector; we need to stop ignoring the red flags and change how we work to move to a more sustainable future. By focusing on and monitoring our emissions data and making more sustainable decisions regarding fuel types, we as an industry can overcome the ongoing concerns around decarbonizing and make the sector more sustainable and effective.

Curious to talk to Sjoerd de Jager? Reach out for an inspiration session. 

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