{"id":75022,"date":"2023-11-21T00:00:00","date_gmt":"2023-11-21T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/logistics\/2023\/11\/21\/the-tipping-point-for-electric-container-handling-equipment-is-2-8-years-away-but-more-needs-to-be-done\/"},"modified":"2023-11-21T00:00:00","modified_gmt":"2023-11-21T00:00:00","slug":"the-tipping-point-for-electric-container-handling-equipment-is-2-8-years-away-but-more-needs-to-be-done","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/logistics\/2023\/11\/21\/the-tipping-point-for-electric-container-handling-equipment-is-2-8-years-away-but-more-needs-to-be-done\/","title":{"rendered":"The tipping point for electric container handling equipment is 2-8 years away, but more needs to be done"},"content":{"rendered":"

Decarbonizing an overlooked aspect of emissions in trade: container handling <\/strong>equipment.<\/strong> At the core of international trade, logistics, and particularly sea-borne transport \u2014 which accounts for 90% of global trade \u2014 is the usage of container handling equipment. The equipment, which is used to load and unload containers across ports, usually runs on diesel, making it responsible for emitting some 10-15 metric tonnes of CO2 in 2020 alone, which is as much as the annual emissions of Slovenia. <\/p>\n

What needs to be done?<\/strong> With the global shipping industry taking strides towards decarbonization, terminal operators, original equipment manufacturers (OEMs), port authorities and shipping line operators will need to slash these emissions by using alternatively fueled equipment. <\/p>\n

The caveat: <\/strong>The \u201ctipping point\u201d where the costs associated with a new technology \u2014 in this case, battery-electric and hydrogen-electric container handling equipment \u2014 become more competitive than their more polluting alternatives has to come before they are widely used, a white paper (pdf)<\/a> commissioned by APM Terminals<\/a> and DP World<\/a>, argues.<\/p>\n

When is that tipping point coming? <\/strong>If shipping operators accelerate their transition towards decarbonization, the tipping point for battery-electric equipment can be reached within 2-8 years, the companies estimate. <\/p>\n

The problem: <\/strong>Some 30% of container handling equipment is tethered and stationary, or operating in limited movements, while 70% are untethered. Tethered equipment can be powered by direct electricity supply, while untethered equipment mostly runs on diesel and is used for bidirectional quay-to-yard moves or to perform terminal housekeeping, according to the white paper.<\/p>\n

There are two greener options on the market: <\/strong>Untethered and zero-emission equipment can run on batteries or on hydrogen, though the paper argues that battery-electric equipment is the preferred alternative, both because it is more affordable and more accessible than hydrogen electric equipment. <\/p>\n

Battery-electric is a much more viable option right now\u2026:<\/strong> Hydrogen-electric handling equipment has a 47% higher total cost of ownership \u2014 which includes its acquisition, storage and transport \u2014 when compared with battery-electric equipment, according to the paper. It also requires 3-4x more electricity, while equipment prices are expected to be 24-45% higher due to their complexity, the paper said. <\/p>\n

\u2026and can be brought to market faster:<\/strong> The first hydrogen electric equipment prototype will be ready in 2025, meaning the first viable products are not expected to be ready before 2030, according to the paper. <\/p>\n

But there are still caveats, even with the battery electric model: <\/strong>The total cost of battery electric equipment is currently almost 1.2-1.43 times higher than the cost of diesel powered equipment, on the back of higher equipment prices, costs for charging infrastructure, and additional downtime for charging, the paper said. That\u2019s without counting battery replacement before end of life. While some of this is outweighed by a 50% slashing of energy costs, there\u2019s still a bit more to go before battery electric models become more competitive. <\/p>\n

But the upsides prevail: <\/strong>The equipment \u2014 which the companies expect will become a financially attractive option before 2030 \u2014 is quieter, as it produces low levels of vibration, and does not emit air pollutants, the paper said. Battery-electric terminal tractors and reach stackers can achieve TCO parity within five years, while straddle carriers can get there within this decade.<\/p>\n

How can the tipping point be reached? <\/strong>The white paper identifies four different actions that can accelerate the tipping point for battery electric equipment: <\/p>\n

#1- Terminal operators can signal an increase in demand<\/strong> by inking purchase commitments and direct offtake agreements that can help scale up production. <\/p>\n

#2- Terminal operators and manufacturers can also reduce costs by standardizing requirements for production and modularizing<\/strong>, in order to build up trust, ensure compatibility for batteries to allow swapping across different OEMs, and avoid duplicate R&D and supply costs, the paper argues. <\/p>\n

#3- Operators also need to prepare their terminals for the rollout of battery equipment, <\/strong>including through terminal design, workforce training and rethinking operations to reduce downtime. <\/p>\n

#4- Finally, port authorities, shipping line operators, and government entities can introduce incentives to help develop the market<\/strong>. These incentives can be financial, or in the form of assistance with infrastructure adjustments, to help level the playing field, the paper said. <\/p>\n

APM\u2019s efforts are being reflected across the Middle East:<\/strong> As part of APM Terminals electrification roll out, Jordan\u2019s Aqaba Container Terminal<\/a>received<\/a> its first batch of electric reach stackers and empty handlers in October, making it the first Middle Eastern terminal to shift to electrified terminal equipment, according to an APM statement<\/a>. The reach stacker can operate for eight hours without being charged. Electric terminal tractors are due to be delivered to Egypt next year, the statement adds.<\/p>\n","protected":false},"excerpt":{"rendered":"

Diesel-powered equipment was responsible for some 10-15 metric tonnes of CO2 in 2020 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