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Project team

TU Delft Multidisciplinary Project. Project team. Christian de Boer BSc Civil Engineering MSc Transport and Planning Michell Hogeveen BSc Architecture MSc Construction, Management & Engineering Jiska Schimmelpennink BSc Architecture MSc Construction, Management & Engineering Menno Yap

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Project team

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  1. TU Delft Multidisciplinary Project Project team • Christian de Boer • BSc Civil Engineering • MSc Transport and Planning • Michell Hogeveen • BSc Architecture • MSc Construction, Management & Engineering • Jiska Schimmelpennink • BSc Architecture • MSc Construction, Management & Engineering • Menno Yap • BSc Technology, Policy & Management • MSc Transport, Infrastructure & Logistics • Jascha Zwaving • BSc Civil Engineering • MSc Construction, Management & Engineering Introduction Analysis Synthesis Measures Evaluation Decision

  2. TU Delft Multidisciplinary Project Research • At South China University of Technology (SCUT) • In Guangzhou, China • Focus on port of Guangzhou • From February 20th to April 20th, 2013 Introduction Analysis Synthesis Measures Evaluation Decision

  3. Contents Introduction Analysis Synthesis Measures Evaluation Decision Introduction Analysis Synthesis Measures Evaluation Decision

  4. Port geography Port of Guangzhou • West Pearl River Delta: port of Guangzhou (4 port areas) • Nansha Port: built on man-made island • East Pearl River Delta: port of Shenzhen; port of Hong Kong Introduction Analysis Synthesis Measures Evaluation Decision

  5. Cargo and container throughput Port of Guangzhou Total cargo throughput port of Guangzhou (2011): 466 million ton (world’s 6th largest) Total container throughput port of Guangzhou (2011): 14.4 million TEU (world’s 7th largest) Introduction Analysis Synthesis Measures Evaluation Decision

  6. Facts and figures Port of Guangzhou Introduction Analysis Synthesis Measures Evaluation Decision

  7. Sustainable port development Sustainable ports • Enormous increase cargo throughput due to China’s economic growth • Cargo throughput from 128 (2001) to 466 million ton (2011): 264% growth • Container throughput from 1.7 (2001) to 14.4 million TEU (2011): 747% growth • Environmental impact of port-related activities • Increased substantially because of cargo throughput increase • Increased awareness in China • Therefore: transition of port of Guangzhou towards a sustainable port • Integral approach to balance economic growth and environmental impact of the port Introduction Analysis Synthesis Measures Evaluation Decision

  8. Aspects of sustainable port development (based on ESPO and PIANC) Sustainable ports • Air quality • Incl. dust • Water quality • Energy consumption and climate change • Dredging (operations and disposal) • External safety • Related to transport and handling of dangerous goods • Related to industrial parks on port area for value added services • Noise • Waste • Port development / land use • Transport connections • Nature / habitat loss Introduction Analysis Synthesis Measures Evaluation Decision

  9. Goal and research question • Main research objective: • ‘Improvement of the sustainable performance of the port of Guangzhou by providing a technical, economic and integral strategy, consisting of short and long term recommendations for the main stakeholders’ • Research question: • ‘What integral strategy can be proposed to improve the sustainability of the port of Guangzhou, thereby considering the institutional and economic environment in Guangzhou and China? ‘ • Problem owner: • Guangzhou Port Authority (GPA) • Guangzhou Port Group (GPG) Introduction Analysis Synthesis Measures Evaluation Decision

  10. Methodology Introduction Analysis Synthesis Measures Evaluation Decision

  11. Analysis Introduction Analysis Synthesis Measures Evaluation Decision

  12. Analysis of main competitors in Pearl River Delta Economic boundaries Port of Shenzhen Port of Hong Kong • Port of Guangzhou: • Strong market position in general • Proposed measures should not decrease container handling efficiency Introduction Analysis Synthesis Measures Evaluation Decision

  13. SWOT analysis Economic boundaries • Many small truck companies responsible for cargo hinterland transport: • Difficult to unite them to focus on sustainable transport • Companies have limited financial resources to invest in sustainable transport Introduction Analysis Synthesis Measures Evaluation Decision

  14. Stakeholder analysis – power-interest grid Institutional boundaries • Actors with most power and interest to realize sustainability measures at the port of Guangzhou: • Guangzhou Port Authority • Regulatory measures • Guangzhou Port Group • Operation measures • Decisions GPA + GPG should be in line with interests of national government and municipality Introduction Analysis Synthesis Measures Evaluation Decision

  15. Priority assessment Guangzhou Port Authority – based on survey Institutional boundaries • Given the priorities and high power of the GPA, sustainability improvements focusing on a part of all aspects of sustainable port development are considered institutionally viable on the short term to 2030 Introduction Analysis Synthesis Measures Evaluation Decision

  16. Air quality Sustainability aspects • Air quality problems: • NOx • PM2.5 • PM10 • SO 2 Introduction Analysis Synthesis Measures Evaluation Decision

  17. Water quality Sustainability aspects • Water quality Guangdong province (I: good – V: very bad): • Water quality problems: • In Guangdong province overall quite good water quality • Parts – incl. the Pearl River in the city of Guangzhou – have (very) bad water quality Introduction Analysis Synthesis Measures Evaluation Decision

  18. Energy consumption / climate change Sustainability aspects • Current (left) and expected (in 2015; right) distribution of energy sources • Energy problems: • Large dependency on fossil fuels in port activities • Port of Guangzhou: many financial resources reserved for energy conservation  increased awareness of current climate problems Introduction Analysis Synthesis Measures Evaluation Decision

  19. External safety Sustainability aspects • In China in general strict regulations regarding external safety: • Ministry of Environmental Protection • Administration of Quality Supervision, Inspection and Quarantine • Port of Guangzhou: strict, additional regulations regarding external safety of ships and industrial parks at port area for value added services: • Guangzhou Port Authority • Guangzhou Maritime Safety Administration • Guangzhou Maritime Administration Authority • Port of Guangzhou: • Strictly abides SOLAS • Future: even strengthens regulations regarding external safety Introduction Analysis Synthesis Measures Evaluation Decision

  20. Port development / land use Sustainability aspects • Port development • phased development Nansha Port with lot of temporary non-used space • Land use container yard Nansha Port & Guangzhou Container Terminal • container stacking parallel to quay wall: less efficient and sustainable Limited efficient / sustainable land use in port development and port activities currently Introduction Analysis Synthesis Measures Evaluation Decision

  21. Transport connections – modal split Sustainability aspects • Modal split transport between port of Guangzhou and hinterland markets • Especially regarding container hinterland transport, non-sustainable modal split Introduction Analysis Synthesis Measures Evaluation Decision

  22. Transport connections – vehicle emissions Sustainability aspects • Emissions of transport vehicles: • Trucks for hinterland transport use traditional diesel / gasoline • Trains for hinterland transport mainly electrified (but power from fossil fuels), but also partly diesel powered engines on non-electrified tracks • Sea vessels and barges mainly use Heavy Fuel Oil (HFO): 4.5% SO2 • Sea vessels and barges use their auxiliary diesel engines when at the quay • All transport modes have relatively high emission values per ton-kilometer • Combination of limited sustainable transport vehicles and non-sustainable modal split: transport connections are currently not very sustainable Introduction Analysis Synthesis Measures Evaluation Decision

  23. Synthesis Introduction Analysis Synthesis Measures Evaluation Decision

  24. Integrating results of analyses Integration of institutional boundaries and detected sustainability problems port of Guangzhou • Integration of economic boundaries and detected sustainability problems port of Guangzhou: • Proposed sustainability measures should not decrease container handling efficiency Introduction Analysis Synthesis Measures Evaluation Decision

  25. Measures Introduction Analysis SynthesisMeasures Evaluation Decision

  26. Overview of measures and impact Measures • Overview of measures based on literature study and reference projects : • Port of Rotterdam • Other ports in Europe and worldwide • ESPO • PIANC Introduction Analysis Synthesis Measures Evaluation Decision

  27. Evaluation Introduction Analysis Synthesis Measures Evaluation Decision

  28. Two-step approach Method of evaluation • Step 1: Evaluation of viability of measures • Measure viable given the economic context of the port of Guangzhou? • Measure viable given the institutional context of the port of Guangzhou? • Step 2: Evaluation of feasibility of remaining measures • Feasibility calculated for short time horizon from 2013 until 2030 • Financial feasibility: discounted expected financial costs vs. financial benefits • Economic feasibility: discounted expected financial + environmental costs vs. financial + environmental benefits Introduction Analysis Synthesis Measures Evaluation Decision

  29. Economic and institutional viability of measures Viability of measures Measures considered not viable given the economic and/or institutional context of the port of Guangzhou are cut-off here Introduction Analysis Synthesis Measures Evaluation Decision

  30. General assumptions Feasibility of measures Discount factor NPV: 2.25% Lifetime for NPV of all measures: 17 years (2013 – 2030) to get comparable results • Average yearly container throughput growth 2013 – 2030: 10% • Actual container throughput growth 2010 – 2011: 13.6% • Expected average yearly container throughput growth next 5 years: 8% • After 5 years, container throughput growth is expected to increase again Monetary emission values used: Introduction Analysis Synthesis Measures Evaluation Decision

  31. Onshore Power Supply (OPS) – technical description OPS + rewarding clean ships • Connection to national power grid • Work barge instead of cable reel system • Implementation at Nansha Port Introduction Analysis Synthesis Measures Evaluation Decision

  32. Onshore Power Supply (OPS) – combined with rewarding clean ships OPS + rewarding clean ships • Responsibilities when implementing OPS: • Adapting port infrastructure: GPA + GPG • Adapting ships for on-board system OPS: shipping companies • Financial incentive should be provided to shipping companies before they will adapt their ships: • GPA + GPG provide discount to ‘clean ships’ (ships suitable for OPS) • Discount at least €4500 per year per ship to prevent losses for shipping companies ‘Rewarding clean ships’ required as means to successfully implement ‘OPS’ measure Introduction Analysis Synthesis Measures Evaluation Decision

  33. Technical description Clean trucks • Focus on trucks for transport between port and hinterland • Fee for unclean trucks for each port call • GPA contributes for 80% to investment costs for truck companies for new, clean trucks (e.g. by using filters) • After several years: unclean trucks prohibited at port area By financial incentive and long term enforcing: economic boundary regarding the large number of small truck companies is taken into account in this measure Introduction Analysis Synthesis Measures Evaluation Decision

  34. Technical description – containers stacked parallel to quay wall Container stacking method • Current situation: • Average driving distance per container over CY (terminal truck + hinterland truck): 3.0 km Introduction Analysis Synthesis Measures Evaluation Decision

  35. Technical description – containers stacked front-end: perpendicular to quay wall Container stacking method • New situation: • Applied first at GOCT at Nansha Port • Average driving distance per container over CY (terminal truck + hinterland truck): 1.6 km Introduction Analysis Synthesis Measures Evaluation Decision

  36. Technical description Barge round trip system • Barge round trip system for container transport between Nansha Port and 19 hinterland ports (operated by GPG) • 5 round trips + 7 barge shuttles instead of 19 barge shuttle services Introduction Analysis Synthesis Measures Evaluation Decision

  37. Technical description Clean terminal trucks • Focus on terminal trucks for container transport between ship and stack • Two possible ways for cleaner transport: • Replace terminal trucks by cleaner – still manual operated - terminal trucks • Replace manual operated diesel trucks by electric Automatic Guided Vehicles • Implementation at terminal of Nansha Port (GOCT) Introduction Analysis Synthesis Measures Evaluation Decision

  38. Decision Introduction Analysis Synthesis Measures EvaluationDecision

  39. Integral package of feasible sustainability measures Short term recommendations • Onshore Power Supply + rewarding clean ships • Clean trucks for hinterland transport • Front-end container stacking (depends on investment costs) • Clean (non-automated) terminal trucks to encourage truck companies • Barge round trip system for container hinterland transport Introduction Analysis Synthesis Measures Evaluation Decision

  40. Aspects of sustainable port development – long term Long term recommendations • To realize a transition towards a sustainable port, all aspects of sustainable port development need to be considered and improved • Although sustainability improvements are not institutionally viable on the short term (until 2030) for certain aspects, long term recommendations for these aspects are shortly provided Introduction Analysis Synthesis Measures Evaluation Decision

  41. Aspects of sustainable port development – long term Long term recommendations • Nature / habitat loss: • Nature compensation for port extensions with large impact on nature areas • Noise: • Mitigation of noise by (e.g.) physical infrastructure (noise barriers) • Reduction of noise emitting factors by enforcing noise limits or innovations • Dredging (operations and disposal): • Prevent dredging by minimizing sediment inflow and sediment reduction plans • Treatment, reuse and eventually placement of dredging materials • Waste (from ships and from industrial activities on port area): • Sustainable waste management: reduction, recycling and monitoring of waste • Water quality: • Regulations: financial incentives (e.g. polluter has to pay) • Regulations: non-financial incentives (e.g. naming of clean and pollutant firms) Introduction Analysis Synthesis Measures Evaluation Decision

  42. Supervision from TU Delft and SCUT Supervision • Delft University of Technology: • Prof. ir. Tiedo Vellinga • Prof. dr. ir. Marcel Hertogh • South China University of Technology (SCUT): • Prof. dr. ir. Chen Chaohe • A special thanks to: • Jin Haosi, participating student • University relations (International Office SCUT): • Jasmine Yao • Irene Wang Introduction Analysis Synthesis Measures Evaluation Decision

  43. Our contributors Introduction Analysis Synthesis Measures Evaluation Decision

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