Sustainable Terminals

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    Rethinking Terminal

    Development forSustainable Hong Kong

    Dr. James Jixian WANG

    Department of Geography,

    the University of Hong Kong

    Sept 30, 2011 Hong Kong

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    Hong Kong as a Hub Place in

    the Sustainable Era

    How to develop sustainable transport terminals (port

    and airport, even HSR station) for Hong Kong?

    How Hong Kong as a regional transport hub in Asia to be

    affected by the global movement towards sustainable

    development?

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    How to develop sustainable transport terminals

    (port and airport, even HSR station) for Hong

    Kong?

    Role: Highly efficient terminal with excellent environmental

    services and strong incentives to facilitate and encourage

    clean cargo or passenger movements;

    Process of infrastructure development: Green materials, green

    and sustainable design, green construction process, minimized

    disturbance to the existing ecological surroundings;

    Ecological footprint in daily operation: safety, low energy

    consumption, use of environmentally friendly energy (e.g.onshore power for vessels at port), effective recycling, better

    management (e.g. air traffic management (ATM))

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    Green airport upgrading:

    O'Hare International, Chicago

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    The O'Hare InternationalModernization Program has led

    to a new benchmark for

    sustainable airport development

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    Green Airport Model in China: Kunming

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    On port: Local initiatives learnt

    Stakeholders are responsible,

    including local government

    Regional cooperation is amust

    We need to work on all the

    details

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    How Hong Kong as a regional transport hub in

    Asia to be affected by the global movement

    towards sustainable development?

    Triple Bottom-line ism -

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    Worldwide shipping pollution

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    Global shipping activities: among

    the largest carbon dioxide emitters

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    Sources of pollution from a ship

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    Clean portis only one of the

    three fronts ofclean shipping

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    Green airportis only a small part of

    green air transport

    Contribution to

    the reduction of

    CO2 emissions in

    air transport byeach component

    CO2 Emissions

    without efficiency

    improvements

    Source:

    IATA

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    Future Trends?

    However, two fundamental changes in the maritime

    shipping and air transport industry may effect Hong Kong

    as a global transport/logistics hub and the rest of the

    world substantially in long term

    Slow-steaming in ocean shipping

    Environmental tax/emission charge on airlines

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    Cost and CO2 Reduction by Slow Steaming

    A typical 8,000-container ship traveling at 21 knots will burn 125 metric

    tons of fuel to go 500 nautical miles, (Lee Kindberg, Maersk). A ship that

    reduces speed by 20% will use 40% less fuel, thereby reducing CO2emissions correspondingly.

    The same ship will need just 80 metric tons of fuel to travel the same

    distance if the speed drops to 15 knots.

    For the 6,310-nautical-mile voyage from Hong Kong to Long Beach at

    current bunker fuel prices, that's a potential savings on fuel of $250,000,

    according to Maersk.

    The concept of slow steaming took off in 2007 and was instrumental for

    Maersk Line to cut CO2 emissions per container by 12.5% from 2007 to

    2009. The goal is to reduce CO2 emissions by 25% in 2020.

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    Compound Impacts of Slow-seaming

    on Hong Kong Businesses Shipping companies: gain effectively, as stated also by COSCO.

    Shippers: 92% of Asian shippers affected one way or another by the

    slow or super slow steaming on long-haul shipping:

    50+ % of container shipments delayed

    50% more shippers had to increase the inventory

    Payment being delayed

    Terminals: a potential long-term impact will the concept of super-

    large vessel + hub-and-spoke strategy continue to work? Or more

    direct routing by large vessel to regional main port cities? Most importantly: Will this trend insisted by the major shipping

    lines eventually lead to regionalization or localization of production

    for local/regional needs?

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    Environmental tax on airlines

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    Environmental tax on airlines

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    European union Emission

    Trading Scheme (EU ETS)

    Although strongly against by most non-EU countries, this is to

    be the first emission charge to be implemented against the

    bunker emitters the international transport sector including

    air transport and shipping.

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    Airlines may consider to slow the flying too!

    Source:

    William Roberson,

    Robert Root, and

    Dell Adams, (2010)

    Engineer Fuel Conservation

    Strategies:

    Cruise Flight

    70% of actual domestic flights in USA wereoperating a speed higher than the optimal

    cruise speed, which generated extra 2-3%

    more of CO2

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    Concluding remarks

    For our port and airport, we need to work hard on everyaspect in detail to meet the new challenges for a

    sustainable future.

    Slow-steaming in maritime shipping and emission charge

    on air transport are the two major trends globally due

    largely to the environmental concerns and the increasing

    fuel price.

    These two trends will affect the global and regional trade

    pattern and travel pattern in long run, and hence the role

    of Hong Kong as a hub city in Asia. we need to watchclosely and rethink the opportunities and directions of our

    terminals as well as logistics industry, in order to respond

    quickly and properly to sustain our development.