development plan for green port nov. 12th, 2009 한진해운 신항만㈜ 대표이사 최 영 배...

Development Plan for Green Port

Nov. 12th, 2009Nov. 12th, 2009

한진해운 신항만㈜

대표이사 최 영 배

President CEO YB, Choi

Hanjin New Port Co.

ContentsContentsContentsContents

1. Environmental issues and Global warming

2. International concern and Trends

3. Domestic Situation and Response

4. Environmental issues in Logistics

5. Green port status and Action plan for domestic ports

6. HJNC’s action plan for Green port

7. Conclusion

3

The reduction rate of polar glaciers per year

Environmental issues and Global warming 11

Global warming The world’s average temperature rise and the rapid melting of polar glaciers

4

9:01~12:00Very anxious

00:01~3:00Not anxious

6:01~9:00Quite anxious

3:01~6:00A little anxious

12:00Impossible for humans to live

Environmental crisis clock 2008 current time 09:33

Environmental issues and Global warming 11

5

International concern and Trends 22

UNCED in Rio

Adoption of the Kyoto Protocol

Adoption of Marrakesh agreement

The Kyoto Protocol entered into force

Bali Roadmap

Copenhagen Conference

1992

1997

2001

2005

2007

2009

United Nations Framework Convention on Climate Change (UNFCCC)

EU and 37 developed countries discuss reducing greenhouse gas emissions

Arrange specific implementation plans of the Kyoto Protocol

Arrange 1st commitment period of greenhouse gas reduction (2008~2012)

Raised the need to reduce greenhouse gas in developed countries

Discuss new post-Kyoto Protocol (2013~)

Agreements The history of conventions on climate change between countries

2005 2008 2013 2018

Effe

ctua

tion

of th

e K

yoto

Pro

toco

l

Negotiating reduction for the 2nd performance period:South Korea under pressure

to reduce greenhouseGas emissions.

Developed countries reduce greenhouse gas

emissions.

South Korea inevitablyparticipates.

1st

Performance period2nd

Performance period

6


The schedule after Effectuation of the Kyoto Protocol

7

1 • 80% reduction in greenhouse gas(CO2) emissions by 2050

Obama, President of U.S.

• Approving the global warming treaty

• Investing in alternative energy

2

3

• creating 5 million ‘green jobs’4

1 • In Journalism: Rupert Murdoch

World-wide environmental declaration

• In Shipping: MAERSK, Evergreen, MOL

• In Industry: GE 의 Ecomagination (Toyota, BP)

2

3

• In distributing: Wal-Mart, Tesco4


8

• Increase greenhouse gas emissions continuously

• The average annual growth rate of 7.9% in greenhouse gas from 1990 to 1997, higher than

the growth rate of 7.1% in GDP

• Continuously increase proportion of energy-guzzling industries (steel, petrochemical industry)

since 1990

• Rapidly increase greenhouse gas emissions per capita from 1.9TC/Capita in 1990 to 3.1TC/Capita

in 1997

Domestic situation and Response 33

Domestic Reality

Energy consumption and Pollutant emissions in South Korea

Greenhouse gas emissions (2005) 16th(OECD 6th)

Greenhouse gas emissions per capita (2005) 28th

CO2 emissions (2006) 9th

Growth rate of CO2 emissions (2006) OECD 1st

If obligations to reduce greenhouse gas emissions are charged hereafter, Korean economic growth could shrink concerning the difficulty of its

Reduction in Korean circumstances.

If obligations to reduce greenhouse gas emissions are charged hereafter, Korean economic growth could shrink concerning the difficulty of its

Reduction in Korean circumstances.

(World lanking)(World lanking)

9

Forming eco-friendly business &

energy-saving infrastructure

33

Domestic reality and Respond

Korean President’s “Green growth” Declaration :

Selected as a national challenge Aug 5th, 2008

Developing new industries

to respond to climate change

Improving independent energy &

Creating green Korean Peninsula

Developing renewable energy &

clean energy

Included in parties to UNFCCC from 2013

Research actual emissions of greenhouse gas in logistics and accept plans and road map to attain target for greenhouse gas reduction.

Domestic situation and Response

10

1 • Operate fuel-saving service lanes (BSP : Bunker Saving Program)

Trends in domestic private companies

Hanjin Shipping

• Streamlined routes, Vessel speed reduction

• Install new shipbuilding AMP (Alternative Maritime Power)

• Steadily expand volume of eco-friendly marine & rail transportation

POSCO

• Secure competitiveness through diversification of transportation

• Reduce distribution costs by road damage & mass transportation

2

3

1

2

3

Domestic companies haven’t recognized environmental issues yet. Government’s measure also isn’t specific.

Domestic companies haven’t recognized environmental issues yet. Government’s measure also isn’t specific.

Environmental issues in Logistics 44

11

44

CO2 emission Ratio by industry

Source : International Energy Agency

Environmental issues in Logistics

12

44

■ To reduce Co2 emission, Developed countries are trying to reduce the utilization of truck and tend to increase

utilization of Ship or Rail transportation which is more eco friendly transportation

■ utilization of road transportation increases gradually. But, usage of transportation via sea and rail tends to decrease

■ To reduce Co2 emission, Developed countries are trying to reduce the utilization of truck and tend to increase

utilization of Ship or Rail transportation which is more eco friendly transportation

■ utilization of road transportation increases gradually. But, usage of transportation via sea and rail tends to decrease

Energy Consumption by Transportation mode

Source : Development plan for Modal Shift to establish eco friendly logistics system KMI(2008)


13

44

Global Warming

It caused by CO2 from vehicles and Vessels

Ozone Depletion Causing from Air conditioner of Vehicle, Reefer Container, refrigeration/freezer Tank

Acid Rain It caused by Sox, Nox from Vehicles and Vessels

Marine Pollution

Oil Spills by Marine Accident

Destruction of Rainforest

Using packing material for transit & Pallet

Exhaustion of resources

Exhaustion of petroleum resources



14

Countermeasures from many countries

ModalShift

Subsidy &Incentive

Introduction of advanced logistics

managementtechniques

Eco-friendly vehicles,

Electronic Vehicle

Green logistics certification

system

Transferring to Rail

and Ship

(Mass Transportation)

In case of switching to eco-friendly Transportation

Automation Equipment

WMS, Cross Docking

System introduction

E-RTGC

reusable packaging container & Pallet

Subsidy and tax benefits to applicable

company

44Environmental issues in Logistics

15

• Vessel Speed ↓

• Fuel Change

• Catalyst

In short term

• Controller for fuel usage• Automated berth system

In mid term

• AMP

• Clean Vessel

In long term

Eco Friendly Port Operation TechnologyEco Friendly Port Operation Technology

Green port status and Action plan 55

Liner

In Charge

Terminal

Operator

Trucking/

Shipper

• Non peak incentive

•24 hour operation

• C/C ability ↑

• Multi spreader

• advanced

equipment

• C/C unit increase

• new C/C development

• Relocation

• proper facility size

• Non stop at gate

• gate separation

• Modal Shift

• Fuel Change• Multi vehicle •Clean vehicle input

Eco Friendly Port Technology

Eco F

riendly Green T

erminal

16

Equipment change

• Required a gradual replacement due to costing a lot of money

existing RTGC E-RTGC

Terminal Huchison KBCT GammanNew

GammanU-am TTL

T/C 33 37 41 16 13 140

Cost(million won)

12,012 13,468 14,924 5,842 4,732 50,960

■ Replacement cost of 1T/C with E-RTGC is 364 million won. Total replacement cost of RTGC in existing North port is

50,960 million won.

■ Replacement cost of 1T/C with E-RTGC is 364 million won. Total replacement cost of RTGC in existing North port is

50,960 million won.

55

Source : Haesa economy paper(2009.02.06), http://www.ihaesa.com/News/list_view.html?Pass=IB-5-23065


Green port status and Action plan

17

Equipment adopt(AMP)

• Exhaust Gas emission reduction by installing AMP (Alternative Maritime Power)

AMP install Expected result

Expected result

• Nox 1 Ton decrease

• Sox 0.5 Ton decrease

Terminal Huchison KBCTGamma

nNew

GammanU-am PNC HJNC TTL

Berth 2 2 2 1 1 4 2 14

Install Cost Mil won

5 5 5 2.5 2.5 10 5 35

■ Install Cost is 2.5 billion won per berth. Estimated cost for installing 50% berth in Busan is about 35 billion won■ Install Cost is 2.5 billion won per berth. Estimated cost for installing 50% berth in Busan is about 35 billion won

55

Source : Hae Sa newspaper (2009.02.06), http://www.ihaesa.com/News/list_view.html?Pass=IB-5-23065



18

CO₂

CO

Gas

HC

NOx

SO₂

98

0.5

Trucking

0.2

1

0.03

28

0.2

Via Rail

0.1

0.5

0.04

15

0.04

Via Sea

0.01

0.3

0.3

(Unit : g/ton-km)

■ Rank for Co2 gas emission: trucking (98g/ton-km) – via rail (28g/ton-km) – via Sea (15g/ton-km)

■ Most eco friendly transportation mode is marine transportation

■ Rank for Co2 gas emission: trucking (98g/ton-km) – via rail (28g/ton-km) – via Sea (15g/ton-km)

■ Most eco friendly transportation mode is marine transportation

Green House Gas

by mode

Most eco friendly mode is transportation via Sea and next is via Rail

55




19

Social Indirect Cost

Noise

Air pollution

Cost

Accident

Congestion

Maintenance

13

82

Land Trucking

135.9

18

5.6

2.3

12.2

Via Rail

6.9

0

22.3

0

8.1

Via Sea

0.8

0

0

Total 254.5 43.7 8.9

(Unit : won/ton-km)

55


Marine transportation is the most competitive in terms of social indirect cost including pollution and noise and etc.



20


Rear Transportation

Need for various transportation modeJoint Delivery required

Existing Hardware availableNo need for additional investment

Requiring Gov, Subsidy or incentives for stable service

55

Tucking takes up 90% of the rear transportation of the port


21

New PortHJNC/PNC

North PortBICT/OTHERS

66

Ship Shuttle

Modal Shift For better T/S connection between North and New Port, Modal Shift started with BPA incentives from trucking to Ship Shuttle Service

HJNC Action Plan for Green Port

22

Volume Handling over 5,000 TEU per month except for starting month

■ Total 15,757 TEU of T/S containers were handled via Ship Shuttle from trucking since

the start of operation during last 3 month

■ Total 15,757 TEU of T/S containers were handled via Ship Shuttle from trucking since

the start of operation during last 3 month

66

Ship Shuttle


23

Month Vol. (TEU) R/T Trucking (Won)Ship Shuttle

(Won)Reduction (Won)

Jul 3,895 77,900 495,638,750 16,943,250 478,695,500

Aug 6,318 126,360 803,965,500 27,483,300 776,482,200

Sep 5,544 110,880 705,474,000 24,116,400 681,357,600

Oct 5,900 118,000 750,775,000 25,665,000 725,110,000

Total 15,757 315,140 2,005,078,250 68,542,950 1,936,535,300

Social Indirect Cost Saving

Social indirect cost reduction is about 1.9 billion won by transferring to Ship Shuttle

66

Ship Shuttle

Source: Considered Air pollution, Noise, Accident, Congestions, M&R Cost (referring to Page 19)


24

Gas Trucking Ship Shuttle Reduction volume

CO 973 78 895

CO2 190,855 2,921 187,934

HC 389 19 370,025

Nox 1,947 584 1,363

SO2 58 584 -525

Exhaust (gas) Emission Reduction

Co2 emission reduced by 187,933Ton via Ship Shuttle for the last 3 months starting from July 2009

■ Co2 emission cost is 14.40Euro/Ton(as of 09.11.04) and its total reduced amount

reached 4.7 billion won

■ Co2 emission cost is 14.40Euro/Ton(as of 09.11.04) and its total reduced amount

reached 4.7 billion won

(Unit : ton)

66

Ship Shuttle


25

Expected effect from Ship Shuttle

• Strengthening T/S connection between New & North port

• New liner or T/S volume increase thru Co-opetition with North port

• Primary example of synergy created by cooperation with North

port

Strengthening Connection

(New port – North port)

• More options from various transportation mode

• Risk management in case of strike or emergency

• Service quality increase by competition

Modal Shift

Cost Saving

• Compared to trucking, 40,000 won / move reduction with BPA

incentive

• Social indirect cost reduction monthly 500 Mil won

• Co2 emission cost reduction monthly 1.2 Billion won

66HJNC Action Plan for Green Port

26

Modal Shift• Securing various transit mode between Pohang & Busan from trucking of steel cargos

• Indirect cost resulted from heavy & over-freight cargos

[[

Po hang

Busan

66

[ Transportation via Land / Sea]

Coastal service


27

TEU From New port To new port Total

Pohang 6,400 1,610 8,010

Coastal Transportation

(Unit : TEU)

Item Coastal service (122 km) Inland trucking (190 km)

Capacity 500 TEU class / 2day(Open for Daily SVC according to volume)

When needed

BizScope

Trucking – Storage -- Sea Transportation - Stevedoring at

New PortTrucking - Stevedoring

AdvantageMass transportationShipper incentivesLong stay cargos

Hot Delivery

Transit Time

6 and half hour (13 knot) 3 to 4 hour

Target Volume

• Targeting monthly 6,400 TEU from new port to Pohang

66

• Targeting monthly 1,610 TEU from Pohang to New Port


28

Vol. (TEU) R/TLand Trucking

(Won)Coastal Service

(Won)Cost reduction (Won)

8,010 160,200 7,746,471,000 170,036,280 7,576,434,720

Indirect cost reduction

Indirect cost savings are monthly 7.5 billion won via sea transportation

Source: Considered air pollution, Noise, accident, Congestions, M&R Cost (referring to Page 19)

Emission Via Land Via Sea Cost Savings

CO 14,418 782 13,636

CO2 2,825,928 29,317 2,796,611

HC 5,767 195 5,572

Nox 28,836 5,863 22,973

SO2 865 5,863 -4,998

Exhaust gas Emission Decrease

(Unit : Ton)

■ Co2 emission cost is 14.4 Euro/ton (As of 09.11.04) and, the amount reached 7.4

billion won

■ Co2 emission cost is 14.4 Euro/ton (As of 09.11.04) and, the amount reached 7.4

billion won

66

Co2 emission was decreased by 2.7 million ton via sea transportation


29

Expected effect by coastal SVC

• 수 /출입 화물의 대부분이 철강관련 아이템으로 만성적인 과적 문제

• 내륙 운송 중심에서 다양한 모드 선택 가능

• 육상운송 경쟁을 통한 서비스 질 향상과 합리적인 가격

Modal Shift

Cost Saving

• Social indirect Cost reduction Monthly 7.5 Billion won

• 74 billion won reduction by Co2 emission decrease

66

• 수 /출입 화물의 대부분이 철강관련 아이템으로 만성적인 과적 문제

• 내륙 운송 중심에서 다양한 모드 선택 가능

• 육상운송 경쟁을 통한 서비스 질 향상과 합리적인 가격

Modal Shift

• Chronic over freight problem (Steel, Metals)

• Various mode available instead of inland trucking

• Securing competitive price & qualified service by competition

Modal Shift

• Terminal volume increase by coastal service

• Activation of two port via cooperation with Po-hang

• Synergy from cooperation between Po-hang & Busan

Strengthening Connection

(Pohang – Busan)


30

Key factors

For Success

1. Government Subsidy required for high cost & eco-friendly modal shift

2. Perception Change (Shipper/ Trucker)

3. Founding Committee related to Carbon tax, Tradable pollution permits

4. Transportation mode development with less emission

5. Incentives from int’l organizations by Green Port Certificate

Conclusion 77

Thank You

Your Choice Your success

development plan for green port nov. 12th, 2009 한진해운 신항만㈜ 대표이사 최 영 배...

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