Why Is Green Shipping Essential for Sustainable Growth in Ports and Terminals?

The maritime industry is responsible for almost 3% of the world’s greenhouse gas emissions (GHG), which have escalated by 20% in the past ten years. While these figures generated by the United Nations Conference on Trade and Development (UNCTAD) highlight the environmental concerns, global logistics industries also need to consider their impacts too.

Marine logistics supports 80% of the world’s trade (UNCTAD ), making it important to international commerce. While many may view the positive and negative associations above as a stark contradiction,  we recognise this is not a conflict. It is a call to redefine port operations and adopt green shipping practices.

We recognise the need to balance demands, compliance and environmental sustainability for a prosperous and resilient future for the shipping industry. Here is why green logistics matters now more than ever:

Ports and Terminals Are Emission Hotspots

Ports are prone to highly concentrated emissions. This is because high-intensity activities from large ships idling and diesel-powered equipment all converge in a small area, resulting in increased pollution. The following implications highlight the need for companies to adopt green logistics practices:

• Increasing GHG emissions contribute to long-term operational risks, health hazards, and reputational damage, bringing this issue into the limelight.
• NGOs, environmental activists and regulators are becoming increasingly intolerant of high-emission zones integrated within port environments.

Reducing emissions through clean-loading zones and carbon-neutral berths is essential for ports to remain competitive and sustainable.

Eco-Friendly Shipping Improves Business

Sustainable practices are commercially beneficial. According to BCG , over 80% of shipping customers are willing to pay a premium for lower-carbon logistics.

• Ports and terminals that offer electrified infrastructure, emissions transparency and low-emission vessel services are more likely to attract eco-conscious shippers who pay more for cleaner routes.
• These ports with clean-energy solutions will further attract forward-thinking partners and tap into growing environmental, social and governance (ESG) logistics investment pools.
• Shippers and cargo owners are increasingly prioritising ESG-aligned partners, indicating that green shipping doesn’t just build goodwill but also unlocks new avenues of revenue.
   

Stringent Regulatory Guidelines Drive Sustainable Port Operations

Optics or voluntary initiatives no longer drive sustainability. Regulatory pressures are now shaping the future of green shipping, making eco-friendly practices mandatory across the industry. Ports that delay investing in green infrastructure risk being excluded from high-value trade routes and may face penalties. For companies to grow sustainably, regulatory readiness must be a priority. Green shipping enables this by meeting emissions standards, avoiding penalties, and aligning with evolving environmental mandates.

Regulations that aim to decarbonise the marine sector include:

• IMO’s Net Zero Framework: Mandates shipping lines to reduce GHG fuel intensity by at least 17% by 2028, increasing annually to reach 43% by 2035. Ships that exceed these thresholds face penalties of over US$100 per tonne of CO₂.
• FuelEU Maritime Regulation: Sets a requirement for ships over 5,000 gross tonnage calling at EU ports to reduce their GHG intensity. The annual reduction target begins at 2% in 2025 and is expected to reach 80% by 2050 compared with 2020 levels.

Environmentally Friendly Shipping Practices Make Ports and Terminals Future Ready

Extreme weather and rising sea levels are increasingly exposing port and terminal assets to risk. Protecting this infrastructure is essential, and integrating green solutions into its foundational design can play a key role.

Logistics companies that incorporate renewables, energy storage, efficient utilities, and adaptive design reduce both physical and operational risk. These climate-responsive investments don’t just reduce emissions, they protect ports and terminals, ensuring growth over the decades.

Steps to Become a Green-Shipping Company

Here are five essential steps that support a company’s progression toward green shipping:

1. Clean Fuel Infrastructure Investment

Prepare ports with low-carbon fuels, such as green methanol, ammonia, and hydrogen. This would involve building safe bunkering terminals, handling systems, and emergency response capabilities to support next-generation vessels. BCG projects that the biogas pathway fuels alone could account for up to 40% of global shipping fuel by 2050.

2. Electrify Port Equipment and Vehicles

To reduce emissions and noise pollution, replace diesel-powered cranes, yard tractors, and shuttles with electric or hybrid models. This will also improve air quality for terminal workers and neighbouring communities.

3. Provide Shore Power (Cold Ironing)

By connecting ships to onshore electricity when they are docked, ports eliminate the need for burning fuel, resulting in significant reductions in emissions. This requires a strong power supply and clean energy sources.

4. Adopt Digital Solutions for Efficiency

Automation, emissions tracking tools, and real-time vessel scheduling reduce idle times, congestion, and unnecessary fuel burn. This improves operational performance and is environmentally friendly.

5. Collaborate Across the Supply Chain

To achieve green shipping, close coordination is necessary among ports, carriers, and policymakers. Engaging and collaborating with major stakeholders is key to aligning sustainability goals, sharing costs, and developing scalable green corridor initiatives.

Green Shipping: The Road to Sustainable Economic Development

The carbon footprint of maritime logistics is facing increasing scrutiny from policymakers, investors, and environmentally conscious customers. With McKinsey projecting the green logistics sector to reach $350 billion by 2030, representing nearly 15% of total logistics spend, ports and terminals are positioned at the forefront of a transformative industry shift. The opportunities are clear as companies move toward carbon-neutral services, unlock climate-linked financing, and strengthen their appeal to ESG-driven partners.

We are not just responding to the climate change shift, we are proactively working to mitigate its effects. Guided by our commitments to achieve carbon neutrality by 2040 and net zero by 2050, we are integrating sustainability into the core of our operational practices across all global activities.

From electrifying terminal equipment and deploying renewable energy to enabling shore power and advancing digital emissions tracking, we are taking a forward-looking approach to decarbonising global trade. As the logistics sector accelerates toward a low-carbon future, we are committed to driving profitable, scalable, and responsible growth through our ports.