A chain reaction

Government and company policies alongside wide-ranging stakeholder pressures continue to drive the environmental agenda along, but there can be no doubt as to the influence of burgeoning international legislation on both individual companies and the chains within which they operate.

Each now has to strive, not only to comply with such legislation, but to be seen to comply through demonstrably transparent reporting of performance and also evidence of the credibility of their control systems.

Furthermore, the whole task of environmental management has evolved from site-specific, localised concerns to a more integrated view taking in area and regional perspectives, and is even now being set within the context of the global logistic chain.

As a major node in the transport chain, the port sector has a fifteen year record of delivering appropriate tools and methodologies through collaborative research. The development of preliminary tools such as Self Diagnosis Methodology (SDM) and certificated evaluation schemes plus the publishing of benchmark performance indicators all demonstrate the sector’s ability to take positive action.

Linking the chain Its true things are getting more complex, and a switch away from looking at single points on the transport chain to a systems approach is now being reflected in recent European Directives and associated policies.

However, the challenge of chain management need not necessarily be daunting, and it is now acknowledged that the benefits of supply chain collaboration give better results if both the public and private companies don’t only seek gains for their own organisation.

Peter Ford of Salalah Port, who helped initiate a ‘lean’ programme for APM Terminals, explains, “There are many efficiencies that could be gained from the supply chain. At present it’s a fractured picture and if everybody just continues optimising their own part, piecemeal, we won’t be able to operate as an organism. It’s as if hands, heart and brain are on different nervous systems.”

It’s been shown that if these organisations co-operate in a goods transport network or logistic chain, the effects are mutually enhanced. For example, cost reductions of up to 40% and CO2 reductions of up to 80% per container are reported. Additional benefits include improved security, greater transparency of performance and better communication of knowledge and experience between participants – there’s also a reduction of errors and increased efficiency.

A number of seaports already see sustainable hinterland transport connections as a key driver of their business opportunities, and several ports are already active in investing in inland hubs and new connections by environmentally friendly transport modes, such as inland barges, trains and short sea shipping.

Step by step

Once the concept of environmental management of the logistic chain is accepted by key players, then an iterative process of development follows. It is usually achieved by the establishment of a database of shared knowledge and best practice through networked communication. This can launch a programme of collaboration based on phased development.

It is equally important that the system evolves further through monitoring and review procedures – a typical approach adopted for both quality and risk management systems. As Mr Ford noted, “Without adequate reporting and feedback, gains tend to evaporate.”

The step-by-step approach has its benefits too, as shown by implementation of the Port Environmental Review System (PERS). As it draws on existing levels of information and capability it tends to allay the concerns of potential participants, who are often initially worried that the cost and complexity of any environmental management programme is simply too much.

The fact that 50 port authorities are now certificated under the scheme after independent review by Lloyd’s Register is a strong endorsement of both the approach and the sector’s ability to deliver credible self-regulation.

This sequential approach has also been adopted by the StratMoS project which is associated with the Motorway of the Sea initiative. The core aim of this is to promote and facilitate shift of cargo from road to sea-based intermodal transport, and improve accessibility within the North Sea Region.

The project comprises 29 partners, a healthy mixture of public entities, associations and private companies, which between them cover the area from Flanders in the south to Finnmark in Norway in the north.

Together they are developing a new logistic concept which will integrate all relevant parties. This brings together terminals in both inland and seaports, industrial estates on waterways, as well as inland freight and trucking companies and shippers in a dedicated, chain-based system.

Importantly, they are also developing along with their hinterland transport system, the tools to measure, report and certify its sustainable credentials. Similar systems to SDM and PERS are currently being developed for the Logistic Chain by ECO SLC.

“Show me the evidence”

When an auditor inspects the environmental credentials of a company or sector for purposes of certification of standard of environmental management, their key request is often “show me the evidence”. An effective response is to prepare a dashboard of Key Performance Indicators (KPIs).

A dashboard is an easy-to-read virtual text or graphic representation of a limited number of these performance indicators. These summarise data relating to the trends of significant aspects and deliver key information to a wide range of stakeholders, enabling users to interpret and understand sector performance at-a-glance.

Development is already underway. The PPRISM project aims to identify a set of accessible and feasible port performance indicators in order to measure and assess the impact of the European Port System on society, environment and economy. This ‘dashboard’ would therefore be able to demonstrate details of the selected KPIs that are of value for a wide range of stakeholders.

Sustainability is here to stay as a key driver in policies of governments and companies. Managing the transport of goods in a sustainable fashion is a high priority in any attempt to limit CO2 production and energy use for transport.

So, it is expected that a collaborative, systems approach will deliver the best results – but evidence of compliance and indications of progress quality will be essential requirements. Research-based results suggest that the sectors and chain do, indeed, have the capability to deliver effective management systems.

Herman Journée, Director Strategic Development, Port of Amsterdam
Chris Wooldridge, School of Earth and Ocean Sciences, Cardiff University