Ports have been at the nexus of global trade for millennia—and to meet ever expanding cargo demands, they have likewise become hubs for transportation technology. However, the global drive toward decarbonization presents a new challenge to world ports: Collectively, ports contribute significantly to greenhouse gas emissions, from ocean vessels at berth to on-road trucks bound for the hinterland.
In response, maritime industry regulations have tightened as sustainability has gained traction worldwide. Port owners and operators are under increasing pressure to modernize infrastructure, reduce emissions, and support alternative fuels, guided by a patchwork of industry guidelines, regional policies, and local legislation.
Key drivers include the International Maritime Organization’s Greenhouse Gas (GHG) Strategy, which targets a 70 percent reduction in shipping emissions by 2040 and requires ports to support vessels transitioning to zero-carbon fuels like hydrogen, methanol, and ammonia. Since 2024, the European Union’s Emissions Trading System has incentivized ports to offer low-carbon services, such as shore power and renewable fuel bunkering. In the U.S., federal initiatives have so far channeled billions of dollars in grant funding and tax incentives into sustainable port upgrades, creating significant demand for engineering solutions. On the U.S. west coast, California has targeted a reduction in GHG emissions to 40 percent below 1990 levels by 2030 and 80 percent below 1990 levels by 2050.
For engineers and contractors, the move toward zero-carbon port operations presents a push for innovative design, advanced technologies, and resilient infrastructure to meet ambitious decarbonization targets. From retrofitting quays for shore power to installing hydrogen bunkering systems, green port projects require innovative engineering strategies and operational insight to address a range of technical and logistical complexities that demand multidisciplinary expertise and creative solutions. Beyond technology, ports must carefully balance sustainability goals with maintaining operational efficiency, profitability, and competitiveness in global trade networks.
Challenges and Opportunities
Challenges around port decarbonization are much the same as those encountered for traditional terminal redevelopment. For projects that rely on retrofitting legacy infrastructure or working within a constrained urban footprint, there may be nowhere to go but up.
For example, renewable energy installations must be compact and efficient and consider innovations like floating solar platforms, vertical wind turbines, and multi-story energy storage facilities. Further, such projects often involve the design of modular solutions adapted to port-specific environmental and spatial constraints. Microgrids that integrate on-site solar, wind, and battery storage to support shore power and equipment electrification must stand alone, enhancing reliability without burdening the greater regional power grid.
Still in the research and pilot stages, if brought online, alternative fuels like ammonia, hydrogen, methanol, and biofuels, would require specialized storage, safety protocols, and distribution systems, including scalable high-pressure storage tanks, cryogenic pipelines, and robust safety systems. Beyond infrastructure, an urgent concern is the potential market impact of alternative fuels on operations. In a recent market analysis, Moffatt & Nichol examined potential hydrogen demand in five cargo sectors—containers, dry bulk, liquid bulk, general cargo and coal—providing a client with essential guidance before venturing into what is new energy territory for ships and cargo handling equipment.
Also known as “cold ironing,” shore power is a proven tool in the decarbonization toolbox, enabling berthed vessels to shut down auxiliary engines, drastically cutting emissions. However, engineers are tasked with ensuring systems can handle variable load demands, incorporate high-capacity transformers, and remain compatible with the diverse power requirements of modern and legacy vessels. Moffatt & Nichol’s planning and engineering teams have long helped clients to navigate the introduction or expansion of shore power for a diverse range of vessels and operations. Recently, the Virgin Islands Port Authority engaged Moffatt & Nichol to undertake a study and masterplanning for shore power systems at St. Thomas and St. Croix, ports of call that welcome a wide assortment of cargo vessels and cruise traffic.
Ports that have moved toward modernization may have an advantage, having already transitioned to electrified cargo handling equipment. From an operational perspective, the smart port systems running automation and AI can play a significant role in optimizing logistics by enhancing real-time tracking, predictive maintenance, and emissions monitoring to minimize both downtime and energy consumption.
Engineering the Future of Green Ports
The transition to sustainable port operations places engineers at the forefront of one of the most critical infrastructure challenges of our time. Whether designing microgrid systems, alternative fuel storage, or integrating AI-driven solutions, engineers are not just meeting the demands of today—they are building the resilient and efficient infrastructure that will define global trade in the decades to come.
Green port development is about more than meeting emissions targets. It represents an opportunity to foster economic growth, enhance global competitiveness, and advance environmental stewardship. For the engineering sector, this transformation is a call to innovate, lead, and shape the future of the global supply chain.
For questions or additional information related to green port innovation, please contact us at publicrelations@moffattnichol.com.
