FEPORT congratulates the institutional negotiators who have been able to reach an agreement on FuelEU and AFIR as these two pieces of legislation are certainly corner stones of the “Fit for 55” proposals concerning the maritime sector.
To achieve a successful rollout of shore-side electricity, different actors in the port/maritime ecosystem will need to collaborate and be aligned. Port authorities have a central role in the administration and management of port infrastructure, including alternative fuels infrastructure such as OPS. At the same time, terminal operators need to be closely involved in the process as the installations will occupy a significant amount of space on the quayside, hence affecting the terminals’ operations. Coordination will also be needed with the electricity provider and with the shipping sector so that supply matches with demand.
As the deployment of OPS is such a complex logistical puzzle, FEPORT has always pleaded for OPS to be provided at those locations in the port (such as berths or terminals) where it makes the most environmental and economic sense and hopes that the implementation of AFIR will respect this principle.
Terminal operators have very limited impact on the effective use of shore power. The decision to invest or not in OPS should therefore remain a voluntary commercial decision based on expected return on investment. It is also crucial in this respect that the level playing field between ports is preserved thanks to a clear and harmonized legal framework regarding the responsibility for investments in OPS.
FEPORT reiterates that the implementation of AFIR should be consistent with existing pieces of EU legislation, especially article 2(5) of the Port Services Regulation as well as the 2023 amendment of the General Block Exemption Regulation.
The deployment of shore-side electricity implies huge investment costs and risks. Voluntary demand from shipping lines to use OPS prior to the deadline imposed by the new regulatory requirements will certainly contribute to limit faster air pollution emitted by ships in ports.
In this respect, FEPORT hopes that the fact that FuelEU Maritime will finally allow for the use of OPS or another zero-emission technology will not lead to more uncertainty regarding the effective use of OPS by shipping companies.
Giving the possibility to shipping companies to adopt another “technology neutral” solution entails a more significant need for public funding, as private investors are deterred from taking financial risks to propose a service that might not be used by their customers.
The revenues that will be raised via the implementation of FuelEU Maritime and the application of EU ETS to maritime shipping provide an excellent opportunity to mobilize public funding to support the rollout of shore-side electricity. The EU Commission’s upcoming examination of the resource needs of the Connecting Europe Facility should also be carried out bearing in mind the need for public funding to support the rollout of alternative fuels infrastructure in ports.
Such funding programs should also consider the technical needs of terminals and the costly adaptations of terminal superstructure that will be required for a successful rollout of OPS and clean fuels.
Source: FEPORT