A new report from global infrastructure company AECOM, finds that electrifying port equipment and infrastructure in Florida can strengthen the state’s global competitiveness.
The study, “Powering Florida: Port Electrification as a Pillar for Global Competitiveness,” shows that electrification investments can improve operational efficiency and long-term cost performance.
“Florida ports operate in a highly competitive global market,” Rohemir Ramirez Ballagas, director of shipping and transport at Environmental Defense Fund (EDF), said. “Modernizing equipment and infrastructure helps ports attract customers, improve efficiency, and reduce long-term operating costs. This report demonstrates that leadership in electrification delivers clear business advantages.”
According to the report, the state’s ports are well-positioned to take advantage of electrification. The state is home to 16 seaports and hosts three of the busiest cruise ports in the world. The ports collectively contribute an estimated 13 percent of the state’s GDP and add more than $117 billion to the state’s economy. According to AECOM, investing in ports is critical to maintaining the state’s position as the world’s 15th largest economy, and in keeping the state competitive on a global basis.
“Florida’s ports are exceptionally well positioned to capitalize on the continued growth of the maritime industry. Anchored by Port Miami, Port Canaveral, and Port Everglades, the world’s three busiest cruise ports, Florida also has significant untapped potential for cargo growth, particularly in containerized freight,” says Philip Hadfield, AECOM’s vice president, ports and marine practice leader, and U.S. marine electrification lead. “To remain competitive with other major cargo ports along the Eastern Seaboard, Florida ports must increasingly focus on terminal optimization and densification to expand capacity and improve throughput. In today’s maritime industry, this evolution is most effectively achieved through the electrification of container yards and cargo-handling equipment.”
The report found that while some electric cargo equipment has higher upfront costs, the study finds that lower fuel and maintenance expenses can result in meaningful long-term savings, in some cases, up to $60,000 per unit over a piece of equipment’s 20-year lifespan.
Additionally, shore power infrastructure would allow ships to plug into the electric grid while docked, reducing fuel use and improving local air quality. Seven of the state’s ports either have shore power or are planning them in order to attract cruise ships. More than two thirds of cruise ships (72 percent) anticipate being shore power capable by 2028.
And modernizing ports with electric equipment reduced reliance on imported diesel fuel, lowers maintenance needs and enhances operational safety, the report said.
“EDF’s report on electrification at Florida’s ports highlights the significant benefits—ranging from improved efficiency to modernization—of technologies like shore power and electric cargo-handling equipment,” John Bressler, Vice President of Government Relations for the American Association of Port Authorities, said.