The logistics heart beats on the coast

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Jun 19, 2023
German seaports are also expected to play an important role in the energy transition.
© No Limit Pictures/iStock

Frank Dreeke

Chairman of the Board of BLG Logistics Group and a member of the Executive Committee of the German Seaport Association (ZDS)
This article was first published in DVZ
German seaports have proven their reliability in times of multi-crises. And they will continue to be of paramount importance in the future, among other things as hubs for offshore logistics.

The global network of supply chains is very fragile and has already been severely tested by the Corona pandemic. The blockade of the Suez Canal by the container ship “Ever Given” in March 2021 and Russia’s attack on Ukraine in February 2022 brought the relevance of the supply chain to the fore and showed how resilient the processes are. In logistics, we feel every crisis immediately. The Russian war of aggression, rising energy costs and inflation, but also challenges such as the shortage of labor and skilled workers or climate change – these multi-crises have led to a very challenging business environment in the German seaports.

Port companies have generally responded quickly and pragmatically to the changed initial situations. It is noteworthy that the bottleneck in containers led to a positive result in the conventional and bulk cargo business. The much-described “shipping congestion” has now largely dissipated. The shortage of tonnage is also being compensated for by newbuilding orders from the shipping companies. But one thing everyone has learned is that the next crisis is bound to come. It is important to learn lessons from experience and be as well prepared as possible.

German seaports have proven their reliability in times of multi-crises, for example in the export of Ukrainian grain or the import of required energy sources such as coal, oil and LNG. A total of 36.1 million metric tons of fossil fuels (coal, crude oil and natural gas) were imported through German seaports in 2022, 13.9 percent more than in 2021, with coal accounting for just under one-third (31.5 percent) and crude oil for a good two-thirds (67.6 percent). The most important supplier country here was the United States, from whose ports 7.5 million metric tons, or a good fifth (21.0 percent) of the import volume, came. German seaports play a central role as a logistics hub and have proven to be flexible and robust despite numerous challenges: Cargo throughput in 2022 totaled 279.1 million metric tons, down 3.2 percent from the previous year. The reasons for this were, on the one hand, the sharp decline in the momentum of global trade and, on the other, the loss of maritime traffic with Russia (9 percent of total throughput). Clear increases in the import of energy sources could offset these influences to a large extent.

Accelerator for change

However, crises are always also an accelerator for change – and change is currently characterized by the energy transition, digitization and sustainability. Particularly with regard to the energy transition, seaports have a central role to play. For Germany to be climate-neutral by 2045, the country’s energy system must be almost completely converted to renewable energies as well as green hydrogen. The latter must be imported in large quantities by ship via German ports. In addition, offshore wind energy is to play an important role, which is why, according to the German Energy Agency, the accelerated development and expansion of port infrastructure is necessary.

If we are serious about climate protection and the expansion targets, we must create the necessary capacities in the seaports as quickly as possible. This applies both to the construction of new offshore plants and to the expansion offensive on land. For the import of wind turbines as well as for offshore expansion, we need significantly more heavy-duty areas in the ports that are large enough for modern wind turbines. In addition, the obstacles to carrying out necessary heavy-load transports must be removed, approval procedures shortened and staffing optimized. For this national task, we need a cross-site organization of the necessary investments along the entire German North Sea and Baltic Sea coast. There is also a need for the forward-looking creation of uniform regulations.

Clear commitment from politics

Seaport operators and port companies expect a much more ambitious and strategic port policy from the federal government that does justice to its national and European importance. Our neighboring countries are clearly buying our guts in this respect. The federal government’s “National Ports Strategy” is certainly a step in the right direction, but it must be developed quickly and, above all, implemented. In order to remain competitive and thus fit for the future, the port operators demand a clear commitment to the German seaports from the politicians: the federal and state governments must regard the seaports as a joint task. We would not be a leading logistics country if the seaports were poorly connected. In view of climate targets and the growing movement of goods, we need faster and more determined expansion, especially of the rail network. The seaports are a central link in a transport chain and depend on a good and functioning infrastructure in the hinterland, especially in the face of intense European competition.

Connection is the be-all and end-all

Rail and road converge at the quay. However, there are restrictions on the provision of traction by the rail companies, essentially due to the shortage of locomotive drivers and a large number of construction sites in the European rail network. This leads to high demand on the road. But here, too, we are facing a significant shortage of capacity due to a driver shortage. We need the establishment of flexi train paths and the smooth coexistence of freight and passenger traffic on the railways. We continue to face major challenges in the world, in Germany and in the ports. The port industry will continue to reliably make its contribution. We expect politicians to live up to their responsibility and strengthen and expand climate-friendly transport by ship. This is the only way that German seaports can survive the tough international competition and maintain important logistics infrastructure and good jobs. One thing has become clear in recent years: The importance of the ports should not be underestimated. What is needed now is courage on the part of politicians to invest on the quaysides in order to maintain the competitiveness of the ports in the future. (ben)

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