Shanghai going all-out to become green international shipping center

Shanghai, the main hub of the East China region, is taking necessary steps to achieve its ultimate goal of becoming ‘a digital, intelligent and green international shipping center’.

According to Xinhua Silk Road—a national-level platform that facilitates the Belt and Road Initiative of China, shipping-related resources are clustering at a fast pace in Shanghai, including related R&D, manufacturing and supplies of financial services, green energy, and smart systems.

This is said to be in line with Shanghai’s efforts “to craft a new highland for pooling high-end shipping services and improve distribution of shipping resources globally”.

In 2023, Shanghai handled a total of 49.16 million TEU, an increase of 1.7 million TEU or 3.6% compared to 2022 levels, maintaining its position as “the largest and busiest container port in the world for the 14th year in a row”.

This helped Shanghai to be rated third among international shipping centers, according to the 2024 Xinhua-Baltic International Shipping Center Development Index published in August this year. Shanghai, together with Singapore and London, has become one of the most important centers in the world and played a crucial role in ensuring the smooth operation of the global shipping system, according to the report.

Situated at the confluence of the Yangtze, Huangpu, and Qiantang Rivers, Shanghai has deep-water and riverport terminals that manage both international and domestic cargo. Operated by the Shanghai International Port Group (SIPG), it serves as a crucial hub for global trade, connecting over 600 ports across 214 countries. The port’s strategic location, robust infrastructure, and advanced logistics capabilities enable it to handle a wide array of cargo types, including containers, bulk commodities, and liquid cargo.

Container terminals dominate the landscape in Shanghai, equipped with quay cranes capable of handling the world’s largest container ships. The port boasts “a highly skilled” workforce and advanced automation systems, ensuring efficient cargo loading and unloading. These innovations contribute to high efficiency, reduced turnaround times, and lower operational costs.

“Up to now, China’s first shipping futures product, containerized freight index (Europe service) futures, which was officially listed and traded in Shanghai since 2023, has become an important vehicle for the global shipping market to fend off risks,” Xinhua Silk Road said.

“In fostering digital shipping, the city put online the 1.0 version of international container transport online service platform. Last year, the block chain technologies-based electronic release platform for goods at Shanghai Port handled 356,400 bills of lading, up 21 percent on year.”

“In the future, Shanghai will continue to shore up local shipping service capacity.”

In late October, China’s Ministry of Transport inked new memoranda with the Shanghai municipal government to cooperate on improving the Shanghai international shipping center’s influence.

Yu Fulin, Head of Shanghai Municipal Transportation Commission (SMTC), said that Shanghai “has stepped on a road to high-end shipping service branding” and accelerated its pace to build a new generation of smart and green port and cooperate with global partners, and contribute more to global shipping development.

New green shipping corridor

Last month, the Port of Shanghai and Hamburg Port Authority (HPA) signed a memorandum of understanding (MOU) to establish a green shipping corridor.

As informed, the MOU, inked at a forum in Shanghai on October 22, aims to make the shipping industry more environmentally friendly and low-carbon and promote the sustainable development of global maritime transport.

Together with shipping giant COSCO Shipping Lines and SIPG, SMTC and the HPA are working on the implementation of the green shipping corridor. The aim is to accelerate the decarbonization of maritime transport by working with technical equipment suppliers, energy suppliers, cargo owners, terminals and shipping companies.

Similarly, back in 2022, Shanghai and the US ports of Los Angeles and Long Beach decided to create a zero-emission transpacific trade route. The green shipping corridor is said to be in smooth progress. This initiative, supported by some of the world’s largest shipping lines and input from cargo owners, aims to accelerate emissions reductions along one of the busiest container shipping routes.

Port of Shanghai benefitting from hike in China’s export activities

In 2023, the Port of Shanghai continued to benefit from China’s robust export activities. Despite a sluggish global economy, China’s export sector remained strong, supported by a diversified manufacturing base and increasing demand for Chinese goods in international markets, as per the 2024 Xinhua-Baltic International Shipping Center Development Index.

The port’s strategic location and efficient operations made it “a preferred gateway” for these exports.

The port’s integration with advanced digital technologies has also enhanced its operational capabilities. The implementation of AI-driven logistics management systems, blockchain for secure and transparent transactions, and IoT devices for real-time monitoring of cargo movements streamlined port operations, reduced delays, and improved overall service quality. These technological advancements also contributed to the port’s ability to handle a higher volume of e-commerce shipments, reflecting the growing importance of online retail in global trade.

The Port of Shanghai prepares for a sustainable future

The port’s approach to environmental sustainability is said to be remarkable. In 2023, Shanghai made significant strides in reducing its carbon footprint through the adoption of green technologies and practices.

Initiatives such as the use of shore power for vessels at berth, investments in electric and hybrid port equipment, and the implementation of energy-efficient systems helped lower emissions and promote sustainable port operations.

In late August 2024, SIPG and Contemporary Amperex Technology (CATL), one of the “world’s largest” suppliers of batteries for electric vehicles, entered into strategic cooperation. As per the agreement, the two sides will deepen cooperation in the fields of green ports, smart ports, and zero-carbon port construction. Specifically, they intend to jointly promote low-carbon energy transformation and green and sustainable development of the port and shipping industry in terms of energy infrastructure construction, low-carbon transformation of logistics, electrification and unmanned technology of equipment, electrification of ships, digitalization and intelligent upgrading of ports, digital solutions for logistics, and recycling and processing of waste batteries.

In recent years, SIPG has vigorously promoted the construction of energy refueling centers to provide clean energy such as liquefied natural gas (LNG) and green methanol for international ships, supporting the low-carbon transformation and sustainable development of the port and the shipping industry.

“Through continuous investment in infrastructure, technological innovation, and sustainable practices, the port not only maintained its leadership position but also set new benchmarks for efficiency and environmental stewardship in the maritime industry,” the aforementioned report concluded.