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Konecranes Port Solutions helps LBCT lead the industry on sustainability
More than a decade ago, Long Beach Container Terminal (LBCT) in California has set an ambitious goal to become the world's cleanest terminal, and they've chosen a Konecranes system solution to help achieve it. By automating the horizontal container transport, LBCT has more than quadrupled its cargo throughput over ten years while cutting emissions by over half. In pursuit of ambitious sustainability goals, LBCT has proven that ‘doing the right thing’ is not only good for the environment but also for business. LBCT's success serves as a blueprint for the industry, and they continue to push towards their goal of net-zero emissions by 2030.
The journey to be the world’s cleanest terminal
With the first construction works in May 2011, the Port of Long Beach (California) and LBCT embarked on a multi-billion-dollar redevelopment project to combine two older, smaller terminals that were separated by a water basin. The project, completed in December 2021, resulted in the most technologically advanced, efficient, and environmentally friendly terminal in the United States. “When we started the expansion, it was with an aim of not only creating a very large but also a first of its kind, very efficient, fully automated terminal,” said the CEO of LBCT, Anthony Otto. “One of the greatest benefits was to be able to take a facility which was all diesel and turn it into what will likely become the first true net zero emissions marine terminal in the world.” Challenged with the highest environmental standards in the country, LBCT faced them head on. A big step in the journey to become net zero emissions involved transitioning from a conventional diesel-based model to a fully automated electric one.
Durable system solution to lead the transition net zero
Konecranes automated horizontal transport turn-key package to control and coordinate the AGVs, ASCs, QCs and yard cranesLargest battery exchange station in the port industry
Otto noted that with such a big project, there was far too much risk to go with unproven technology. “After doing a lot of modeling and simulation studies, we came to the conclusion that Konecranes was the right direction to go,” he said. In 2013, LBCT made the decision to invest in a Konecranes automated horizontal transport turn-key package to control and coordinate a fleet of 102 Konecranes Gottwald automated guided vehicles (AGVs), 69 third-party automated stacking cranes (ASCs), 18 quay cranes (QCs), and 6 intermodal yard cranes. These software-controlled container transporters provide an efficient link between the harbor quay and the stackyard in large container terminals. “Of all of the choices that are out there today, the all-electric version of the AGV is the only truly zero emission automated transport system in my opinion.”
Operating a fleet of electric AGVs requires entirely new support infrastructure, safety, and control systems. To implement that, Konecranes was instrumental in building the largest battery exchange building in the port industry.
The impact of forward thinking
In recent years, LBCT’s throughput has increased steadily while its greenhouse gas (GHG) emissions from equipment and vehicles (Scope 1 emissions) have declined. On a per-container basis, LBCT is emitting less emissions than ever before. Otto noted that their entire automated transport system is made up of Konecranes products, playing an instrumental part in achieving those emission reductions.
At present, 63% of LBCT’s heavy equipment, including the AGV fleet, is zero tailpipe emission (like electric) – the highest proportion of any US West Coast marine terminal. Once LBCT turns over its current fleet of 64 yard tractors, it will eliminate 93% of their remaining emissions. Specifically, the annual emission reductions attributed to the AGVs - instead of 144 diesel yard tractors - translates to approximately 21,025 metric tons of CO2e or GHGs reduced per year. It’s safe to say that the 102 AGVs can be estimated to reduce the emissions of a non-automated terminal of comparable size by 30 to 35%.
Sustainability is smart business
Since 2015, LBCT has more than quadrupled its cargo throughput - from moving 700,000 containers to 2.8 million - while reducing emissions and energy dependence on fossil fuels by more than half. The goal of any container business, said Otto, is to be able to put more through your warehouse with the same amount of overhead through efficiency gains. “That's in fact what we've done,” said Otto. “Emission reductions and having a well-run business are not mutually exclusive. In our case they went together, which is a great model for the future for our industry.”
Another important business factor is the impact on the workforce. A transition of this type and scale brings new jobs and higher skilled jobs. Because people are the backbone of the LBCT operation, Otto said they committed to retraining the workforce to be able to handle those new skilled jobs. That comes with a cost, as do the new equipment and systems, but over the time, Otto said the investment is well worth it.
Vision for a sustainable future
Going forward, LBCT has developed a Net Zero 2030 Climate Action Plan that defines how they will transform into a net-zero emissions marine terminal by 2030. The plan outlines how they will continue the path toward reducing impact on the environment and the surrounding communities while supporting global decarbonization in the industry.
Currently, only a few terminals in the world are fully automated. From experience, he knows that it’s a difficult transition, but if others don’t do it, they won’t be able to compete from a unit cost basis. As for advice for those that might be considering the idea, Otto said, “Don't underestimate the complexity of the process. Get as much help as you possibly can. Plan out and simulate everything you can down to the smallest detail.” LBCT has recently been ranked as the most productive terminal operator in the North America by the Ocean Alliance, the largest carrier alliance in the world.
Konecranes is proud of the ten-year collaboration with LBCT and the impact it continues to have. “We are both committed to reducing our environmental footprint and promoting sustainable container terminal operations. We are partners who share a vision for a sustainable future, and together, we are designing and implementing innovative technologies and solutions that minimize our impact on the environment while maximizing efficiency and productivity." said Mika Mahlberg, Executive VP, Konecranes Port Solutions.
Konecranes works for a decarbonized and circular world for customers and society. We are helping to build the means to get there for our customers, step by step. At Konecranes Port Solutions we call this Ecolifting™: a systematic movement towards lower CO2 per container move. Our first major step in this direction was the introduction of our all-electric Automated Guided Vehicle (AGV) over ten years ago. Today, all Konecranes factories globally use renewable electricity and we are committed to cutting our global emissions in half by 2030.
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but if others don’t do it, they won’t be able to compete from a unit cost basis. As for advice for those that might be considering the idea, Otto said, “Don't underestimate the complexity of the process. Get as much help as you possibly can. Plan out and simulate everything you can down to the smallest detail.” LBCT has recently been ranked as the most productive terminal operator in the North America by the Ocean Alliance, the largest carrier alliance in the world.