APM Terminals invests in electric upgrade and extends partnership in Valencia

by Chief Editor

The Future of Port Infrastructure: Decarbonization and Mega-Ship Readiness

The global shipping industry is undergoing a fundamental transformation. As ports evolve from simple transit points into sustainable logistics hubs, the focus has shifted toward two critical pillars: electrification and the capacity to handle the next generation of ultra-large container vessels.

From Instagram — related to Port, Valencia

Recent developments at the Port of Valencia, specifically regarding the extension of the APM Terminals concession, provide a blueprint for how modern terminals are balancing operational growth with strict environmental mandates.

Did you know? Under Spanish port legislation, the maximum ordinary extension for a terminal concession is 50 years. The recent extension of the APM Terminals Valencia concession allows it to run until 2049, reaching this legal limit.

The Rise of Onshore Power Supply (OPS)

One of the most significant trends in maritime logistics is the transition from ship-borne diesel generators to Onshore Power Supply (OPS). This technology allows vessels to plug into the local electrical grid while docked, effectively eliminating emissions at the berth.

The implementation of OPS is no longer optional but a strategic necessity. In Valencia, the electrification of the Levante Quay represents the first of four planned OPS systems. This phase includes critical infrastructure such as a power delivery centre and a transformation and conversion substation.

This shift is driven by aggressive climate targets. For instance, APM Terminals aims to reduce operational emissions by 70% by 2030, with a long-term goal of achieving net zero emissions by 2040. These ambitions align with broader European port decarbonisation targets for 2030 promoted by the Valenciaport Authority (VPA).

Collaborative Funding and Ecosystems

Decarbonization is rarely a solo effort. The OPS Valenciaport initiative demonstrates the importance of multi-stakeholder partnerships. Led by Fundación Valenciaport and co-financed by the European Union through the CEF Transport programme, these projects display how public funding and private investment converge to modernize infrastructure.

Collaborative Funding and Ecosystems
Port Valencia Valenciaport
Pro Tip for Port Operators: Decarbonization must extend “beyond the terminal fence.” To achieve true sustainability, operators should focus on reducing emissions across the entire terminal ecosystem, including the operations of their customers and logistics partners.

Scaling for the Era of Mega-Vessels

While electrification handles the environmental side, physical infrastructure must retain pace with the increasing size of container ships. The industry is seeing a surge in E-class and EEE-class vessels, which require specialized berth adaptations.

Powering the Future: APM Terminals’ Electric Reach Stacker

To maintain competitiveness, terminals are investing in the adaptation of quay fenders and deepening draughts. For example, serving Asia–Mediterranean services now requires draughts of up to 16.5 metres to accommodate the heaviest loads.

This infrastructure upgrade is particularly critical for operators involved in strategic alliances like the Gemini Cooperation between Maersk and Hapag-Lloyd. By preparing the Levante Quay to handle vessels up to 400 metres in length, terminals can ensure they remain viable nodes in these high-capacity global networks.

The Novel Deal: Green Commitments for Concession Extensions

A emerging trend in port management is the linking of concession extensions to “substantial modifications” in environmental and operational performance. Port authorities are increasingly requiring significant new investments—often exceeding 20% of the original investment—as a condition for extending operating rights.

The recent approval of an eight-year extension for APM Terminals Valencia was predicated on a commitment exceeding €10 million. This investment is split between electrification (OPS) and the physical expansion of the quay to support larger ships, proving that the “license to operate” is now inextricably linked to sustainability and modernization.

For more insights on how global logistics are evolving, explore our latest analysis on sustainable shipping corridors and the impact of the Gemini Cooperation on Mediterranean trade.

Frequently Asked Questions

What is Onshore Power Supply (OPS)?
OPS, also known as “cold ironing,” allows ships to turn off their auxiliary engines and connect to the shore-based electrical grid while at port, reducing local air pollution and greenhouse gas emissions.

Frequently Asked Questions
Port Valencia Valenciaport

Why are quay fenders being upgraded?
Fenders must be adapted to safely accommodate the increased size and weight of E-class and EEE-class vessels, which can reach lengths of up to 400 metres.

What is the Gemini Cooperation?
This proves a strategic partnership between Maersk and Hapag-Lloyd designed to optimize shipping networks, particularly for Asia–Mediterranean services.

How does the EU support port decarbonization?
The EU provides co-financing for critical infrastructure projects through programs like the CEF Transport programme, supporting initiatives such as the OPS Valenciaport project.

Join the Conversation

Do you think shore-to-ship power will become the global standard by 2030? How should ports balance the need for mega-ship capacity with environmental goals?

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