CARGO HANDLING CORPORATION: Energy Transition Starts in the Ports

On the island nation of Mauritius, the energy industry is pioneering and forward-thinking. Traditionally an importer of liquid fuels to power the nation, Mauritius is taking a new direction as this burgeoning economy looks to make its mark as an economic success story of Africa and the Indian Ocean.

The International Energy Agency reports the country’s mix as of 2022 at 26% coal, 63% oil, and a balance made up of biofuels, waste-to-energy, hydro, and geothermal. But, in the 2021-22 budget, the government announced that it would drive up the targets for renewable electricity generation to 60%, phasing out coal power by 2030. The Renewable Energy Roadmap 2030 – initially published in 2019 – shows how Mauritius can move to a more sustainable system through the use of wind, solar, biomass, wave, and waste projects. A major sugarcane exporter, the use of bagasse already helps the Central Electricity Board (the agency responsible for transmission, distribution, and sale of electricity) to generate 13% of all renewables on the island.

Like many countries, the energy transition in Mauritius starts at the port. The gateway for all trade, whether liquid fuels or energy infrastructure, the port is the cornerstone of change. In Mauritius, the main terminal is Port Louis. The company trusted with managing bulk cargo, all containers, and general port-handling operations is Cargo Handling Corporation (CHC). Established in 1983, the state-owned private company is a regional leader in port operations and is helping Mauritius to modernise and green while keeping trade flowing. At the same time, the company is planning a strategy to bring sustainability to its own activities.

SUSTAINABLE TECHNOLOGIES

Head of Engineering at CHC, Harikesh Singh, tells Energy Focus that the company and the port is at the start of a journey that will require time and money to complete, but he remains confident that the ambition is there for a sustainable long-term operation that serves the entire country.

“We don’t have plans to expand our footprint, but we do have plans to replace old equipment with new,” he says of the site that covers around 300 hectares in Mauritius’ capital. More than 1300 people work across three divisions to ensure trade flows freely through the harbour, strategically located between Africa and Asia, on the shipping route connecting West and East.

The company is clear in its drive for improvement, stating: “Throughout our history, we have set out to achieve excellence by focusing not only on our client’s needs but also by investing in innovative and sustainable technologies and solutions which will help not only us grow but provide opportunities to our partners to grow with us.”

With more than 520 container vessels calling at Port Louis in 2023, and 90% of all trade going through the port, the significance of CHC is clear. Singh explains that the company is busy investigating improvements across its fleet of equipment to prepare it for modern demands of clients.

“All Ship to Shore (STS) cranes are electric, the rubber-tyred gantry (RTG) cranes are diesel-driven and we are looking to change to electric preferably. However, the infrastructure is not currently in place and we would need to invest in transformers and electrification of the yard. Only then could we invest further in electric equipment. We are looking at the possibility of hybrid equipment. In the next four to five years, it will be difficult to implement a fully electric fleet of equipment with the infrastructure we have.”

The challenge here is the business case. As a state-owned company, delivering the upfront capital is not easy. Big costs, technical challenges, regulatory barriers, and general public acceptance are all hurdles for greening of ports. Even with the tangible results of reduced greenhouse gas emissions, energy security, reduced operating costings, and improved branding, there are few ports around the world that have managed to transition to fully green operations swiftly.

COST & EFFICIENCY

CNC has the scale and process to pioneer the way forward for the port industry. As a leading national operator, and a company that is internationally relevant, building a port supply chain and a cargo handling industry that is both sustainable and effective is in the global interest. Singh explains that CNC will work closely with the Mauritian government to source the best products and services at the most competitive prices.

“All of our procurement is handled through a tender process,” he explains, “and through that process, whoever can supply to our technical specifications and other requirements will win the contract – as long as they are the lowest bidder. We do not deal directly with suppliers and everything must go through the tender process. Every project that is above MUR5 million is floated internationally for tender.”

The country expects to grow by around 4% for the next five years, and with a bigger economy comes bigger demand for port services and therefore greater greenhouse gas emissions from the port. This, says Singh, is the reason for CHC placing emphasis on modern infrastructure.

“Considering the world is looking for less carbon-emitting equipment, we always specify that we will be looking for low CH3 or CH4 engines with low emissions,” he says.

However, any new equipment must be efficient and serviceable in the long-term. The CHC team has a lot of experience with various brands, and has a strong local engineering team to keep the port moving. So when it comes to new projects, it is important for cost, efficiency, and usability to match.

“Whenever we buy anything new, the two important things are existing performance of the equipment, and where breakdowns are happening. When we find recurring issues, we are using new technology and automation. Components are limited and often come from just a few brands, especially with electrical parts and brakes. The availability of spare parts for the next 10-15 years is incredibly important. That is why we prepare a robust report and data-led specifications,” explains Singh.

As the country’s renewable energy drive continues, the port will be the point of entry for solar panels, wind turbine components, and other associated hardware. As the export of Mauritius’ riches also booms, Port Louis and CHC will be required to do more than ever before. As an energy platform – perfectly located for refuelling and energy generation – Port Louis has a major role to play in the energy industry of the region. CHC will be inextricably twinned with the port and is a significant player in the power of Mauritius going forward. Operational improvements, transformative projects, and electrification and integration of key services will allow this beacon of hope that connects the world to show exactly what is possible when the ambition is there.