Nature Positive Role of the Ports Sector

Port infrastructure and services are critical to keeping global supply chains functioning.31 According to the UN Conference on Trade and Development (UNCTAD), maritime trade – facilitated by port operations – makes up 80% of global trade.32 In many countries with limited land borders, such as the United Kingdom and Singapore, nearly all international trade passes through ports.33 In 2021, global maritime trade volumes reached 10.99 billion tons of goods traded, a 25% increase from 8.78 billion tons in 2011.34 Despite fluctuating in recent years due to the impact of the COVID-19 pandemic and economic and geopolitical instability, global maritime trade is expected to grow in future – 2.4% in 2023 and 2.1% over the next five years35 – increasing the demand for port operations. In particular, the demand for container transport is growing most rapidly: container port traffic in 2022 was approximately 840 million twenty-foot equivalent units (TEUs) globally, an increase of about 219% compared to 2002.36 1.1 Sector overview Definition of the port sector BOX 1 A port is a place where water and land meet, and ships can dock for commercial purposes of either handling cargo or passengers or taking care of the ship’s requirements.37 Many ports are recognized as significant industrial and energy hubs considering their extensive industrial activities. Ports are normally controlled, operated and run by a port authority, which sets the commercial tariff for the handling of ships, goods and passengers at that port. Depending on the types and scales, the port authority may contract with different companies to operate within a port, for example, terminal operators. The port sector, for the scope of this report, is defined as encompassing the construction (of infrastructure) and operation (to provide services) phases of ports.In addition, this report will consider the full value chain for ports, including the upstream industries that provide essential support and downstream economic activities that depend on the existence of ports. For the purposes of this report and its focus on the overall port ecosystem, no official classification has been used. The definition involves several industries within Sustainability Accounting Standards Board’s (SASB) Sustainable Industry Classification System (SICS), including Infrastructure – Engineering & Construction Services, Services – Professional & Commercial Services, and Transportation – Marine Transportation. This approach is strongly aligned with WBSCD’s analysis of the built environment system.38 Simplified value chain of the port sector FIGURE 5 Port decommissioning and retirementPort maintenance and upgradePort operations Materials extraction and productionMechanical equipment manufacturing and transportEnergy and water supplyPort construction (including docks, warehouses, waterways and roads, etc.) Land and water transport for connectionEconomic activities relying on ports, for example, shippingMidstream (direct operations) Upstream Downstream Port expansion Recycle and re-use Nature Positive: Role of the Port Sector 14