Reimagining Coastal Infrastructure: Adapting Ports for a Decarbonised Maritime Future

From Legacy to Leadership: Port Infrastructure in Transition at the Blue Economic Finance Forum, Monaco 2025

June 20, 2025 - As global shipping accelerates its transition toward decarbonisation, the transformation of ports and coastal infrastructure has emerged as both a challenge and a critical opportunity. The Blue Economy & Finance Forum brought together leaders from industry, city governance, and port operations to explore the future of port infrastructure in a world increasingly shaped by climate risks and energy transition imperatives.

Moderated by Vassilios Demetriades, Chief Strategy Officer at UW Group and former Shipping Deputy Minister of Cyprus, the session shed light on how port systems—often overlooked in the broader conversation around maritime sustainability—are becoming ground zero for climate adaptation and blue innovation.

The transformation of ports and coastal infrastructure presents both a pressing challenge and a powerful opportunity for a city's economic growth.

From Industrial Gateways to Smart Blue Ports

Tao Liu, Vice President of Shanghai International Port Group, described Shanghai as home to the world’s largest port, operated entirely by private entities. He highlighted the sweeping changes already underway: full electrification of cranes and horizontal transportation equipment, integration of LNG and green methanol fueling infrastructure, and the rollout of port-wide automation technologies.

Shanghai has already built one fully automated green terminal and is constructing another. These facilities aim to be “smart, maritime-friendly terminals” powered entirely by clean energy and monitored by intelligent systems. According to Liu, automation and green energy are now the twin pillars of investment across China’s leading port operations, with a view toward global leadership in both efficiency and sustainability.

A smart, fully automated port can function as a high-tech maritime ecosystem where every component—from cranes to cargo vehicles—would be electrified and autonomously operated through AI-driven systems. Operations can be managed using digital twin technology, enabling real-time simulation, predictive maintenance, and smarter resource allocation. Ships would dock at automated berths equipped with shore power and digital customs processing, significantly cutting emissions and turnaround times. Blockchain can provide secure, end-to-end cargo tracking, while IoT sensors would monitor environmental conditions and operational performance around the clock. With these technologies, the port of the future can deliver greater efficiency, resilience, and sustainability across the entire maritime supply chain.

The smart, maritime port of the future is powered entirely by clean energy and monitored by intelligent systems.

Energy Carriers and Infrastructure Gaps

Francesco Prazzó, General Manager at SBM Offshore, offered a pragmatic lens on alternative fuels. While methanol is surging ahead—thanks to its existing infrastructure and compatibility with current engines—ammonia still faces significant logistical and safety challenges. “Methanol is already ahead,” Prazzó stated, “because the infrastructure is there. For ammonia, it is still a challenge.”

SBM Offshore is now investing in floating offshore wind infrastructure and exploring ammonia terminal development, but the pace of progress will depend heavily on how quickly safe, scalable infrastructure can be deployed.

Ammonia is emerging as a promising zero-carbon shipping fuel, but its widespread adoption hinges on substantial infrastructure development. Unlike methanol, which can leverage existing fuel handling systems, ammonia requires entirely new bunkering infrastructure due to its toxicity and strict safety requirements. Terminals must be equipped with advanced containment systems, ventilated transfer pipelines, and rigorous monitoring for leaks, given ammonia’s hazardous nature. Storage tanks must be specifically designed to handle low temperatures and high volatility, adding complexity and cost. Compared to bio-methanol or LNG, which already benefit from partial global rollout, ammonia infrastructure is still in its infancy. While its carbon-free combustion makes it attractive for long-distance shipping, realizing its potential will depend on coordinated investment in port readiness, vessel retrofits, and safety protocols across international maritime corridors.

Methanol is gaining momentum as a lower-emission alternative for maritime fuel, largely because it can be integrated into existing port infrastructure with relatively minimal modifications. As a liquid at ambient temperature and pressure, methanol does not require cryogenic storage like LNG or complex handling systems like ammonia. Ports can repurpose or adapt current fuel bunkering facilities for methanol distribution, making it a more practical near-term solution. Additionally, methanol-compatible engines are already in operation, and dual-fuel vessels capable of using methanol alongside traditional fuels are entering the fleet. However, to scale up adoption, ports still need to invest in dedicated storage tanks, safety protocols for handling flammable liquids, and training for personnel. Overall, methanol offers a pragmatic bridge in the decarbonisation of shipping, supported by comparatively lower infrastructure barriers and growing regulatory and industry support.

Urban Interfaces and Local Integration

Édouard Philippe, Mayor of Le Havre and President of the International Association Cities and Ports (AIVP), expanded the conversation beyond the docks to the city itself. He stressed that shore power—critical to reducing emissions from berthed ships—is often part of the municipal grid, not just the port’s remit. This makes collaboration between port authorities and city governments essential.

Philippe also warned against focusing solely on ships and fuels. True decarbonisation, he argued, requires integrated planning with local authorities to support investments that align with regional industry and infrastructure. For example, while Rotterdam may prioritize hydrogen and ammonia, other cities are advancing electrification strategies based on their own urban contexts.

Cruise terminals were flagged as a particular area of concern, given their proximity to population centers and their high energy demand. Philippe stressed that coastal cities are among the most exposed to climate impacts, and yet institutional fragmentation often means that port authorities and municipalities are not aligned in planning or investment.

The urban interface of ports is not just a boundary—it is a vital junction where maritime infrastructure meets the life of the city. Integrated planning with local authorities is critical because ports do not operate in isolation; their energy needs, emissions, traffic flows, and workforce dynamics are deeply intertwined with surrounding urban systems. Each port city has its own industrial profile, regulatory environment, and infrastructure maturity—making a one-size-fits-all approach potentially unworkable. From shore power integration into municipal grids to transport links for hinterland access, every investment decision must reflect local realities. Without coordination between port authorities, city planners, and regional stakeholders, there is a risk of misaligned priorities, underused assets, or even public resistance. Successful port transformation depends on this cooperation—not just to decarbonise, but to ensure that economic benefits and environmental gains are shared by the communities that host them.

Financing the Transition: The Role of Blended Capital

One of the strongest messages from the panel was the need for unified financial models to support infrastructure transformation. Thierry Déau, CEO of Meridiam and Chairman of SUEZ, called for greater collaboration between public institutions, private funds, and philanthropic capital. The Rockefeller Foundation’s recent investments in shipping, for example, were noted as a promising signal of how strategic blended finance can de-risk projects and catalyse further investment.

Yet, despite emerging momentum, the panel acknowledged ongoing fragmentation across governance and funding structures. Without greater institutional collaboration—especially between ports, cities, and national governments—many projects may be delayed at the planning stage.

Conclusion: Ports as Frontline Climate Infrastructure

In closing, the panel painted a bold picture of the port of the future: electrified, automated, fuel-flexible, digitally managed, and fully integrated into the surrounding urban and industrial ecosystem. But getting there requires more than innovation—it demands coordination, capital, and courage.

As coastal cities face rising seas and growing economic pressures, ports can no longer afford to operate in isolation. They must evolve into climate-resilient, digitally intelligent infrastructure hubs—capable not just of supporting trade, but of stewarding a sustainable maritime future.

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