Shipping between Russia and the Baltics, Europe, the UK, Ireland and the North Sea, as well as North Africa and the Mediterranean, Containerships Ltd Oy covers sea, road, rail and river container transportation. Therefore the decision to convert fleets, both marine and road transportation, to LNG has a big impact on the company’s emissions, and addresses customer concerns regarding environmental responsibilities.
We spoke with Antti Laukkanen, Project Manager at Containerships Ltd Oy to find out more:
What were the key drivers in converting and purchasing LNG fuelled fleets?
On the marine side, a key driver was how to reflect to SECA (Sulphur Emission Control Area) legislation. We completed a thorough a study, and even though there have been other options additionally, LNG is the only viable, long term solution which is cost efficient and able to tackle all current and future environmental legislation. At the same time, there is a great and constant concern within our customer base regarding what are Containerships’ methods to reduce emissions. We are really proud to offer a viable solution through the whole supply chain door to door.
How do these drivers differ from the road transportation and marine side?
The driver was clearly SECA regulation on the marine side, whereas on the land side (truck fleet) the driver has been more about finding cost efficiencies and a more environmentaly friendly fuel for trucks.
What was the importance of this in terms of Containerships CSR policy?
It was very important from a CSR policy point of view. If however the actions we would have taken contradicted with our CSR policy, we would have thought of other solutions naturally.
In terms of LNG consumption, how much would you imagine a fleet like Containerships would require to run on LNG?
When all the ordered six LNG-fuelled container vessels are in operation, they will consume approximately 50,000 tonnes of LNG annually, with one truck consuming 30 tonnes of LNG anually approximately. So with 100 trucks running on LNG, consumption is ”only” 3,000 tonnes, which is a fairly small amount compared to vessel consumption. However, looking from an emissions point of view, vessels are much more efficient than trucks, with one vessel being able to take as much as 1400 TEUs (20’ equivalent unit) in one go.
What were the biggest challenges in converting to LNG fuelled trucks, and in purchasing your LNG
New LNG fuelled trucks are still roughly €20-30k more expensive than conventional ones. Therefore, you need to have a very good business case to have a good payback for this. Another challenge is also refilling infrastructure still. For example in Germany there is not even one LNG refilling station yet.