Technology Hype Cycle and the Port Circular Economy

Technology Hype Cycle and the Port Circular Economy

Since port circular processes are a relatively recent endeavor relying on technologies and concepts that have not been fully formalized, they can be subject to hype cycles. There is a potential that some aspects of circularity can be exaggerated and may lead to delusion and even abandonment. This path dependency is not assured, but a realistic assessment of each port circular process needs to be considered to avoid a backlash from funders, policymakers, and the general public. Although each port may have a different potential for the realization of circularity, the following can be currently assumed:

  • Introduction. Some circular processes are being introduced in some ports as test cases, most of the time with high levels of subsidies. For instance, material hubs have yet to demonstrate their supporting role fully. A more inventive process of port land management is underway, particularly in ports in transition, but the costs and risks of brownfield sites can lead to a reassessment.
  • Inflated expectations. The issue of green hydrogen can be the subject of inflated expectations due to the difficulties and high cost of procuring fuel on a scale relevant to maritime shipping. ESG (Environmental Social Governance) financing has been more controversial, associated with massive capital misallocations on projects with limited or no returns or forcing corporations to comply with policies imposed by external actors with unproven benefits.
  • Realization. Electrification and automation are well-proven technologies that have gradually been implemented into port terminals because of the measurable operational benefits. Still, these strategies are complex and capital-intensive, not necessarily available to smaller ports. Further, recycling has a long-standing implementation in the maritime industry, particularly concerning dismantling ships and containers. Recycling is being expanded to include circular processes such as reuse and remanufacturing as well as better mechanical and chemical processes for recycling.

Most circular initiatives have not yet reached the productivity peak, when the principles are effectively implemented, leading to productive outcomes.