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Cranes, straddle carriers, and yard tractors form the backbone of port operations. For decades, they were powered by diesel, but rising fuel costs, increasingly stringent emissions regulations, and growing pressure from local communities are changing the way terminals think about their equipment fleets.
The global logistics sector accounts for up to 11% of greenhouse gas emissions (1), with shipping accounting for approximately 3% (2). If everything continues as before, the share of shipping could reach around 10% by 2050 (3). Ports are therefore strongly required to play a role in reducing emissions. The electrification of container handling equipment (CHE) offers one of the most direct and effective ways to achieve this, making it a strategic focus for modern port logistics.
Electric machines and vehicles deliver measurable results: quieter operation, zero exhaust emissions, and often lower lifecycle costs. The transition is not without its challenges, but it promises a fundamental transformation in terminal operations. What once began as a sustainability initiative is now increasingly recognised as a competitive advantage, transforming the industry's approach to efficiency, community relations, and long-term profitability.
Not every desired aspect of port operations can be electrified equally quickly. Ships, long-distance transport, and some storage systems face technical and economic hurdles that make rapid change difficult. CHEs, on the other hand, occupy a unique middle ground: They are essential, energy-intensive, and proven electric alternatives already exist.
Depending on the number of operating hours and the engine type, RTGs (Rubber-Tyred Gantry) Cranes produce 284 tonnes of CO₂ equivalent emissions annually (based on an industry standard of 4,000 - 5,000 operational hours per year) (4). Switching to an electric equivalent can therefore save hundreds of tons of emissions per year while improving reliability and reducing maintenance costs. If you multiply this effect across an entire fleet of cranes, reach stackers, forklifts, etc., the potential impact becomes enormous.
In addition, local air quality, noise levels, and energy efficiency are improved. While diesel-powered engines lose over half of their energy through heat and friction, resulting in a lower efficiency rate, the opposite is true for electric motors: if you subtract what is used to generate and provide power, the majority remains for driving the wheels and hydraulic systems.
Overview of Electric Container Handling Equipment Types
APM Terminals alone estimated in 2023 that more than 2,650 machines would need to be electrified or retrofitted within a decade: approximately 1,500 terminal tractors, 500 reach stackers, 100 straddle carriers, and 550 RTGs. In 2022 alone, APM bought over 180 electric or hybrid units (7).
Not all electrification comes in the same form. Hybrid machines, typically diesel-electric, serve as an intermediate step. They reduce fuel consumption while relieving the burden on infrastructure. They are often used in RTGs and reach stackers at terminals where full loading capacity is not yet available.
Equipment that runs entirely on battery-electric power is naturally the cleanest option, as it produces no direct exhaust emissions. However, their use requires robust charging solutions and careful operational planning to meet energy demands. In most cases, an entire shift can be completed on a single charge, but any charging breaks must be integrated into terminal planning.
Hydrogen fuel cell vehicles are emerging as an alternative, especially where fast refueling and long range are paramount. However, the lack of a mature hydrogen infrastructure remains an obstacle.
Currently, many terminals operate a mixed fleet: hybrids in areas where energy infrastructure is still being developed, battery-electric drives for predictable warehouse movements, and hydrogen pilot plants where the infrastructure is in place. Each approach reflects a balance between emission reduction targets, operational flexibility, and investment opportunities.
Switching to electric machines means more than just a different power source. Operating profiles are also changing: While diesel machines can be refueled in minutes, battery-electric units rely on charging cycles that must be carefully planned. On the upside, there are fewer vibrations, less noise, and no exhaust emissions—all aspects that improve both working conditions and community relations.
From a maintenance perspective, electric drives have significantly fewer moving parts than combustion engines. This leads to lower maintenance costs and less downtime. Maintenance costs are said to be up to 70% lower than those of diesel models (8).
Energy prices are also changing. While electricity prices vary, electric units are generally cheaper than their diesel counterparts. Furthermore, electric drives can be integrated more seamlessly into automation systems, enabling finer control and greater precision in movements (see also: port terminal automation).
Regulatory Pressure: Emissions Standards and Port Authority Mandates
Ports are under pressure to optimise their operations. In the US, for example, a landmark climate law earmarked $3 billion for port decarbonization projects, with the goal of avoiding 3 million tons of CO₂ emissions nationwide (9). At the state level, regulations often go a step further; in California, for example, ports are required to phase out diesel equipment by 2030, although grid constraints remain an obstacle (10). And in Europe, the EU's "Fit for 55" initiative calls for mandatory shore-side power for container ships by 2030, which is expected to avoid 200,000 tons of CO₂ emissions annually.
Sustainability Goals: Carbon Neutrality and ESG Reporting
Beyond regulatory compliance, sustainability has become a key strategic imperative. By comparison, the 10–15 million tons of CO₂ equivalents generated annually by the port industry are roughly equivalent to Slovenia's total annual emissions (11).
Electrification of facilities, therefore, leads to significant CO₂ reductions and supports operators' climate commitments and ESG goals. Investments in more battery-powered machinery are also aligned with the IMO's global decarbonisation targets for shipping, as ports serve as important interfaces between maritime and land-based logistics.
Operational Economics: Fuel vs Electricity, Maintenance Savings
The economic arguments for electrification are compelling and becoming increasingly tangible. Electrified ports not only save money but also increase reliability and availability. A medium-sized European port can save 2-3 million liters of diesel annually. In other words, electrification is not only environmentally friendly—it's also a promising business model.
Community and Stakeholder Expectations
Terminals aren't isolated—they're located in communities that feel the impacts of port operations. Diesel-powered equipment causes air and noise pollution, negatively impacting the health of workers and residents. Electric machines operate more quietly and emit no exhaust fumes—direct benefits for the quality of life of the people affected. These measures strengthen relationships with stakeholders. Electrification is therefore as much about people and perception as it is about technology.
Battery Technology
Battery systems form the heart of electrified equipment. Lithium-ion battery packs are commonly used, valued for their energy density and maturity. Lithium iron phosphate (LFP) variants are particularly popular due to their thermal stability, longer service life, and lower cost.
Solid-state batteries are the next step. They promise higher energy density, faster charging times, and greater safety. They are not currently used commercially in terminals, but they are expected to become part of the roadmap for next-generation systems.
Charging Infrastructure
The key to electric CHE is charging: the infrastructure must be robust and tailored to the operating rhythm. Typical approaches include:
Planning must also include future developments, which means the systematic introduction of chargers throughout the terminal. Furthermore, infrastructure investments go beyond hardware. Ports must modernise feeder lines and substations—often with dedicated 20 kV connections—to handle peak charging loads.
Grid Connection, Microgrids, and Renewable Integration
Electrification is placing significant demands on traditional port power infrastructure. To manage these new loads and ensure reliability even during outages, many ports are exploring microgrids that combine local renewable energy generation (such as photovoltaics) with battery energy storage systems (BESS).
Microgrids help meet increased electricity demand while increasing the resilience of the port and surrounding communities. By integrating renewables and storage, ports can reduce grid stress, capture resiliency benefits, lower emissions, and even support community energy needs—providing both operational and environmental returns.
Smart Energy Management and Digital Monitoring
Digital systems support is crucial for maximizing the efficiency of electrification. Intelligent energy management, powered by AI and real-time data, coordinates charging schedules, balances loads, and utilises predictive maintenance to optimise asset availability and energy consumption.
The integration of batteries, renewable energy, and sophisticated data analytics is expected to enable peak shaving, drastically reduce maintenance costs, and transform the terminal into an energy-positive operation by selling excess electricity back to the grid.
For electrified CHEs, this means aligning charging with renewable energy generation windows, avoiding costly peak-load charges, and scheduling work shifts according to energy availability. These improvements will help electrified operations become smarter, leaner, and more sustainable over time.
High Upfront Investment Costs
The transition is costly. A single battery-electric terminal tug can cost $300,000 to $400,000—almost twice as much as a diesel equivalent. Investments in infrastructure improvements are also required. Although long-term operating costs are lower, the high capital costs can deter ports, especially those with tight margins or limited access to green financing. For smaller terminals, the financial hurdle is often exacerbated by competing investment priorities such as automation or berth expansions.
Charging and Power Infrastructure Limitations
Infrastructure is one of the most common bottlenecks. Expanding grid capacity costs time and money. The required increase in annual electricity demand places a significant strain on existing substations. Without coordinated investments in chargers, substations, and sometimes even entirely new feeder lines, electrification risks stalling at the pilot project level.
Battery Lifecycle and Recycling Concerns
Battery sustainability is a growing challenge. The large lithium-ion batteries used in straddle carriers and reach stackers have a lifespan of approximately 8-10 years. Replacement after that is often costly. When selecting equipment, ports must consider the environmental footprint of battery production, disposal, and recycling.
Recycling infrastructure is often still in its development stage, posing both cost and reputational risks for operators seeking to demonstrate their sustainability leadership.
Operational Reliability in Peak Seasons or Extreme Weather
Electrified fleets must prove their reliability even under the toughest operating conditions. During peak periods, terminals cannot afford downtime due to charging or grid congestion. Cold temperatures can reduce battery efficiency by up to 30%, which can shorten operating cycles. Extreme heat cripples battery cooling systems and can slow charging speeds.
Many pilot projects show promising uptimes, yet many terminal operators remain cautious. As long as robust solutions—such as opportunity charging, modular battery swapping, and energy management—are not widely deployed, concerns about operational reliability will continue to slow adoption.
Phased Electrification
A phased introduction rather than a complete replacement is the most pragmatic approach for most terminals. It allows operators to align equipment renewal with natural depreciation cycles, thus reducing capital expenditures.
Phased electrification also allows terminals to align grid and charging infrastructure upgrades with equipment usage, thus minimising the risk of equipment damage. The initial focus is often on yard tractors and forklifts, which are cheaper and easier to electrify, before moving on to energy-intensive equipment such as RTGs or reach stackers.
Retrofitting vs New Equipment Acquisition
Terminals often face a decision: convert existing diesel generators to electric drive or invest in new, purpose-built eCHEs. Retrofitting is a proven option and generally more cost-effective than purchasing new ones. It can extend the service life of the equipment by about a decade.
However, new all-electric models often offer greater efficiency, better battery integration, and automation compatibility. For a long-term transformation, new purchases may make more sense, especially for greenfield or large-scale terminal projects.
Energy Audits and Power Demand Planning
Comprehensive energy audits must be conducted before any investments are made. These include forecasting future electricity demand, reviewing grid capacity, and assessing the integration of renewable energy.
Without these audits, ports risk power outages, higher electricity prices, or unused charging infrastructure. Forward-thinking companies are now combining electrification with on-site solar or battery storage systems to absorb peak loads while demonstrating visible leadership in sustainability. Energy audits also identify quick wins, such as transformer modernisation or the use of smart charging software for cross-shift load balancing.
Workforce Training and Safety Considerations
The transition to electric fleets also presents a challenge for employees. Operators, mechanics, and planners require new skills in battery management, high-voltage safety, and charging planning.
Change management also extends to planning teams, who must reorganise port operations to accommodate charging outages or battery replacements. A cultural shift is necessary: Instead of "refuel when empty," operators must learn to view charging as a strategic planning factor.
Emerging Technologies
Hydrogen fuel cells are being tested as a complementary solution where batteries struggle with high loads and long operating cycles. Hybrid systems remain a bridging technology, enabling initial emission reductions with less infrastructure restructuring.
AI-driven energy optimisation is another trend. Charging schedules, load balancing, and device usage are dynamically adjusted to minimise peak loads and energy waste. By learning from historical patterns and real-time operations, AI can reduce costs, extend battery life, and adjust terminal power consumption to the availability of renewable energy.
Integration with Renewable Energy Sources
To truly achieve sustainable climate protection, CHEs must be powered by clean electricity. Combining charging infrastructure with renewable energies is becoming an increasingly common practice. Future-proof terminals will combine on-site solar, wind, and battery storage with smart charging systems, ensuring that energy costs remain stable even as demand increases.
Policy and Industry Roadmaps
Important impetus is also coming from government plans and industry coalitions. The EU's "Fit for 55" package mandates a 55% emissions reduction by 2030 and puts direct pressure on ports to introduce eCHE. In the US, California's Advanced Clean Fleets Regulation stipulates that certain fleets, such as trucks, may only produce zero-emission vehicles (ZEVs) starting in 2036 (13).
Compared to conventional diesel-powered machines, the electrification of container handling equipment brings an additional safety aspect: They are high-voltage systems operating at 350V and above. While this enables faster charging, higher performance, and more efficient operation, it also poses risks that operators and maintenance teams must carefully manage.
The greatest risk is electric shock; direct contact with high-voltage circuits can be fatal. Therefore, the equipment's design includes isolation barriers, automatic shutdowns, interlocks, and warning systems. Maintenance personnel require specialised high-voltage training, including safe isolation procedures, lockout/tagout protocols, and personal protective equipment appropriate for the equipment's voltage class.
Another challenge is thermal hazards, as heat is generated in batteries, cables, and connectors during high-power operation. As part of appropriate thermal management, modern eCHEs are equipped with active cooling, temperature monitoring, and emergency shutdown to minimise these risks.
The dangers of arc flashes should also be mentioned, which can occur particularly during maintenance or system faults. An arc flash is a sudden electrical explosion or discharge that results from a fault or accidental contact, creating an electric arc between conductive materials.
High-voltage equipment, therefore, requires new protocols, training, and standards to protect operators, technicians, and surrounding personnel. These measures enable terminals to reap the benefits of electrification without compromising safety.
The switch to electric container handling equipment is here to stay – it's happening worldwide and is transforming terminal operations for good. Ports are proving that electrification can enable cleaner, quieter, and more efficient handling without compromising performance.
Some challenges remain, particularly in expanding charging infrastructure, managing power demand, and coping with higher upfront investments. However, these hurdles are increasingly outweighed by long-term operational savings, regulatory compliance, and the ability to future-proof terminals in a low-carbon world. Integration with automation and digital tools further strengthens these arguments, as electric systems offer unmatched precision, responsiveness, and data transparency. These are excellent conditions for automation.
The momentum is clear: electrification is a competitive advantage and is becoming an industry expectation. Ports that act early are demonstrating an important commitment. They not only reduce emissions but also strengthen resilience against volatile fuel markets and stricter environmental regulations. Investments in electric CHE lead to smarter, more efficient, and more future-proof terminals.
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Fit for 55 is the European Union's ambitious policy package aimed at cutting greenhouse gas emissions by 55% by 2030 compared to 1990 levels. It is a cornerstone of the European Green Deal and includes measures such as strengthening the EU Emissions Trading System, creating a carbon border adjustment mechanism, revising energy taxation, and accelerating the transition to renewables and clean transport. Designed to ensure climate neutrality by 2050, the package consists of both revisions to existing laws and new legislative initiatives, significantly impacting energy, transport, buildings, and taxation across Europe. (14)
A Zero-Emission Vehicle (ZEV) is a vehicle that produces no tailpipe exhaust emissions of pollutants or greenhouse gases during operation, typically powered by electricity (battery electric vehicles) or hydrogen fuel cells. ZEVs are crucial for reducing urban air pollution and combating climate change, as they eliminate harmful emissions such as particulate matter, nitrogen oxides, and carbon monoxide emitted by conventional vehicles. Although indirect emissions may occur from electricity or hydrogen production, ZEVs themselves do not emit pollutants while driving, making them central to sustainable transportation strategies in many countries. (15)
References:
(1) https://www.weforum.org/stories/2025/07/emerging-economies-global-green-logistics-development/
(2) https://theicct.org/wp-content/uploads/2025/04/ID-332-%E2%80%93-Global-shipping_report_final.pdf
(3) https://www.transportenvironment.org/topics/ships
(5) https://en.wikipedia.org/wiki/Rubber_tyred_gantry_crane
(6) https://datahorizzonresearch.com/global-electric-terminal-tractor-market-48388
(8) https://doczz.net/doc/9044540/press-release---conductix
(10) https://www.wsj.com/articles/the-port-of-los-angeles-has-a-power-problem-ae614e2f
(11) https://kempower.com/port-electrification-challenges-and-opportunities/
(12) https://en.wikipedia.org/wiki/APM_Terminals
(13) https://ww2.arb.ca.gov/our-work/programs/advanced-clean-fleets
(14) Bacigalupo, Carmen; Lavrijssen, S.; Senden, L. L. M. (Eds.) (2025). EU Climate Law: Implementing the Fit for 55 Package. Edward Elgar Publishing.
(15) Senecal, Kelly; Leach, Felix (2021). Racing Toward Zero: The Untold Story of Driving Green. SAE International.
Note: This article was partly created with the assistance of artificial intelligence to support drafting.