b'RO/RO: ZEROING-INON NET ZERO AND SUSTAINABILITYThe ro/ro industry is facing a number of challenges when it comes to the pursuit of decarbonization and net zero. Besides finding a road to decarbonization of the vessels and themselves, there is also adapting to an emerging EV supply chain infrastructure.by William DiBenedetto, AJOTJune 2023 | Published in AJOT Issue #754The challenges facing the ro/ro [roll-on/roll-off] shipping andcompletely due to limited new vessel supply expected in the ro/terminal industry are many, including emissions regulation, alterna- ro segment.tive fuels, technology innovations, an evolving market, supply chainThe economic outlook varies from nation to nation, Wallenius uncertainties coupled with the drive for sustainability and net zeroWilhelmsen said in its review. Rising energy prices, inflation and decarbonization. declining consumer confidence are weighing on the global econ-The landscape is changing rapidly as the world attempts to dealomy, which is forecast to grow only modestly at about 2.2 percent with a post fossil-fuel reality, so uncertainties abound. in 2023, according to the Organization of Economic Cooperation In an investor presentation early this year, Wallenius Wilhelmsenand Development.noted that despite the current economic slowdown, we expectThe Race to Net Zerocontinued strong volumes and a tight market balance at least for the first part of 2023. But there is more 2023 uncertainty towardsThe company unveiled an aggressive goal of net zero emissions the second part of and into 2024, especially due to labor, the 2024by 2027.The plan is to introduce zero-emission end-to-end service newbuild deliveries and any escalation of geopolitical tensions. by 2027 featuring: Methanol (later ammonia); and shore power on vesselsBattery-electric or hydrogen trucks. Renewables in terminals and processing centers. The introduction of carbon-neutral service by 2024 through, for examplegreencertificatesforelectricity;withcarbon-neutral freight offered by 2024, enabled by biofuel balancing. A platform for carbon-neutral and zero-emission offeringsHenrik Meyer,There are dangers ahead due to the increasing demand for elec-senior quality managertric vehicles. Battery fires onboard ro/ro vessels are a concern as at Wallenius Wilhelmsen the use of electric vehicles increases, Wallenius Wilhelmsen said. Vehicle Market While there are regulations and best practices in place to mitigate the risks, the potential for catastrophic consequences underscore Wallenius Wilhelmsen is, however, cautiously upbeat about thethe need for continued vigilance and innovation in handling these trends for global light vehicle sales as more people are movingvehicles on board vessels, said Henrik Meyer, senior quality man-up in the middle class, (which) will lead to an increased need forager, ports, terminals & stevedoring at Wallenius Wilhelmsen. mobility and more vehicle sales. To mitigate the risks of fire, logistics and shipping companies, Awidespreadpartsshortage,portcongestionandgeneralincluding Wallenius Wilhelmsen, have implemented strict regula-supply and demand imbalances affecting supply chains this yeartions and best practices for handling electric vehicles. They reg-are expected to abate somewhat. They were improving as 2022ulate the state of charge (SOC) of all batteries, and only accept ended, saidRobert Berg, market analysis and finance managervehicles with a desired state of charge of 50% or lower, preferably at Wallenius Wilhelmsen. He stressed that they wont disappearbelow 30%. 16'