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Lengthening lifespan

Increasing the total length of asset use to improve circularity and more efficient resource use.

CircularInland shippingMarine shippingTrainsPort/terminalTrucks

Introduction

Circularity of (large-scale) equipment, such as port infrastructure and the modalities, is key to achieve both sustainability and EU resource independence (EU CRM and EU CEAP). One element of circularity is lengthening the lifespan of products. This reduces the need for new products and thus reduces raw material usage.

Value proposition

  • Reduction of raw material usage

  • Circularity

The key value of lengthening lifespans of infrastructure and equipment is the reduction of raw material usage. If products are used longer, they do need fewer replacements and thus less new materials are required. This also achieves value for the user/owner, but not directly for the one selling the product (fewer sales, same costs), so often this is combined with a form of service contract, where the owner is the producer and the user pays an annual fee. In that case economic alignment also takes place for lengthening lifespans. [

Port applicability

The concept of lengthening lifespan can be applied to all equipment and infrastructure in the port, hence this concept is relevant for all ports. On the one hand, they could look for companies offering longer lifetimes and use those. On the other hand. It could attract those looking to establish repair and conversion or servicing activities that support the lengthening of lifespans of modalities and equipment. To become a hub for circularity and longer lifetimes.

Groups of innovations

  • Lengthening lifespan

    This reduces the need for replacement products.

  • Closing the resource flow

    Through recycling and circularity (Repair, refurbish, remanufacture): this reduces the use of raw materials as well.

  • Narrowing the resource flow

    Through the use of less material in the product (like modular design) or not buying a product but solving the need differently.

Impact

Impact level per aspect
ImpactLevelRemark
GHG emissionsNo impact
Lengthening Lifespan has no direct impact, but does reduce production emissions
Resource useLarge impact
Lengthening lifespan reduces the use of new materials

Port characteristics

As a port you could be involved as a user of equipment and focus your purchasing on identifying suppliers that offer longer lifetimes against competitive total ownership costs (e.g. in the form of leasing). You could also be indirectly involved in lengthening the lifespan by developing incentives to promote circularity and a focus on longer lifespans/alternative business models, as well as industries supporting the reuse of materials from equipment and infrastructure in the port. (e..g. remanufacturing plants for cranes, ships, trucks etc).

Barriers and enablers

Enablers

  • EconomicEnabler

    Longer lifespans also offer an opportunity as total costs of ownership may be lower in the end, improving the competitiveness of the user.

Barriers

  • EconomicsBarrier

    a product with a longer lifespan means the producer would sell less products and invests more in the product leading to a higher initial price. In many cases, it is difficult to sell against a higher price, even if the value is known. More likely the loss needs to be compensated by e.g. being part of the maintenance of the product. For that a producer needs continued access to the products. So being close to the product as it does not go too far away or operating a global network (e.g. in case of ships or container cranes).

  • Standards & regulationBarrier

    In many cases older products are seen as a risk and many (unofficial/tendering rules) limit the age of the equipment (e.g. no ships over 20 years can transport oil for an oil major), hindering the concept of lengthening lifespan of assets.

How to implement?

  1. Step 1

    Promote longevity

    As lengthening lifespan already exists as a concept, all the ports need to do is address/promote this when considering options. This could be the order of a new set of container cranes, but also the promotion of firms that offer such new (service oriented) business models.

Timeline

The arrow below represents the expected development of the TRL of lengthening lifespan.
* Technical Readiness Level

Investment overview

Companies considering lengthening lifespan should consider how to compensate the reduction in sales and the potential increase in initial costs by additional income, e.g. through service contracts or leasing the product to the client. Key option here is moving from sale to service. As a result there should be no additional investments required from the port side, more likely needed is a change of view towards equipment and infrastructure (unless the port is the producer of the equipment/infrastructure).

Stakeholder overview

Below is an overview of the required involved stakeholders. For lengthening lifetime the stakeholders are limited. The EU provides some indirect incentives, and the producer and user decide how to implement it.
Blue stakeholders are essential, white stakeholders are enabling

Knowledge base