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Now is the time for floating container terminals


Now is the time for floating container terminals

29 January 2025

The ever-larger container ships and increasing traffic are putting pressure on port capacity, while stricter emissions regulations are changing the conditions for maritime transport. According to a new report from RISE and Sea Technology, funded by the Swedish Transport Administration, the timing is right to move container terminals offshore. Strategically placed and automated, they can relieve multiple ports and regions simultaneously.

There are significant advantages to the largest container ships, so-called ULCV vessels (Ultra Large Container Vessels). They consume less fuel per container and can reduce transport costs by up to 30% thanks to their efficiency. However, they also place high demands on ports—deep water, long quays, and advanced services are essential. Today, only around 20 ports worldwide can accommodate ULCVs.

“Land-based ports can very rarely expand, whether in land area or depth. Increasing depth, for example, requires an enormous dredging process,” says Therese Lundquist, CEO of Sea Technology, who, together with researchers at RISE, has examined the potential of floating container terminals located offshore from logistical, environmental, and economic perspectives.

Since 2015, Sea Technology has been working on developing a floating transshipment terminal for container handling, covering an area of 600 x 400 meters and providing the capacity to carry one million tons of cargo, equivalent to 50,000 TEU containers. The platform is equipped with cranes and other infrastructure to enable container loading and unloading.

“The idea is for the terminals to be placed in strategic locations for feeder traffic to multiple ports. It is not about feeding into the nearest port but rather about reducing feeder traffic on our roads. Many trucks are on our roads, and even with electrification, they place a significant burden on the road network. Roads are also filled with uncertainties. This is a way to reduce risks and create increased resilience in the entire transport chain.”

The floating port thus functions as a transshipment terminal. Large container ships dock on one side of the platform, and the cargo is transferred to smaller feeder vessels that continue to other smaller ports. According to one scenario, 25% of the freight currently going to Rotterdam could be redirected to a floating port in the Kattegat, reducing emissions by as much as 80%.

“This relieves city centers from both truck traffic and emissions. The Port of Rotterdam not only emits as much carbon dioxide as Germany’s second-largest coal power plant but also large amounts of toxic particles that affect human health,” says Therese Lundquist.

There are many examples of the heavy pressure on the world’s major transshipment ports. In the summer of 2024, for example, the waiting time in Singapore, one of the world’s largest transshipment ports, was up to 30 days. The result? Sky-high costs, both economically and environmentally.

“In Asia, trade is expected to increase fivefold by 2035. This will not be manageable unless the sea is utilized differently than it is today. Building a land-based port takes 10 to 15 years, whereas it takes three years to build Sea Technology’s floating platform. There is enormous financial potential here.”

There are no real technical challenges in building a floating container terminal, explains Anders Ulfvarson, Professor Emeritus in Marine Structural Engineering at Chalmers and Chief Technical Officer at Sea Technology. The major challenge is instead finding the first customer—the industry is cautious, and right now, there is a sense that everyone is waiting for someone else to take the first step.

“I believe a typical transshipment port, such as Singapore or Malaysia, will be the first to adopt this. After that, I think many others will quickly follow,” says Anders Ulfvarson.

According to the report, the timing is now favorable. Stricter emissions regulations are in place, as are environmental drivers, creating clear business opportunities.

“Within five years, the first platform will be either in production or operational. Most likely in Asia,” says Therese Lundquist.

“I believe so too. I think we will have the first customer contact within the next six months,” says Anders Ulfvarson.

The report The Transformative Role of Floating Container Terminals in Sustainable Supply Chains and Climate Resilience was authored by Therese Lundquist and Anders Ulfvarson, both from Sea Technology, and Martin Svanberg from RISE.

To the report


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