Planning Port Investments for a Changing Maritime Landscape

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Summary

It highlights the critical challenge of funding projects that offer broad societal benefits (the “value case,” such as clean energy infrastructure) but may not yield immediate commercial returns, requiring ports to secure public funding or innovative financing models. By analyzing various governance and business models worldwide, the toolkit provides a structured framework to align long-term investment decisions with national policies and economic goals, ensuring ports can transition effectively from traditional trade gateways to vital energy hubs for the future.

Meeting New Demands in Maritime Infrastructure

As the global maritime sector faces mounting pressure to decarbonize, port authorities must consider not only how to support growing trade volumes, but also how to meet increasingly complex energy and environmental demands. A new report commissioned by Clear Seas and C40 Cities, Increasing Capital Investments in Ports: A Practical Toolkit, provides a blueprint for investing in the future of ports, both as traditional trade gateways and as vital energy hubs for the global energy transition.

The report addresses a common concern shared by many port authorities: how to structure, fund, and implement infrastructure projects that are essential for future resilience but may not offer immediate commercial returns. Drawing on a wide range of case studies, interviews, and international research, the toolkit offers a framework that helps port stakeholders make informed investment decisions, particularly in areas such as clean energy infrastructure and industrial development.

One of the report’s central observations is that while the need for port investment is growing, the path to securing that investment is not always straightforward. Some projects, like terminal upgrades or land leases for new facilities, can generate predictable commercial returns and attract private financing. Others, such as renewable energy infrastructure or low-emission bunkering facilities, may deliver broad societal benefits but struggle to cover costs through direct user fees. These are often the projects that require public funding or innovative financing models to move forward.

Understanding Investment Complexity and Governance Models

According to the report, the total investment required to support the maritime industry’s decarbonization goals could reach €2 trillion globally over the next decade, with ports accounting for a significant share. This includes not only infrastructure upgrades to support more efficient shipping, but also investments in clean fuel production, electricity generation, carbon storage, and multimodal logistics connections.

To make sense of this challenge, the toolkit presents a typology of port governance and business models. Port managing bodies vary from corporatized state-owned entities with financial autonomy to public authorities embedded within municipal governments. Their business models also differ; some operate under a landlord model, leasing land and infrastructure to third parties, while others take a more active role in operations and investment. Understanding these structures is important because it shapes who is responsible for which types of investments, and which financing mechanisms are feasible.

The report emphasizes the need to distinguish between the “business case,” which considers commercial return, and the “value case,” which includes broader public, environmental, and societal benefits. This distinction becomes especially relevant when evaluating whether public funding or policy support is necessary. Some projects can recover their costs through user fees or leases. Others, such as onshore power supply (OPS) or port electrification, may require grant funding, subsidies, or regulatory mandates to make financial sense.

Examples from Global Port Systems

To illustrate these concepts, the report highlights case studies from around the world. In the Netherlands, deployment of OPS infrastructure has been supported through EU regulations, national grants, and cooperation between port authorities and electricity providers. This combination of funding and policy support has allowed ports to move forward with projects that have environmental benefits but limited commercial return.

Singapore’s Maritime and Port Authority has implemented a long-term strategy requiring harbour craft to switch to electric or zero-emission fuels by 2030. This policy is supported by a national infrastructure plan, funding programs, and technical standards. In the UK, simplified permitting and development processes have enabled private port operators to expand with fewer regulatory barriers, helping streamline investment in new terminals.

Oman offers another example, using its ports as platforms for foreign direct investment. Its major port-industrial complexes have attracted more than half of the country’s inward investment over the past decade, particularly in sectors such as energy production and manufacturing. These cases demonstrate how aligning infrastructure planning with national policy and economic goals can help attract capital and accelerate development.

Relevance for Canadian and Pacific Ports

The toolkit also considers the Canadian context. While Canada Port Authorities are financially self-sustaining and operate independently from government budgets, they often face restrictions due to fixed borrowing limits and complex approval processes. These limitations can delay investment, particularly for projects related to energy transition, rail access, and climate adaptation. The report suggests that revising these regulatory frameworks could help Canadian ports invest more quickly and strategically.

Recent Indigenous-led port investments, such as the inland shipping terminal undertaken by Millbrook First Nation and the Halifax Port Authority, the marine terminal expansion undertaken by Pabineau First Nation and the Port of Belledune, and the import logistics park undertaken by the Metlakatla First Nation and the Prince Rupert Port Authority, show how equity participation and new financing tools can help projects move forward faster with community support and more flexible approvals. Similar projects backed by the Canada Infrastructure Bank and Indigenous Loan Guarantee Programs demonstrate how Indigenous partnerships are accelerating transportation and trade infrastructure across the country.

For ports across the Pacific region, the insights from this report are timely. Many are confronting climate-related risks, capacity constraints, and the need to modernize aging infrastructure. At the same time, they may be uniquely positioned to serve as hubs for regional logistics, green fuels production, and offshore energy development. The toolkit offers guidance that can support these goals, particularly where long-term investments require coordination between local stakeholders, government agencies, and private sector partners.

Building Investment Readiness Through Policy and Operations

Beyond financing strategies, the report highlights internal operational practices that can strengthen a port’s ability to attract and manage capital. These include maintaining cost control, developing stable revenue streams such as land leases, and building internal capacity to manage complex infrastructure projects. Ports with consistent lease income, for example, may enjoy greater financial stability than those whose revenues depend on fluctuating cargo volumes.

Phased development is another important strategy. By starting with smaller, more manageable phases, ports can adapt to market conditions, reduce risk, and build momentum for larger investments. The report also emphasizes the importance of aligning local, national, and international policies to create a more predictable environment for investment. Inconsistent regulations or funding rules can undermine otherwise sound projects by introducing uncertainty for investors and public authorities.

Effective coordination among multiple levels of government is often critical. Whether the project involves OPS, hydrogen fueling, or intermodal rail improvements, ports must frequently work with utilities, transport agencies, and funding bodies. The toolkit encourages governments to develop consistent regulatory frameworks and to adopt transparent, competitive processes for public funding allocation.

A Structured Yet Adaptable Framework

The Port Investment Toolkit does not prescribe a single solution. Instead, it offers a structured, adaptable framework that helps port authorities and policymakers evaluate trade-offs, identify opportunities, and navigate funding and governance challenges. It is intended as a practical reference, not only for large national ports but also for smaller regional ones navigating similar issues at a different scale.

As ports adapt to changing global trade patterns, environmental regulations, and energy systems, long-term planning and investment readiness are increasingly essential. This report offers tools and strategies that can help port authorities approach those challenges systematically and align investment planning with broader policy goals.

The full Port Investment Toolkit, including detailed case studies, risk assessments, and funding mechanisms, is available at https://clearseas.org/research/increasing-capital-investments-in-ports-a-practical-toolkit/. It is intended as a resource for port authorities, government agencies, planners, and others involved in maritime infrastructure and policy development.

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