Recycling alone does not define the circular economy. Unlike circular economy initiatives, recycling has long been a familiar practice in ports. For example, metal scrap has been sorted and handled in many ports for decades. However, the concept of a circular economy gained prominence in the Port of Amsterdam nearly a decade ago, particularly in response to reduced port investments following the 2008 financial crisis.
To counteract this trend, the Port of Amsterdam established an innovation hub, Prodock, in 2016, bringing together a diverse range of young companies to generate ideas for revitalizing the local economy. "It quickly became clear that one of the most promising markets is the circular economy," explains James Hallworth, Commercial Manager for Circular & Renewable Industry at the Port of Amsterdam. "We then brought together various start-up and scale-upcompanies from this sector in the hub and discovered significant potential, with many innovations emerging." Today, the port has taken its commitment further by establishing a dedicated department to focus on this burgeoning area of business.
Recycling Companies as Catalysts for Change
Recycling companies are no longer just processors of waste; they have become producers of raw materials that seamlessly re-enter production cycles. "Particularly in resource-scarce Europe, they are an indispensable asset," says Caroline Craenhals, CEO of the family-owned Belgian Scrap Terminal headquartered in Kallo near Antwerp. She highlights two key aspects: first, the need to view waste not as garbage but as a supplier of raw materials; and second, the importance of designing products with the eventual reuse of materials in mind to minimize waste. Ports, she notes, are ideal locations for recycling businesses. They often provide the necessary space, reduce concerns about noise pollution in surrounding areas, and even serve as sources of raw materials themselves.
Professor Dr. Elvira Haezendonck of the Vrije Universiteit Brussel, who also serves as President of the International Association of Maritime Economists (IAME), agrees. She emphasizes that ports located near industrial and urban areas offer better conditions for "urban mining" compared to those situated in remote greenfield locations. However, James Hallworth points out a challenge: space in these strategically located ports is often limited. In response, Elvira Haezendonck suggests that smaller areas are sufficient to test innovative models initially, making the best use of available resources while scaling solutions over time.
Laying the Foundation for Transformation
Professor Haezendonck outlines the essential first steps for driving a successful transformation in ports: analyzing the port’s vision for the future, assessing existing infrastructure and surrounding conditions, identifying what is needed to achieve the goals, evaluating the economic potential of the plans, determining the timeline for visible results, and finding local partners to collaborate with. This process must also involve engaging with existing port customers to ensure alignment and support. Additionally, she advocates for industrial companies within ports to explore new synergies and partnerships with one another. "Ports should capitalize on their pioneering role," Haezendonck explains. "They have decades of experience with industrial symbiosis, e.g. transfer of steam or cooling water, which is a fundamental component of the circular economy."
The Path to a Circular Economy: Balancing Innovation with Existing Port Operations
While there is unanimous agreement among the participants that transitioning to a circular economy is the right direction, both James Hallworth and Piotr Konopka, Group Vice President Global Decarbonisation and Energy Programmes at international terminal operator DP World, emphasize the need to balance this shift with existing port operations. Ports and terminals still primarily rely on logistics activities for their revenue.
Konopka elaborates: "The concept of the circular economy must be integrated into companies’ sustainability strategies, existing regulations need to be considered, and economic viability must remain a priority. However, by starting on this path today, we position ourselves well for the future." Caroline Craenhals concurs: "Every innovation must also be marketable; ecology and economy must go hand in hand."
A Complex and Time-Intensive Transition
The transition period is described by participants as both complex and time-consuming, with port authorities playing a pivotal role. Hallworth explains, "We are the land marketers. We can strategically place companies that can benefit from- and operate synergetically with each other in a circular economy close together. We must identify value creation opportunities, reduce CO2 emissions, and minimize waste."
Beyond this, port authorities need to identify financing options, manage permits, foster acceptance within established port operations, define and monitor objectives, and much more.
Piotr Konopka adds that material cycles must not only be optimized within the ports but also extend beyond their boundaries to create a broader impact.
The Power of Communication and Collaboration
One critical factor in the transition to a circular economy is communication. Caroline Craenhals underscores the importance of ensuring that everyone in the port ecosystem is aware of the companies and opportunities available locally. Piotr Konopka adds that every idea thrives on people who are passionate about advancing it, raising awareness of challenges, and rallying collaborators. This principle applies across all areas—within individual companies, the port community, and beyond, including external businesses and international partnerships that could be integrated into circular economy concepts.
To accelerate the transformation, Elvira Haezendonck emphasizes the need to solidify circular economy principles and foster a mindset that looks beyond immediate boundaries. Port authorities, she argues, must invest in developing circular business initiatives. Additionally, fair competition for all participants is vital, a point agreed upon by all panelists.
James Hallworth highlights the current lack of a level playingfield (linear vs circular) which means an unfair lack of competitiveness among many circular economy companies. Hallworth also stresses the need to continue discussions on the evolving role of ports. Piotr Konopka points to the essential curiosity and creativity required from all stakeholders, while Caroline Craenhals notes that while global thinking takes time to mature, it will ultimately prevail. All four participants agree that collaboration is critical on the path to establishing a circular economy.
The panel concludes with a shared vision: if the transformation into innovative hubs for the circular economy succeeds, ports will unlock new revenue streams alongside their traditional logistics business. Simultaneously, they will adapt to evolving trade flows, reduce their ecological footprint, and secure their long-term viability.
The article was summarized by Kerstin Zapp, a business journalist.
The full episode is available to watch on YouTube.
