With global trade under pressure, ports are top of mind these days. Because ports are an integral piece of the global supply chain, keeping them moving as efficiently and cost-effectively as possible is critical to long-term operations. However, ports have also been long-time sources of air pollution due to their heavy concentration of diesel-powered ocean-going ships and heavy reliance on diesel port equipment. Over the last several decades, ports have slowly been transitioning to more sustainable alternative fuels––including propane––to reduce emissions and costs without sacrificing efficiency.
Two ports on opposite sides of the U.S.––West Basin Container Terminal (WBCT) at the Port of Los Angeles in California, and Port Newark Container Terminal (PNCT) at the Port of Newark in New Jersey––rely heavily on propane to power their day-to-day operations. Both ports make compelling cases for propane as an effective long-term energy solution for ports and other material handling operations. Fueling everything from terminal tractors and forklifts to backup shore power generation, propane is moving ports towards near-zero emissions while slashing operating costs and maintaining reliability.
Cleaner Operations with Propane
Historically, ports have relied on mostly diesel-powered equipment. One unfortunate result of this has been higher levels of emissions, including nitrogen oxides (NOx), particulate matter (PM), and carbon dioxide (CO2), as well as higher risks of other forms of pollution.
Unlike gasoline and diesel, propane is a non-toxic energy source that does not contaminate air, land, or water resources at ports. Propane produces significantly fewer emissions than diesel, gasoline and electricity (when total lifecycle emissions are considered) in a wide range of applications for material handling professionals. Propane is even listed as an alternative fuel under the Clean Air Act. Today’s low NOx propane engines are up to 90% cleaner than EPA standards. These engines emit up to 96% fewer NOx emissions than diesel and near-zero particulate matter emissions.
Real-World Port Data and Experiences
More and more ports continue to incorporate propane-powered equipment into their port operations—with notable cost savings and efficiency boosts on top of substantial environmental benefits.
Several years ago, Port Newark Container Terminal adopted 40 new propane-powered terminal tractors to replace its diesel vehicles. After tests at PNCT, the propane tractors reduced NOx emissions by 99%, total hydrocarbon (THC) idle emissions by 77.5%, carbon dioxide emissions by 14%, and total particulate matter (TPM) to an almost undetectable level.
WBCT in California saw similar emissions reductions. The port began transitioning to propane terminal tractors over 20 years ago, and over the last two decades has seen its fleet grow to more than 80 propane terminal tractors. As terminal tractors have evolved over time, the models’ propane engines have become increasingly clean and efficient.
“The key positive of switching to propane terminal tractors was eliminating diesel emissions, and over time they’ve become more and more efficient,” said Willy Won, director of engineering at Ports America (WBCT’s operator).
Propane’s cleaner profile is especially critical in ports located near dense urban areas (like Newark and Los Angeles), where local air quality is a serious concern. Not only do lower emissions from propane equipment mean a safer working environment for port workers, but cleaner air for surrounding communities.
Lower Costs and Higher Reliability
Operating costs are another key consideration when choosing energy sources for port operations, and propane delivers savings on multiple fronts. First and foremost, propane typically costs much less than diesel and gasoline on a per-gallon basis, with fuel savings up to 50%. And because propane is produced in the United States, prices are not as susceptible to extreme fluctuations the way imported energy sources can be.
Propane engines also generally require less maintenance. For example, there’s no need for expensive diesel exhaust fluid or diesel particulate filters, further reducing long-term operating expenses.
WBCT has seen these cost benefits firsthand. “In 2024, our average price of propane was $1.66 per gallon, while the price of diesel was $3.44 per gallon during the same time period,” Won said. “Up until recently, the Federal government also provided an annual Alternative Fuel Tax Credit ranging between $0.37-0.50 per gallon purchased, which gave us further savings.”
Propane infrastructure is also cost-effective. Not only can large operations store over 100,000 gallons of propane onsite, but refueling stations can be installed with a relatively low upfront investment and scaled to meet port-specific needs. And unlike electric alternatives, propane systems aren’t hampered by long charging times, meaning less operational downtime.
Propane Versatility and Performance
One of propane’s other great strengths is its versatility across a wide range of port applications, including terminal tractors, forklifts, shore power, and backup power generation.
Terminal Tractors
Terminal tractors, also known as port tractors or yard trucks, are one of ports’ most critical tools, as they are used to move large shipping containers around the port. One of the most advanced propane-powered terminal tractors today is built by MAFI and is powered by PSI’s 8.8-liter engine. Both PNCT and WBCT have seen great success operating this model of terminal tractor. Not only do they deliver 270 horsepower and 565 foot-pounds of torque, but they are also certified by the U.S. Environmental Protection Agency (EPA) and California Air Resources Board (CARB) for use in mobile, off-road applications. In addition, the PSI 8.8-liter engine is certified to 0.2 grams of hydrocarbon and NOx per brake horsepower-hour, making it one of the cleanest propane engines currently available.
Forklifts
Propane forklifts have been mainstays in material handling operations for decades––and for good reason. At ports like PNCT and WBCT, they’re used for moving and stacking containers, producing 94% fewer hydrocarbon and nitrogen oxide emissions compared to diesel, and 16% fewer greenhouse gases compared to gasoline-powered forklifts. NOx emissions from propane-powered forklift engines can also be less than half the total lifecycle emissions of battery-electric forklifts powered by coal-powered electric grids.
Microgrids
Port operators are also adopting propane-powered microgrids to enhance the resiliency and reliability of their electric infrastructure. These propane-powered microgrids can be used for “shore power,” which supplies electricity to docked ships, allowing them to keep the lights on and maintain essential functions without relying on diesel-powered auxiliary engines. In addition to powering vessels, propane-powered microgrids can supply electricity to port facilities and buildings, functioning either independently or alongside the main grid. This supplemental power supporting the main electric grid is especially valuable during and after severe weather, ensuring uninterrupted power to maintain operational uptime while also reducing transmission and distribution losses by 5%, on average.
As ports work to decarbonize without compromising on performance, propane stands out as a reliable, cost-effective and scalable energy solution. As the success stories of PNCT in New Jersey and WBCT in California demonstrate, propane is a clean energy source that can make a real difference for port operations, both today and into the future.
