Asia Airfreight Terminal (AAT), a subsidiary of SATS Ltd., has noted an increasing demand for sustainable solutions amid heightened awareness of environmental impacts and a growing preference for companies that adhere to social and environmental standards.
In recent years, an increasing number of companies have committed to working only with suppliers that prioritize environmentally and socially responsible practices, which has prompted businesses to adopt more sustainable practices in order to meet this demand and create a ripple effect of sustainability throughout the entire supply chain.
Mike Chew, chief executive officer of AAT, said sustainable practices can also foster innovation and attract top talent, resulting in higher job satisfaction and retention.
“Client demand for sustainable solutions is increasing, with clients and investors increasingly valuing sustainability metrics in their collaboration criteria,” he told Asia Cargo News.
“As a result, we anticipate this trend to continue, driving the need for businesses to prioritise sustainability in their operations.”
For AAT, sustainability is also central to its operations. The company targets reducing absolute carbon emissions by 55% from the 2018 baseline levels and achieving carbon neutrality by 2050.
Chew said that AAT has established clear short-term and long-term investment plans to achieve its sustainability goals. These include applying intelligent energy management systems to enhance energy efficiency and increasing the use of renewable energy by 20% from an FY23 baseline with initiatives such as solar lights by 2025.
Over the long term—between 2030 and 2035 — AAT is looking to replace ground support equipment with sustainable fuel-powered models at the end of its lifecycle, further increase the use of renewable energy, and transition to sustainable packaging materials.
It is also looking to phase out refrigerants with lower Global Warming Potential (GWP) alternatives, adopt sustainable packaging materials for 20% of freight by 2030 and 50% by 2035, and reduce absolute carbon emissions by 55% from the 2018 baseline by 2035.
“Our planned sustainability initiatives for next year include the launch of a Hydrotreated Vegetable Oil (HVO) trial and the installation of a Solar PV system,” Chew said.
HVO, a renewable diesel fuel derived from waste and residue bio components, offers a sustainable alternative to fossil fuels. AAT noted that compared to fossil fuels, HVO can significantly reduce greenhouse gas emissions by up to 87%.
“AAT is scheduled to replace fossil diesel with HVO for all Ground Support Equipment (GSEs),” Chew said. AAT will also install a Solar PV system slated for 2025-2027.
Over the years, AAT has implemented various measures to promote its sustainability initiatives, including the adoption of recycled plastic cover sheets at all AAT terminals. AAT also became the first cargo terminal operator in Hong Kong to deploy Autonomous Electric Tractors (AETs) at its terminal in early 2024.
Chew said the introduction of AETs enhances cargo handling efficiency by boosting extended operating hours and the ability to work in inclement weather conditions, improving overall operational resilience and efficiency. “They also represent a win for the environment by substantially reducing carbon emissions by up to 35% compared to traditional diesel tractors.”
Looking ahead, AAT plans to expand the AET fleet progressively while introducing more automation features. “We anticipate sustained business growth and enhanced market presence, paving the way for wider adoption of autonomous and electric technologies in the industry,” Chew said.
The benefits of pursuing more sustainable practices are manifold. The AAT chief said beyond the environmental advantages of reducing carbon emissions and improving energy efficiency, sustainable initiatives like its AET deployment also lead to enhanced operational resilience, increased efficiency during peak seasons, and a higher quality of service for its customers.
“AAT recognizes sustainability as a core principle guiding our operations. We firmly believe that sustainable practices and growth are not mutually exclusive but rather complementary aspects of our business strategy,” Chew said.
“By investing in projects like AETs, we aim to reduce carbon emissions, enhance operational flexibility, and contribute to a greener future.”
“These strategic investments and sustainability initiatives reflect AAT’s unwavering commitment to driving positive environmental change, reducing our carbon footprint, and ensuring a sustainable future for the air cargo industry. By actively pursuing these goals, we aim to set new benchmarks for sustainability and operational excellence in the years to come,” Chew said.#
By Charlee C. Delavin
Asia Cargo News | Hong Kong