Shipping
PIL, DP WORLD TO JOINTLY DEVELOP GREEN SOLUTIONS FOR GLOBAL SUPPLY CHAINS
December 7, 2023

Pacific International Lines (PIL) and DP World have signed a Memorandum of Understanding (MoU) to jointly develop green solutions to decarbonise global supply chains.

 

The agreement — which pairs DP World, which handles around 10% of the world's container trade, and PIL, a Singapore-based shipping company — would see the companies leveraging each other's strengths to accelerate progress towards their common target of net zero GHG emissions.

 

In the near term, both parties will collaborate on trial shipments between Jebel Ali Port in Dubai and destinations within PIL's network, with initiatives to reduce the shipments' GHG footprint.

 

DP World said this would include shipments on PIL's vessels powered by a biofuel blend, biofuel bunkering, and deploying container handling equipment at terminals that run on renewable energy to handle the shipments.

 

Over the longer term, the companies will explore expanding this partnership to include other ports within DP World’s global network and using other alternative fuels, such as e-LNG, green methanol or green ammonia in PIL's vessel operations and bunkering.

 

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 [Source: DP World]

"Supply chain resilience and sustainability is the bedrock of global trade growth. With the renewed commitment by the International Maritime Organisation (IMO) this year to take a significant step forward to decarbonise the shipping industry, we at PIL are responding actively to IMO's call and working to invest in and implement green solutions to achieve our target of achieving net zero by 2050," said Lars Kastrup, chief executive officer, PIL.


He added that the DP World partnership would see both firms "augment" each other's sustainability efforts as we co-develop solutions to decarbonise our supply chains.

 

Tiemen Meester, group chief operating officer, Ports & Terminals, DP World, noted that decarbonisation is the single biggest concern for DP World outside the constraints and the physical movement of goods.

 

"So, we are transforming our business and the impact global trade has on the climate. We have already committed to becoming carbon-neutral by 2040 and achieving net-zero carbon emissions by 2050. But we must explore partnerships with companies that share our ambitions and technology to be deployed right now for quicker results," he said.

 

Both companies have conveyed their commitment to combating climate change and the collective goal of achieving net zero greenhouse gas (GHG) emissions by 2050 or earlier.

 

DP World targets 60% renewable power at Indian terminals

 

Meanwhile, DP World announced a new sustainability target in India, aiming for at least 60% of the energy required at its terminal operations to come from renewable power sources by 2026.

 

To meet the target, DP World aims to switch all fossil fuel-powered equipment and vehicles at its terminal operations in India to electric power.

 

It has already initiated open access sourcing of green power at its two terminals in Nhava Sheva (NSIGT and NSICT) which will help replace about 75% of conventional electricity needs with green power, leading to about 50% reduction in carbon emissions at the facilities.

 

"We are deeply committed to transforming our terminal operations to make trade greener and more efficient," said Rizwan Soomar, CEO and managing director for Middle East, North Africa, and India Subcontinent at DP World.

 

He added that DP World plans to replicate the open-access green power sourcing for all our other portfolio assets across India.

 

Across its terminals in India, DP World is already converting its fleet of diesel-powered rubber-treated gantry cranes (RTGs) to electric and setting up solar power installations.

 

The company recently commissioned six new e-RTGS at Mundra International Container Terminal (MICT) in Gujarat and four new e-RTGs at the International Container Transhipment Terminal (ICTT) in Cochin, Kerala.

 

The move towards 100% electrification of the existing fleet of RTGs will significantly help reduce the carbon footprint of cargo transiting through the terminals giving customers a competitive edge on sustainability in their supply chain. Renewable energy is also being integrated into the design of terminals.

 

DP World said it will also continue to explore green power purchase agreements (PPAs), additional rooftop solar installations and low-carbon technology solutions across its entire portfolio in India.

 

Globally, DP World is committed to achieving carbon neutrality by 2040 and net zero carbon emissions by 2050, with an intermediate target of 28% reduction of carbon footprint by 2030.