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DP World to invest for reduction in CO2 emissions from its operations

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DP World to invest for reduction in CO2 emissions from its operations. Image: DP World
DP World to invest for reduction in CO2 emissions from its operations. Image: DP World
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DP World Chairman and Group CEO, Sultan Ahmed Bin Sulayem announced the company intends to invest up to $500 million to cut CO2 emissions from its operations by nearly 700,000 tonnes over the next five years. He also reinforced DP World’s commitment to sustainability by taking on the Green Shipping Challenge.

Launched earlier this year by US Special Presidential Envoy for Climate Change John Kerry and Norwegian Prime Minister Jonas Gahr Støre, the challenge encourages countries, ports, companies, and other actors in the shipping value chain to come forward with concrete announcements to further ocean-based climate actions.

“Global trade has been an enormous force for good, keeping our world connected and lifting millions out of poverty over the last few decades. But this growth is not without consequences – from the scale of energy required to make, move and use goods to the resource intensity of logistics and the challenges economic growth can bring. As a leading enabler of global trade, we have the tools, ingenuity and drive to lead a step change in logistics,” Bin Sulayem said.

The planned reduction in carbon emissions by nearly 700,000 tonnes represents a 20% cut from 2021 levels.

DP World’s plans include replacing its global fleet of assets from diesel to electric, investing in renewable power and exploring alternative fuels.

“Our World, Our Future’ is our sustainability strategy, one that is designed to deliver responsible operations. We have already committed to becoming a carbon neutral enterprise by 2040 and net zero carbon enterprise by 2050. We will work with our global partners to develop an action plan to advance the goals of the GSC and encourage industry players to devise plans to address climate change,” added Bin Sulayem.

“We’re doing this through three main pillars of activity; the electrification of our ports and terminals equipment, investment into renewable energy and through research and development projects that will look into alternative fuels, vessels and vehicles across our portfolio,” said Bin Sulayem.

“Our ports and terminals business is making steady progress, by following the strategy of maximising efficiency, equipment electrification, supply of renewable electricity, low carbon fuels and carbon compensation,” he said.

In January, DP World entered a strategic partnership with the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping, an independent, not-for-profit organisation, undertaking intensive research and development to find practical ways to decarbonise the global maritime trade industry.

“Decarbonising the maritime industry requires the complete rewiring of the entire system, imagining new supply chains and structures. It is a huge undertaking, but one that we are ready to venture into. We bring extensive expertise in integrated logistics and infrastructure, and deep understanding of the complexity faced by the industry, having grown from a local port operator in Jebel Ali to an end-to-end supply chain solutions provider, moving around 10% of global cargo”, he added.

One of the biggest challenges comes from the marine services and logistics businesses which represent a major portion of the DP World’s total carbon footprint through their fleets of vessels and trucks. Addressing this will be an important part of developing solutions as the company pursues its net zero target.

The global decarbonisation strategy aims to first reduce absolute emissions as much as possible, then focus on replacing fossil fuel with renewable energy resources, and finally purchase offsets for the hard to abate remaining emissions for the 2040 carbon neutral target. Complementing technology driven solutions such as replacing vehicles and fuels, DP World is also working with local communities where it operates to establish carbon offset schemes, and carbon sinks such as mangrove forests.

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Environment

Jeddah Islamic Port boosts decarbonization drive

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Jeddah Islamic Port boosts decarbonization drive. Image: Pixabay
Jeddah Islamic Port boosts decarbonization drive. Image: Pixabay
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The Saudi Ports Authority has announced cutbacks in crane activity and truck turnaround times at Jeddah Islamic Port in line with its annual target of lowering carbon footprint at the Kingdom’s busiest port by 1,046 tons in 2023.

Complementing the goals of the National Transport and Logistics Strategy (NTLS), the Jeddah port’s decarbonization efforts form part of Mawani’s Green Ports initiative that seeks to slash energy consumption by 15% through equipment electrification and diesel phaseout across the Kingdom’s trade hubs.

Through a 33% decrease in average yard crane moves for every imported container that requires manual inspection as well as a 17% reduction in truck turnaround times, the port further solidifies its standing as a cost-competitive and operationally-efficient logistics destination at the crossroads of East-West trade.

The national maritime regulator’s environmental strategies are inspired by the Saudi Green Initiative, a national climate action plan that aims to unite the Kingdom’s push towards ecological protection, energy transition, and emissions reductions through a joint collaborative approach between the public and private sectors.

The Red Sea based hub had recently bagged the Port of The Year award at the Green Shipping Summit 2023 that was held in Rotterdam, The Netherlands for its successful track record in harnessing innovative and sustainable technologies and solutions for a greener tomorrow.

Mawani has been keen on transforming the Saudi ports into investment platforms and facilitating the Kingdom’s trade with the rest of the world. The Authority seeks to achieve an effective regulatory and commercial environment supported by an operating model that enables growth and innovation in the Kingdom’s maritime industry.

It also envisions developing a sustainable and prosperous ports sector to consolidate the Kingdom’s position as a leading global logistics hub. Mawani strives to realize Saudi Arabia’s economic and social ambitions by ensuring reliable and efficient logistics operations, as well as creating a safe and sustainable maritime environment.

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Port of Oakland joins clean energy trade mission

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Port of Oakland joins clean energy trade mission. Image: Port of Oakland
Port of Oakland joins clean energy trade mission. Image: Port of Oakland
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Port of Oakland officials joined a delegation of California policymakers, decisionmakers and business executives, led by California Lieutenant Governor Eleni Kounalakis and Dee Dee Myers, Director of the Governor’s Office of Business and Economic Development, on a trade mission to Japan last week. The group exchanged ideas about tackling climate change, clean energy economies, and creating new investment and trade opportunities.

“We enjoyed the exchange of information, technology and best practices that will complement our efforts to create a zero-emissions port in Oakland,” said Port of Oakland Executive Director Danny Wan.

As the Port of Oakland moves towards its goal of reducing and eliminating polluting emissions, Japan’s use of hydrogen technology is of particular interest to Executive Director Wan and other Port representatives.

“More than one hundred projects are looking at zero emissions in maritime shipping worldwide,” says Wan. “Nearly half of these initiatives focus on hydrogen as a low-carbon fuel source.”

The week-long trip included various forums on climate collaboration and trade and investment opportunities as well as visits to the Port of Kobe hydrogen terminal, and energy innovation companies like Panasonic, Toyota and the Fujimi Waste-to-Energy Plant.

Events included the California-Japan Climate Summit, California Trade and Investment Forum, a visit to the American Chamber of Commerce in Japan (AmCham), and Smart Energy Week exhibition. California agricultural producers, many of whom ship their products through the Port of Oakland to Japan, held a reception showcasing California-grown products.

Japan and California have shared a long-lasting bond. The Port of Oakland and the Bay Area have long served as a gateway connecting Japan and the United States. Plus, the Port of Oakland has a sister-city relationship with the City of Fukuoka, Japan.

Japan and the State of California last year signed a Memorandum of Cooperation to address climate change and promote cooperation in trade and investment.

Japan, as a key trade partner, is the number one destination for cargo that leaves the Oakland Seaport, accounting for 17 percent of exports from the Port of Oakland.

The goal of this mission was to collaborate for building a sustainable future and strengthening business ties.

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Environment

Launch of ECTN Alliance to decarbonize road freight transport

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Launch of ECTN Alliance to decarbonize road freight transport. Image: CEVA Logistics
Launch of ECTN Alliance to decarbonize road freight transport. Image: CEVA Logistics
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Three major groups are joining forces to fight climate change and launch the European Clean Transport Network Alliance (ECTN Alliance), a concrete solution to decarbonize road freight transport.

Mobilizing the expertise of its founding members—CEVA Logistics, ENGIE and SANEF—the ECTN Alliance envisions building and operating a network of truck terminals with low-carbon energy solutions to transport merchandise along Europe’s motorways. The disruptive system will be tailored to electric trucks’ limited range and charging requirements.

Long term, the terminal network will be open to all shippers and carriers, offering simple access to low-carbon biogas, hydrogen and electric energy solutions for charging and refueling trucks. Strategically placed on European motorways, the network will include a specific IT solution to enable transport companies to plan their routes and charging schedules in the fastest and most carbon-efficient way.

In addition, the concept aims at improving working conditions for long-haul truck drivers by allowing them to remain closer to their homes, as they will be swapping trailers at each terminal before turning back. ECTN’s solution will ultimately make the trucking industry more attractive and help alleviate the European truck driver crisis.

The Alliance will conduct a proof of concept (POC) in 2023 between the Lille and Avignon metropolitan areas in France to demonstrate the feasibility of the concept before deploying it on a European scale.

The two-year proof of concept will start in 2023 to demonstrate the ECTN model’s effects on long-distance road haulage. A dedicated fleet of 20 low-carbon tractor units (a mix of biogas, electric and green hydrogen) will transport 20 trailers each day between the north and southeast of France, relaying and changing trailers at five test sites located at existing CEVA Logistics locations.

Local carriers will carry out the pre- and post-carriage transport to and from the test sites. The POC is expected to provide a rich database for an in-depth understanding of low-carbon truck use for long-distance haulage and options for decarbonizing road freight transport in Europe.

Luc Nadal, Regional Managing Director for Europe, CEVA Logistics, said: “ECTN Alliance members strongly believe that private–public alliances have a key role to play in accelerating climate solutions. The ECTN Alliance is based on a pioneering, holistic approach to decarbonizing long-haul trucking. We are proud to launch this bold initiative with best-in-class companies, whose combined expertise will contribute to the success of the project.”

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