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DMS Lat 25° 16' 37.1532'' N
Lon 55° 17' 46.4964'' E
MANGROVES AND
ELECTRICITY ARE
HELPING TO
DECARBONIZE THE
SHIPPING INDUSTRY
34903 93409
01
The Chilean port leading the greening of shipping
There’s a lot of work in moving a widget from one side of the world to the other,” says Curtis Doiron, CEO at DP World in Chile. And all that work requires carbon-emitting energy.
Shipping currently represents around 3% of worldwide carbon emissions, equivalent to that of Germany or Japan. Some projections see that proportion growing to as much as 17% by 2050.
But decarbonizing shipping is one of the trickiest challenges in tackling climate change. It’s a sector where change comes slow, and as the recent blockage in the Suez Canal revealed, intrinsic to the maintaining normal life, all over the world. The lack of technological solutions for effectively replacing fossil fuels in the giant ships and industrial equipment the business is built on is magnified by how enormous the industry is.
But DP World is doing everything they can to cut emissions at Chile’s ports by moving these widgets. And they're making remarkable progress.
02
The green supply chain
Doiron says the aim is “to achieve a green supply chain.” In the short term, there are three components: Switching to alternative fuels, reducing energy consumption, and adopting policies and procedures that reduce emissions.
It began by switching to 100% renewable energy at their port in San Antonio and Lirquen in Chile. By collaborating with local energy supplier Colbun, they were able to achieve a huge 54% reduction in the port’s carbon footprint.
The remaining 46% is generated by all the processes which aren’t currently electric. But Doiron expects that number to come down, ideally by double digits each year, as the company focuses its investments on electrifying equipment such as gantry cranes that can already run without fossil fuels.
Of course, switching wholesale to renewables is only possible if the electricity grid supports it. And for some parts of the supply chain – such as giant container ships – there simply aren’t electric solutions available yet.
So, what do you do when you can’t replace carbon-intensive sources of energy? You find every way you can to use less of them.
S 25° 16' 37.1532'' N
S 25° 16' 37.1532'' N
S 25° 16' 37.1532'' N
Of course, switching wholesale to renewables is only possible if the electricity grid supports it. And for some parts of the supply chain – such as giant container ships – there simply aren’t electric solutions available yet.
So, what do you do when you can’t replace carbon-intensive sources of energy? You find every way you can to use less of them.
03
Reducing consumption
It’s here that digitization is playing a pivotal role. Using a variety of software solutions, equipment is optimized to consume as little energy as possible.
Auto shut-off minimizes machine idling, so they don’t burn fuel when not in use. Warehouse management software makes better use of space for more efficient cooling. Computer-led route planning accelerates transit times, minimizing the fuel consumed on unnecessary travel.
Doiron also points to improvements in “cargo fluidity.” Shipping remains heavily paper-based, making its administration stubbornly inefficient. The more delays, rework, and duplication involved in moving products, the more energy they consume in refrigerated storage and idling trucks. Information flows better with digital processes. The better information flows, the faster cargo moves – wasting less energy.
These initiatives have a significant impact on the bottom line, revealing that energy efficiency can work for the business and the environment. And that extends to DP World’s customers, “Better cargo fluidity has a real impact on cost competitiveness. It can really make the difference for a Chilean exporter versus an African exporter competing for the same market,” says Doiron.
This evolutionary progress is significant. But Doiron admits that it’s undeniable that as a sector there’s a lot of work left to do. Initiatives such as BoxBay, currently in Pilot in Jebel Ali, UAE, are making good on the drive to change. The High Bay Storage (HBS) system stacks 11 containers – rather than the usual five or six – and eliminates significant inefficiency. For example, to access a container stacked below two others, they must be moved first. BoxBay allows instant access to any container. In this example, saving a 66% reduction in energy use.
04
Good citizens
Doiron is rightly confident that DP World are headed in the right direction. Emissions and energy use are core operating Key. Performance Indicators (KPIs), occupying equal status to more traditional metrics like productivity and revenue.
And the company takes its corporate citizenship seriously. Even before beginning operations at Posorja, Ecuador, DP World employees have been reforesting acres of mangrove – a vital ecosystem and blue carbon sink capable of absorbing more carbon per unit than terrestrial forests.
Of this project, and the San Antonio switch to renewable energy, Doiron says, “There are projects like these throughout DP World’s network. They’re not only aligned with our corporate sustainability goals but really demonstrate meaningful impact.”
There is a lot of ground still to cover. But it’s this kind of commitment to real-world change that will ultimately solve shipping and logistics’ carbon problem.
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