The ports and shipping sector plays an essential role in the country’s economy and is one of the most energy-efficient modes of transport. However, it is also a significant and growing source of greenhouse gas (GHG) emissions, with carbon emissions from port activities and maritime transport amounting to approximately 5 million tonnes. In recent years, there has been a notable shift towards privatisation in the maritime sector, despite the regulatory and operational challenges it entails. DP World, a prominent player in this space, stands as a global leader in delivering smart and end-to-end supply chain solutions. It has a port terminal capacity of 92 million twenty-foot equivalent units (TEUs), with over 10 per cent of global trade moving through its extensive network. At a recent Indian Infrastructure conference, Alok Mishra, Chief Executive Officer, DP World Mundra, shared his views on sustainability initiatives, solutions and practices being adopted at ports, port electrification, use of renewable energy and the outlook for the sector.
Integrated network
DP World provides integrated logistics solutions that connect India with the rest of the world. It currently operates six container port terminals, with one terminal under development. There are two terminals at Nhava Sheva port – Nhava Sheva International Container Terminal (NSICT) and Nhava Sheva (India) Gateway Terminal (NSIGT) – with an annual capacity of 2.6 million TEUs and a maximum draught of 15.5 metres. The third container terminal in Mundra has an annual capacity of 1.4 million TEUs and a maximum draught of 15.5 metres. It has three dedicated rail freight corridors and provides integrated logistics services, including single-window solutions. Another container terminal in Cochin, with an annual capacity of 1 million TEUs and a maximum draught of 14.5 metres, has a free trade warehousing zone called the DP World Cochin Economic Zone. It has two dedicated freight corridors. Lastly, the Chennai container terminal has an annual capacity of 1.2 million TEUs and a maximum draught of 15.5 metres. The company has signed a concession agreement with the Deendayal Port Authority to develop, operate and maintain the new 2.19 million TEUs per annum mega container terminal at Kandla in Gujarat. It is being designed to align with the green port (Harit Sagar) guidelines. With the addition of Tuna Tekra, DP World will have a combined capacity of 8.19 million TEUs.
DP World also operates five container freight stations, eight inland rail terminals, 90 container and special freight train rakes, three free trade zones, and over 100 express cargo centres, and has more than 5 million square feet of warehouse space. It is the only operator present at three major ports in the country, with a 25 per cent export-import market share.
Sustainable initiatives
DP World’s decarbonisation strategy is based on five key pillars – equipment electrification and efficiency, process efficiency and digitalisation, renewable energy supply, low-carbon fuel supply, and carbon compensation. By integrating green energy, the company is significantly reducing its carbon footprint, in line with the government’s Maritime India Vision 2030.
DP World has committed to reducing Scope 1 and 2 GHG emissions by 42 per cent by 2030 from the base year of 2022. It has also committed to reducing Scope 3 emissions by 28 per cent within the same timeframe. These targets have been validated by the Science Based Targets Initiative. Further, the company has committed to reach net zero GHG emissions across the value chain by 2050, by reducing Scope 1, 2 and 3 GHG emissions by at least 90 per cent from the 2022 base year. These would require investments in technology, implementation of responsible business practices and collaboration with the right partners in the value chain. Moreover, the company’s commitments are aligned with the United Nations’ Sustainable Development Goals.
DP World has implemented open access green power sourcing at its Nhava Sheva terminals (NSIGT and NSICT), replacing around 75 per cent of conventional electricity consumption with green power, resulting in a 46 per cent reduction in carbon emissions. The company has also introduced electric forklifts, which help in improving air quality by removing exhaust fumes from indoor environments. These electric forklifts are equipped with powerful motors, designed for a wide range of material handling tasks, and advanced safety features to ensure the secure handling of heavy loads.
“DP World has committed to reducing Scope 1 and 2 GHG emissions by 42 percent by 2030 from a base year of 2022.”
Other sustainability initiatives include the procurement of electric light motor vehicles to support the day-to-day operations at ports, the deployment of electric rubber-tyred gantry at all Indian ports, and the installation of electrical material handling equipment at various locations. DP World has also launched a first-of-its-kind rail freight initiative called “Sustainable, Assured, Reliable and Agile Logistics” (SARAL) rail, enabling around 70 per cent reduction in carbon dioxide emissions compared to road transportation. The first SARAL service connects Hazira in south Gujarat to the National Capital Region (NCR). Furthermore, the SARAL-2 service connects Chennai to NCR and the SARAL-3 service connects Gandhidham in Gujarat to NCR.
A carbon emissions calculator has been introduced to support environmentally conscious decision-making in freight management. This tool offers accurate estimates of GHG emissions for individual logistics shipments across multiple modes, enabling decision-makers to compare, book and manage their shipments effectively. It has received accreditation from the Smart Freight Centre, marking a significant advancement in efficient and sustainable shipping practices.
DP World has initiated an experimental study to assess the impact of reducing the storage and transportation temperature of frozen food globally from -18°C to -15°C. It will collaborate with industry partners to conduct research, design and implement pilot programmes, and gather the necessary data to identify opportunities for altering the temperature at which frozen food is stored and transported. If successful, this temperature reduction could lead to a reduction of 17.7 million metric tonnes of carbon dioxide annually, equivalent to the yearly emissions of 3.8 million cars. Additionally, it could result in energy savings of around 25 TWh and a reduction in supply chain costs of at least 5 per cent, with some areas potentially achieving cost reductions of up to 12 per cent.
Notable collaborations
DP World has been actively engaged in fostering collaboration and establishing partnerships to drive impactful climate change. For instance, it has partnered with Maersk Mc-Kinney Moller for zero carbon shipping through the establishment of the Zero Emission Port Alliance, an industry-wide strategic coalition aimed at accelerating the transition to zero emissions for container handling equipment at ports. More recently, DP World signed an MoU with Indian green hydrogen and ammonia producer AM Green to develop a sustainable supply chain for green fuels and chemicals. This collaboration encompasses the creation of strategic terminals infrastructure across the European Union, the Far East and the UAE to support a zero carbon supply chain; the development of bunkering infrastructure for green ammonia and methanol sourced from AM Green plants in Dubai, India and Southeast Asia; and the enhancement of port infrastructure within AM Green’s net zero industrial clusters to facilitate international exports.
The way ahead
Going forward, it is crucial for green port infrastructure to be environmentally friendly, which requires comprehensive environmental impact assessments for both port projects and development plans. Additionally, the adoption of carbon-neutral and environmentally friendly technologies is required for operational activities. To ensure sustainable operations, the integration of green energy sources for daily activities should be prioritised. Furthermore, there is a need for continued research and development in green fuels, including liquefied natural gas, ammonia, hydrogen and other sustainable alternatives. The ultimate goal is to achieve zero waste discharge from port operations, fostering a more sustainable and resilient port ecosystem.
“To ensure sustainable operations, the integration of green energy sources for daily activities should be prioritised.”
