DP World backs decarbonization of Canada’s freight-transportation sector

July 26, 2024, by Aida Čučuk

UAE-based logistics giant DP World has joined the Net Zero Supply Chain (NZSC) Initiative, a collaborative effort dedicated to advancing the decarbonization of Canada’s freight-transportation supply chains.

Illustration only; Archive; Courtesy of DP World

Launched earlier in 2024, by GLOBE Series, Delphi and 7GEN, this initiative seeks to transform Canada’s freight-transportation sector by uniting retail and transportation leaders to design and deliver Canada’s first net-zero supply chain pilot.

The primary objectives are to increase efficiency and reduce the carbon emissions associated with transporting goods across Canadian urban centres, to develop a quantifiable case study that will accelerate the commercial adoption of decarbonization technologies through a practical, data-driven pilot and to unlock long-term cost savings while improving air quality and community health.

Carol-Ann Brown, President of Delphi, commented: “The Initiative’s focus on the movement of freight and goods from port terminals to retail stores offers a comprehensive systems approach to decarbonization. The result will be a scalable, replicable roadmap that other organizations can adopt, helping accelerate the transition to net-zero logistics.”

DP World said that the initiative’s objectives align with its corporate sustainability strategy “Our World, Our Future” which outlines the company’s approach to decarbonization through the electrification of its ports and terminals equipment, investment in renewable energy and research and development projects investigating alternative fuels, vessels and vehicles across its portfolio.

Doug Smith, CEO of DP World in Canada, noted: “DP World is honoured to participate in the Net Zero Supply Chain Initiative. This collaboration is a significant step towards our goal of achieving net-zero logistics and underscores our commitment to pioneering sustainable practices in the freight-transportation sector. By working together with key partners, we are not only reducing our carbon footprint but also setting a replicable standard for the industry.”

The NZSC Initiative is being staged in three phases:

Phase 1 identified common objectives and target goals. The partners established the goal of transporting a shipment from the Port of Vancouver to a retail store within a 100-kilometer radius using net-zero technologies, DP World said, adding that insights gained from this initial local project are being applied to develop a cross-Canada net-zero transportation pilot project.

Phase 2, currently underway, is focused on scoping the local project, including identifying the local freight transportation route and key equipment for testing and determining decarbonization strategies for each component of the local freight supply chain. According to DP World, this phase, which is expected to conclude this summer, will calculate the potential reductions in emissions and air pollutants and will culminate in the development of a decarbonization roadmap.

Phase 3 will focus on implementing the local net-zero pilot project. DP World noted that insights gained from Phase 3 will be used to expand the pilot to include shipments from the West Coast to Eastern Canada. The company also revealed that this phase will concentrate on identifying key barriers to net-zero technology implementation and enabling the co-creation of data governance and change management frameworks to accelerate adoption. Phase 3 is expected to commence by September 2024.

To remind, in 2024, DP World signed a partnership agreement with Abu Dhabi Future Energy Company (Masdar) to explore and implement renewable energy systems across DP World’s global port operations in the Middle East and Africa. Furthermore, the company removed fossil diesel from its operations at London Gateway, UK.

DP World wants to drive the energy transition and promote environmental stewardship while ensuring continued trade flow worldwide. It seeks to become carbon-neutral by 2040 and net-zero carbon by 2050.

As part of the decarbonization agenda, the company raised $1.5 billion through a Green Sukuk, an Islamic financial instrument representing ownership and profit-sharing in asset-backed, Sharia-compliant investments. The logistics giant also joined the First Movers Coalition (FMC), setting a target of 5% of its marine power to come from hybrid engines and zero-emission fuels by 2030.