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PSA and PIL complete first low-carbon shipment trial

PSA Singapore and Pacific International Lines (PIL) have successfully completed their inaugural trial of low-carbon green shipments, aiming to create a more sustainable end-to-end supply chain ecosystem.

This pilot trial stems from a Memorandum of Understanding signed in October last year between the two long-time partners, focusing on green and sustainability solutions to decarbonize supply chains. The trial involved the transportation of cargo from warehouse to warehouse, from Singapore to Chongqing, via the International Land-Sea Trade Corridor.

Containers destined for Mitsui Chemicals Asia Pacific's beneficial cargo owner were shipped using PIL’s vessel Kota Ratna and PSA’s coastal terminal and rail nodes in Singapore, Qinzhou, and Chongqing.

“The successful completion of this green pilot project with PIL is an important step forward for the maritime and supply chain sector. Combating climate change is one of our urgent priorities and PSA is committed to work with like-minded partners to put these words into action. This concerted teamwork illustrates a step-by-step measurable approach to further decarbonise supply chains and has unlocked opportunities for accelerated action to achieve our net zero goal,” stated Philbert Chua, managing director of the Container Division at PSA Corporation.

Key green strategies in this pilot included the use of biofuel on the PIL vessel Kota Ratna and landside supply chain optimization by PSA.

The biofuel blend, consisting of 24% used cooking oil mixed with very low sulphur fuel oil, reduced approximately 100 tonnes of carbon emissions—equivalent to planting 4,000 trees—and decreased greenhouse gas (GHG) emissions by 84.1%.

Using the carbon emissions data from this trial, PIL will be able to better evaluate how to further reduce emissions from its vessel operations, not only for its current fleet but also for its eight new LNG dual-fuel container vessels expected to be delivered from the end of 2024.

The PSA Port Ecosystem Business Division employed container barging—a greener alternative to trucking—to transport cargo from PSA Jurong Island Terminal to Pasir Panjang Terminal for onward shipment to Chongqing. Additionally, the use of electric and alternative fuel-powered container handling equipment at PSA’s ports helped lower emissions in the port area.

Overall, the collaborative efforts by both partners across the supply chain resulted in the equivalent of planting one tree for every laden container moved.

"PIL is pleased to receive promising results from this low-carbon green shipments pilot trial with PSA. With sustainability at the core of PIL’s operations, we are happy to join forces with PSA as we take concrete action to drive a sustainable future. The valuable insights obtained from this trial will empower PIL to further reduce our vessel emissions in the future, as part of our goal of achieving net zero by 2050. Working hand in hand with like-minded partners, we can augment each other's sustainability efforts in creating greener shipping and providing a sustainable net zero model to our customers soon,” commented Abhishek Chawla, chief marine officer of PIL.

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