PSA, PIL test low-carbon end-to-end shipment

PSA Singapore (PSA) and Pacific International Lines (PIL) have completed their first experiment of low-carbon green cargo to create a sustainable supply chain ecosystem.

This pilot study is part of a Memorandum of Understanding (MoU) inked in October 2023 by the two long-term partners to work together on green and sustainable supply chain decarbonisation solutions.

The experiment involves warehouse-to-warehouse goods movement from Singapore to Chongqing via the International Land-Sea Trade Corridor.

The containers, intended for Mitsui Chemicals Asia Pacific, Ltd’s beneficial cargo owner, were conveyed by PIL’s vessel Kota Ratna and PSA’s coastal terminal and rail nodes in Singapore, Qinzhou, and Chongqing.

Green levers used in this project include the usage of biofuel aboard the PIL vessel Kota Ratna, as well as PSA’s landside supply chain optimisation.

The biofuel used in this research, a combination of 24 per cent used cooking oil and extremely low sulphur fuel oil, alleviated almost 100 tonnes of carbon, the equivalent of growing 4000 trees, and lowered GHG emissions by 84.1 per cent.

PIL stated that with the first-hand data on carbon emissions from this pilot trial, the company will be better equipped to assess how it can further reduce emissions from vessel operations. This includes not only its existing ships but also its eight new LNG dual-fuel container vessels, which will be delivered in stages beginning in late 2024.

PSA Port Ecosystem Business Division used container barging, a greener means of transportation than trucking, to transfer cargo from PSA Jurong Island Terminal to Pasir Panjang Terminal for further export to Chongqing.

Furthermore, the adoption of electric container handling equipment and cleaner alternative fuels at PSA’s ports lowered port-related emissions.

Philbert Chua, Managing Director, Container Division, PSA Corporation Ltd, said: “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.”

Abhishek Chawla, Chief Marine Officer, PIL, stated: “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.”

In March, the PSA Group announced an 11.2 per cent decline in revenue due to challenging market conditions and decreased trade demand.