**Global**: DP World is investing €200 million in advanced technology to optimise its automotive supply chain, focusing on reducing costs and emissions. The initiative aims for quicker operations and lower carbon footprints, highlighting digital solutions and innovations like hybrid carriers and electric vehicles as integral to its strategy.
In response to the increasing demands for transparency and efficiency within the automotive supply chain, DP World is enhancing its operations with advanced digital technology aimed at reducing costs and emissions. Speaking to Automotive Logistics, Kai Olschner, global vice-president of Supply Chain Engineering at DP World, highlighted the necessity for quicker, cleaner, and more resilient supply chain processes that effectively address dwell times and disruptions.
DP World is strategically investing €200 million (approximately $209.5 million) in its Antwerp Gateway terminal, focusing on minimising its carbon footprint through the implementation of hybrid straddle carriers and more efficient stacking cranes. This initiative is part of a broader strategy to analyse and optimise operations that could yield significant cost savings while also enhancing environmental sustainability commitments.
To improve overall efficiency, the company is working towards reducing dwell times at terminals and warehouses while also shortening transport distances. The introduction of digital tools is proving pivotal in streamlining the movement of containers between various operational zones within ports, thereby decreasing both time and resource waste. The operational statistics are noteworthy, considering 12.5% of global trade is facilitated through DP World’s terminals, making the potential savings particularly significant.
Another aspect of DP World’s commitment to sustainability is showcased through its Unifeeder marine services division, which aims to lower greenhouse gas emissions by 47% by 2030. This goal will be achieved through logistics optimisation, digital solutions, fuel consumption reduction measures on board, and the utilisation of renewable fuels along with advanced, fuel-efficient vessels.
Investment in predictive digital tools is central to their strategy, enabling accurate forecasting of speed and energy use while facilitating the transition to cleaner alternative fuels. “The availability of the fuel and its cost depend on predictive solutions, especially for vessels that consume large amounts of fuel,” Olschner explained.
Further demonstrating its commitment to reducing carbon emissions, DP World is increasing the use of electric vehicles in terminal operations and incentivising the shift of freight from trucks to rail. Their Cargoes TOS+ terminal operating system provides enhanced visibility of the cargo, allowing real-time tracking and management which streamlines operations across the company’s network.
A notable investment is also being made into the Boxbay system at Jebel Ali port, which offers an automatic high storage and retrieval solution for containers. This innovative technology is designed to handle heavy metal products and significantly enhance operational speed, energy efficiency, and safety, while also leading to a marked reduction in overall operating costs.
The efficiency improvements brought about by the Cargoes TOS+ system can be seen across various DP World facilities, such as the container and vehicle terminals in Batangas, Philippines, as well as at multipurpose terminals in Angola and Limassol, where efficiency gains of 20% have been recorded. Such advancements not only affect warehouse logistics but also extend to productivity and cost-cutting measures.
In terms of addressing potential supply chain disruptions, DP World utilises digital tools that enable quicker connectivity of data. This capability allows for enhanced network transparency and the establishment of flexible intermodal services which facilitate the effective navigation of alternative trade lanes. The ongoing geopolitical tensions and natural disasters, which have previously caused significant disruptions to global trade, necessitate a more robust approach to supply chain management.
As the automotive industry increasingly relies on precise supply chain operations, the prospect of longer lead times due to modal shifts raises questions regarding carbon reduction without incurring additional costs. With thorough planning, DP World suggests that longer intermodal lead times can contribute to decreased carbon footprints while still ensuring that delivery windows remain reliable.
DP World’s focus on establishing new trade routes and delivering innovative solutions is indicative of the changing landscape in supply chain management. The shift away from purely cost-based strategies towards sustainable alternatives illustrates the industry’s evolving priorities, with a continuing emphasis on reliability and sustainability for competitive advantage.
Source: Noah Wire Services
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