DP World is aiming to extend its fleet of trucks powered by alternative fuels from the current total of 263 to 550 by the end of the year.
It will amount to just under 10% of its entire sub-Saharan Africa (SSA) road freight fleet of 6 300 vehicles.
Considering that 4 500 of the Emirati company’s total fleet is operated in South Africa, the lion’s share of the logistics multinational’s ramped-up decarbonisation efforts in the sector is expected to be in South Africa.
Mathys Enslin, who heads up Contract Logistics and 4PL for DP World in sub-Saharan Africa, speaking at the release of a socio-economic impact assessment (SEIA) report last week, said that a global level the company remained on track to achieve a 42% reduction in carbon emissions by 2030.
“It remains a major focus for us. With a large fleet like ours, the environmental and financial impact and fuel efficiency are always important.”
He said a large part of improving fuel economy and environmental impact reduction strategies was enabled by investing in telematics and using data dashboards, “pointing us in the right direction where we could get some quick wins”.
In 2021 and 2022, for example, DP World recorded a 5% year-on-year increase in fuel efficiency, Enslin said.
Driver training in fuel consumption to improve truck efficiency and productivity formed part of this process, he added.
Continued alternative fuel strategies include the reintroduction of gas-powered vehicles, something which the company had already tried out.
For a large-scale service provider like DP World, he said it was important to be pragmatic.
“We’ve tested many alternative fuels. It’s always a question of which one is the best to use, and we’ve tried all of them. Our holistic approach is to use the best alternative energies for different situations in different countries and applications.”
Esha Mansingh, who is DP World’s SSA head of corporate affairs and sustainability, said it must be kept in mind that there is an African context to decarbonisation.
Ambitious emission-reduction targets must be balanced against infrastructural challenges, various alternative fuel options, and the necessary role public-private partnerships have to play in sustainable value creation.
“We can’t do this alone at DP World. Infrastructural development is important. We don’t have sufficient rail networks serving any of our markets. It means we have to continue moving goods by road. This is where all of us can play a part. We could do more with partners.”
In the meantime, the port’s service provider from the UAE continues to do what it can to decarbonise its entire business, including the road freight fleet it secured through its 2022 acquisition of Imperial Logistics.
“We have tested many PBS (performance-based systems) and other solutions,” Enslin said, “including electric vehicles and dual fuels where you use diesel and gas in the same vehicle.
“Liquid natural gas is also on the cards for implementation of proof of concept, and we have signed a memorandum of understanding with Sasol (for alternative fuel use).”
Enslin said given the significant cost of energy in DP World’s road freight operations, alternative fuels and fuel efficiency “will always be part of our focus”.
He said it was important “to optimise the supply chain so that you don’t just get the best from services and costs of delivery, but also by reducing emissions”.
The SEIA report, conducted on behalf of DP World by Accenture, found that the multinational had saved more than R11.3 million in the South African market through the use of renewable energy and recycled water.
It generated 4 911 megawatts of power through rooftop solar systems in 2023.
