Operating in the port operation and logistics sector, a cornerstone of the economy, Gemadept is deeply aware of its corporate responsibility to the community. It has emerged as a pioneer in implementing proactive, practical, and effective measures to reduce greenhouse gas emissions.
Efforts to Reduce Direct and Indirect Emissions
Energy transition is a big challenge for all businesses, especially port operators, because the cost of replacing previous diesel equipment with modern electric equipment requires high capital investment. Gemadept has proactively welcomed this trend by prioritizing investment in environmentally friendly electric port operating equipment right from the early stages. At Nam Dinh Vu port and Gemalink deep-water port, typically 95% of the equipment is powered by electricity, helping to significantly reduce direct emissions (Scope 1), and mainly generate indirect emissions (Scope 2).
In addition to its investment in electric equipment, Gemadept constantly improves operating processes at port systems and distribution centers, significantly contributing to reducing emissions and saving energy. Through optimized yard planning, increased productivity, and shortened loading and unloading times for ships and barges, Gemadept has significantly reduced travel time and fuel consumption. Notably, the application of information technology in management and operation, typified by smart port software – SmartPort and SmartGate, optimizes operations and minimizes environmental impact.
Gemadept not only focuses on reducing direct emissions from production and business activities but also focuses on reducing indirect emissions through the use of green energy and developing smart power systems.
Furthermore, leveraging available natural resources, the Company proactively produces green energy with rooftop solar power systems at its business establishments, notably the SCSC Air Cargo Terminal in Ho Chi Minh City and Mekong Logistics cold storage in Hau Giang. In 2023, these two facilities produced 3.5 million kWh of electricity, meeting 30-40% of each business’s electricity needs.
Promoting inland waterway transportation and sustainable initiatives
Taking advantage of the extensive river system in Southern Vietnam, Gemadept is actively researching and developing a model inland waterway transportation route from Cai Mep to the Mekong Delta, expected to go into trial operation in 2024. This new transportation route will not only shorten transportation time and reduce logistics costs by 50-60% compared to the current waterway route, but also contribute to reducing greenhouse gas emissions compared to road transportation.
In addition, the Company continues to implement other green projects such as the initiative to replant mangrove forests in the Mekong Delta with a target of 50 hectares of forest; applying information technology to management and operation to optimize operational efficiency and minimize environmental impact.
Leading the Way in Sustainable Development
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Sustainable development is an inevitable trend in every industry, and pioneering businesses will have a competitive advantage. Recognizing this trend early on, Gemadept has proactively conducted greenhouse gas emission inventories in accordance with the international standard ISO 14064-1 at ports across the Company’s ecosystem from North to South, creating a solid scientific foundation for the implementation of greenhouse gas reduction measures, gradually realizing the sustainable development strategy.
A prime example is Dung Quat Port, the first port in the Gemadept port system to achieve the Green Port TCCS 02:2022 CHHVN standard of the Vietnam Maritime Authority. Gemadept has plans to further expand this green port model to other major ports of the Company, such as Nam Dinh Vu and Gemalink, in the upcoming period.
Going beyond these efforts, the Company has been researching and implementing a variety of flexible and innovative emission reduction measures, such as replacing high-sulfur DO fuel with low-sulfur DO fuel for port vehicles, using shuttle buses to transport employees to reduce the use of private vehicles, increasing green spaces in port yards and offices, and so on. At the same time, the Company is collaborating with investment funds, banks, credit institutions, associations, government agencies, consulting organizations, and training institutions to promote sustainable action.
With continuous efforts, Gemadept is taking concrete and practical steps towards achieving its goal of becoming “Greener – More Sustainable”, contributing to the implementation the Vietnamese Government’s commitment to the world regarding environmental protection and climate change response.
