Recent geopolitical and climate-driven events such as droughts, conflicts, and the Francis Scott Key Bridge collapse in Baltimore have highlighted the fragility and vulnerabilities of global supply chains.

It's essential to prioritise collaboration and innovation to counter disruption and effectively integrate long-term sustainability and resilience into supply chains.

The urgent need for sustainable infrastructure

On average, a climate event causing a billion dollars worth of disruption occurs every three weeks. An example of this is the water shortages in the Panama Canal. According to the Trade in Transition 2024 report commissioned by DP World and published by Economist Impact, 99% of surveyed executives stated that climate change affects their supply chains.

In the face of the escalating climate crisis and environmental degradation, the global logistics sector is at a critical juncture. Sustainable and resilient infrastructure is no longer a distant aspiration but an urgent necessity, with efficient logistics networks playing a pivotal role in realising net zero emission targets aligned to the Paris Agreement and other climate accords.

Leveraging multimodal transportation

A multimodal approach is essential to improving logistics sustainability. By integrating rail, road, sea, and air transport, we can optimise routes, lower emissions, and reduce congestion. For instance, the modal shift program at our logistics hub in Southampton, UK, has already contributed to a savings of 4,500 tonnes of CO2 emissions—equivalent to 13,500 fewer lorry journeys—by promoting the use of rail instead of road transport.

Regulators are adopting more initiatives that support multimodal transport activity. The European Union’s Green Deal significantly focuses on shifting freight from road to rail and waterways to reduce emissions. At the same time, in 2021, the Government of India launched its National Master Plan for Multi-Modal Connectivity. However, the lack of incentives to promote investment in this sector and fragmented funding streams make it challenging to integrate resources effectively and build the infrastructure to support this regulation.

Decarbonisation of transport and ports

With 90% of the world’s cargo being transported by shipping, it's crucial to identify and implement suitable alternative fuels and sustainable infrastructure to achieve a net-zero future. The International Maritime Organisation’s (IMO) Strategy to eliminate Greenhouse Gas (GHG) emissions from ships by 2050 is a significant regulatory step forward in accelerating the transition to low-carbon technologies and galvanising industry action. To meet these goals, our port in Antwerp, Belgium, is powered by 100% local green energy, and our feedering business, Unifeeder, is introducing container feeder vessels capable of using methanol.

Despite these recent advancements, the industry is facing obstacles such as legal and regulatory uncertainty, which restricts investment. Additionally, there is a lack of bunkering facilities and fuel procurement for clean energy vessels. Collaboration like ours with the Mærsk McKinney Møller Center for Zero Carbon Shipping is crucial for innovating towards carbon reduction and alternative fuels. However, immediate tangible solutions are still needed, along with long-term innovation, such as adapting and building infrastructure to enable the widespread implementation of zero and low-carbon-powered solutions.

Incentivising public-private collaboration

The freight transport industry requires collaboration and partnership to achieve a net zero future. However, it should not bear the costs alone. Government support is vital for providing subsidies and financial incentives to promote the decarbonisation and electrification of publicly owned infrastructure.

For example, the Canadian government's Low Carbon Economy Challenge Fund has assisted Vancouver and Prince Rupert ports in installing shore power infrastructure. This infrastructure allows ships at the port to connect directly to renewable electricity via the national grid, reducing nearly 30,000 tonnes of carbon emissions annually.

The EU regulation mandating shore power installation by 2030 is a similar step forward, provided the necessary financial resources accompany it. The Port of Hamburg's shore power installation—partly funded by a 50% contribution from the German government— is a brilliant example of this partnership that needs to be replicated across the region.

This also applies to implementing multimodal strategies, which must be prioritised over short-term economic gains. The level of European road investment demonstrates this challenge, with spending totalling €1.5 trillion between 1995 and 2020, compared to only €930 billion on rail—despite the transport option accounting for only 0.4 per cent of regional emissions. As an industry, we must encourage port authorities to view concessions with longevity in mind.

Developing and implementing effective decarbonisation strategies isn’t cheap; building the necessary power grid and transmission systems often exceeds the financial capacity of individual port operators. Longer government commitments enable more comprehensive planning and execution to develop the partnerships that make this investment financially viable.

The public and private sectors must work together to create policies that emphasise and incentivise sustainability and long-term resilience. At DP World, we remain optimistic. Despite the challenges, we are confident that we can work with others to build a robust, resilient and sustainable global transport infrastructure that meets the needs of today and the future.