Future-Proof Technologies Conference 2024 White Papers

Introduction

Welcome to the Future-Proof Technologies Conference. This brochure provides you with everything you’ll need for the day, with an agenda, an insight into what to expect and three exclusive papers on three key themes in the contemporary supply chain.

The aim of this conference is simple – to aid you in being agile, resilient and sustainable in order to achieve your future goals and see your organisation go from success to success.

In helping you do this, we have a day of interactive sessions on the most important topics in transport and logistics, as well as dedicated Q&A sessions with some of the leading voices from around the world with regard to the supply chain.

Of course, you’ll be able to ask any questions you like during the allocated time in each session, and we’ll ensure we make every effort to get your question to our experts in real-time.

If you’d prefer to use digital means, please pay attention to our conference host and industry guru Lars Jensen who will let you know exactly how you can get your questions read out.

Throughout the day there will be opportunities for networking, refreshments and meals on site, so sit back and enjoy the occasion.

If you need anything at any time, just ask one of our team members who will be present throughout the conference hall.

FROM THE CEO

Welcome ladies, gentlemen and VIPs to this most special event. We have worked very hard behind the scenes on this conference as we’re striving to foster a sanctuary for true thought-leadership to grow to take your business to the next level.

We believe that this is done most effectively via a strategy of ‘future-proofing’ your business. Why? Because tomorrow is unpredictable and those that can weather coming storms effectively are those that will outlast the competition.

This means we must be aware of technological developments, sustainability demands, social and cultural change, and of course, the ways in which the supply chain is evolving.

In focussing on this, we are creating the business strategy of tomorrow, one that is efficient, strong, agile and resilient.

On behalf of the TLME team, I thank you for being here to mark this time in history and wish you all the best for the coming year.

Sam Khan, PUBLISHER, TLME

Event Host

Industry legend and thought-leader Lars Jensen takes up hosting duties and brings with him decades of experience from within the supply chain. Holding a Ph.D. in complex mathematical analysis in physics, Jensen is the author of several leading books and trainings within the container shipping arena, having worked in developing market intelligence and analysis for Maersk Line, he now runs his own consultancy firm, Vespucci Maritime.

EDITORIAL

Editors

Sunil Thakur, Baibhav Mishra

Head of Editorial

Richard Joy

Head of Digital

Juzer Karbalai

COMMERCIAL

Publisher & CEO

Sam Khan

Chairman

Joe Beydoun

Managing Director

James Ali Khan

08:00 – 09:00

REGISTRATION

AGENDA

9:00 – 9:15

INTRODUCTION

After registration, proceedings begin with a short introductory speech from the host that outlines the vision of the conference ahead. The host will also explain how attendees can take part via digital interactive tools and in-person engagement.

EVENT HOST:

LARS JENSEN, CEO, VESPUCCI MARITIME

Industry legend and thought-leader Lars Jensen takes up hosting duties and brings with him decades of experience from within the supply chain. Holding a Ph.D. in complex mathematical analysis in physics, Jensen is the author of several leading books and trainings within the container shipping arena, having worked in developing market intelligence and analysis for Maersk Line, he now runs his own consultancy firm Vespucci Maritime.

9:15 – 9:30

KEY-NOTE SPEECH

ANDRE SIMHA, GLOBAL CHIEF DIGITAL & INNOVATION OFFICER, MSC

To begin the conference, we begin with a 15-minute keynote speech on the topic of ‘Future Proof Technologies’ from Andre Simha of the world’s largest shipping line MSC.

9:30 – 10:00

Q&A: LARS JENSEN with ANDRE SIMHA

In this short Q&A we take maximal advantage of a major name from the shipping sector being in our presence by facilitating the space for a Q&A with our esteemed host Lars Jensen. Expect high-level insight on the state of play on the supply chain, and how to prepare for the future.

10:00 – 10:15

10:15 – 11:15

SESSION 1

THE PRESENT & THE FUTURE

In this opening session we will set the proverbial table and offer an insight into the state-of-play in the sector. Discussing themes such as China+1 and the diversification of the supply chain, the growth of India and geopolitical considerations, we explore the new landscape in which the supply chain functions. Other key considerations will be the development of automation, technology, and new working practices in the supply chain. Beginning in ports and terminals, we will spread out to the wider chain, exploring the yard, logistics centres and airports, to offer a holistic vision of how the sector can collaborate via new technologies.

Key areas covered:

• Geopolitics

• Future Proofing

• Automation

• Sustainability

• Integrated Logistics

• Cluster Ports

• Logistics

• Safety

• Smart Operations

• Planning & Strategy

11:30 – 12:30

SESSION 2

Speakers:

• Lars Jensen, Vespucci Maritime

• Dr Jonathan Beard Partner, Infrastructure Advisory - Strategy & Transactions, EY

• Eric Lund, SVP, Logistics Solutions Nexxiot

• Andre Simha, Global Chief Digital & Innovation Officer, MSC

• Ronald Philip, Senior Director – Strategic Planning, Agility Logistics Parks

• Mary Oxley, Vice President Sales & Marketing, DHL Global Forwarding Middle East & Africa

FUTURE-PROOFING YOUR SUPPLY CHAIN

The second session of the day looks into the journey of a container with the terminal acting as the key node in understanding the workings of the modern chain. By understanding the journey of a container, we seek to find the optimal ways to revolutionise how we work.

As well as offering an insight into cutting-edge technologies, the session also covers the most important element of such tools – how we actually use them for maximum benefit.

By learning from the experts and those on the ground who’ve found success already, as well as those who are making forward plans, attendees can walk away with a clear roadmap on how to ‘future proof’ a business.

Key areas covered:

• Air & Sea Cargo

• Global Trade

• Remote Control Tower

• Robotization

• Automated Quay Cranes

• Automated Stacking Cranes

• Ports

• Shipping

• Logistics

• e-Commerce Fulfilment and Last-Mile

• Terminal Optimization Software

• Sustainable Operations

Speakers:

• Lars Jensen, Vespucci Maritime

• Dr Yvo Saanen, MD, Portwise

• Fadi Amoudi, CEO IQ Robotics

• Olivier Laurent, Regional Head of Business Development, DHL Global ForwardingMiddle East & Africa

12:30 – 13:45

LUNCH BREAK

Lunch provides a first-class three course meal and time to refresh, relax and interact with other attendees.

13:45 – 14:00

KEY-NOTE SPEECH

DR MATTHIAS DOBNER, CEO, BOXBAY

BOXBAY has made major waves in the container terminal sector of late promising a revolutionary new design that could change terminal operations forever. In this exclusive keynote, the CEO of BOXBAY lays out the futuristic vision.

14:00 – 14:30

Q&A: WORLD EXCLUSIVE LARS JENSEN & DR MATTHIAS DOBNER

After the keynote, event host Lars Jensen will ask the tough questions regarding BOXBAY and its implementation, as well as open the conversation out to the floor so you can ask whatever question you like on the revolutionary new design. Additional Speakers

• Patrick Bol Global Vice President Port Expansion & Special Projects

DP World

14:30 – 15:15

Q&A: LARS JENSEN WITH DR YVO SAANEN, MD, PORTWISE

Dr Yvo Saanen is a world-renowned ports and terminals expert with decades of experience in aiding operations worldwide. Dr Saanen is the Managing Director of Portwise, a leading terminal design and simulation company based in The Netherlands. Dr Saanen is in charge of all port terminal related projects all over the world in their planning and optimization process of container terminals by means of simulation and emulation.

*Extra time is given in this session to field questions from the floor

15:15 – 15:30

BREAK

15:45 – 16:15

SESSION 5 KEY TAKEAWAYS – AN INDUSTRY ROUNDTABLE

The final session will see a range of experts and industry leaders take to the stage to have one last roundtable that explores the key topics of the conference and how the key themes fit together. It’ll be an opportunity to ask your key questions and to leave the conference with key steps to follow to future proof your business.

Key areas covered:

• All of the aforementioned

Speakers:

• All aforementioned speakers welcomed.

16:15 – 17:00

CLOSING SPEECH

A short closing speech for the end of day one that summarises key takeaways and thanks key people, as well as the audience in-person and online.

MAXIMIZING CAPACITY AN OPTIMIZED APPROACH TO AGV OPERATIONS

Automatic guided vehicles (AGVs) are a proven automated transport system for container terminals. Since the introduction in 1993 at ECT in the Port of Rotterdam, AGVs have been used at more than 10 sites across the world. At this time, AGVs are there with the most successful automated transport system in container terminals. AGVs are reliable and can support high Quay Crane (QC) productivities. In addition, battery AGVs have been available since 2012, supporting zero-emission terminals. Overall, AGVs are a solid and proven solution for terminal automation. However, an AGV operation requires significant space on the apron, especially compared to existing terminals with manned vehicles. As terminals are often space constrained, any space that can be saved on the apron directly translates into

additional yard capacity. This article describes an alternative approach for the interchange between QC and AGV at a similar footprint as for terminals with manned vehicles.

Figure 1 shows a typical crosssection of a container terminal with perpendicular (to the quay) Automated Stacking Cranes (ASC) and AGVs. Existing AGV terminals have similar apron designs, showing an apron width in the range of 120 to 130 metres, measured from the landside QC rail to the first container in the yard. For safety purposes, the AGV operation is typically in the back reach of the QC, separated by a fence from the area where humans are allowed. In addition, most sites use double trolley QCs, i.e. a waterside trolley that moves containers between the vessel and the twistlock platform in the QC and a second landside trolley moving containers between the twistlock

platform and AGVs.

The 125 metres wide AGV apron can be split into four areas. From left to right (Figure 1):

1. QC interchange area (7 lanes): for AGV - QC interchange and AGV bypass (to allow for AGVs to access adjacent QCs).

2. Perpendicular buffer: waiting location for AGVs before accessing QC lanes or before entering a highway.

3. AGV highways (6 lanes) for transport along the quay to/ from ASC modules in the yard.

4. ASC interchange area: for AGV – ASC interchange.

A significant part (approximately 25 metres) of the 125-metre AGV

apron is the perpendicular buffer. This buffer is a key contributor to an increased QC performance that AGV terminals can support. This buffer allows AGVs to wait close to the QC without blocking other AGV traffic, ensuring smooth traffic on the highways and a timely arrival at the QC, as well as the ability to deal with out-of-sequence arrivals. Simulations have shown that without this buffer, high QC productivities cannot be supported (due to AGVs waiting far away and traffic congestion). This is not only true for AGV terminals, but also for terminals with other types of automated horizontal transport.

To reduce the apron width at AGV terminals, an alternative approach is explored where the perpendicular buffer is not only used as buffer, but also as QC interchange lanes, i.e. eliminating the separate interchange lanes in the original AGV layout, see Figure 2. With this arrangement, the apron width can be reduced to approximately 96 metres. This does require the QC to have the capability to rotate the container. Therefore, a double trolley QC is required where the secondary trolley (the trolley between twistlock platform and AGV) can rotate the container.

Figure 3 shows the alternative approach next to the "traditional" AGV apron. The difference between the two alternatives can clearly be seen. The reduction in apron width can be directly translated into longer ASC modules with an additional length of about 4 to 5 TEU. Depending on the length of the ASC modules, this could mean an increase of about 10 – 12.5 per cent storage capacity (based on 40 TEU ASC blocks –typical block lengths vary from 30 to 50 TEU).

Another benefit of the narrow AGV apron is the operation in a dense QC cluster. Figure 3 shows a cluster with 5 QCs. In the traditional AGV layout (left), AGVs

one

of the cluster and drive to the crane when needed. To reach the last crane (5th), the AGV must pass four other QCs. This results in dense traffic. In the alternative approach, each QC is directly accessible from the highways, i.e. there is no interference with traffic for the other QCs.

Each QC has access to three dedicated interchange lanes, allowing buffering up to three AGVs per QC. If needed, more AGVs can wait in the vicinity of the QC as there are more lanes available, although without direct access to the QC. When a lane at the QC becomes available, the AGV

wait on

side

Figure 1: Typical cross section of AGV terminal with ASCs

Figure 2: Proposed cross section of ASC terminal with AGVs

Figure 3: Top view of current AGV layout (left) vs. proposed minimised AGV layout (right)

Figure 4: Zoom-in top view proposed narrow AGV layout

can drive to the interchange lane.

The grid of buffer/ interchange lanes is fixed. Figure 4 shows the arrangement under the QC, for a cluster of three QCs. Each QC always has access to three lanes in the interchange grid. In between two QCs, three to four additional lanes can be used as temporary buffer lanes if all three interchange lanes are fully occupied.

Impact on QC

To enable the proposed narrow apron, containers need to be rotated 90 degrees by the QC. Existing QCs cannot rotate containers. At first glance, this seems a serious obstacle. However, because most AGV sites use double-trolley QCs, the impact of modifying the QCs will not be that big. There is no change needed for the main hoist, i.e. the move between vessel and twistlock platform remains the same as today. The secondary trolley (moving between platform and AGV) needs additional functionality.

In essence, the secondary trolley is nothing more than an overhead bridge crane moving up and down the beams of the crane. To support the narrow AGV apron, two additional functionalities are required:

1. Rotation of the container by 90 degrees.

2. Sideways movement to reach all of the three transfer points dedicated to that quay crane.

Both functionalities are available in overhead bridge cranes today, and rotation of containers is common practice in wide-span intermodal (rail head) cranes.

Existing QCs cannot rotate containers. At first glance, this seems a serious obstacle. However, because most AGV sites use doubletrolley QCs, the impact of modifying the QCs will not be that big. There is no change needed for the main hoist

An initial conceptual design of the secondary trolley shows the feasibility of creating sufficient freedom of movement of the secondary trolley to support three interchange lanes at all times. Figure 5 shows a 3D impression of the secondary trolley. The image shows the sideways movement of the trolley, as well as the rotation.

Similar cycles times are expected in terms of performance to the existing double trolley QCs. The sideways movement and rotation can be performed during the travel movement of the second trolley, and in general, the second trolley movements to the AGV interchange lanes are shorter.

The design also has a provision for one exception interchange position. This is a parallel AGV position directly behind the 3 perpendicular interchange positions (see Figure 6 ). This position allows for the main trolley, which cannot rotate, to place a container directly onto an AGV. This could be needed in specific cases. For example, certain tank containers cannot be placed on the twistlock platform. It can also be used in case the second trolley is out of service (rather seldom), although that would result in a significant reduction of the crane’s performance.

Additional benefits

The main benefit of this concept is the reduced apron width which provides more space for container storage (more than 10 per cent). On top of that increase in storage capacity, this alternative approach provides additional benefits:

• Shorter AGV driving distances compared to traditional AGV terminals as the AGVs drive to the interchange lanes locations (with buffer capability) only.

• There is no need to drive through a traffic-dense area around a cluster QCs.

• In the traditional AGV terminal design, AGVs regularly need to make special correction moves to achieve the correct container door direction. This is not needed in the proposed approach, as containers are rotated by the second trolley of the QCs.

• Each QC has its own three interchange lanes, supporting dense QC clusters without a loss of QC performance from AGV traffic congestion.

Application of the concept

The proposed concept can be used for both greenfield and brownfield applications. All new equipment, including QCs, needs to be acquired for greenfield sites. Depending on the available space, one could choose the traditional arrangement (when space is not an issue), use the proposed arrangement to allow for at least 10 per cent more yard capacity or operate on a smaller footprint. Selecting the appropriate QCs can be part of the design process.

For brownfield sites, the choice is less straightforward. Space-wise, the same considerations apply as the greenfield sites, but - generally - one can expect space to be limited. Hence, the proposed alternative approach provides benefits. The main challenge is that the existing QCs are often single-trolley QCs that cannot rotate containers. As the existing QCs are often not “end of life”, early replacement requires significant CAPEX and is consequently undesirable. Therefore, the arrangement should also work with existing single-trolley QCs.

To support brownfield operation with the new approach, AGV interchange could take place within the gauge of the QC. The interchange lanes are now used as a perpendicular buffer (similar to the traditional AGV layout) for the purpose of waiting, staging, buffering, etc. When the QC is end of life, it can be replaced by a double trolley QC, and operations can be fully moved to back-reach operation (berth by berth) based on the proposed approach.

Concluding remarks.

Based on an initial evaluation of an alternative approach to the container interchange of between QCs and ASCs with an AGV transport system, the required apron “depth” to accommodate for AGVs can be reduced from 125m to 96m. This space reduction can be translated into more than 10% extra storage capacity. Alternatively, this space reduction may make it possible to consider implementing AGVs at existing terminals with manned vehicles.

Another outcome of the initial evaluation is that the required design modification to a double trolley QC seems technically feasible, as all required functionalities are available from intermodal rail cranes.

The following steps are recommended to further validate the concept:

• Further investigate the double trolley QC design (feasibility, loads, etc).

• Verify the operational feasibility in terms of performance and traffic through detailed simulation analyses.

• Evaluate whether the proposed concept can also work for other types of horizontal transport like automated shuttle carriers.

• Assess impact on the Terminal Operating System (TOS) and Equipment Control System (ECS).

Figure 5: 3D impression of landside trolley with sideways movement and rotation

Figure 6: Exception lane for containers that cannot be handled with the second trolley

Figure 7: In gauge operation with single trolley quay cranes

The Potential of ESG: Goals, Strategy & Results

ESG, or environment, social and governance, has become one of the major dimensions of contemporary businesses that must show they are climate and socially conscious if they want to thrive. The scope and scale of an ESG Strategy can be a daunting prospect. For modern organisations, a cogent argument can be made for starting with ESG reporting early in order to harness the advantages of continual enhancements and demonstrate to stakeholders a dedication to ESG – a most important consideration in the current corporate landscape.

Some organisations contemplate delaying their full ESG involvement until they can present complete data coverage. Yet this approach delays the chance to gain valuable insights from the early evaluations, often resulting in organisations losing critical and timely understanding of their performance that could drive substantial continuing improvements and value enhancement.

The scope of ESG?

Environmental

The "E" in ESG stands for "environmental" factors. These consider how an organisation performs as a steward of the natural environment. There are several key components under the environmental criteria:

● Greenhouse Gas Emissions: This is about a company's direct or indirect emissions and their initiatives to reduce their carbon footprint. This area has gained attention due to global climate change concerns.

● Resource Management: This involves efficient use of resources, including water and energy, minimising waste, and adopting sustainable practices in sourcing (like using recycled materials for production and packaging).

● Pollution and Waste: Organisations are assessed based on their handling of pollutants and waste, including the disposal of hazardous waste, adherence to regulations, and reduction of single-use plastics.

● Environmental Opportunities: This includes the creation of products or services that benefit the environment, such as renewable energy technologies, waste reduction technologies, and sustainable products.

● Energy Efficiency: Initiatives aimed at reducing energy consumption and improving efficiency fall under this category. Organisations can make their operations more sustainable by optimising energy use.

● Biodiversity and Habitat Protection: Organisations involved in land and water use may impact local ecosystems. Their efforts to preserve habitats and protect species are part of their environmental responsibilities.

● Climate Change Mitigation and Adaptation: This relates to how an organisation’s operations and products are contributing to mitigating climate change. It also involves an organisation’s preparedness and resilience in adapting to the effects of climate change, including understanding and planning for potential risks, such as supply chain disruptions due to extreme weather events.

● Compliance with Environmental Regulations: This involves how often an organisation has violated environmental laws and regulations and the measures they've taken to prevent future violations.

These environmental criteria help stakeholders identify how an organisation is managing environmental risks and adhering to best practices, which can influence its financial performance and reputation. Organisations with strong environmental policies may also be better positioned for future regulatory changes and increased demand for eco-friendly products or practices.

Social

The "S" in ESG stands for "social" factors, and these refer to the ways an organisation manages stakeholder relationships with its employees, suppliers, customers, and the communities where it operates. There are several key components:

● Employee Relations and Diversity: This encompasses fair labour practices, worker safety, labour relations, living wages, and diversity in the workplace. Organisations with good practices in these areas may see improved productivity and morale, and they are likely to face fewer labor disputes.

● Talent Attraction and Retention: This focuses on an organisation’s ability to attract, retain, and develop its workforce, highlighting fair recruitment practices, opportunities for professional growth, and initiatives to reduce employee turnover. It underscores the principle that sustaining a skilled, satisfied, and diverse

Organisations with strong environmental policies may also be better positioned for future regulatory changes and increased demand for eco-friendly products or practices."

workforce contributes to an organisation’s competitive advantage, operational success, and overall sustainability.

● Mental Health: This involves an organisation’s commitment to the psychological wellbeing of its employees, often through support programmes, work-life balance, and workplace policies. This commitment reflects an understanding that a healthy work environment, prioritising mental health, contributes to employee satisfaction, productivity, and, ultimately, the company's long-term sustainability and ethical standing.

● Human Rights: Organisations with international operations need to ensure they are not complicit in human rights abuses and that they uphold ethical labour practices within their supply chains.

● Community Relations: This involves how an organisation interacts with the communities in which it operates. Organisations that invest in community relations can often reduce regulatory and reputational risk.

● Customer Satisfaction: Organisations that invest in product quality, service, and integrity, such as respecting customer privacy, are likely to gain customer loyalty, which can translate into higher sales and profits.

● Data Protection and Privacy: In a digital age, organisations must ensure the privacy and security of customer data, reducing the risk of data breaches that can lead to reputation damage and financial liabilities.

● Access and Affordability: This applies particularly to organisations within health care and financial services, where ensuring access to products and services for underprivileged populations can be crucial.

● Supplier Relations: This includes the standards that an organisation sets for its suppliers. Organisations that enforce high standards for human rights and environmental stewardship can influence positive changes and reduce risks in their supply chains.

● Corporate Philanthropy: This entails an organisation’s efforts to contribute to societal causes through donations, volunteerism, and community service, reflecting its commitment to corporate social responsibility. These philanthropic activities, while bolstering the organisation’s social and ethical reputation, also indicate an investment in the community's welfare, potentially driving sustainable long-term growth and fostering positive relationships with stakeholders.

The "social” aspect of ESG emphasises an organisation’s impact and responsibility that extends not just to its immediate operations but also to society at large. It reflects the growing

recognition among investors, regulators and other stakeholders that proper management of social issues is integral to an organisation’s long-term sustainability plan, employee wellbeing, and brand reputation.

Governance

The "G" in ESG stands for "governance," which refers to the set of rules, practices, and processes by which an organisation is directed and controlled. Governance factors are crucial because they influence how an organisation makes decisions, complies with regulations, and sets and meets its internal standards. There are several key components of the governance criteria:

● Board Composition: This includes issues such as diversity within the board, the mix of skills among directors, the balance between executive and non-executive directors, and how a board is structured to avoid conflicts of interest.

● Executive Compensation: It involves the policies and practices for compensating executives, often linked to organisational performance. Investors often look for a reasonable, well-justified executive pay that aligns with the organisation’s long-term goals.

● Shareholder Rights: These rights determine how much power shareholders have over the Board of Directors, both Executive and NonExecutive, and significant decisions. Factors include voting rights, the ability to call extraordinary meetings, and other shareholder privileges.

● Audits and Internal Controls: The presence of robust internal processes to manage risk, ensure accuracy in financial reporting, and comply with laws and regulations is a key governance factor. This also involves how well the organisation responds to internal and external audit findings.

● Corporate Transparency and Reporting: This refers to the quality, detail, and honesty of a company's financial and non-financial disclosures, including how they report ESG factors.

● Conflict of Interest Management: How an organisation identifies and manages potential conflicts of interest among its leadership team, Board, and management impacts its overall governance health.

● Corporate Behaviour and Business Ethics: This encompasses the

organisation’s values, ethics, and compliance programmes - how it manages its legal, moral, and regulatory obligations, and its corporate culture.

● Regulatory Compliance: An organisation’s history of regulatory infractions, and how it manages compliance with the existing regulations in its industry, can be an indicator of governance strength or weakness.

● Risk and Crisis Management: This focuses on an organisation’s strategies to identify, assess, and mitigate risks, including environmental, social, and governance challenges, that could impact organisational stability and performance. Effective management in these areas demonstrates an organisation’s preparedness for unforeseen events, reducing potential financial, operational, and reputational damage, thereby securing investor confidence and long-term sustainability.

● Information Security and Cybersecurity: These address an organisation’s protocols to protect sensitive data from breaches, ensuring data integrity, confidentiality, and availability. These measures are crucial in safeguarding stakeholder trust, preventing substantial financial losses, and complying with regulatory

standards, thereby contributing to an organisation’s overall risk management and sustainable operational resilience.

● Customer Relationship Management: This involves an organisation’s strategies to maintain ethical interactions, satisfaction, and longterm relationships with its customers, often using feedback and personalised engagement. This practice, pivotal for sustaining business growth, emphasises the importance of trust, loyalty, and direct impacts on social value, reflecting an organisation’s commitment to responsible and sustainable business operations.

● Innovation Management: This reflects an organisation’s commitment to driving sustainable growth by investing in new product development, improving operational processes, and fostering a culture that encourages creative thinking and problemsolving. This focus not only propels an organisation’s competitive edge but also addresses environmental and social challenges, thereby enhancing corporate responsibility and long-term shareholder value.

● Policy Influence: This refers to an organisation’s efforts to engage in the public policy process, potentially shaping regulations and standards

that align with sustainable business practices and broader social objectives. This influence underscores a commitment to responsible advocacy that, while advancing the organisation’s interests, also promotes environmental, social, and governance factors crucial for sustainable development.

● Anti-Crime Policy: This denotes an organisation’s proactive stance in implementing measures to prevent, report, and address illegal activities, such as fraud, corruption, and theft, within and related to the organisation. This policy is integral to maintaining ethical operations, safeguarding the organisation’s assets, reputation, and compliance with legal standards, and promoting a culture of integrity for sustainable business practice.

● Materiality: This refers to the principle that organisations should prioritise and disclose those environmental, social, and governance issues that significantly impact their financial condition and operational performance, as well as investor decision-making. By focusing on material concerns, organisations can allocate resources effectively, engage in meaningful stakeholder communication, and ensure sustainable business practices that align with their core objectives and societal responsibilities.

Strong governance practices indicate leadership accountability, which can lead to stakeholder trust in the organisation from investors, employees, and the public. "

● Tax Strategy: This involves an organisation’s approach to its tax practices, emphasising transparency, compliance with international and local tax laws, and the avoidance of aggressive tax avoidance schemes. This ethical approach to taxation reflects a commitment to fair economic contribution and corporate responsibility, impacting investor trust, corporate reputation, and long-term sustainable growth.

Strong governance practices indicate leadership accountability, which can lead to stakeholder trust in the organisation from investors, employees, and the public. It also tends to prevent mismanagement, corruption, and excessive risk-taking, thus protecting shareholder interests.

Introducing an ESG Strategy

Successfully introducing an ESG Strategy needs board-level ownership and leadership. It must be approached in a systematic and persuasive manner:

● Highlight the Relevance: Begin by emphasising the growing importance of ESG considerations in today's business landscape. Discuss how consumers, investors, and regulators are increasingly concerned about ethical and sustainable practices.

● Align with Core Values: Demonstrate how an ESG Srategy aligns with the organisation’s mission, values, and longterm goals. Explain how this strategy can strengthen the brand and foster a positive corporate culture.

● Present the Business Case: Showcase studies and examples of companies that have benefited from implementing ESG strategies, underscoring the potential for improved reputation, customer loyalty, risk management, and even financial performance.

● Assess Current Position: Conduct an assessment of the organisation’s current practices related to environmental sustainability, social responsibility, and governance. Identify areas of strengths and opportunities for improvement.

● Set Clear Objectives: Outline clear, achievable, and measurable ESG objectives. Ensure that these goals are in harmony with the organisation’s broader strategic plans.

● Engage Stakeholders: Involve key stakeholders - including employees, management, suppliers, and customers - in the conversation around ESG. Understand their expectations and concerns.

● Define the Roadmap: Develop a stepby-step roadmap for integrating ESG considerations into daily operations, decision-making processes, and longterm strategic planning.

● Resource Allocation: Ensure that the necessary resources – such as time, budget, and manpower – are allocated for the effective implementation of the ESG strategy.

● Communication and Training: Educate the staff and management about the ESG strategy through training sessions, workshops, and communication campaigns.

● Monitor and Report: Establish mechanisms to regularly monitor, measure, and report on the progress of the ESG initiatives. Transparency in reporting ESG efforts can further build trust among stakeholders founded on auditable, evidence-based data.

● Iterate and Improve: Finally, be open to continuous learning and make adjustments to the strategy as needed based on feedback and results.

Purpose& believes that by approaching the introduction of an ESG Strategy in this systematic and structured manner, an organisation can make a compelling case for its adoption and ensure successful implementation and development over time.

The movement of goods across continents is the backbone of global trade and the route from China to the Middle East is among the fastest growing. While the scale of this trade is impressive, it also comes with significant inefficiencies and environmental cost.

This article examines the costing elements and carbon emissions generated when shipping a 40-foot container (“FEU”) on a round voyage from China to Medina, Saudi Arabia, shedding light on the economic and environmental impact of this essential global supply line.

It also analyzes how GenFlat collapsible containers, shipped together as a bundle of four, can save approximately US$6,450 and 2.5 metric tonnes of carbon per trip.

The Red Sea Express Journey

Shipping containers can travel extraordinarily long distances via container ships. The typical AsiaMiddle East route involves several stages:

Shanghai to Jeddah CY/CY:

• Containers are loaded in Chinese base ports, the likes of Shanghai or Shenzhen.

• Container ships sail south through the South China Sea, past Singapore through the strait of Malacca, across the Indian Ocean, through the Arabian Sea, and then north to the Red Sea Coast.

• Carbon emissions occur during vessel propulsion and while berthed, as these massive ships burn vast amounts of fossil fuels.

• The cost of shipping a single 40-foot container for this portion of the journey is US$1,750.

Distribution and Inland Transport

• Containers are unloaded at the Port of Jeddah and transported to distribution centers or warehouses across Saudi Arabia, including Medina.

Slashing Emissions, Building Efficiency, Minimizing Cost

How GenFlat containers are revolutionizing the container journey

• This stage involves trucking, which also contributes to the total cost and carbon emissions.

Saudi Arabia to China (Empty Container Repositioning)

• Empty containers, having served their purpose, are repositioned for their return journey back to China.

• They are transported via truck or rail back to the Port of Jeddah to then be shipped back to China to be reloaded with goods. Though empty, each container requires truck transportation back to the port.

• The return voyage to China mirrors the cost and emissions generated on the outbound leg of the journey, even though the empty containers are only shipping air.

• Though less fuel is used when shipping empty containers than full containers, there is still a significant cost and environmental impact when shipping empties.

The Cost of the China/Saudi Arabia Container Roundtrip

The average cost to ship a 40-foot laden container from Shanghai to Jeddah is US$1,750. From Jeddah, the cost to ship the container inland is approximately US$550.

With an inland distribution cost of US$550 to Medina, the total cost of the container journey from Shanghai to Medina is approximately US$2,300. With the goods delivered, the container owner now has the problem of having multiple empty containers in Medina that need to be transported back to Jeddah and loaded onto an ocean shipping vessel back to China.

The costing elements for the return journey, although usually mitigated slightly still have an average cost of US$2,150 per FEU. The roundtrip cost for one container is approximately US$4,450.

The GenFlat Cost Advantage

The benefit of GenFlat collapsible shipping containers is their ability to significantly reduce repositioning costs.

As discussed, repositioning is a necessary but costly aspect of the shipping industry. Conventional

containers, once emptied, occupy valuable space and require costly transportation back to their origin or base ports.

Once collapsed, four GenFlat containers can be stacked in the approximate space as one 40-foot high-cube container, reducing the repositioning costs of four containers by as much as 75%.

For example, the cost of a round voyage for four standard FEUs from Shanghai to Medina is approximately US$17,800, this drops to US$11,350 for four GenFlat containers. That is a cost saving of US$6,450 for a bundle of four containers for a single round voyage. If those four containers make eight roundtrips per year, the GenFlat saving is US$51,600, equating to an annual savings per container of US$12,900 per year.

The GenFlat Environmental Advantage Shipping containers from China to the Middle East and back contributes significantly to global carbon emissions. The shipping industry faces increasing pressure to reduce its environmental impact. Estimating the carbon emissions from shipping containers involves several factors:

Fuel Consumption: Container ships typically run on heavy fuels, emitting significant CO2, sulfur oxides (SOx), and nitrogen oxides (NOx).

Distance and Route: The longer the distance, the higher the emissions. The specific route taken by the vessel also affects emissions.

Container Size: Larger containers carry more cargo but also contribute to greater emissions due to the heavier load.

Once collapsed, four GenFlat containers can be stacked in the approximate space as one 40-foot high-cube container, reducing the repositioning costs of four containers by as much as 75%."

Container Repositioning: The empty container’s journey back to China adds another layer of emissions.

Inland Transport: The emissions associated with trucking or other forms of inland transportation.

Efforts to reduce carbon emissions by transitioning to cleaner fuels and alternative propulsion vessels are positive developments in the shipping industry, though they require massive investments of money and time.

GenFlat’s reduction of carbon emissions is achieved by reducing the space required by empty containers. By stacking empty collapsed containers in bundles of four, shippers require fewer trucks, rail cars, and vessels to carry empty containers to their place of origin.

The carbon emissions emitted by laden container journeys from China to Medina are the same using GenFlat containers or standard containers. The emissions from repositioning trips back to China, however, can be reduced by up to 75% using GenFlat containers instead of standard containers.

Stacking and shipping four collapsed GenFlat containers from Medina to Shanghai REDUCES carbon emissions by 2.5 METRIC TONNES, compared to shipping four empty standard containers.

The Overall GenFlat Advantage GenFlat containers represent a paradigm shift in container design and utilization. As discussed above, four GenFlat containers shipped together saves approximately US$6,450 and

2.5 metric tonnes of carbon per trip, while having little operational impact. The GenFlat innovation offers several other compelling advantages that make them a valuable investment:

• Space Optimization: One of the primary advantages of GenFlat containers is their ability to optimize space, especially at Ports and Container Yards. When empty or during return transport, these containers can be collapsed to ¼ of their size. This results in substantial cost savings and reduction in the space required for storage and transportation.

• Durability: These containers are constructed with durable Corten steel, ensuring they withstand the rigors of the shipping industry. They are built to be stronger and more durable than standard containers.

• Competitive Edge: By embracing GenFlat containers, shipping lines and other shippers can gain a competitive edge in an industry that increasingly values sustainability and efficiency. Such a move can enhance their reputation and attract environmentally conscious customers.

Conclusion

As the marine shipping industry seeks to address climate change, reduce emissions and reduce cost, stakeholders must continue to innovate and adopt innovative solutions to mitigate its environmental footprint while continuing to explore greater efficiencies in support of global trade. GenFlat containers provide an economically and environmentally friendly solution to these pressing issues.