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PSA Corporation Ltd (PSA) and Orient Overseas Container Line Limited (OOCL) have successfully completed a joint pilot project to integrate and enhance the flow of containers between two PSA facilities – Keppel Distripark (KD) and the On-Dock Depot (ODD).

In alignment with its overall decarbonisation efforts, PSA initiated this logistics solution to reduce overall trucking distance for empty container collection and returns within Singapore and have been working closely with shipping lines and the local logistics community. OOCL is the first line to support and join this pilot project to cut supply chain inefficiencies, improve truck productivity and reduce carbon emissions from truck trips.

The enhanced flow of empty containers between KD and ODD can reduce an average of 93% of kgCO2e (kilogram of carbon dioxide equivalent) per trip due to the significantly shorter distance. The collaboration between PSA and OOCL seeks to drive sustainability and productivity among stakeholders in Singapore’s logistics and supply chain industry.

A key partner who participated and supported this joint initiative is Hup Soon Cheong Services Pte Ltd, the largest warehouse operator and haulier in KD. Other than improving the utilisation of their warehouse dock bays, the operator benefited from improved truck trips by significantly reducing time on the road and cutting carbon emissions at the same time.

Ms Seow Hwee, Head of Cargo Solutions Business, Southeast Asia for PSA said, “True value across the logistics value chain is best unlocked through collaborations with likeminded partners. PSA is delighted to have the steadfast support of OOCL and Hup Soon Cheong Services in this green and sustainable initiative, where we work together to achieve synergy for enhanced productivity. I am pleased with the positive results, meeting our primary objectives and am looking forward to the support from all our partners as we seek to further improve supply chain efficiencies.”

Mr Richard Hew, Managing Director of OOCL (Singapore) Pte. Ltd. said, “The urgency to decarbonise the world’s logistics value chains has never drawn more attention internationally and within the industry. It is our true pleasure working with PSA and Hup Soon Cheong Services to open the door to a greener and more efficient value chain, especially during this pandemic time filled with business disruptions. We are very pleased to have business partners that has a similar vision in terms of the sustainability agenda. This pilot trial is indeed one of the milestones along our decarbonisation journey, and we are keen to establish additional long-lasting sustainability collaborations with our business partners and customers.”

Mr Alfred Hau, CEO, Hup Soon Cheong Services Pte Ltd, said, “With a common mutual objective between all parties, we managed to kick start the trial without much hassle. The process is smooth and straightforward. It improves our efficiency with the reduction of distance and time as well as cutting the CO2 emission. It is great to be a part of this green journey.”