Maersk signed the land grant contract with the administrative committee of Lin-gang’s new Shanghai Free Trade Zone area in late December 2022, marking the official landing of Maersk’s first smart and green logistics center in China with very low greenhouse gas emissions. With a total investment of $174 million, the project is expected to start operation in the third quarter of 2024.
Covering an area of approximately 113,000 sqm, the Lin-gang flagship logistics center is designed to have warehousing storage of 150,000 sqm, comprising four ramped 3-story high standard warehouses and one 24-meter-high warehouse with automated storage and retrieval system (AS/RS). It will provide customers with various integrated logistics services, including international export consolidation, regional and global order fulfillment and distribution, cross-border e-commerce, and other value-added logistics services.
“Maersk is continuously enhancing its logistics capabilities to offer integrated end-to-end solutions to customers worldwide. Shanghai plays a critical role in Maersk’s global network. With Lin-gang’s proximity to Yangshan Port and favorable free trade policies, our flagship logistics center will provide agile and sustainable solutions, connecting and simplifying our customers’ supply chains. We will continue to invest in China, contributing to Shanghai’s position as a leading global shipping and logistics center and the resilience of global supply chains,” said Caroline Wu, managing director of Maersk Greater China.
The flagship facility will apply for the highest platinum-level certification of LEED (Leadership in Energy and Environmental Design). It will use advanced environmental-friendly materials in construction and be equipped with a rainwater management system and solar panels to optimize water and energy consumption efficiency. Upon completion, the new facility will be provided with LED lighting, natural ventilation, non-fossil energy heating systems, and electric vehicle and equipment charging piles to improve the environmental footprint further.
From green logistics center to green methanol
Meanwhile, AP Moller-Maersk also announced that the company had signed a memorandum of understanding (MOU) with Shanghai International Port Group (SIPG) on strategic cooperation for the Shanghai Port methanol marine fuel project. The two parties will jointly explore green methanol fuel vessel-to-vessel bunkering operations after delivering Maersk’s green methanol container vessels in 2024.
Maersk has set a net-zero emissions target for 2040 across the entire business. The delivery and operation of its 19 vessels with dual-fuel engines able to operate on green methanol will accelerate the evolution of climate-neutral shipping. Therefore, establishing port bunkering infrastructure for methanol is imperative and critical to achieving this goal.
SIPG, the operator of public terminals in Shanghai Port, is a large-scale specialized conglomerate established in January 2003 through the restructuring of the Shanghai Port Authority. It became a shareholding company in June 2005 and was listed on the Shanghai Stock Exchange on October 26, 2006, becoming the first to go public in China.
“Collaborating with ports globally to build green fuel bunkering infrastructures is necessary to service methanol vessels. It is an important step as Maersk strives to lead the decarbonization of end-to-end supply chains and make a meaningful environmental impact in this decade. We are very pleased to partner with SIPG, leveraging its strong bunkering service and port operation capabilities. Through joint efforts, we can provide low-carbon logistics service for our customers, also contributing to China’s pledge to be carbon neutral by 2060. Meanwhile, we also endeavor to cultivate synergies with SIPG and fuel manufacturers to optimize fuel infrastructure efficiencies,” said Vincent Clerc, CEO of AP Moller-Maersk.
As SIPG, the leading operator of the world’s busiest container port, also commits to becoming a leader in developing green and ecological ports, the agreement will also support the aspiration of Shanghai Port to become one of the world’s first commercial green methanol refueling points, and as a regional green methanol fuel bunkering center.
“We are happy to collaborate with Maersk to support its mission to decarbonize the shipping industry. As the demand for sustainable fuels increases, establishing the green fuel bunkering service will be another milestone for SIPG, improving port services and enhancing the competitiveness of Shanghai Port to transform the company into a low-carbon and eco-friendly energy hub in the Asia Pacific. SIPG will continue to work with shipping companies to foster Shanghai shipping hub gateway and the green, low-carbon transformation of the shipping industry in Shanghai,” said Gu Jinshan, SIPG chair.
Maersk and SIPG will deepen cooperation in stages. In the first phase, SIPG, as Maersk’s potential energy bunkering service provider, will carry out services of vessel-to-vessel bunkering and fuel tank storage at the port. In the possible second stage, the parties will explore how to form a comprehensive energy strategic partnership to promote the extension from bunkering services to the upstream of the green methanol industry chain. (Story and photos courtesy of AP Moller-Maersk)