SAGT publishes its fifth consecutive Sustainability Report
- 36% reduction in Scope 1 carbon footprint since 2019/20
- 28% reduction in Green House Gas (GHG) intensity (kg CO2eq/ box move) since 2019/20.
- Introduction of a paternity leave policy for the first time in PoC
- Over 1.5 million beneficiaries reached through CSR initiatives.
South Asia Gateway Terminals (SAGT), Sri Lanka’s first Public Private Partnership container terminal, published its sustainability report for the period 2023/24. Centred around the theme “Collaborating for Tomorrow” this is SAGT’s fifth consecutive report and is published during its milestone 25th year in operations. SAGT was the first terminal in the Port of Colombo (PoC) to publish a sustainability report aligned with globally accredited reporting standards and remains the only terminal to do so to date. The report captures the Company’s leadership towards sustainability and presents its sustainability performance for the related period.
Increasing impact from climate change has raised the urgency for organisations to decarbonise. The International Maritime Organisation (IMO) has mandated the international shipping industry to achieve net zero emissions by 2050. As a key player within the maritime landscape SAGT is focussed on reaching net zero ahead of the IMO target.
Over the last 5 years (2019/20 to 2023/24), SAGT achieved a 36% reduction in GHG emissions, through substantial investment in capital and leading-edge technology. This reduced the Company’s GHG intensity per container move by 28% from 21.8kg CO2eq in 2019/20 to 15.6kgCO2eq in 2023/24. The reduction is largely by implementing a hybrid power conversion in 22 Rubber Tyred Gantry Cranes (RTGs). The hybridisation process replaced the existing genset with a battery bank and smaller genset improving the machine’s fuel efficiency and reducing its carbon emissions by over 50%.
Due to a 7% uptick in container volumes in 2023/24 in comparison to 2022/23, SAGT’s total carbon footprint increased by 8% although the GHG intensity (kgCO2eq/ box move) continued to fall and saw a marginal reduction of 0.1%. To accelerate progress towards net zero the Company will convert 6 more RTGs to hybrid technology. In the year ahead, SAGT will also invest in electrification and renewable energy to power segments of its operations going forward. As such the Company plans to electrify 30 Prime Mover Trucks (PMs) out of a fleet of 80. SAGT will also install rooftop solar that will generate approximately 7% of the current electricity usage. Keeping true to being a leader in adapting green technology, SAGT is exploring green hydrogen as an alternative fuel for powering terminal equipment.
Being conscious of water usage SAGT employs a submetering network to track and reduce consumption. Further, the existing Sewer Treatment Plant (STP) is being upgraded to allow reuse of treated effluent for selected terminal activities.
Through a groundbreaking initiative between Maersk Line and SAGT, the Company is looking to reuse water desalinated onboard vessels. Maersk Line ships are fitted with a single stage desalination freshwater generator. The desalination process produces excess fresh water than required for shipboard use. A sample of this excess desalinated freshwater was discharged at SAGT under a pilot project for re-use at the terminal. Effectively reducing SAGT’s need for natural water withdrawal by approximately 2% based on one tank-tainer of 25,000 litres per week.
Diversity and equal opportunity remain a core priority for SAGT. As such the Company introduced a paternity leave policy aiming to create a fair and equitable working environment while fostering these same principles beyond the workplace. It is noteworthy that SAGT is the only port sector organisation in Sri Lanka, to implement such a policy. In May 2023 SAGT became a partner of the United Nations Global Compact Network (UNGC) further underscoring the commitment to working towards achieving global sustainable development goals and thereafter also became a signatory to the Women’s Empowerment Principles of the United Nations Women and UNGC, publicly declaring its commitment towards gender equality.
SAGT will also continue to digitalise and automate its processes for heightened efficiency and more sustainable operations. During the period the Company launched phase one of a digital Safety Management System (SMS). This integrated platform will further improve management of Key Performance Indicators related to Occupational Health and Safety. The complete system is set to roll out in mid-2024. Further, SAGT will implement a Vehicle Booking System for trucks to maximize efficiency and improve ease of doing business for stakeholders. The implementation and infrastructure development of an Optical Character Recognition (OCR) technology at the gate and quayside too is in the pipeline. These initiatives will be implemented in 2024/25.
Among other corporate social responsibility initiatives SAGT spent Rs. 185 million to supply 75MT of milk powder towards re-starting the stalled “Thriposha” nutritional program of the Government of Sri Lanka catering to malnourished pregnant and lactating mothers and children aged 6 months to 5 years. Through its contribution SAGT facilitated manufacture of 3 million packs, reaching over 1.5 million beneficiaries.
Commenting on the publication of the report, Romesh David, CEO of SAGT said “We continue to strive to create a best in class, equitable and egalitarian working environment for our employees while engaging in targeted initiatives aimed at sustaining the wider community in which we operate. Our decarbonisation efforts are at the forefront in the PoC and the region, and we are committed to accelerating the Company’s net zero agenda. Reflecting on SAGT’s 25-year journey we have been a catalyst that helped establish the PoC as a primary transhipment hub in the region and as in the past we will continue to set benchmarks and lead by example towards a more sustainable port”.
South Asia Gateway Terminals (SAGT), Sri Lanka’s first Public Private Partnership container terminal commenced operations in 1999 with a vision to be the most trusted Gateway in the Indian ocean. Built on a foundation of Teamwork, Safety, Trust and Integrity, Customer Centricity & Excellence, SAGT presents the international trading community a competitive best in class service. A pioneer in sustainable terminal operations, SAGT continues to steer course for a sustainable future. Promoting “Ease of doing business” through digitalization and digitization is an integral part of SAGT’s DNA. SAGT is a recipient of multiple independent globally recognized “best practice” awards since inception.
SAGT is a Board of Investment flagship company whose shareholders include – John Keells Holdings, Maersk/APM Terminals, SLPA and Evergreen Marine Corporation.
