The Department of Economic Development (DED) has led the initiative to transform a critical Dnata Cargo site - the FreightGate-5 airport cargo terminal - to develop the first carbon neutral warehouse in the Middle East. This will serve as a template for green warehousing across Dubai that, according to the estimates made during the study, can save 1.9 million tonnes of carbon dioxide annually by 2020, equivalent to the current annual carbon footprint of some 60,000 UAE residents.
The path-breaking initiative is part of the agreement signed between DED and DHL earlier last year to develop logistics innovation initiatives that drive efficiencies within the logistics sector through better policy management. The carbon reduction initiative is one of the key work streams that is part of the longer City Logistics agreement inked by the two organisations.
One of the key stages in the carbon reduction plan was to convert a government owned and operated warehouse in Dubai to carbon neutral status and follow it up with research and development of blueprints for reducing carbon in warehousing and vehicles in the logistics sector. Over and above that, an initiative was also launched to conduct a carbon footprint assessment of the Emirate’s logistics sector and drive general awareness amongst businesses in the Emirate.
Built by Dnata Cargo, a premier air cargo handler in the region, less than three years ago, FreightGate-5 has a prominent and important role in the transit of freight and is easily accessible from the centre of the city. The ease of access was a prime consideration in choosing the site, which is about 13,000 sq m in area. Following the highest standards of resource-use efficiency, the upgrading will now lead to significant energy savings, with the investment of just under AED600, 000 to be paid back in two to four years. Each of the specific energy saving measures proposed for the warehouse was costed and then subjected to a standard business case approval process, in order to measure their financial viability in the UAE.
The upgrade implementation effort led by DHL Energy Performance & Management has resulted in savings in electricity used in the warehouse of between 36 and 40%, depending upon the implementation of ongoing energy reduction initiatives by the warehouse staff and the level of operational activity in the coming year. This amounts to some 450 mega-watt hours a year, equivalent to 167 tonnes of carbon dioxide – that is 835 tonnes over the five year timeframe that the project took in its analysis of the warehouse.
Upgrading work included installation of state-of-the-art lighting systems, energy monitoring equipment, implementing solar powered lights and operational training of staff. Pacific Controls, a company focused on driving sustainable development initiatives, supplied the metering equipment and web-hosting technology for the new FreightGate-5 Energy Monitoring System.
His Excellency Mr Sami Al Qamzi, Director General, DED, said: “As a hub for trade in the region, Dubai’s logistics sector plays a vital role in the economy. Integrating the Emirate’s logistics sector with sustainable development best practices is imperative to drive further efficiencies, and will generate stronger demand for the logistics sector. The success of this initiative is also driven by support from Pacific Controls and Philips, highlighting Dubai’s capabilities in driving forward innovative practices.”
He added: “The carbon reduction project at FreightGate-5 demonstrates that significant improvements in energy usage can be achieved in the logistics sector. Improving energy efficiency will secure Dubai’s position as the world’s logistics hub of choice. In addition to contributing to the environment, this project – if replicated across the logistics sector – can bring about large cost savings, which can eventually be passed on to the supply chain, thus boosting operational efficiency.”
Gary Chapman, President Dnata, said: "Dnata has always been an innovator, actively supporting, and participating in, social and environmental initiatives. This is important to us. As the proud owners and operators of the Middle East’s first carbon neutral warehouse, FreightGate-5, we hope that this 'first' will inspire and motivate other companies to make the necessary improvements to their own premises."
“The initiative necessitates government leadership, like the support extended by the Department of Economic Development and Dnata to drive a requirement for change in energy efficiency. The changes brought about at FreightGate-5 are achievable across the whole of Dubai’s logistics sector and can be done on a commercial basis without financial subsidy. Similar projects can achieve up to 50 per cent energy savings with payback windows of two to four years,” said Mr Peter Rusy, COO, DHL Energy Performance & Management.
The Dnata Cargo FreightGate-5 upgrade was based on the DHL Energy Performance & Management team’s experience with a wide range of warehouse types across the world, tested with software modelling.
