Seaport enterprises accelerate seaport greening

	Quang Ninh Customs collects 85.75% of the budget revenue through the seaport area
	Seaport stocks surge amid positive sector outlook

Tan Cang – Cai Mep International Terminal (TCIT) won the 2020 Green Port Award from the APEC Port Services Network Council. Photo: Q.K

Reducing costs by 1/3

Evaluating the initial results in the roadmap towards building green ports at Vietnamese seaport enterprises, at the seminar "Green Port - towards sustainable development, reaching out to the ocean" organized by Giao Thong Newspaper in coordination with the Vietnam Maritime Administration on December 4, Mr. Hoang Hong Giang, Deputy Director of the Vietnam Maritime Administration, commented that out of more than 290 seaports, only more than 30 seaports are "changing". Of which, major ports have been proactive in green transformation, have taken specific steps and have achieved a number of certifications.

Lieutenant Colonel Vu Anh Tuan - Deputy Head of the Green Port Steering Committee, Saigon Newport Corporation (Ministry of National Defense), said that in the first phase from 2009, Tan Cang Saigon switched from using diesel to electricity, helping to reduce operating costs from VND200 billion to VND66 billion per year. At the same time, this transformation helps optimize operational management, production technology, and repair material inventory.

However, in the second phase, when switching to renewable energy such as solar panels, this unit encountered many difficulties. The company has had to go abroad to learn clean energy technology, but the cost is very high, two to three times higher than normal costs. This is considered the biggest barrier for seaport businesses.

Ms. Nguyen Thi Thu Thao, Head of Public Relations and Shareholder Relations, in charge of coordinating the ESG (Environment-Social-Governance) Board of Gemadept Group, said that in 2023, Gemadept established the ESG Board to communicate, promote green initiatives and implement GHG (greenhouse gas) measurement. In 2024, Gemadept will enhance the effectiveness of the environmental management system and gradually convert to green technology. The goal is to reduce emissions, increase green investment and build a foundation for green ports, eco-ports and green logistics.

Ms. Thao said that by 2025, Gemadept aims to meet international standards and synchronously deploy ESG throughout the system. Gemadept is committed to awareness, readiness, and concrete actions towards green ports, renewable energy management and operation. The unit also applies information technology to solutions such as SmartPort, RiverGate, and SmartGate.

Although it was established later than many large seaports, Mr. Vo Quoc Huy, Chairman of the Board of Directors of Long An International Port, said that since the beginning, the port has made green transformation steps, including investing in a shore power system for ships to dock. The port currently has 500,000m² of warehouse space and has used solar panels, while also researching digital transformation and green transformation.

Considering green ports as an inevitable trend in integration and development, Mr. Pham Hoai Trung, Chairman of the Advisory Board of Greengo Sustainable Development Practice Consulting Co., Ltd. said: "There is no other way". According to Mr. Trung, in Europe, the US, Canada, Australia... businesses have implemented green labels, and people are gradually getting used to green shopping and sustainable consumption. Vietnam is also aiming for green and sustainable development in this roadmap.

Accordingly, businesses need to raise awareness and commitment, identify the context and plan specific practices; at the same time, have a person in charge and establish an ESG Sustainable Development Committee with the participation of different departments in the business; must experiment, test, monitor, fix, and improve the management system for the use, saving energy, water, waste treatment, and recycling in production processes. The implementation needs to start from the first basic tasks, including planning to train basic knowledge and awareness of sustainable development according to ESG criteria (a set of 3 standards to measure factors related to the orientation and sustainable development activities of the business).

Need for business support mechanisms

Sharing with businesses, Mr. Hoang Hong Giang, Deputy Director of the Vietnam Maritime Administration, said that although green transformation is difficult, it can start with the smallest things, such as optimizing loading time and arranging containers, before switching to clean energy. Regarding policies, Mr. Giang said that more incentives such as discounts, tax exemptions or reductions are needed to support green transformation.

Lieutenant Colonel Vu Anh Tuan said that the conversion from diesel fuel to grid electricity is easy. However, according to the roadmap, by 2050, the entire project must be greened, switching to battery power is the problem. Currently, grid power is clear and easy to do, but battery power is too expensive. The VND12,000 billion Lach Huyen port project, if switching to green and automated, it will increase to nearly VND30,000 billion - VND40,000 billion," said Mr. Tuan.

Regarding capital and finance for green transformation, Mr. Tuan said that the cost is very high, businesses need support policies such as green incentives, green credit, access to preferential capital, along with accompanying conditions and financial guarantees. However, businesses currently do not have enough conditions and need support from the Government. Regarding reducing the cost of green transformation, he pointed out that the biggest cost is the battery. " For a car costing VND6 billion, the battery cost accounts for VND2.8 billion. To reduce costs, it is necessary to cooperate in large-scale production of electric batteries and many pioneering businesses are needed in this field," Mr. Tuan proposed and recommended that the Government should have support policies to help businesses easily access green credit, helping to overcome cost barriers in energy transformation.

Gemadept representative proposed that the Government support policies such as: minimizing barriers, simplifying administrative procedures, reducing fees and charges; tax incentives, financial support through preferential loan packages for enterprises to invest in green transformation; perfecting the legal framework to encourage green investment, creating a stable business environment; strengthening communication and guidance for enterprises in the port - logistics industry to build and develop green supply chains. Consider increasing the price of container lifting floors at ports (currently only 40% of the regional average) to support port enterprises to invest in developing national seaport infrastructure, serving economic growth.

Taking note of the opinions of businesses, Mr. Hoang Hong Giang commented that the units have put forward many specific and detailed contents and recommendations. Major ports have gradually transformed to green. According to Mr. Giang, the development of decrees and legal frameworks will take time, however, the State needs to speed up the progress so that businesses can confidently make the transition.