The Green Corridor: 2025 Holds Green Opportunities

By Timothy Foote, Director Transportation & Network APAC at Asendia

Since beginning the Green Corridor in 2021, I’ve enjoyed putting together an annual sustainability roundup. This year I’ll be highlighting again where our green transition is gaining ground, and where it seems to be dragging.

Ocean Fleets Are Transforming

Engineering and regulatory progress continues to make progress in the IMO and in key ports around the world. The construction and market entry of dual-fuel propelled container ships has started phasing out the reliance on fossil fuel burning engines for shipping. As of late October, DNV reported that there were orders of up to 335 ships with dual fuel power in 2024. These dual fuel engines are designed to burn sometimes methanol or LNG in addition to fossil fuels.

Additionally, ammonia powered ships have begun to make an appearance. In 2023 there were only 2 ammonia capable ships, in 2024 that increased to 15 new ship orders. Ammonia fuelling and storing protocols also made real progress in getting established this year. The Global Centre for Maritime Decarbonisation was on site in late September early October to witness the first ship to ship transfer of ammonia off the coast of Australia. With these critical safety procedures established – the industry will quickly accelerate into the use of this fuel.

Ports additionally are speeding ahead with greening their processes. Several of the world’s busiest ports now utilise EV tugboats in place of fossil fuelled models. Electric drones additionally are being used to do deliveries to ships in place of gas guzzling boats. More dock operations are also moving into electric and autonomous operations here in Asia.

My 2025 predictions for ocean is that transformation will continue. Furthermore the other decarbonising ship refitting projects will also increase and make good reductions in global emissions in the sector. LNG dual fuel ships seem to getting popular in Asia as the first step away from the dirty bunker fuels that dominate the ocean fleets of today. LNG protocols and handling have also helped in establishing safe procedures for the emerging ammonia powered ships.

Air Industry Plods Along

Not surprisingly, there is still no glimmer of a replacement for the fossil fuel burning jet engine. There are no dual-fuel options nor even new forms of air transport (like blimps) to make any significant reduction to the emissions caused by our fleets of jet aircraft. When electric drones are taking to the skies, their flights reduce the carbon that would have been emitted by courier companies on the ground in nearly all cases.

For this reason the emission reduction emphasis continues to be entirely pinned on increasing the use of SAF. Airlines have begun to fuel with SAF blended fuels – but only when select airports blend it into their regular fuel. 2024 saw no real scalable solution to significantly increase the supply of SAF.

In 2025 air transport emission reductions per kilo will only be slight. This industry continues to be hampered by insufficient supplies of SAF and the lack of ideas on how to make SAF cheaper and in greater quantities fast. I had some more information on what that SAF development looks like in “The SAF Challenge” (https://magazine.logisym.org/the-green-corridor-the-saf-challenge/)

Land Transportation Evolution

2024 established EV transportation in more and more markets. India and Africa have seen fast increasing percentages of e-bikes and scooters moving to electric power. This replacement of fossil fuels in fast developing economies is vital. 2025 will see even more of this.

Batteries are still making significant improvements to power, durability, weight and cost. Though many European and North American countries this year blocked competition from Chinese manufacturers of EV automobiles and trucks, this may provide a windfall of affordable vehicles to the emerging markets of the world. It should also help Southeast Asian countries green up their transportation faster.

Green Power

IEA (International Energy Agency) shows continued rapid growth of renewable energy and an increased percentage of renewables being used in the energy mix. At the same time however the world economy continues to demand more and more power. Fossil fuels as a result of this growth will continue to increase its production.

2025 may see the high point for coal though, after which coal will be rapidly taken out of the power mix. Renewables will continue to grow. Grid enhancement to make full use of the energy generated by sun and wind is moving ahead. I predict that in 2025 grid enhancement will indeed have major development in Southeast Asia.

Courier Fleets

What a change from last year! At the end of last year industry friends only mentioned the hurdles of transitioning to EV technology. There were blockages of vehicles even entering the market because the regulatory authorities needed time to implement new regulations for the new vehicles.

Thankfully over the course of the year many of those regulations were put in place. Monthly I’ve been seeing courier and truck fleets here in Asia add EVs to their operations. It is not going to stop either. One continuing challenge though is that charging point access is still needed.

My prediction in 2025 is lower EV prices and increased attention to creating the new charging infrastructure will advance sustainability and help logistics managers meet their targets.

Packaging

2024 continued to show no real revolution for sustainable packaging in our industry. I’ll be hoping to see some innovation, but my hopes are not high for 2025.

One positive from 2024 is the success of programs that moved consumers to bring their own bags for shopping. The policies that allowed consumers to “pay to pollute” clearly show that consumers will avoid paying whenever they can.

Summing It Up

Overall, the progress towards the carbon free future is continuing to move forward. It will be clunky in places, but it is happening. 2025 shows great promise for increased transformation in emerging markets and in Asia – particularly in the final mile land transport sector, green power sector as well as the ocean shipping sector.

Investment is flowing more towards renewable energy than at any time in history – Solar and Wind power continues to become more and more a value verses the chaotic fossil fuels. The cost to store the power they generate also becomes lower and lower. In Southeast Asia we can see real projects underway to create a regional energy grid that will support green energy.

Critically for our region, the closer access to the most advanced and cost-effective solar power and EV technology of China. With trade disputes and protectionism likely in 2025 between China and their usual large markets of Europe and America – Southeast Asia is in a good position to get good deals for solar panels, their grid systems and electronic vehicles.

2025 can be a great year to leap ahead for our region. Let’s all look forward to making the greenest of this coming new year!!