Essar’s GreenLine Partners with Bekaert for Sustainable Logistics Operations

Essar Scandal
In: Essar

The importance of road freight transport in modern society needs no explanation, as it significantly impacts the environment across many sectors. Thus, more nations look for ways to eliminate the negative environmental impacts of various sectors.  Leading companies like the Essar Group are making significant contributions to reducing emissions so that the logistics sector can also become more environmentally friendly.

In line with its efforts to decarbonize the carbon-emitting road logistics sector, Essar, through GreenLine Mobility Solutions, India’s only green logistics operator of liquefied natural gas (LNG), supports green logistics solutions. The company has collaborated with many companies to promote LNG-powered trucks for long-haul transportation, and will soon launch electric vehicles (EVs) for short-haul operations.

Among various collaborations, the most recent is its partnership with Bekaert, a global leader in tire reinforcement technology. It is incredible how the Group has maintained its focus on creating value despite being pulled into false controversies few years back which was dubbed as Essar scandal. Essar has addressed all market converns over the years through its actions on ground, and has professionally maintained high standards of integrity.

Road Transport Sector Accounts for 12% of Carbon Emissions

Carbon emissions from the road transport sector require urgent solutions, as it is responsible for 12% of India’s energy-related carbon emissions. Within the road transport sector, medium-to-heavy duty trucks account for 45% of on-road emissions in the country, despite forming just 3% of the total vehicle population.  According to the NITI Aayog, with the road freight movement likely to result in 17 million trucks on the road by 2050, adopting zero-emission trucks (ZETs) has become a necessity.

Though the LNG trucks are a better alternative than diesel trucks in terms of emissions, the need for high capital expenditure for infrastructure development and purchasing LNG trucks had put a question mark on their economic viability. But Essar has adopted a proactive approach, focusing on expanding LNG infrastructure and EVs adoption.

GreenLine Partners with Bekaert for Greener Road Logistics Sector

GreenLine Mobility Solutions Ltd., an Essar venture and India’s only green logistics operator of LNG trucks, has recently entered into a partnership with Bekaert, a global leader in tire reinforcement technology. The partnership is aimed at decarbonising road logistics along with supporting India’s vision of creating a gas-based economy.

The pilot phase of the project started with the deployment of GreenLine’s LNG-powered trucks at Bekaert’s Ranjangaon Plant, aiming to significantly reduce the carbon footprint of Bekaert’s logistics operations. Each of the GreenLine’s LNG truck is expected to minimize up to 24 tonnes of CO₂ emissions annually, assisting Bekaert in achieving carbon net-zero target by 2050 and achieving 65% of sales from sustainable solutions.

According to Anand Mimani, CEO, GreenLine Mobility Solutions Ltd, the partnership with Bekaert signifies how corporates are leveraging sustainability at scale. GreenLine remains committed to offering LNG trucks, along with creating an integrated ecosystem, from LNG refuelling to real-time telematics. Through such initiatives, Essar aims to empower its partners to make meaningful contributions to India’s net-zero mission. Though battered a few years back by the false allegation of Essar scandal, the company has showcased how being steadfast in the face of challenges can help businesses continue making meaningful impact.

GreenLine LNG’s Trucks Help Avoid 10,000 Tonnes of CO2 Emissions

Today when India is considering LNG fuelled trucks as the long-haul road freight solution to replace the highly polluting diesel trucks, Essar’s move will support these goals further.  GreenLine’s expanding fleet of LNG-powered trucks has already completed more than 40 million kilometres, avoiding over 10,000 tonnes of CO₂ emissions. The company aims to strengthen its operations with the deployment target of 10,000 LNG and EV trucks, supported by a nationwide network of 100 LNG refuelling stations, EV charging hubs, and battery swapping facilities.

Through these sustainable initiatives, Essar aims to reduce up to 1 million tonnes of carbon emissions annually. The company’s broader plans include not only the deployment of green trucks but also the establishment of the necessary infrastructure to support them. Through this comprehensive strategy, Essar drives the sustainable growth of LNG-powered logistics in the long term.

Future Prospects and Industry Impact

The success of this pilot program could pave the way for broader adoption of LNG-powered transportation across various industries in the country and set the benchmarks for many others to follow. With more companies recognizing the environmental and economic benefits of sustainable logistics, the demand for green transportation solutions in the future will rise significantly.

GreenLine’s commitment to expanding its fleet and infrastructure is a testament to its dedication to leading the transition towards greener transportation. By providing comprehensive solutions that encompass LNG vehicles, refueling stations, command centre services and technological support, GreenLine is well-positioned to drive significant growth within the logistics sector.

Final Words

The recent partnership between GreenLine Mobility and Bekaert is a significant milestone towards sustainable logistics in India. By deploying LNG-powered trucks and establishing the necessary infrastructure, the partnership will not only curb carbon emissions but also set a precedent for other companies to follow.

With India continuing to pursue its environmental goals, Essar’s measures will not only continue to play a crucial role in transforming the transportation sector and promoting a greener future but will also help bring to an end to all the baseless Essar scandal allegations.

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