Hyundai Glovis Co., the world’s third-largest car shipping company, is set to implement an advanced emission reduction system for its vehicle carriers operating in California, in response to the state’s stringent environmental regulations. This move marks a significant step towards greener shipping practices for the logistics arm of South Korea’s Hyundai Motor Group.
On Monday, Hyundai Glovis announced the signing of an agreement with US-based Stax Engineering Inc. to introduce an emission capture and control system for its pure car and truck carriers (PCTCs) docking at key Californian ports, including Benicia, Los Angeles, Long Beach, and Hueneme, starting January 2024.
Stax’s technology is capable of removing up to 99% of diesel particulate matter (PM) and 95% of nitrogen oxide (NOx), transforming them into purified gases before release. The system has already proven effective, having treated ships for a cumulative 3,200 hours and eliminated 23 tons of pollutants.
This initiative aligns with the regulations set by the California Air Resources Board (CARB), which mandates significant reductions in NOx and fine PM emissions from docked vessels. Initially applied to container ships last year, these regulations will extend to car carriers in January 2024.
In addition to implementing Stax’s emission control system, Hyundai Glovis plans to introduce this technology to its vehicle cargo ships entering San Diego, a major vehicle logistics hub. By 2028, the company aims to have 30 automobile carriers equipped with dual-fuel engines capable of running on liquefied natural gas (LNG), further enhancing its environmental credentials.
Hyundai Glovis’s commitment to sustainability extends beyond California. The company aims to meet the European Union’s Emissions Trading System (ETS) standards and support the Korean government’s objective of providing electricity to parked ships at 248 locations across 13 key domestic ports.
Despite challenges such as delays in Red Sea operations due to the Israel-Gaza conflict, Hyundai Glovis anticipates improved earnings this year. The company operated 72 vehicle transport ships as of August 2023 and plans to expand its fleet with up to 12 additional carriers by 2025.
In its April regulatory filing, Hyundai Glovis reported a first-quarter operating profit of 384.8 billion won ($282.2 million), down 5.4% from the previous year but above market expectations. Sales increased by 4.5% to 6.6 trillion won, reflecting strong performance despite global uncertainties.
By integrating advanced emission reduction systems and expanding its eco-friendly fleet, Hyundai Glovis reinforces its commitment to environmental sustainability while maintaining robust operational growth.
