SOUTH KOREA. Lotte Duty Free is converting its entire 13-strong fleet of bonded transport vehicles to an eco-friendly electric power format, a first for the country’s travel retail industry.
The retailer has already converted the first vehicle in a move that will reduce greenhouse emissions by 51 tonnes a year and the fine dust it generates by 24kg. It transports duty free goods between downtown Lotte Duty Free branches, integrated logistics centres and international airports, covering about 100km per day.
The travel retailer said it plans to switch the entire fleet to electric by the end of 2022, as part of a wider company programme for reducing carbon emissions.
Over time, the electric conversion is expected to reduce operating costs by about 17% compared to existing diesel vehicles.
An electric vehicle charging station will be installed in Lotte’s integrated logistics centre in Yeongjongdo, where Lotte plans to install solar power generation facilities by the end of this year. Through this, an estimated 67% of electricity consumption at the facility will be replaced by solar energy.
Lotte Duty Free CEO Kap Lee said: “The introduction of electric vehicle replacement for duty free transport vehicles will be the first step towards eco-friendly logistics. Lotte Duty Free will continue to focus on activities that create sustainable social values.”
The travel retailer established Korean duty free’s first ESG (Environmental, Social and Governance) Value Management Commission in March. The move was made as part of an action plan to bring forward new eco-friendly initiatives, corporate social responsibility and increased corporate management transparency across the Lotte Duty Free business.