Transport & Environment freight transport

1. Transport & Environment freight transport Magnus Blinge VINNOVA NUAS seminar 25 aug 2008

2. 10 billion people with the same living standards as in the industrial countries would demand resources corresponding to 10 globes! • …or 10 times more efficient systems

3. Chalmers University of Technology

4. Chalmers University of Technology

5. Some reasons for the increased demand for transport services • Capital rationalization • Globalisation • Customer service as a marketing incentive • Misunderstanding of the concept ”just-in-time” • Transportation is too cheap!It is not primarily due to increased consumption!

6. The solutions that are being discussed… • Intermodality • Alternative fuels • Fuel cells and Hydrogen • Technical development • More roads ….will not be enough!

7. Chalmers University of Technology

8. ”The seaway is the environmental way” (?) Shipping is rapidly growing to become Europe's dominating source of SO2 and NOx emissions ~ 2020 more than all other sources in all. (IVL, 2006) This can be solved with low sulphur bunker oil and catalytic converters, if we are prepared to pay for it!

9. What about the greenhouse gases? • Road transport is responsible for three quarters of the CO2 emissions from the transport sector, but shipping's relative share is growing • Speed and load rate are important. A large containership is 5-10 times more energy efficient compared to road transport Energy use and greenhouse gas emissions for different modes of passenger transport Energy use Climate change

10. Scenarios • It is clear that a biomass based F-T production scenario will heavily affect the transport and logistic systems. • To exchange 19% of the fuel consumption in Poland must 3 large plants with the size of 1,6 GW be build. Each plant must be served by 450 trucks per day or one truck every 3 minutes, 24 hours/day, 365 days/year. • This means five times as many trucks as serving the largest paper mills in the Nordic countries today.

11. Scenarios • To substitute 15 % of the EU 15 countries fuel consumption would an area of 310 000 km² be cultivated with Salix. This corresponds to an area of the size of Poland. • It would require 122 FT-plants of 1,6 GW. We can only imagine the problems of finding enough space at the coastline to support 100 % of the European fuel consumption.

12. Results for a transported trailer

13. Example on how a strategic logistic decision affects the environment Service level on deliveries Customer demands on: Affects: Which affects: Del. precision Transportflexibility Choice of transport mode Transport speed Del. time Load rate, possibility to Number of warehouses consolidate Del. security Localisation of warehouses Distance, possibility to routeplanning Choice of supplier Del. flexibility

14. Technological improvements and intermodal transport solutions are important parts, but….The key to a transportation system that is environmentally sustainable lies within the process of strategic logistic planning

15. The total efficiency needs to be improved! Volkswagen Lupo 3L TDI 33 km/liter! • Fuel efficiency • Load rate

16. Technical improvement possibilities • Fuel cells • Electric hybrid vehicles • Alternative fuels • Aerodynamics • Increased loading capacity • Etc.,,,

19. Volvo Hybrid truck 35 % less fuel consumption and less maintenance costs (brakes)

20. 25,25 m truck

21. Environmental logistics • CONSOLIDATION- Consolidated activities (forwarders) in Sweden ~ 70 % load rate- Consolidated activities (forwarders) in Europe ~ 55 % load rate- Totally for the hauler industry ~ 30 – 40 % • RETURN LOAD~ 25 % of lorry vehicle km (vkm) are empty • ROUT PLANNING / FLEET MANAGEMENT SYSTEMS5 – 15 % lowered vkm • PACKING- Recycling / Reuse- Design

22. Environmental logistics • ORDERING SYSTEM- Logistic strategy- Service level • LOCALIZING- Suppliers- warehouses • DRIVING BEHAVOUR - 20 – 30 % reduction of fuel consumption • CHOICE OF DISTRIBUTION CHANNELS • REVERSE LOGISTICS

23. Potential for fuel savings • Driving behaviour ~ 10-20 % • Smaller engines ~ 30-50 % ?? • Consolidation ~ 25 - 50 % • Technology (Aerodynamics/Hybrid vehicles) ~ 30 % • Packaging ~ 30 % • Route planning/ Fleet management systems/GPS ~ 5-15 % • Alternative fuels ~ 10-20 %Activities in all areas are necessary!Fuel consumption for diesel powered engines for heavy vehicles has decreased by approximately 0,5 % per year

27. For logisticians • The logistic strategy defines the boundaries for the possibilities for reducing the environmental impact • Cooperation is necessary • Open the discussion for increased lead time through better planning, and not necessarily by higher stock levels. • Transport speed is a rough but rather accurate measure of the environmental impact. Magnus Blinge

28. Environmental activities today Transport purchasers • Environmenta Management systems/ISO 14 000 • Demands on vehicles (Euro class) • Intermodality • Tyres • Lubricants • Heavy Ecodriving • … Environmental dept. Magnus Blinge

29. Sustainable Transport • Consolidation • Service levels • Packaging • Localisation • Stock level • Ordering system • … Environmental dept. Logistics dept. Magnus Blinge

30. Sustainable Transport Management Environmental dept. Logistics dept. Common strategy Magnus Blinge

31. If you buy transport services… Slower transport, without longer lead times and maintained (or improved) punctuality! With better planning, transport speeds can be reduced, thereby lowering emissions and increasing the options: • Increasing transport times increases the choice of methods of transport • With vehicles driving more slowly, emissions can be reduced • Driving at lower speeds reduces effects of any disturbances and the goods are therefore more likely to arrive punctually 2

32. If you buy transport services… Delivery frequency, order quantity and stockholding Larger and less frequent deliveries mean less vehicles, each carrying greater loads, which result in less emissions per unit of goods: • With forward planning, the delivery volume per shipment can be increased • With less shipments the sensitivity to disturbance is decreased • In every vehicle, there are more goods that need transporting between the same locations, which increases the capacity and reduces the haulage distance 2

33. If you buy transport services… Transport-friendly packaging Sensibly packed products take up less space and are easy to handle: • Vehicles are filled with packaging that contains plenty of air and not enough goods • Packaging should be designed to withstand knocks and bumps and be easily stackable to reduce damage en route • Less packaging material means less waste disposal trips for the consignee 2

34. If you buy transport services… Logistics-friendly goods delivery locations Proximity to sea and rail transport facilitates intermodality: • Strategically located warehouses and production facilities increase transport options • A wider choice of transport options lowers the sensitivity to disturbance • More options increase the competition 2

35. If you buy transport services… Demands on shipping companies' environmental protection work Developments are justified by customers' demands: • Environmental management systems indicate that environmental protection work is being systematically conducted • Sound environmental choices when it comes to fuel, tyres and other resources mitigate the impact on the environment • Heavy EcoDriving training for drivers reduces fuel consumption and emissions • Many more demands can be made… Today, the Network for Transport and Environment (NTM) has tools to support buyers of transport services in their demands. ! 2

36. Almost everyone can do their bit… Product developers create durable, smart-packaging products for shipping purposes Purchasers make demands The business manager sets time frames The sales person persuades the customer/consignee The IT developer extends the range of communication options The business developer guides the long-term strategies for localisation etc. 2

37. Choice of transportation Rail Rail transport is generally highly energy-efficient and almost always the best environmental choice for land-based transportation. Electric engines are kinder to the environment than diesel engines. The impact of the electric engine on the environment depends on how the electricity it uses is produced. Road New trucks are usually more environmentally-friendly than older ones. Their impact on the environment depends on the fuel they use, they way they are driven (EcoDriving reduces emissions), post-cleaning equipment and type of tyres. Sea Transport by sea is often an energy-efficient alternative. The amount of emissions depends on the fuel quality and speed and considerable improvements can be made by choosing better quality fuel and ships that travel at slower speeds. Examples of emissions of carbon dioxide in kilograms when carrying 1 tonne of goods a distance of 1 kilometre. ! Air Air transport is highly energy consuming, especially at takeoff. Its advantages are obviously its speed. Good planning can make emergency flights for low-value goods unnecessary.

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