Freight Performance Indicators –

“Map the Gap”

Sudhir Gota

Consultant / Advisor

Regional Workshop on Green Freight & Logistics in Southeast Asia

2-3 June 2016

Bangkok

Is freight becoming more “efficient” ?

High-Level Indicators

Detailed Data

Technical Level

The Public,

Policy makers

Experts, NGOs,

Policy advisors

Academics

Technicians,

Survey experts,

Indicator Pyramids

Henrik Gudmunsson, DMU

Indicator Pyramids

Health Impact

Ambient air analysis

Pollutant by type and vehicle

CO2,PM,NOx

Detailed freight Data: survey of trucks, movement, fuel use and

emissions coefficients ( segregate by category of vehicle,

fuel,emission standard)

(emissions/km*kilometers)

for each vehicle type, fuel

Danger Signal

to the Mayor?

Design and

Implementation

of Mitigation

Actions

A good indicator should meet the following standards:

1. The indicator is needed and useful.

2. The indicator has technical merit.

3. The indicator is fully defined.

4. It is feasible to measure the indicator.

5. The indicator has been field-tested or used operationally.

6. Weighted (relative importance in comparison to other indicators)

7. Comparable (quantified in all organizations in the same way)

8. Mutually exclusive and collectively exhaustive

9. Sensitive to the company’s classified information

10. Easy to use & communicate

“Gold Standard” of Indicators

“if indicators are not selected carefully, they can consume extensive resources

and generate data with little or no value”

Communicating Indicators

ISO 37120:2014 - Sustainable development of communities

— Indicators for city services and quality of life

Core Indicators (requirement)

1. Kilometres of high capacity public transport system per 100 000 population

2. Kilometres of light passenger public transport system per 100 000

3. Annual number of public transport trips per capita

4. Number of personal automobiles per capita

Supporting Indicators (recommended)

1. Percentage of commuters using a travel mode to work other than a personal vehicle

2. Number of two-wheel motorized vehicles per capita

3. Kilometres of bicycle paths and lanes per 100 000 population

4. Transportation fatalities per 100 000 population

5. Commercial air connectivity (number of non-stop commercial air destinations)

Move towards Standardization?

Global City Indicators Program Report (2008) - The eight pilot cities were collecting over 1,000 various indicators, only three of which were common to all cities”

Major Challenges

Matrix Infr

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ther

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IT

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ess

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Hig

h C

ost

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an F

reig

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Par

tner

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Bangladesh

Bhutan

Cambodia

India

Indonesia

Laos

Maldives

Myanmar

Nepal

Philippines

Sri Lanka

Thailand

Viet Nam

Central &West Asia Source : ADB (2014)

Challenges in Green Freight

Challenges in Green Freight

Sri

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No of Trucks registered

No of trucks on road

Trucks distributed by emission standard

Tonkm by various mode (official source)

Freight transport mode share (tons and/or tonkm)

Number of kilometres of freight rail lines

Number of inland dry port

Freight transport intensity (ratio of freight to GDP)

Traffic fatality related to freight transport

Logistics cost

Empty trips (%) (official)

Average loading (tons) (official)

average handling factor (official)

average length of haul (official)

Fuel efficiency of trucks (official)

Average speeds of modes (official)

Key Questions

• How much freight is being moved?

• Where is the freight going and where it is coming from?

• What is the relative use of different transport modes?

• How efficiently is freight being transported?

Source :Alan McKinnon (2015) & others

• How does freight transport performance compare among

neighboring countries/cities/competitor companies?

• What is the quality of freight infrastructure

Implementation

Freight Demand Growth

Freight Infrastructure

Freight System

Efficiency

Freight Economic

Impact

Freight Environmental

Impact

Freight Society Impact

Freight KPI – Balanced Approach

Transport Intensity

Modal Split

Market Diversity

Operational Efficiency

Service Quality

Environmental impact

Visioning

Measurement & Target Setting

Policy

Investments

Operations

Benchmarking

Freight Mode Share

Freight cost and

emissions per unit

shipped

Average Age of truck

Freight Investments/Ton or tonkm

Freight Fatal

Crash Rate

/Freight km

travelled

Freight

external costs/

($/ tonkm )

Freight KPI – Implementation

Smart Freight System Approach

> 250+ elements / 500+ connections / 130+ Indicators

Source :Smart Freight Center (2016)

Examples

Company Targets Indicator

Casio a 22% reduction per unit of domestic sales in fiscal 2013 compared to fiscal

2006 CO2/Sales

Toyota Reduce emissions per unit produced by 6% by 2012 from 2006 using

logistics

CO2/ unit

produced

Hino Global Reduction in CO2/tonkm of 12% from FY 2008 by 2012 (logistics) CO2/ tonkm

Komatsu 8% reduction in CO2 per Cargo Weight in 2015 with 2011 CO2/Weight

Sharp CO2 emissions per shipping volume by 1% or greater/year CO2/ Volume

Mitsubishi

ElectricCO2 emissions 3% reduction from 2009 in 2010–2012 Logistics

OmronGlobal net sales to CO2 emissions improvement by 30% by 2020 (2010

baseline)

Sales/CO2

Emissions

Sagawa ExpressReduction of gross CO2 emission by 6% (compared to fiscal year 2002)

before FY 2012

Gross CO2

Emissions

Sumitomo

Corporation

Improving efficiency in the use of energy due to domestic carriage by 1%

annuallyEnergy efficiency

Revised Energy Conservation Act mandates submission of energy conservation plans; report;

and the status of efforts related to energy conservation measures.

Indicators used - Fuel Consumed, CO2 emissions and Tonkm

Japan KPI’s

-30 -20 -10 0 10 20

Drayage

Flatbed

Less-than-truckload dry van

Mixed

Package Delivery

Refrigerated

Specialized

Heavy/Bulk

Auto Carrier

Moving

Expedited

Tanker

Truckload dry van

Annual Growth Rates 2011-2013 (%)

gCO2/truck mile CO2 g/tmile

US Smartway Data & KPI

Truck and multi-modal carriers data:

• Total miles driven

• Revenue miles versus empty miles

• Road speed and operational characteristics

• Total fuel consumed

• Alternative fuel (e.g., biodiesel, natural gas)

consumed

• Number of trucks by class

• Fuel and payload by truck class

• Truck model engine year

• Payloads

• Trailer capacity volume and utilization

• Average idle-hours per truck

Shipper and logistics companies

• Ton-miles driven

• Total miles driven

• Payload

• Number of loads

• Type of cargo by commodity group

• % By Smartway and other carriers

EU TERM Indicators

Core Indicators

TERM 01: Transport final energy consumption by mode

TERM 02: Transport emissions of greenhouse gases

TERM 03: Transport emissions of air pollutants

TERM 04: Exceedances of air quality objectives due to traffic

TERM 05: Exposure to, and annoyance by, traffic noise

TERM 12a/b: Passenger transport volume and modal split

TERM 13a/b: Freight transport volume and modal split

TERM 20: Real change in transport prices by mode

TERM 21: Fuel tax rates

TERM 27: Energy efficiency and specific CO2 emissions

TERM 31: Share of renewable energy in the transport sector

TERM 34: Proportion of vehicle fleet by alternative fuel type.

Supporting Indicators = 29

New Zealand KPI

21

0 10 20 30 40 50 60 70 80 90 100

Access to the Transport System

Environmental Impact

Freight and the Transport Industry

Infrastructure and Investment

Network Reliability

Public Health

Safety and Security

Travel Patterns

Transport Price Indices

Transport Volume

% Complete Total Indicators

Tonkm

Vehicle km

Tonnes of CO2e emitted from domestic transport per vehicle km driven

Tonnes of CO2e emitted from domestic transport per tonne-km

Energy use (PJ) per vehicle kilometres travelled by domestic transport

Energy use (PJ) per tonne-km by domestic transport

France KPI

Indicators• Number of deliveries and pick-ups per week

per employee in an activity

• Loading/unloading density

• Car-purchasing density

• Loading/unloading intensity per activity

• Loading/unloading time

• Length covered for Loading/unloading

• Average length of the first trip from platform

to the delivery area

• Average distance travelled per

collection/delivery

• Total distance travelled on roads in urban

area transporting goods by vehicles

• Average time taken per delivery

• Average driving time and stationary time

• Average speed per round

• Greenhouse gas and pollution

• Average operating cost per collection/delivery

• Road occupancy by vehicles transporting food

• Weight average transported in a round

• Average cost of purchase

• Average cost of food per home delivery

• Average distance covered by a trip for

purchase

• Average cost of home delivery

• Freight Intensity

• Lorry traffic intensity

• Goods moved (tonkm/region)

• Goods lifted

• Average length of haul

• Distance travelled

• Loading factor

• Empty running

• Energy intensity

Source : Jean-Louis Routhier and Danièle Patier Laboratoire d'Economie des Transports Lyon

About 50 Indicators , Impact Categories - freight volumes and commodities, urban

freight transport fleet, urban deliveries, contribution to economy, environment &safety

UK Indicators for Fleet Management

1) Costs - Average cost per unit delivered ($), Total whole vehicle cost ($/km), Average

running cost ($/km), Average standing cost ($/km), Average driver cost ($/km), Total

maintenance cost ($/km)

2) Operational - Average km per liter, Total km run (km), Total empty miles run (km),

Percentage empty running total (%), Percentage average vehicle fill (%), Percentage

average time utilization (%)

3) Service - Percentage of late deliveries total (%), Percentage of damages total (%),

Percentage of complaints total (%)

4) Compliance - Total number of overloads, Total number of vehicle traffic infringements, Total

number of drivers’ hours infringements, Total number of traffic accidents

5) Maintenance - Percentage of failed inspections total (%), Percentage of defects rectified in

24 hours total (%)

6) Environmental - Total fleet CO2, Average fleet CO2

Source : UK DFT, “Fleet Performance Management Tool Incorporating CO2 Emissions Calculator”

Urban Freight Indicators

London Freight Plan

1. Total number of commercial vehicle

parking-related Penalty Charge Notices

(PCNs) per million freight vehicle

kilometres,

2. Overall reliability measure for freight,

emissions impact of freight road vehicles,

notably CO2, particulates and NOx

emissions,

3. Freight fly-tipping incidents,

4. Overall number of people killed or

seriously injured in collisions involving

freight vehicles,

5. The number of thefts linked to freight

activities on London roads &

6. Freight Operator Recognition Scheme

membership at each level

Stockholm Freight Plan

1. The percentage of distributors and end

customers that are satisfied with traffic

flow,

2. The percentage of vehicular journeys with

good journey time reliability,

3. The number of loading zones,

4. Unauthorized parking in loading zones,

5. Number of clean vehicles

6. CO2 emissions &

7. Number of meetings with both the internal

and external freight networks

California Sustainable Freight Action Plan

Target KPI’s

1. Freight system efficiency – GDP/Freight CO2

2. Number of near-zero emission freight

vehicles

Freight Intensity

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

0-4999 5000-9999 10,000- 19,999 20,000-34,999 >35,000

Fre

igh

t In

ten

sit

y (

ton

km

/GD

P)

GDP/Capita PPP (2005 USD)

Highest Lowest Average

• Freight transport intensity of countries tends to decline as they become wealthier i.e. “de-

coupling”

• Varies with type of economy, commodity-mix, infrastructure and the geographical characteristics

of the country

• Not appropriate for benchmarking countries

Kuala Lumpur Transport Strategic Plan

1. No silver bullet but also avoid analysis-

paralysis

2. Acknowledge data limitations and use

staircase approach i.e. multi-year action

program

3. Harmonize – data collection, definition

and methodology for analysis

4. Stakeholder consultations & partnership

to avoid double counting

5. Improve capacity of local stakeholders

over time

5 Rules to Remember

Breakout Session

Priority

Indicators

Data? What

Surveys?

Frequency of

reporting?

Institutions?

What priority indicators should be included for green freight in the ASEAN region?

sudhirgota@gmail.com

sudhirgota

Skype - sudhirgota

Thank you

Lee Schipper 1947-2011