Port Sustainability and Energy Security Workshop Sustainability and Energy Security ... use of wood as raw material in recyclable paper pallets ... Port Sustainability and Energy Security

A U.S. Department of Transportation University Transportation Center

Port Sustainability and Energy Security Workshop

March 1, 2013

Panel III: Port User and Third Part

Perspectives

Panel III: Port User and Third Party Perspectives >>

Participants

• Angela Billings-Soini, IKEA North America • William Goetz, CSX Transportation • Thomas Heimgartner, Best Transportation • Douglas P. Morgante, MAERSK • Reema Loutan, EPA Region 2

Facilitator Abbas Sarmad - AECOM

Topics

Corporate strategies, plans to work with ports, road maps to success

Angela Billings-Soini is Sustainability Manger for

IKEA Distribution Services with a responsibility for

North America. She is responsible for implementing the

IKEA global sustainability direction in North America

with all transport service providers and IKEA

warehouses. Her area of responsibility includes

exploring ways to reduce CO2 from transportation and

own buildings as well as environmental and social

audits of all North American carriers.

Formerly, Ms. Billings-Soini worked for Nokia in the

Corporate Social Responsibility department focusing

on CSR reporting and communications. Ms Billings-

Soini holds a BA in International Relations from the

University of the Pacific, a MSc in Environmental

Assessment and Evaluation from the London School of

Economics and a MSc in Environmental Science from

Lund University in Sweden.


William G. M. Goetz is Resident Vice President with

CSX Transportation, a company operating the largest

railroad in the Eastern United States. Mr. Goetz

represents CSX with the City of New York, State of New

Jersey, and City of Philadelphia.

Mr Goetz’s 30-year railroad career has included projects

resulting in new terminals and infrastructure throughout

the Eastern United States, many of which were public-

private partnerships.

Mr. Goetz is a board member of the Schuylkill River

Development Corporation in Philadelphia and the

Transportation Research Forum’s New York City

Chapter.

He graduated from the Boston University School of

Management and the Wharton Graduate School of the

University of Pennsylvania. He and his wife Susan

reside in Pennsylvania and New York City.



Thomas Heimgartner is the President of Best

Transportation, which he founded in 1982 modestly as a

one-truck operation with Tom himself behind the wheel.

Through his insight and leadership, Best Transportation has

evolved into a major intermodal carrier now owning over 100

vehicles and servicing the northeast region through The Port

of New York and New Jersey

Tom has been an advocate for improving the work

environment, productivity, and safety of intermodal

transportation. As an industry leader, Tom has met with and

established relationships with many local, state, federal

officials and elected representatives in an ongoing effort to

resolve the problems of unsafe, poorly maintained intermodal

trailers and containers being driven on our highways. He

remains actively engaged in improving highway safety of the

Motor Truck Industry and promoting the growth and efficiency

of The Port of New York and New Jersey.

Tom holds a degree from Rutgers University and has more

than 35 years of transportation experience. He is a member

of the Board of Directors of The Intermodal Motor Carriers’

Conference of The American Trucking Association and the

Association of Bi-State Motor Carriers.

Panel III: Port User and Third Party Perspective >>

DOUGLAS P. MORGANTE was appointed Director of State

Government Relations of MAERSK Inc. in May 2005. As

Director, he works closely with business owners and

colleagues from A.P. Moller – Maersk and all affiliated

companies and departments, as well as with legislators and

staff members of state legislatures on a national basis to

positively influence Maersk Inc.’s legislative and regulatory

interests.

Mr. Morgante joined the A.P. Moller-Maersk Group in

January 1994. He has served in several management

positions for Maersk Line, including route management, and

as representative in Ocean Carrier Rate Conferences and

Discussion Agreements. Prior to his current position, he was

responsible for Regulatory Affairs.

Mr. Morgante currently chairs the Legislative Committee for

the Ocean Carriers Equipment Management Association

(OCEMA).

Education:

- Rutgers College, NJ, B.A. Political Science, 1988.

- Harvard University, John F. Kennedy School of

Government - Infrastructure in a Market Economy

program, Cambridge, MA, 2008.

Panel III: Port User and Third Party Perspective >>

Reema Loutan has worked in the Mobile

Source Section of EPA Region 2 for 10

years. Reema's program responsibilities

include ports, the SmartWay program,

fuels, inspection and maintenance, and

grants. Reema has a Masters in Chemical

Engineering from Manhattan College, and

Bachelor degrees in Chemistry and

Chemical Engineering from NYU and

Stevens Institute of Technology.

Towards More Sustainable Transportation

Angela Billings-SoiniIKEA Distribution Services, North America

2013-03-012013 03 01

At IKEA we are good in using Unit loadsT t t t t th d i t bl !- Transport starts at the drawing table!

Products developed to… …fit flat packages that are… …optimized for pallets that are…

…optimized for containers that can… …be unloaded directly to point of sales.

SCOPESCOPE

W t f d t & We secure movement of products & materials between IKEA associated locations including customers’ homeslocations including customers homes

OUR SCOPEin figures

• 1 3 million shipments per year >99% FL• 1.3 million shipments per year, >99% FL• 30 Million net m3

• 9 500 different articles, produced at 1000 suppliers1000 suppliers

• Transit through 26 DCs and 27 CPs• Making their way to >300 stores• Approx 20 000 units on the road/sea • Approx. 20 000 units on the road/sea

everyday• In addition, deliveries of materials and

deliveries directly to 5 million deliveries directly to 5 million customers’ homes

• Approx. 13 000 movements every day• All this in cooperation with 400 carriers• All this in cooperation with 400 carriers.

CO2 emissions reduction targetCO2 emissions reduction target

C d t th FY11 i iCompared to the FY11 emissions

Actions in reducing CO2

Equipment utilization

Actions in reducing CO2

Equipment utilization– New handling material– Filling rate– Optimal equipment

Inter modal set-ups25 000 i l – 25 000+ units last year

Direct deliveries– >50% shorter distances– >50% shorter distances

Regional sourcing Carrier fuel reduction Carrier fuel reduction Truck age

HM NOW – Phase out of wooden pallets

• IKEA has decided to phase out wooden pallets

HM NOW Phase out of wooden pallets

Phase out of wooden pallets• Lower costs & more sustainable:

– No return flows of empty wooden pallets– More efficient use of wood as raw material in recyclable paper pallets– Lower total cost– Less emissions

• HM NOW is an enabler for higher equipment

© Inter

HM NOW is an enabler for higher equipment– A combination of lower handling material and higher transport

equipment enables a reduction of number of transports.

IKEA

System

s B.V. 2011

Filling rate activities

27 Consolidation points

Filling rate activities

27 Consolidation points Transit set ups in DCs Co-loads & Milk Runs Load optimization tools at

suppliers

Combine heavy & light goods while fulfilling availability g ydemands

Combination of activities gives resultg

C40HC

+ + ++ + +

Utilization of the extra space is key

Green Freight Initiativesg

Thank you!y

© Inter IK

EA S

ystems B

.V. 2011

1 1

Railroads At Sustainable Ports March 1, 2013

Freight Rail’s Long-Term Fundamentals: Best in 50

Years.

Eisenhower Era 21st Century Rail Significance

Virtually Unlimited Supply of

Cheap Petroleum

Erratic Commodity Prices;

Long-Term Supply Questions

Compared to Long-Haul

Trucking, Rail Uses 1/4 Fuel

Environmental Insignificance Environmental Awareness Freight Rail: Part of the Solution

Not Part of the Problem

Rapid Growth of Limited Access

Highway System

Rising Highway Repair Cost;

Extensive New Untolled Route

Mileage Unlikely

Re-think Asphalt-Only

Strategies. Reconsider Rail and

Water Solutions

Sprawl Urban Rebirth Revival where Rail

Infrastructure is Strong

Railroad Management Mindsets

Shaped by WWII Railroad Industry Pragmatism

Customer-Driven Business

Strategy

4

Bergen Tunnel

Waldo Tunnel

Liberty Corridor Freightway

Waldo Tunnel Was Improved by Daylighting Its

South End

Bergen Tunnel:

4200 feet of Very Hard Rock

Bergen Tunnel:

Well Built…150 years ago

Construction Completed Under Budget

in One Construction Season

NW Ohio Terminal Improves the Flow of

Freight.

Interchange

with western rails

Before NWOH

Chicago Bypass

for Western

interchange

After NWOH

Opening of Northwest Ohio Terminal is a Major

Milestone.

• Opened February 22, 2011

• Cost: $175 million

• Construction Time: 18 months

• 500 acres

• 200 employees at opening

• 24,000 feet of working track

• 100,000 feet of block swapping track

• Parking for 280 units

• Five cranes spanning eight tracks

• Will process 30 trains daily when fully

network integrated

• CSX’s largest Intermodal terminal

Northwest Ohio Terminal Anchors National Gateway

and Other CSX Intermodal Corridors

GenSet Locomotives

• Replaces locomotive’s large diesel engine with two or three smaller engines, each with its own generator

• Locomotive only powers on engines sufficient for its pulling load

• Best suited for yard switching applications

• Cuts fuel consumption 25%

• Cuts CO2 emissions 25%

• Cuts NOx emissions 80%

• $1.5 million to retrofit an existing locomotive

Thank You

BEST TRANSPORTATION

Tom Heimgartner

President

Best Transportation LLC.

Port Newark, NJ

Rutgers Port Sustainability and Energy Security Workshop

Friday, March 1, 2012

BIAS ON OPEN WHEEL = HIGH ROLLING RESISTANCE

RADIAL ON HUB PILOTED WHEEL = LOW ROLLING RESISTANCE

CHASSIS TIRES

VS

Maersk Line:

Environmental and

Operations Perspectives

Port Sustainability & Energy Security Workshop Rutgers University -- 3/1/2013

Doug Morgante – Director, State Government Affairs Lee Kindberg - Director, Environment & Sustainability

Insert department name via

‘View/Header and Footer…’

Agenda

• Challenges we faced due to

Hurricane Sandy

• Operational challenges

• What we are doing about

climate change

• Emissions reduction on our

cargo vessels

1



Hurricane Sandy – aftermath

• Ports were closed over a week

• Vessels had few alternatives – Halifax?

• Maersk Line had 2785 containers in

Norfolk and 680 in Philadelphia that

needed to get to Port Elizabeth.

• Some containers were cleared and picked

up by customers. The rest moved in bond

to Newark.

• It took 26 days to clear the backlog.

• Cost est. $2.5M to Maersk Line and our

customers, truck, rail, extra bunker).

2

Possible Future Solutions: 1. Jones Act waiver in an emergency: The Jones Act requires that all goods

transported by water between U.S. ports be carried in U.S.-flag ships, built in the US, owned by US citizens, and crewed by US citizens/permanent residents. For the future a one-time waiver would allow faster recovery with Lower cost and environmental impact.

2. Review changes to the Stafford Act (Relief and Emergency Assistance



The Bayonne Bridge is an operational limitation for vessel operations.

• A solution is in place, the bridge will be raised.

• We already have problems getting under the bridge today.

• This is due to the vessel’s high air draft -- transit of the bridge is sometimes not

possible to meet the scheduled arrival.

• Less water draft = higher air draft. Full vessel = lower air draft.

• With 50+ feet of water depth and a raised bridge, we should not

experience delays.

Possible outcomes due to delays in project completion: Local cargo Discretionary cargo Panama Canal Expansion More cargo volume? Economies of scale: larger vessel mean more cost efficient moves per container – less emissions – increased volumes good for the economy.

3



Vessels are increasingly fuel efficient. This reduces fuel use, CO2 and other air emissions.

CO2 and other emissions were reduced 25% per TEU km from 2007 to 2012.

CO2 reduction goal has now been raised to 40% for 2020

Reductions were achieved through a combination of vessel size, technologies,

route planning and operational changes.

2007-2011 data was verified by:

45

50

55

60

65

70

75

80

2007 2008 2009 2010 2011 2012

Maersk Line CO2 Reductions

CO2 Emissions g/TEU*Km

Previous 2020 Targetreduction from 2007baseline

Revised 2020 Targetreduction from 2007Baseline

4

Met 2020 goal

for CO2

reduction 8

years early!



Innovation is essential for sustainability

Other Initiatives

Alternative fuel tests

New propulsion technologies

ISO 14001 certified

Crew awareness and engagement

Maintenance of hull and propeller

Voyage Efficiency System (VES)

Trim optimization

SOx scrubber studies

Antifouling hull paint

QUEST: Low energy

chilled containers

Modified bulbous bow

Micro bubbles

Ballast water optimization

and treatment systems

Propeller, hull & trim optimization

Waste heat recovery system

Slow steaming and super-slow steaming

5



Vessel environmental improvements take time and partnerships.

New vessels Existing fleet

• Identify or develop technologies

• Work with Charter vessel owners

• Partner with technology, software and

engine suppliers

• Identify the right mix for each vessel

• Optimize vessels for intended

services

• Potential energy efficiency

improvements 20-50%

• Work with shipyards, equipment

and fuel suppliers

• Long-term view plus short-term

impact

Personnel

•Vessel crews •Shore side teams •Structures, metrics, idea sharing

6



Improvements go beyond the vessels

• Reefers – a new, innovative control system

reduces energy consumption by 50%

(some by 63%).

• Dry Containers - flooring is now recycled

plastic, bamboo or FSC certified timber.

• Slow or “steady” steaming – voyage

efficiency systems improve on-time

delivery at the same time they are

minimizing fuel usage.

• Testing alternative fuels and propulsion.

• Using our vessels to assist ocean scientists.

Study Period On-time % Ranking Among Top 20

3Q11 83 1

2Q11 76 1

1Q11 66 3

4Q10 70 1

3Q10 79 1

2Q10 77 1

1Q10 69 1

4Q09 63 1

3Q09 71 2

2Q09 79 1

1Q09 78 1

4Q08 77 1

3Q08 68 1

2Q08 76 1

1Q08 63 3

7

http://www.treehugger.com/files/bamboo floor.jpg



Maersk Line Terminal Efficiency Project: Port Captains at larger ports work with terminals to reduce port stays through process improvements

Arrival at sea 1

Pilot time 2

Arrival (first line to first move) 3

Operations 4

Departure (last move to last line) 5

Pilot time 6

Buoy/pilot station

Previous port to Pilot A

Pilot to next port B

Example: performance (hours)

18,8

-26%

Best observed /Target

2,9 0,4

12,2

0,0

2012 Actual

25,3

3,2

1,1

16,5

1,0

3,5 0,1

3,0 0,2

Vessels on time

More timely

and accurate planning

Optimized port stay

and

Reduced emissions

8



Thank you

9



Mode selection is a major factor in supply chain environmental impact.

Graphic provided by Edgar

Blanco, MIT Center for

Transportation & Logistics

Ocean shipping has the

lowest environmental

impact for long distance

transportation…

Then rail…

Then truck…

And air has the highest

impact.

10

1

Reducing Drayage Emissions

U.S. EPA SmartWay Transport Partnership Program

Reema Loutan

Mobile Source Section

US EPA Region 2

Port Sustainability and Energy Security Workshop

Rutgers University

03/01/2013

• Goals:

– Improve the environmental and energy efficiency of goods movement

– Promote investment in clean, efficient technology and operational

strategies

– Enable and complement EPA regulation

• Outcomes:

– Achieved climate and air quality benefits - national and place-based

– Contributed to economic growth and energy independence

– Drove innovation and investments in clean truck, trailer & tire

technologies

– Leveraged existing market forces through collaboration and brand

value

2

Moving Goods the SmartWay

3

Businesses use SmartWay to Demonstrate

Commitments to Sustainability

A Few of SmartWay’s 3000+ Partners

4

Addressing Drayage Emissions

• Dray Trucks: Unique, Challenging

– Very old trucks

– Low income owner-operators

– Limited benefits from fuel-saving equipment

– PM, ozone and toxics are the major priority, not GHG

• Created SmartWay Drayage criterias that balance:

– Financial consideration

– Available emission reduction technologies

– Superior environmental performance

5

SmartWay Drayage Program

• SmartWay shipper and logistics Partners assess the emissions

performance of their carriers, including drayage carriers

• Drayage carriers commit to track and report their emissions on

an annual basis with SmartWay tools

• With access to environmental performance data

– Carriers can cut costs, benchmark internally and against competition,

and attract customers looking for greener choices

– Shippers can identify greener choices to reduce carbon footprint and

improve supply chain efficiency through carrier/mode selection

– Information supports competition & demand for top performers

6

EPA Commitments

• SmartWay commits to support our drayage partners by:

– SmartWay provides a network of proven technologies and driving

techniques that reduce emissions and fuel consumption

– EPA assists SmartWay drayage carrier Partners in developing and

meeting goals

– Drayage carriers gain access to SmartWay Partner Account Managers

who serve as important sources of personalized insight into how you can

improve performance

• For details on the SmartWay Drayage Program, visit:

– www.epa.gov/smartway/partnership/drayage.htm

http://www.epa.gov/smartway/partnership/drayage.htm

Documents

Port Sustainability and Energy Security Workshop Sustainability and Energy Security ... use of wood as raw material in recyclable paper pallets ... Port Sustainability and Energy Security