Transport & Environment freight transport

Magnus Blinge

VINNOVA

NUAS seminar 25 aug 2008

• 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

Chalmers University of Technology

Chalmers University of Technology

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!

The solutions that are being discussed…

• Intermodality

• Alternative fuels

• Fuel cells and Hydrogen

• Technical development

• More roads

….will not be enough!

Chalmers University of Technology

”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!

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

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.

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.

Results for a transported trailer

0

20

40

60

80

100

120

140

160

Fartyg Lastbil Flyg

kg NOx

NOx

02 0004 0006 0008 000

10 00012 00014 00016 00018 00020 00022 00024 00026 00028 000

Fartyg Lastbil Flyg

kg CO2

CO2

Service level on deliveries

Choice of transport mode

Load rate, possibility to consolidate

Distance, possibility to route planning

Transport flexibility

Transport speed

Number of warehouses

Localisation of warehouses

Choice of supplier

Del. precision

Del. time

Del. security

Del. flexibility

Customer demands on: Affects: Which affects:

Example on how a strategic logistic decision affects the environment

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

The total efficiency needs to be improved!

• Fuel efficiency

• Load rate

Volkswagen Lupo 3L TDI 33 km/liter!

Technical improvement possibilities

• Fuel cells

• Electric hybrid vehicles

• Alternative fuels

• Aerodynamics

• Increased loading capacity

• Etc.,,,

Volvo Hybrid truck

35 % less fuel consumption and less maintenance costs (brakes)

25,25 m truck

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

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

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

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

Environmental activities today

Environmental dept.

Transport purchasers

Environmenta Management systems/ISO 14 000

Demands on vehicles (Euro class) Intermodality Tyres Lubricants Heavy Ecodriving …

Magnus Blinge

Sustainable Transport

Logistics dept.

Consolidation Service levels Packaging Localisation Stock level Ordering system …

Magnus Blinge

Environmental dept.

Sustainable Transport

Management

Common strategy

Magnus Blinge

Environmental dept.

Logistics dept.

If you buy transport services…If you buy transport services…

2

Slower transport, without longer lead times and maintained (or improved) punctuality!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

If you buy transport services…If you buy transport services…

2

Delivery frequency, order quantity and stockholdingDelivery 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

If you buy transport services…If you buy transport services…

2

Transport-friendly packagingTransport-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

If you buy transport services…If you buy transport services…

2

Logistics-friendly goods delivery locationsLogistics-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

If you buy transport services…If you buy transport services…

2

Demands on shipping companies' environmental protection workDemands 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.

!

Almost everyone can do their bit…Almost everyone can do their bit…

2

Purchasers make demands

Purchasers make demands

Product developers create durable, smart-packaging products for shipping purposes

Product developers create durable, smart-packaging products for shipping purposes

The sales person persuades the customer/consignee

The sales person persuades the customer/consignee

The business manager sets time frames

The business manager sets time frames

The IT developer extends the range of communication options

The IT developer extends the range of communication options

The business developer guides the long-term strategies for localisation etc.

The business developer guides the long-term strategies for localisation etc.

Choice of transportation Choice of transportation

Examples of emissions of carbon dioxide in kilograms when carrying 1 tonne of goods a distance of 1 kilometre.

!

RailRail 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. RoadNew 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.

SeaTransport 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.

AirAir 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.

To find out more… To find out more…

CPM www.cpm.chalmers.se

Environmental measures for goods transport

Blinge and Svensson, CPM report, 2006: 5

Network for Transport and Environment www.ntm.a.se

Good examples from the National Road Administration

www.vv.se (click on Transport & Journeys – Commercial traffic – Good examples)

EcoDriving www.ecodriving.se

Swedish Environmental Protection Agency

www.naturvardsverket.se

Sweden's environmental objectives www.miljomal.nu