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Working towards a Green Freight Program in China and Asia
Bert Fabian, Sophie Punte, Yan PengClean Air Initiative for Asian Cities
Transforming Transportation 2011Washington, D.C.,
The Clean Air Initiative for Asian Cities promotes better air quality and livable cities by translating knowledge to policies and actions that reduce air pollution and greenhouse gas emissions in transport, energy and other sectors
About the Clean Air Initiative for Asian Cities
2
CAI-Asia began in 2001 as a multi-stakeholder initiative by ADB, World Bank and USAID
Since 2007, CAI-Asia is a UN Type-II Partnership with almost 200 organizational members, 8 Country Networks, and the CAI-Asia Center as its secretariat
• Background – Vehicle and freight trend– Environment and Social concerns
• Barriers and challenges in road freight • Strategies for a sustainable road freight sector in Asia
Outline
3
Increasing Motorization in Asia
4
Source: 2009. ADB, CAI-Asia, Segment Y Ltd., and IEA
Heavy Commercial Vehicles Growth
5
0
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
70,000,000
80,000,000
num
ber o
f die
sel v
ehic
les
China
PC
LCV
HCV
0
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
70,000,000
80,000,000
num
ber o
f die
sel v
ehic
les
India
3-wheeler
PC
LCV
HCV
Source: ADB, CAI-Asia, Segment Y Ltd. (2009)
Road freight dominates in Asia
6
Source: Various sources (ADB, 2008; Sopadang, 2007; Patdu, 2005; Lubis & Isnaeni, 2005, Ministry of Industries (Pakistan) 2006; World Bank, 2008;
0% 20% 40% 60% 80% 100%
Vietnam
Philippines
Bangladesh
India
China
Thailand
Indonesia
Pakistan
Travel Activity Heavy & Medium Duty Trucks
7
6,862 (87%)
19,104 (71%)
1,068 (13%)
7,958 (29%)
0
5000
10000
15000
20000
25000
30000
2000 2050
billi
on to
n ki
lom
eter
s
Others Total Asian Total
Source: WBCSD and IEA (2004)
Diesel consumption by trucks to double by 2050 and Asia’s share to grow to 34%
8
0%10%20%30%40%50%60%70%80%90%100%
0
200
400
600
800
1000
1200
1400
2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050
% C
onsu
mpt
ion
by A
sian
Co
untr
ies
road
truc
ks fu
el c
onsu
mpt
ion
(bil
liter
s ga
solin
e eq
uiva
lent
)
Asia Other % Consumption by Asia
Road Freight Energy Use and % Consumption by Asian CountriesSource: WBCSD and IEA (2004)
Diesel high % of fuel mix and growing
9
Country 1980 2005Bangladesh 73.3% 79.0%China 13.4% 40.2%India 55.0% 66.4%Pakistan 71.4% 84.1%Philippines 17.6% 54.4%Thailand 52.2% 68.6%Vietnam 15.5% 55.6%
IEA’s Energy Balances of Non-OECD Countries as quoted by Timilsina and Shrestha (2009)
Trucks relatively high emissions impact per truck – China example
10
Petrol88%
Diesel12%
Vehicles -2005
Petrol71%
Diesel29%
Vehicle Kilometer Travel-2005
Petrol28%
Diesel72%
CO2 Emissions-2005
Petrol9%
Diesel91%
PM Emissions-2005
Source: 2008. ADB, CAI-Asia, and Segment Y Ltd
• Road accidents– India: trucks 5% of vehicles but 30% of road accidents– Pakistan: 25% of road accidents involved trucks
• Truck drivers at high risk of getting sexually-transmitted diseases such as HIV/AIDS
• Noise
Other impacts of trucks
11
Barriers: Technologies & Logistics
Barriers and challenges in adopting cleaner technologies• Limited applicability and availability of certain technologies
(e.g. aerodynamics on slow highways)• Fragmented technology suppliers network makes access to
technologies difficult for carriers• Limited policies for trucks and introduced much later than for
light-duty vehicles– Emission reduction technologies (e.g. Diesel particulate filters) will
only work if legislated
• Limited verification/certification systems for technologies• Limited case study examples for Asia to build confidence
12
Barriers: Technologies & Logistics
13
Technology % Fuel Reduction PotentialAerodynamics 3 to 15Auxiliary loads 1 to 2.5Rolling resistance 4.5 to 9Mass (weight) reduction 2 to 5Idle reduction 5 to 9Intelligent vehicle 8 to 15
Source: Transportation Research Board (2010) . Technologies and Approaches to reducing the Fuel Consumption of Medium- and Heavy-duty Vehicles
Barriers and challenges in adopting better logistics and operations
• Freight seldom included in design and planning of urban transport systems and policy development
• Shippers seem to have a less direct relationships with carriers• Long-haul trucks often travel large parts of trips in urban
areas• Limited knowledge and experience with logistics solutions
(e.g. drop and hook; standard container sizes)• Different transport modes covered by different government
agencies, making intermodal transport and shift to other freight modes more difficult
Barriers: Technologies & Logistics
14
• Highly fragmented with a majority owner-driver trucks– China, Guangzhou survey: 52% owner-driver trucks– India: 80% of companies have 1-2 trucks, and only 10% of
companies have more than 15 trucks
• Old trucks and poor maintenance practices
Barriers: Technologies & Logistics
15
0
20
40
60
80
100
Diesel Vehicles Petrol Vehicles
> 10 Years
5-10 Years
0-5 Years
• Overloading– Asia: 52% of trucks 45% over
payload weight limit (Asia Fdn)– Pakistan: 70% of 2-3 axle and
40% of 4-6 axle trucks overloaded– Philippines: 0.5 – 1 billion USD
to repair pavement damage (JICA)
Barriers: Technologies & Logistics
16
• High percentage of empty hauls– China surveys: 40-50% empty miles = 8 billion USD annual loss – Philippines: 89% delivery vehicles empty return trips – India survey: 37-46% of trips are empty
Barriers: Technologies & Logistics
17
45.6
38.1
41.2
37.8
40.4
0% 20% 40% 60% 80% 100%
LCV
2-Axle
3-Axle
MAV
All Empty
up to 2.5 tons
2.5 to 5 tons
5 to 7.5 tons
7.5 to 10 tons
Source: Feasibility for 6-laning of NH-1 from Panipat Jalandhar in the State of Haryana/Punjab, India
• Lack of knowledge on green freight especially small trucking companies / driver-owners
• No training program available for all truck drivers– In-house training courses at large trucking companies– Courses provided by private companies (e.g. Scania or Michelin)
to customers
• Lack of an agreed methodologies for fuel and emission measurement
• Limited public information available on freight sector• Limited recognition for good practice in freight sector
(e.g. Award)
Barriers: Knowledge & Capacity
18
• Limited tax policies for truck sector relevant to energy and emissions management
• Investment costs are too high for many companies, even if potential savings are high and payback periods short
• Truck sector not considered most reliable sector for lending (especially small companies and individual truck driver-owners)
• Banks currently start providing loans for new trucks but not for in-use fleet
• ESCOs (energy service companies) established for industry but no experience with trucking fleets
Barriers: Financing
19
• Avoid: reduce the need to travel or the travel– Promotion of local production and consumption– Co-location of facilities within supply chain and with ports– Improved logistics– Load management
– Example: HCMC (Vietnam): 60% of all food sourced from within city boundaries
Strategies: Avoid
20
• Shift: more energy-efficient modes– Optimization of railways and inland waterways– Different vehicle types that better match the loads
– Example: DHL improved carbon efficiency by 19% in 2009. Strategies included replacing 60 four-wheelers with 75 motorbikes
Strategies: Shift
21
http://www.dhl.co.in/en/press/releases/releases_2010/local/120510/jcr:content.html
• Improve: energy efficient modes, operations, technologies – Fuel economy standards– Stricter implementation of anti-overloading laws – Technological tools, such radio frequency identification
tags (RFID), global positioning systems (GPS) and vehicle routing software
– Example: fuel economy improvement in the ASEAN region from 2015 to 2035 will reduce26% of CO2 emissions from light and heavy duty vehicles
Strategies: Improve
22
Potential for Southeast Asian countries
23
0
50
100
150
200
250
2005
2010
2015
2020
2025
2030
2035
Mill
ion
Tons
of C
O2
Indonesia FE for HDV and LDVIndonesia(Reference)Indonesia FE for LDV
0
50
100
150
200
250
2005
2010
2015
2020
2025
2030
2035
Mill
ion
Tons
of C
O2
Thailand-LDV+HDV-FEThailand(Reference)Thailand-LDV-FE
0
50
100
150
200
250
2005
2010
2015
2020
2025
2030
2035
Mill
ion
Tons
of C
O2
Philippines-LDV+HDV-FE
Philippines(Reference)
Philippines-LDV-FE
0
50
100
150
200
250
2005
2010
2015
2020
2025
2030
2035
Mill
ion
Tons
of C
O2
Vietnam-LDV+HDV-FE
Vietnam(Reference)
Vietnam-LDV-FE
Need for a Green Freight Program Partnership
24
Low Emissions Footprint
4 Elements- Green Freight Partners- Technologies and Logistics- Financing- Knowledge and Capacity
Find out more
25
www.cleanairinitiative.org
CAI-Asia Center
Sophie Punte, Executive [email protected]
Yan Peng, China [email protected]
Bert Fabian, Transport Program [email protected]
Sudhir Gota, Transport [email protected]
Alvin Mejia, Environment [email protected]
Unit 3505, 35th floorRobinsons-Equitable Tower
ADB Avenue, Pasig CityMetro Manila 1605
Philippines
Clean Air Initiative for Asian Cities (CAI-Asia) Center, 2010. “Challenges and Opportunities for an Environmentally Sustainable Road Freight Sector in Asia.” Pasig City, Philippines.
