The Logistics Stream - Focus on Sustainable Logistics

Keeping freight moving through Europe amidst increasing congestion and freight volumes, constrained investment and emissions reduction targets necessitates smarter use of existing infrastructures. Leveraging ITS and co-modality can help pave the way to a sustainable integrated transport system.

Cargo Owners are key drivers – What do they need?

Sergio Barbarino from Procter & Gamble (P&G) and Caroline Reid from IKEA reminded delegates that whilst their primary concern is reducing the overall life cycle impact of their products, logistics is important. Sergio Barbarino stressed the need to challenge and reduce the overall logistics burden with effective solutions: Volume Shipped * Kms travelled * Cost per Km.

Volume can be reduced through product compaction, flatpacking etc.

Km’s travelled can be reduced by shortening supply chains, bringing production and distribution closer to the consumer. P&G is developing miniproduction plants located closer to RDCs.

Cost per km may be influenced by modal shift.

Creating scale and reducing load inefficiencies through co-operation is essential. The innovative Dutch Transport Circle concept is one example.

How assumptions are being challenged to meet Shippers needs

IKEA’s Caroline Reid works closely with Ocean Carriers to achieve improving service. Soren Thomsen, Maersk Line, stressed the growing importance of partnering with cargo owners and terminal operators. Incorporating slow steaming can yield significant gains. Alignment of processes and procedures with terminal operators is also key in reducing ‘wasteful emissions’.

Work by Professor Agostini Cappelli from University IUAV of Venice has challenged conventional deep sea routing into N. Europe via Suez. He suggests alternative options into Southern European ports can substantially reduce emissions on some routes. This has influenced the North Atlantic Ports Association (NAPA) and VPA’s Offshore Terminal development.

Will the thawing of the Arctic Sea Route impact Suez traffic in the future asked Sara Sköld?

Stephen Carr explained how Peel Ports work with customers to deliver ‘customer-centric’ ‘ship-to-gate’ solutions maximising water and minimising land legs. Leveraging integration between the port of Liverpool and the Manchester Ship Canal the ports hinterland can be extended and solutions developed for the whole chain right to the customer’s door. In this way ‘ports can unlock value for customers’. Shipping fresh fruit direct from Spain to the Liverpool Fresh Fruit Terminal for packing and distribution saves 1.5 tons of CO2 per trip compared to trucking into S.E. England. Development of modeintegrated inland terminals will provide further opportunities.

Linking it up

Isabelle Ryckbost, EFIP Director, opened the discussion on ‘Developing green corridors and networks’ which are fundamental to Europe’s Sustainable Transport policy. Sweden has played a pivotal development role. Jerker Sjögren, Swedish Ministry of Transport, stressed the importance of Efreight as an enabler for the seamless flow of goods regardless of mode.

Sweden continues to change the game with the development of Railport Scandinavia. Led by the Port of Gothenburg, Arvid Guthed explained how the rail shuttle network linking the port to the Scandinavian hinterland has gained success. Major population and production centres are linked and smaller communities want to get connected. Inland railport terminals are being rolled out, providing extended gateways and cargo owners have re-developed their logistics models to take advantage of the more sustainable service.

Port and hinterland integration is vital for ports to absorb increases in cargo volumes. Linking to inland ports relieves congestion and provides space for storage and services alongside inter-modal gateways. Angelino Aulicino explained this was a driver for the Italian Government’s support for a network of Italian freight villages. He stressed the importance of multi-port co-operation.

The opportunity to develop scale, harmonise systems and develop new business has been a driver for the formation of NAPA, an association between the Ports of Venice, Trieste, Ravenna, Koper and Rijeka.

A novel approach in the Netherlands was explained by Herman Journee (Port of Amsterdam) based on a network of Circle Lines to optimise comodality and unused capacity. A National Circle links industrial transhipment points along waterways with the Rotterdam container transferium and Amsterdam hub. Port Circles link the ports container terminals. The system, with daily services, links to major centres such as Duisberg and Antwerp.

In the first 2 years of operation the national circles have achieved up to 50% reduction in cost and CO2 per TEU and 98% reliability for customers including Flora Holland.

Co-ordination and collaboration is the linchpin

Throughout the event the need for challenging and co-operative thinking has been emphasised. A number of facilitating models, tools and groups have been discussed (see box 1 for examples).

Co-operation and Collaboration Groups and Tools

The Clean Cargo Working Group brings together major Cargo Owners, Retailers and Freight Carriers including IKEA and Maersk Line. CCWG has developed various tools and a standard for calculating CO2 emissions per TEU (www.bsr.org/cleancargo).

EIRAC – The European Intermodal Research Advisory Council – supports European co-operation initiatives including the CO3 project (www.eirac.eu). Collaboration Concepts for Co-modality is looking at ways to fairly split the costs and benefits of collaboration. It is an EIRAC & P&G project.

The Dutch Sustainable Logistics programme brings together 100+ cargo owners and others. ‘Green Order’ and ‘Green Tender’ have been developed led by Mars, Heinz and Interflor. ‘Green Care Transport’ facilitates sharing of trucks in urban areas (www.duurzamelogistiek.nl).

Certifying the logistics chain

EcoSLC and Lloyds Register have developed a Sustainable Logistic Chain Management Tool. Paul Bokdam (Lloyds Register) explained that Logistics buyers can use the tool to develop a door to door chain which best meets their needs in terms of time, emissions, cost and security, compliant with customer demands. This chain could then be certified by Lloyds Register (www.ecoslc.eu).

Is it back to the future?

Many participants remarked how previously abandoned infrastructures such as UK inland waterways and sailing ships appear to be making a resurgence!

Kate Royston MBA AIEMA

Robbee Smole - Sustainable Business Solutions