Logistics Carbon Reduction Conference 2015

Supported by:

Workshop two - CO 2 Free City Logistics

Your facilitator is: Christopher Snelling Head of Urban and Regional Policy, FTA

Logistics Carbon Reduction Conference 2015

Roger Burns Vice President – Specialist Services, DHL Supply Chain

Utilising Consolidation Centers Delivering safe, efficient, sustainable logistics

The Case for Change is Proven “ The Government has been ordered to act immediately to comply with European air pollution limits.” The decision by the Supreme Court relates to nitrogen dioxide, Campaign group Client Earth Client Earth Cities including London, Birmingham and Leeds would not meet EU pollution limits until years after the 2010 deadline.

A Balance of Factors

Large Consignments - DHL ‘City Safe, City Quiet’: Gas Powered Vehicle

Reducing Negative Impacts of Urban Transport

The Results DHL has proved the concept over the last several years for both Bristol & Bath City and Camden Councils. Improving the air quality by using fewer and more efficient vehicles. DHL’s consolidation centre opened in Bristol & Bath in 2004 using a fleet of electric vehicles which to date has saved 14,600 vehicle trips, 146,000kg of CO2 and 4,700 kgs of NOx. Retailers benefit from guaranteed delivery times and the cities win through reduction in congestion and pollution. 75% fewer delivery trips achieved through this model.

Commercial Challenges DHL has proved the concept over the last several years It is however still a commercial challenge and public funding assistance is not a long term solution Scale is the answer Achieving scale is not easy

Logistics Carbon Reduction Conference 2015

Sam Clarke Director, Gnewt Cargo

Sam Clarke Co-founder MD Gnewt Cargo Innovative Ways of Delivering to Cities

Introduction  Last-mile logistics provider in city centres, currently predominantly Central London  100% fully electric commercial fleet, largest of its kind anywhere in the world  Gnewt Cargo has grown 50% year on year 2009 > 2013  100% growth in 2014  Currently designing and building our own electric Cargo Trike for city centre use

4 bikes 2 electric vans 1 city depot 6 staff Began trading Nov 2009

 100+ Electric vehicles and utilise 6 City centre depots in London Situation to date (2015)

The problem

SUBURBAN DEPOT GNEWT DEPOT DELIVERY AREA GNEWT CARGO DELIVERY Quiet. Clean. Efficient. NIGHT-TIME DELIVERY Dirty. Noisy. Inefficient. DELIVERY AREA TRADITIONAL DELIVERY SUBURBAN DEPOT The solution RUSH HOUR EVENING RUSH HOUR MORNING

Hermes previous contractors travelled 329,630 miles to fulfill deliveries in Central London each year. Gnewt will by comparison travel 65,000 miles to fulfill the same deliveries from May 2014 > May 2015 This results in an approximate saving of 122 tonnes of carbon each year. With 20% on top of the tank-to-wheel emissions, required to dig-up, refine and transport the fuel, we are left with an overall saving of approximately 146 tonnes of carbon saved Gnewt uses 100% renewal energy suppliers. Gnewt case study

THANK YOU

Logistics Carbon Reduction Conference 2015

Dr Jacques Leonardi Senior Research Fellow, University of Westminster

CO 2 free city logistics Monitoring Carbon Reduction Dr. Jacques Leonardi James de Roo Logistics Carbon Reduction Conference FTA, Birmingham, 13 May 2015

PTV Group: IT solutions for freight operators, specialists in traffic and logistics software Hermes TL: Operator in freight transport and logistics, parcels distribution and e-commerce deliveries University of Westminster: Academic research developing and evaluating innovations in sustainable logistics CO2 calculation software : Teams

Benefits of IT use for reduction actions FTA four main actions for carbon reduction: Using the right vehicle for the right operation through vehicle specification, selection, maintenance and use of aerodynamics Ensuring drivers play a full part through training techniques, effective driver management and motivation Managing fuel use monitoring vehicle fuel efficiency & using alternative fuels such as biofuels with a lower net carbon intensity if sourced responsibly Reducing vehicle miles and vehicle resource through effective routeing and scheduling and better use of vehicle capacity How improved information can contribute? Knowledge on vehicle fill and load factor is improved with planning tool like PTV Smartour and PTV xServer On-board units and PTV Map&Guide delivers driver behaviour information Fuel specifications are included into the carbon calculation features of PTV Smartour and PTV xServer Tour planning systems to support drivers and dispatchers with shorter routes suggestions, more efficient routing and scheduling information

Review of ICT implementation in city logistics: one of many business models in industry

Definitions Vehicle operation = trip, journey or leg of the same type operated by LSP and to be accounted for a single client Emission factor = factor to be applied to a quantity of energy carrier (fuel), for calculation of the quantity of CO 2 e emitted during a vehicle operation for the client Scope 1 “Tank to wheels” = combustion company Scope 2 “Well to wheels” = incl. energy production emissions Scope 3 = including upstream/downstream supply chain emissions

“Real” fuel data ? Accuracy is highest: exact journey leg tank filling data, exact load weight or volume, exact knowledge about prepositioning and return trip Lowest accuracy: average (UK) length of haul * DEFRA default emission factor per km Intermediate accuracy: distance * average annual company data on fuel use per km

Limits of the system of observations in logistics and supply chain management Vehicle & load (Tank to wheel) = transport + fuel supply (Well to wheel) = freight energy + vehicle maintenance and repair = freight and fleet management + warehouse & logistics services = logistics + upstream and downstream suppliers’ and customers’ chains = logistics & supply chain management + infrastructure + vehicle construction + employees = transport & logistics sector management

Energy and ghg calculation for Freight transport Many approaches, not mandatory DEFRA guidance is main UK source, many other are in use (GHG protocol, etc.) Written and developed by UK government, independent experts and industry stakeholders

PTV solutions: Smartour / xServer Plan /Operate /Report Modules: Job list Driver stops list Trip optimisation Tariff calculation Navigation & routing Telematics Reporting 1.KPI 2.CO 2 Source:

Method: PTV xServer calculates CO 2 of round trip with small van source:

HERMES Transport Logistics GmbH 11,800 employees in >20 countries >2bn € revenues in 2013 in Europe –1400 vehicles –500 mio. shipments/year Part of the OTTO Group 14,000 parcel shops in Germany

Result: Calculated CO 2 emissions for shipments of one client of Hermes The calculation output is included in the monthly report, sent by Hermes to his client

Application of the solution at Hermes The solution doesn’t work with average (default) values, but with real data from the operations, the vehicles, the load, the routes, the gradient of the road The CO 2 module is linked with other logistics software modules, and results are easy to integrate into reports Results were good for the clients of Hermes, because of the high level of detail of the operative CO 2 information Results were good for Hermes because of the added service

On the way to large-scale use in UK? Carbon calculation/auditing is not much used in transport service, not only in UK, why? Can the software for CO 2 calculation become even more easy to use and to integrate into current IT/business reporting systems? Supply chain information (upstream/downstream) remains largely out of the limit of the system of observation Further developments are on-going (ISO norm) Case study showing benefits  inspire others to replicate?

Logistics Carbon Reduction Conference 2015

Lunch will be served in the Britannia Suite