The lack of comprehensive and coherent research underpinning environmental initiatives is well demonstrated by the bio-fuel debate. A considerable number of road transport operators opted to run a 5% bio-diesel mix or more as an acknowledgement of their environmental concerns. From 15 April, government dictat has put 2.5% bio-fuel into forecourts to meet the Renewable Transport Fuels Obligation - this will rise to 5% by 2010. However, a storm has blown up around the sustainability of crops, the
suitability of land chosen (mainly in places like Brazil and the US) and its competition with food production. In the UK there is scope for increasing production of crops such as oil-seed rape, giving it a greater capacity to service multiple markets. Sustainable crops do exist - such as oily shrubs - which can be grown on land that farmers would otherwise not utilise.
As ever, however, the European market is distorted by the US the infamous ethanol pledge offered to mid-America farmers has become a huge subsidy for anyone producing bio-fuel blends and the higher the concentration, the higher the subsidy. The US bio-ethanol is wholly consumed by the domestic market, but the bio-diesel has been dumped around the world as cheap B99, selling at about $1,400/tonne. UK producers, working without subsidies, would pay extra costs of around $250/tonne and simply can't compete. Bio-fuel almost certainly does have environmental benefits as an interim fuel until technologies such as biomass
gas-to-liquid fuels become viable. Just make sure it is from an environmentally sustainable source.
The need for sustainable logistics is no longer in doubt. Governmental, environmental and customer pressures are all bearing down upon the road transport sector to ensure the transformation of the industry into a lean and green machine. In many cases these pressures cascade down through the tiers of engagement: for instance, government restrictions on high energy users - currently focused on electricity - will push through large corporates into corresponding pressure on their supply chain providers. This urgency towards carbon cutting will affect all road transport operators eventually, although initial steps have been provoked in many by high fuel costs (if you reduce your mileage you clearly cut both your fuel bill and your carbon footprint).
There are two big barriers to the wholesale introduction of more sustainable logistics, whether the initiatives are regulatory, technology-led or introduce new working practices. One is the lack of a comprehensive inventory of data - research into sustainable logistics has been undertaken but so far sources are disparate and eclectic. The other is there is no established framework for evaluating the effectiveness of such initiatives, which can be shared and used governmentally or industry-wide. As a result, most initiatives currently exist as the free market response of individual companies - which is to be applauded, but not always easily replicated.
Green Logistics is an academic consortium of seven universities including Heriot-Watt and Cardiff that aims to address these issues and explores potential solutions through the co-operation of industry partners, such as DHL and the FTA. Its objectives include pulling useful initiatives from throughout the industry into a co-ordinated plan of action with both the economic and environmental impact properly quantified.
These issues are always complex and operators are wise to research projects thoroughly before they make a move. There are many sound initiatives which can be undertaken, with no threat of a wrong move - including fuel economy, no-wastage policies, better vehicle utilisation and even bio-fuel if you are convinced it's from a sustainable, carbon-neutral source - while a long term strategy emerges from the vast amounts of research taking place. The good news however is that environmental initiatives are about a more effective and efficient use of resources and that always comes with a cost-saving as well as a carbon saving.
Ceva has ISO 14001 certification - the environmental standard - and is a past winner of MT's Environmental Management Award. It reorganised its routeing so the majority of journeys had backloads serving other clients double-deck trailers are used wherever possible, which it says has taken 50 vehicles off the road and the fleet runs on B5 bio-diesel from Greenergy. The company is using a web-based data collection tool, which among other things will capture its carbon footprint for the entire business - this will be published.
Ceva includes its environmental approach in the induction training for all new staff, covering saving water, energy and recycling everything possible on a Waste to Energy programme (including all of the branded TNT items that were no longer valid after its demerger). Interestingly, Ceva is one of the few companies that seems to make 'good neighbour' principles an integral part of its environmental policy, with avoiding nuisance being as important as waste reduction. IT products - one of the most difficult categories for many companies - are stripped and re-sold or re-used where possible and Ceva has a paperless system itself and has designed paperless systems for many of its clients.
Bibby was challenged by its shareholders 18 months ago to revise its environmental policy. Steve Potter, operations director was given responsibility for implementing both short-term initiatives and a long-term strategy. Bibby's 'Three green balls'campaign includes green miles (better vehicle utilisation), revised driver training and a review of carbon footprint at six key properties. The green miles scheme has already seen 1.5 million miles taken off the road by switching a Scottish fleet to new double-deck trailers the milk tanker fleet receiving modified chassis to allow bigger tanks and a revision of the contract network to facilitate more backloading. Telematics and five full-time driver-trainers are also keeping mpg high. In the long term, Bibby is investigating its options. MAN is keeping it informed about alternative vehicles in development and it's had similar talks with BP Castrol about future fuels. Potter feels it is crucial to understand all the issues and take a long-term view of sustainable development.
Innovate's Icelandic parentage gives it a head start in terms of environmental ambition. Iceland has been aiming to achieve carbon neutrality for some time and harness the geo-thermic power of its geysers to generate power. Icelandic firms are expected to follow suit in finding environmentally supportive ways of operating and Innovate's parent Eimskip is no exception. Last year Innovate Logistics announced that it would follow the lead of Innovate Holdings, which was developing ultra-green office blocks, and perform an environmental audit of its operation, including shipping, road transport, rail, container ports, offices and temperature controlled stores.
Innovate has pledged to be carbon-neutral within five years. It is reducing the carbon footprint of buildings and processes upgrading its fleet investigating alternative power sources and, for the carbon emissions it can cut no further, has an offsetting programme in Durban, South Africa. The company says its progress to date suggests that a five-year plan is not too ambitious. The programme will involve 15,000 employees and 250 sites.
In November 2007, Stiller Transport completed a six-month 100% bio-fuel trial. Stiller had long used the 5% bio-fuel mix it distributes for Petroplus, but undertook the B100 trial with D1 Oils, which has since pulled out of fuel distribution to concentrate on the science and stock development of bio-fuels.
Stiller ran 19 of its Scanias for more than one million miles on the B100, with engine performance jointly monitored with the manufacturer. Scania has for some time taken the position that B5 FAME (fatty acid methyl ester) fuels, which conform to EN 14241, can be used in its engines without changing service intervals and up to B100 with service intervals twice as often.
Stiller found no change in reliability or performance "and only a minimal reduction in miles per gallon. We are keen to use more bio-fuel to reduce emissions," says group MD Ian Marshall. "The successful use of B100 shows that you can run a truck on a carbon-neutral fuel that only emits the CO2 that was absorbed from the atmosphere by the crops used to make it."
JPM Eco Logistics won a higher profile than most environmentally friendly hauliers when it won its bid for funding on the BBC's Dragons' Den programme. Director Paul Merker and his co-founder Jerry Mantalvanos had long felt that there must be a better image and operational method for road transport. "People are always complaining about the dirt and pollution of lorries. So we started to look at bio-diesel. It worked, so we thought let's go for it. We'll live or die by our decision," says Merker. That decision has meant trying to set up an entirely environmentally friendly operation.
"First we looked at manufacturers to find one who would support 100% bio-diesel. The contenders were Scania and Volvo, but we were impressed with the environmental standards in Volvo's manufacturing. It's a very green company so we chose it."
The next stage was to identify an environmentally sound fuel provider. It had to be virgin rape oil, with minimal waste, UK-sourced and grown on non-food land. He found MBP, which develops fuel from the rape seed, cattle feed from the cake and organic fertiliser from the rest of the plant. "The fuel isn't cheaper but it's top quality," says Merker. The company runs Euro 5 vehicles at 40-tonnes and 44-tonnes and achieves fuel returns of 8.5mpg. It uses Ecotricity, "the greenest electricity company we could find", and has chosen Atlantic as the greenest gas supplier.
In March 2008, the John Lewis Partnership (JLP)/Waitrose teamed up with Cenex, the national centre of excellence for low carbon and fuel cell technologies, to lay down an Eco Van and Eco Lorry challenge to its UK supply chain. The challenge was to produce low carbon vehicles for JLP and Waitrose to use in their fleets within the next two to three years. The JLP fleet, including vans, rigids, artics and fridges, covers 43 million miles a year. JLP wants to reduce carbon in its vehicles much further than current technology allows and wants the vehicle providers to know that it is willing to trial new technologies as they become available.
The trials will collate independent and objective data, which JLP hopes will help other fleet operators to understand the carbon and lifecycle savings of alternative vehicles. Cenex's role is to work with technology providers to come up with strong propositions to meet JLP's aims and to oversee independent testing. The challenge will cover four categories of vehicle: 3.5 tonne refrigerated vans 7.5-tonners 38-tonne trailers and a refrigerated trailer. JLP has said it will look at electric vehicles, hybrids, hydrogen and fuel cell vehicles and is interested in trialling bio-methane manufactured from waste. It is determined to cut its carbon footprint by 20%, but will aim for 30%.
Reed Business Information Limited.©2008
