Green Freight in Practice: Addressing Barriers for Carriers. SMART FREIGHT CENTRE Busan Boyong Wang, Director Strategic Relations August 29, 2016
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1 Green Freight in Practice: Addressing Barriers for Carriers SMART FREIGHT CENTRE Busan Boyong Wang, Director Strategic Relations August 29, 2016
2 The global freight and logistics sector has challenges Explosive growth Land freight up to 125% growth in OECD and 430% non- OECD countries between 2010 and 2050 >3 million trucks sold in 2012 in China alone (25% of total fleet!) Inefficient Logistics costs <10% of GDP in US/EU;15-25% in Asia and Latin America 25% - 40% trucks are empty >90% of trucks companies in China are driver-owners High impact 35% of transport fuel Logistics 6% of global and 10% of energy CO2 emissions Diesel emissions cause cancer Smart Freight Centre (2015) Green Freight in Asia
3 Industry must do the heavy lifting but needs help from others Government (international, national, provincial, local) Industry (manufacturers, suppliers, associations, other) Civil society (NGOs, academic/research institutes, development agencies, foundations, other)
4 Smart Freight Centre Leading the way to Smarter Freight as a dedicated global NGO for a more efficient and environmentally sustainable freight and logistics sector We help remove market barriers that industry faces collectively:
5 State of green freight in Asia First focus: map the current freight situation in Asia and in particular China and India Road freight sector Trucking developments Fuel and emissions Initial exploration of barriers and opportunities for green freight and technologies for trucks Smart Freight Centre (2014) State of Play: Green Freight in Asia
6 We know what technologies and measures road freight carriers can take
7 Now we want to understand What really stops Chinese carriers from investing in trucking efficiency?
8 Where did we start: Pilot with Beijing carriers TECHNOLOGIES/MEASURES MARKET SEGMENT + Fleet management + as technology example KEY PLAYERS Government: MOT-RIOH, BTEC Industry: CRTA/CGFI, CRIA,CFPL, shippers/lsps, OEMs, Tech suppliers/agents, Trailer leasers Civil society: World Bank, EF, GIZ, RMI, CAA, WRI, ICCT, Beijing Transport University, Tsinghua Uni Others: Green Freight Asia, USEPA Beijing tire agents PILOT PARTNERS Beijing carriers Smart Freight Centre
9 Pilot with Beijing carriers BARRIERS for carriers Decisionmaking Management systems Finance Awareness & capacity Information Access to partners Government & market SOLUTIONS tested with Beijing carriers Information materials Training fleet managers & drivers Data analysis Four-way partnership agreements: BTEC, Beijing carrier, tire agent, SFC Award for pilot carriers SOLUTIONS to scale up through Smart Trucks Platform
10 REAL barriers for carriers: Who makes the decisions? Photo Source: Smart Freight Center
11 REAL barriers for carriers: Why should drivers care? Photo Source: Smart Freight Center
12 REAL barriers for carriers: Can we trust the supplier and how does the fleet manager know? Photo Source: Smart Freight Center
13 What else did we do to understand barriers for carriers? Pilot with four Beijing carriers on trialing high quality tires on trucks as an example technology Survey of 50 Beijing carriers by BTEC Green Freight Shippers workshop as part of CGFI Interviews with about 20 more carriers Meetings with technology suppliers, truck manufacturers and experts in China Existing studies in China and abroad
14 Barriers for Carriers: a framework (for China and globally) Smart Freight Centre (2016) Barriers for Chinese Carriers -- upcoming publication
15 Barriers are interconnected and mutually re-enforcing Smart Freight Centre (2016) Barriers for Chinese Carriers -- upcoming publication
16 Smart Trucks Platform Objective: help road freight carriers find the right technologies and solutions for trucks and fleet operations that are proven to work and reduce emissions Places the carrier at the center by Providing practical solutions with direct cost and operational benefits for carriers Building on existing efforts Working with partners and institutions that carriers trust.
17 Smart Trucks Platform structure
18 Smart Trucks Platform: channels for reaching Chinese carriers Green Freight Programs China industry Guangdong Province Government-led program for road freight carriers Industry-led network & program for shippers, 3PLs and carriers Industry associations Shippers/LSPs Technology suppliers OEMs Government-led demonstration project for road freight carriers Municipalities Beijing: Green Freight Strategy Shanghai: free economic zone trucks Wuhan: low carbon logistics centers 20 cities: Low Carbon Transport Pilots
19 SFC welcomes new partners to join the further development and implementation of the Smart Trucks Platform worldwide For more information: And sign up for our Newsletter!
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