How To Analyse And Evaluate The Weastflows Project
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1 Sustainable Logistics for Europe Analysis and Evaluation of Freight Transport Flows in a Global Perspective Mid-Term Evaluation Report Economic, Environmental, Societal Project Impact Analysis Workpackage 5 Action 10 F: (0049) E: maike.hitzmann@uni-due.de
2 Abstract The present report describes the current state of the project evaluation of Weastflows and the research project of the, which is processed in the framework of the EU project. The focus of Weastflows is on the sustainability of global freight transport, identifying and analysing bottlenecks, the removal of barriers to the mobility shift and the new application of ICT to enhance existing capacities in favour of freight traffic. The changed global flows of goods, resulting from the increased displacement of European production in the Asian region and lead to an enormous growth in the global freight transport are analysed and evaluated in this the research project of the University. The pilots which are implemented in the project Weastflows in particular in the ICT sector are also tested for sustainability aspects and importance for Europe. This report shows the first results from the project especially when is comes to the involved Investments and their implemented innovative systems concerning the freight flows in North-West Europe. Weastflows Mid-Term Evaluation Report Action 10 2
3 List of contents 1. Introduction 1.1. Explanation of the project Weastflows and its Evaluation 1.2. Explanation of the Research Activity of the Globalisation and Logistics Weastflows and Global Logistics Impacts on Logistics in NWE and the Methodological Approach 2. Weastflows Project Analysis of the Project Impacts 2.1. Structure of Evaluation I Conclusion Summary Evaluation Report 2.2. Case Studies Investment Port of Portsmouth Mobycon 3. Conclusion and Outlook Weastflows Mid-Term Evaluation Report Action 10 3
4 1. Introduction 1.1. Explanation of the project Weastflows and its evaluation Weastflows (West and East flows) aims to improve and enhance freight logistics in North West Europe (NWE) and encourage a move from an over reliance on road haulage to the more sustainable modes of rail, short-sea shipping and river transportation. The project will explore current freight logistics practices in North West Europe, identifying challenges and opportunities to improve freight flows and encourage more sustainable freight transport methods. ICT and telematics solutions will be investigated and introduced to encourage supply chain optimisation, better collaboration between transport participants and enhanced connectivity with the wider, global transport network. The overall aim of the evaluation is to give an overview of the impact of those activities that have already been implemented, an assessment on their implementation and an analysis of the impact on the project s results and outcomes Weastflows had until this stage. The purpose of this evaluation is to offer the European Commission, the project partner and the JTS an assessment on the project s results and outcomes. To ensure the project s sustainability, several aspects (econ. ecol. soc.) defined by partners in an earlier period, are picked up in the self evaluation (beginning of 2014). The next step of the evaluation is to undertake different case studies. Within these case studies we will show the details of the social, environmental and economic benefits and impacts from the Investments and provide an overview to how the transnational partnership working has contributed towards the delivery of the Investment. Additionally we will work out the key messages of Weastflows within the fields of transnationality, sustainability and green logistics and telematics and ICT. We will give recommendations to generate significant added value for the regions involved. Weastflows Mid-Term Evaluation Report Action 10 4
5 1.2. Explanation of the Research Activity of the Globalisation and Logistics The increase and the shift in global freight flows is one of the most obvious consequences of globalisation. The cargo-handling of logistics hubs such as Shanghai, Singapore, Dubai and Rotterdam along the main transit routes between Asia and Europe is growing faster than the domestic products of industrial countries. There will be serious consequences for the locations, structures and the size of logistics-hubs, followed by a further acceleration of globalisation and the demographic shift caused by relocation of producing and consuming markets. Due to the extensive opening of the Asian markets, the production of German and European companies will go into the country with the lowest wages. This has the consequence that the freight flows from Asia to Europe and North America are rising on one side and the internal markets are further strengthened on the other. The rapid development within Asia with regard to the relocation of production facilities is important for logistics. One result of these processes is an enormous flexibility, which is currently required in the area of logistics infrastructure Weastflows and Global Logistics Basis of the project is the EU project Weastflows, which has as a goal the sustainability of the global transport sector. It deals with bottlenecks, the elimination of barriers of mobility shift and the new application of ICT to existing capacities in favour of freight traffic. With the increased displacement of European production in the Asian region, there is a huge growth of the worldwide flows of goods, which is resulting in altered global traffic flows. The reason for this relocation includes favourable conditions in certain areas for productions of all kinds. Besides the economic background of this phenomenon, which has been already examined many times in literature, in this work the traffic-related consequences and the organisation of transport are in the foreground. Weastflows Mid-Term Evaluation Report Action 10 5
6 Impacts on Logistics in NWE and the Methodological Approach Due to this dynamic, the region of NWE has to expect that there will be changing requirements of logistics and the European transport sector needs to react in a flexible way. In addition, the research and analysis of selected economic areas in Europe and Asia, the increasing promotion of sustainability and CO 2 reduction in transport chains, both at national and international level are important aspects that need to be investigated. In particular, the multimodal transport is a major concern of our research. The aim of this work is the analysis of global freight flows, using the example of transports between Europe (exp. Germany) and Asia, with the help of quantitative studies, and to bring these approaches implemented in conjunction with the EU project Weastflows. The new requirements, including the areas of infrastructure, IT, traffic-related consequences for NWE and the local logistics sector, based on the increased demand for production and products from Asia, are investigated in this project. For this purpose several empirical studies are carried out. For one thing, we will conduct quantitative company surveys, which are addressed to German and European manufacturing companies that have their production or parts of it outsourced to Asia. On the other, targeted companies are asked in qualitative, in depth case studies. The result is a quantitative and qualitative study by the use of primary literature. It is a detailed answer to the questions as on objective, furthermore a scientific advancement and a generalisation of the results. The outcomes are addressed to companies, as well as private and public sectors. The focus is on the interaction of the global economy and their impact on the dynamics and logistics developments and innovations. Weastflows Mid-Term Evaluation Report Action 10 6
7 Overview of Weastflows and Research Project of UNI-DUE Weastflows Mid-Term Evaluation Report Action 10 7
8 2. Weastflows Project Analysis of the project impacts 2.1. Structure of Evaluation I Conclusion Summary Evaluation Report The evaluation I was structured in different parts of evaluation tools. It includes indicators, target levels, matrix and an evaluation questionnaire. Indicators were included to ensure an overall evaluation considers important factors when it comes to sustainability; therefore we had indicators in the fields of economic, ecological and social issues. The target levels were included so partners could verify their information concerning the indicators. The matrixes were included to reflect the partners achievements in the project especially in the action they are responsible for. These three instruments were finished by the partners approximately at the halftime of the project runtime. The target was to give an overview about the action s objectives and the state of the working process. The questionnaire was a self-assessment questionnaire for all action leaders and investment leaders; evaluating the activities from the different action up to now. The results of the Evaluation I are a quite heterogeneous image of all involved project partners and evaluation feedbacks. On the basis of the first evaluation project partners have the opportunity to get an overview of all action s objectives. Another objective is to help the partners to promote the project on the basis of the summary report the project had until this stage. It was also intended to a support for action leaders to have a control over their own action s objectives. Weastflows Mid-Term Evaluation Report Action 10 8
9 2.2. Case Studies Investment In the second step of the evaluation of the project Weastflows case studies are carried out with the Investments involved in the project. These case studies provide an overview of the transnational co-operation within this range and set the targets and impacts achieved of the respective Investments. The case studies are based primarily on interviews that were conducted with the respective partners. In addition to the part side visits were carried out and additional article were integrated. In the following the results from two case studies are presented Portsmouth The International Port of Portsmouth is owned by Portsmouth City Council and it is one of the most important ports for the western channel and the second busiest cross channel ferry port overall. Mainland Market Deliveries Ltd. (MMD) is a local authority company wholly owned by Portsmouth City Council. It is a port and Regional Distribution Centre specialising in fruit importation, temperature controlled storage and packaging. Portsmouth Port is the gateway for much of the fresh fruit eaten in the UK. 60% sold in the UK bananas are imported through the Port of Portsmouth. In addition to bananas and pineapples, oranges and other fruits are imported and supplied to major supermarket chains. The implemented System The new system works through barcodes which are attached to products from the moment they start to make the journey from the field to the supermarket. The products are scanned at every new stage of the process. Weastflows Mid-Term Evaluation Report Action 10 9
10 The aim of the pilot project is to demonstrate that a barcode system and a web portal can increase efficiency and reduce the environmental impact of the logistics chain. The proposal is for the use of ICT and telematics to allow the real-time tracking of fruit consignments arriving at the port until they are picked up by their consignee s. The innovative nature of this is that customers will have access to this information via a web based customer portal in real-time allowing the more efficient use of freight vehicles by not having them wasting time waiting at the port for cargo that has not yet been unloaded from the ship. By introducing the barcode based scanning system via internet connection each pallet can be tracked at each of its stations from the plantation to the seller. This means that at any time of the transport everyone participated on the transport process is informed on the progress of the product. The Company MMD, which is active in the Port of Portsmouth, has been able to realize the innovative IT system with the financial support of the Interreg Framework Programme and the active participation in the EU-project Weastflows. By integrating into the Weastflows project, more sustainable and green transport chains are promoted that are sponsored by collaboration between ports, logistics companies and academic institutions. This system will help to improve the efficiency of port operation, accelerate information flows, reduce congestion and limit the environmental impact of such activities. The processes at the port can be made more efficient by the implemented track-andtracing system. The storage times for the goods and waiting times of trucks can be reduced enormously. This will affect the emission of environmentally harmful CO 2. The web based pallet tracking of fruit will help to strengthen the development of sustainable connectivity by allowing the operations to take place in a more efficient, less polluting and more sustainable manner by making certain that freight vehicle operators Weastflows Mid-Term Evaluation Report Action 10 10
11 have the real-time information necessary to make a better choice on when to send their freight vehicle to pick up port cargoes. This will reduce congestion and pollution caused by freight vehicles arriving at the port when cargoes are not ready for collection. It also improves the efficient use of the vehicles which can be used for other work instead of standing idle waiting for cargo. Key Objectives and Innovations The system helps to reduce waste by making sure parties in the supply chain are in the right place at the right time. The main objectives of the operation are primarily an enormous relief of the workload, which leads to an efficient flow of information. In addition, a transparency for the involved customers of the work of MMD is received and the system creates a trusting and effective working base. Through the exchange of knowledge and the latest technologies, new concepts can be realized, which leads to a reduction in environmental pollution. By monitoring the entire delivery process from field to shop, deliveries can be organised so that fruit is picked up and distributed at exactly the right moment. This helps to ensure the fresh product is in perfect condition. It also means there are fewer wasted journeys and helps deliveries to be timed to make the most of available space in lorries, reducing the overall number of HGVs in the roads. All these measures allow costs to be controlled, and help maintain lower prices for consumers. It is not only good for supermarket customers but also for the environment it is expected to bring about a significant reduction in CO 2. Weastflows Mid-Term Evaluation Report Action 10 11
12 In the following the key outcomes of the case study are presented. Social, environmental and economic factors Due to the implemented system MMD wanted to achieve that the company running costs are reduced. It was also aimed to reduce the labour costs by 0.7%. Additionally the emission of environmentally harmful CO 2 should be reduced. This was achieved by a reduced length of time fruit collection vehicles spend at MMD. The reduction of CO 2 is also a result of reduced failed collections given certainty over what fruit is available for collection and when and more efficient use of freight vehicles (e.g. better vehicle utilisation). The Port got positive feedback from users of the system. Users are for example growers and exporters, importers and receivers. This includes positive feedback in data quality and availability. They got 95% positive feedback from sample users through a questionnaire of Portsmouth Port. Territorial impacts of sustainable infrastructure use, green logistics chains development, telematics and ICT solutions This part is divided into two sections. The first section deals with the perspective of a customer and the second with the perspective of an industry expert. The impacts for customers are an increases efficiency of the fruit logistics process. This has got a positive effect on the price of fruits. Additionally the system reduces environmental impact of the fruit logistics process. And last point, the traceability. Therefore, if a costumer takes a bad banana back to the supermarket, the system allows for the bad batch of bananas to be traced back to the supplier. The central message for industry experts includes that the barcode tracking system and the web portal increases efficiency of the fruit logistics process and reduces the Weastflows Mid-Term Evaluation Report Action 10 12
13 environmental impact. The results are among other things the economical side (reduced costs), ecological (CO 2 ) and the user feedback. Overview of the transnational partnership working Portsmouth Port and MMD were mainly involved in progressing the Investment. MMD worked on the operational side, getting the system up and running. Portsmouth provided project management input such as attendance at various meetings, relaying information to interested parties and press releases. The JMT played a key role in providing a broad range of advice, both at an operational level and on a strategic level (e.g. dissemination on a transnational level). Mobycon were involved in the pilot as leaders of Action 7 (overseers of pilots). as part of the evaluation of the Weastflows scheme. Mobycon translated into Dutch for to allow for dissemination in the Netherlands. Critt translated into French to allow for dissemination in France. CTS and Critt visited Portsmouth in November This includes a tour of MMD where the bar coding system and web portal / service are part functional. The system was discussed in some detail, and CTS suggested to MMD that a GPS tracking system could enhance the Investment. This would allow the exact whereabouts of fruit to be known at all times, including whilst at sea and on vehicles taking the fruit to ripening centres, and then into supermarkets / multiples. However, after consideration it was felt that this would not significant benefit the Investment. Indeed, MMD receive regular updates on the whereabouts of the ship and expected time of arrival. A GPS tracking device would also complicate the process as a solution to remove the device from a used pallet and return to the grower in say the Caribbean would be costly. On the E-Freight Conference in Delft on 09 May 2012, 100 people attended the event. A group of about 10 students from Le Havre undertaking an MBA programme in Maritime Transport visited MMD on 27 September Weastflows Mid-Term Evaluation Report Action 10 13
14 Feedback from key target audiences (private sector, public sector, policy makers, ) As part of an internal evaluation the Port of Portsmouth created an online questionnaire with which it would like to ask the users to the implemented system and the associated online tool. The feedback is very positive. The users evaluate the tool as a very userfriendly, accessible and a system with a little downtime. Recommendations to generate significant added value for the regions involved. The Port of Portsmouth provides the following recommendations from its experience within the Investment for the regions involved. It is important for a successful business to know and understand the customer needs. Another advantage for the port is saving money and improving the efficiency of the port. In addition the following issues can be identified and improved: reduce failed connections, idle time, improved planning, routing and vehicle utilization. Quotes: Mark Phippen: We are driven by the needs of the customer, and it is essential to involve them as soon as possible in the development of IT projects. Mark Webb: We ve looked at what other fruit distributors have done and there isn t anyone using software in this way. Weastflows Mid-Term Evaluation Report Action 10 14
15 Mobycon Mobycon is an independent research and consultancy company specialised in the fields of traffic, transport, mobility management, urban and rural planning. The company cooperates closely with local and regional authorities. The implemented System The goal of the pilot is the development of an Intermodal Route Planner (IMRP) demonstrator, based on Open Street Map with added logistics information to show logistics service providers and their clients that there are feasible alternatives to road transport. Key Objectives and Innovations The Intermodal Route Planner calculate alternative intermodal routes supporting multiple - Modes: road, rail, barge and short-sea shipping - Costs: transport, handling, toll, - Timing aspects: travel time, time table, The Intermodal Route Planner not includes deep sea, air transport and turn-by-turn navigation or trip planning. The Planner can be used for strategic, tactical, operational and commercial planning. The important criteria for route choice for transport companies and shippers are on the ecological site: the carbon footprint. Other criteria for example in ecological terms are time, costs and frequency. A risk for transport companies and shippers is the number of transhipments. The first results of the evaluation questionnaire of Mobycon are the following. The Intermodal Route Planner is easy to use. It is mainly used at strategic and tactical level and not at the operational level. The duration of trips seems to be realistic and the connections and costs are not always realistic. Some respondents found routes they Weastflows Mid-Term Evaluation Report Action 10 15
16 wouldn t have thought of before. Because of the feedback from the users of the Intermodal Route Planner there are some improvements identified. Users suggest including also smaller operators and inland waterway transport connections. In addition also rail terminals should be included in the Intermodal Route Planner. Another thing is to add more short sea shipping options. For the users the explanation on costs (per TEU) would be helpful. Concerning the current status the market research shows that there is a wide interest for an Intermodal Route Planner. The logistics providers are reluctant to share and upload data. The Demonstrator of the Intermodal Route Planner is available online and the evaluation currently carried out on the credibility and the potential benefits of it. In the following the key outcomes of the case study are presented. Social, environmental and economic factors The main benefit of the implemented Intermodal Route Planner is the reduction of CO 2 and its congestion. This development can be achieved by the use of the IMRP. Goods can be brought from the road to rail, barges or short sea shipping using the tool. This would be an ecological but also an economical benefit for the users. For users it is always more interesting when it is also an economical benefit. There will be no changes in the modes of transport for companies when they have, for example, higher costs. Summarized the Intermodal Route Planner offers transport companies the possibility to make use of the most cost-efficient intermodal transport solution and to provide a better visibility of other intermodal transport routes. The higher share of intermodal transport gives an ecological advantage compared with exclusively road transport. Coming to social benefits less causalities in traffic and less environmental impact as consequence of less freight traffic are noticed. Weastflows Mid-Term Evaluation Report Action 10 16
17 Territorial impacts of sustainable infrastructure use, green logistics chains development, telematics and ICT solutions One important issue concerning the Intermodal Route Planner when it comes to territorial impacts is that the IMRP could help certain regions to show how accessible they are by intermodal transport. For example for the Venlo region in the Netherlands, you can make a picture what destinations can be reached within 24 hours or within 48 hours. That could make it more attractive for Investments in the logistics domain. It is essential to succeed in the modal shift to get more accessible regions and to have less congestion. Overview of the transnational partnership working Up to this time, the transnational partnership working was rather limited. But for Mobycon it is very important to have the feedback of the project partners. The added value of the transnational partnership is in the validation of the tool to get an international tool for the whole project area. Mobycon got some feedback from partners so far. Partners noticed that certain connections are not included in the Intermodal Route Planner. One partner also notes a connection which is more than three years ago out of operations. The reason for this incomplete data base is substantiated at the source of it. The information for the demonstrator of the Intermodal Route Planner comes from the Open Street Map and a Dutch company, which asked for its identity to be kept secret. This is the reason for the limitation of information, because the Dutch company is focused on their business. For Mobycon it was the biggest issue they had to solve. Mobycon generated an Online Evaluation tool evaluation the Intermodal Route Planner. The Evaluation includes a questionnaire and a benchmark for transport companies. The online questionnaire created with survey monkey is available in four languages, involved in Weastflows Mid-Term Evaluation Report Action 10 17
18 the Weastflows project. It includes questions on usability (strategic, tactical and operational), the user interface, realistic results, possible problems and request for contact interview. Companies which are willing to share their last 50 trips, calculate the alternatives by the Intermodal Route Planner. But because of the confidential information it is not easy to get the information from the companies although they are using the demonstrator and calculate maybe more effective transport connections. With these two elements of evaluation the partner Mobycon tries to get feedback from the key audiences, the users of the Intermodal Route Planner. Recommendations to generate significant added value for the regions involved One important issue concerning the added value for the involved regions is to provide Mobycon with accurate data from partner s regions. To give an example, the Port of Portsmouth can make the timetables from all the shipping lines leaving Portsmouth and from all the connecting railway lines or inland shipping available. Additionally the port could provide Mobycon contacts from companies they are working with and then their part would be very well included in the tool. This would make the Intermodal Route Planner more interesting for partners. Another thing partners could do is they can put the demonstrator of the Intermodal Route Planner on their website. Companies they are working with pay attention to the tool and so the tool could be improved. At this point the Intermodal Route Planner is helpful and beneficial for the tactical and the strategic site, not for the operational. This would be the next step for Mobycon to improve the demonstrator of the Intermodal Route Planner. The development of this new and innovative Intermodal Route Planner will help public and private stakeholders to improve the use of sustainable transport infrastructures, for example railway networks, inland river terminals and sea ports, and integrate these routes Weastflows Mid-Term Evaluation Report Action 10 18
19 into greener logistics chains in North West Europe and beyond. This innovative ICT tool will also contribute to reduce congestions on matured axis by making visible and accessible alternatives. Weastflows Mid-Term Evaluation Report Action 10 19
20 3. Conclusion and Outlook The report and the analysis of the described Case Studies show, that there can be recognized some major impacts in the field of sustainable logistics, but there are also approaches to expanding any of these. The most important result is that the community of the transnational partnership working group is the essential advantage. Without the transnationality of the project for both in this report, included Investments, the positive results would not be the same. Both interviewed Investments were reliant on the feedbacks of the partnership. They need to test the applicability and the practicability of the tools. The validations of the tools by the partners were an essential step in the implementation. Additionally the Investments were reliant on the accurate data from the partner s regions provided by partners. In the coming next months of the project runtime, the Investments will continue in improving the implemented tools and the transnational partnership working. In addition to the produced case studies, we will have more interviews and case studies within the framework of Action 10. The next case studies will be with the Investments / partners BBZOB and Tudor; implementing a pilot called Cooperative driving for freight transport and an interactive mapping tool called GeoWeastflows. Weastflows Mid-Term Evaluation Report Action 10 20
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