European Logistics: Going green
European logistics providers have started to face the challenges by reducing carbon footprints and introducing environmentally friendly solutions.
By Dagmar Trepins -- Logistics Management, 11/1/2007
- Green leadership
- Packing and waste management
- An ecological approach
- Road and rail instead of road or rail
- CO2-free transport
- The green path ahead
The latest European Environment Agency (EEA) report, Transport and Environment: On the way to a new common transport policy, says that transport is responsible for 21 percent of total greenhouse gas emissions in the EU-15 countries (excluding international aviation and maritime transport). According to the report, road transport contributes 93 percent of the total of all transport emissions. With this in mind, the EU’s Sustainable Development Strategy is rightfully calling for a reduction in transport emissions. The mission is clear: Europe is to aiming to reduce overall carbon dioxide emissions from the transport sector by 20 percent between 1990 and 2020.
European logistics providers have heard the message and have started to tackle the challenge of reducing carbon footprints and introducing environmentally friendly solutions. Here’s what some of the leaders are doing.
Green leadership
In 2001 Deutsche Post World Net (DPWN) established its own environmental department and launched a green program to become a leader in environmental protection. “Being the number one global logistics provider means more than just being the biggest. Our goal is also to be the number one in terms of sustainability,” explains Dr. Monika Wulf-Mathies, responsible for DPWN’s green department.
In 2006, DPWN and its express and logistics subsidiary DHL started several “GoGreen” initiatives to reduce greenhouse gas emissions. The company introduced a carbon-neutral express shipping service called “GoGreen-Express” for business clients in Europe. With this service, all transport-related emissions of carbon dioxide are first calculated and then offset through internal and external carbon-reduction projects. The customers, who can choose to send all or a part of their international express shipments as GoGreen-Express, receive GoGreen stickers to place on their shipments as well as an annual certificate declaring the total amount of carbon dioxide offset on their behalf during the year.
An in-house Carbon Management team manages the carbon credits generated from the internal and external carbon-reduction projects. Carbon Management, as well as all GoGreen processes and the emissions-calculation methodology are annually checked by the certifying and verifying company, SGS, in Switzerland.
In addition, a climate-friendly GoGreen parcel service is also in the pilot phase. With this service, DHL is the first logistics provider to offer clients the option to help offset emissions stemming from their shipments by paying a small, voluntary fee.
The DHL verified Carbon Management system guarantees that the money is invested in internal and external carbon-reduction projects such as alternative fuel vehicles, solar cells, and reforestation projects. After the launch in Europe, DHL intends to expand the GoGreen service to other countries, including the United States.
Packing and waste management
BLG Logistics Group was one of the first companies to develop an “eco-logistics” concept in Germany. Its subsidiary, BLG International Logistics, is a leading logistics provider for the automotive industry. Together, with customers like DaimlerChrysler and its parts suppliers, BLG has developed environmentally friendly solutions for packing and transporting automobile parts from the German manufacturer’s plants to assembly sites overseas. The main goal is to promote the circulation of reusable load carriers and containers, thus avoiding disposable packaging that had been used in the past to prevent bodywork damages. BLG’s ecological concept includes wooden and metal racks, as well as clip-lok boxes, a reusable, cost-saving packaging system
The clip-lok boxes have been in use for factory supply in Argentina since 1996. The boxes are highly durable, require little maintenance, and are less expensive than disposable packages. BLG has also put a strong emphasis on increasing the load factor by reaching a container filling level of over 95 percent and has focused on reducing the pack size of dismantled empties for the backhaul. To optimize bimodal transport chains, BLG has introduced pallet-wide containers with a clear width of 2.42 meters (about 2.65 yards) that can hold two Euro pallet sized load carriers or boxes side by side. Another challenge was to recycle the dunnage used to secure loads in sea containers and the wooden lightweight pallets for cardboard packaging. Nearly 1,500 tons of packaging waste per year has been collected at the BLG Logistics and Eurogate recycling facilities to be chopped, dried, stored, and finally automatically delivered to fire the wood shredder plant.
An ecological approach
It is often difficult to bring ecology and economics into harmony because measures that aim to protect both the environment and the market economy are bound to be expense. The German Fiege Group has achieved a symbiosis of economics and ecology with its Mega Centers in Europe, which serve U.S. customers like Bobcat. With its large logistics centers, the international logistics provider has achieved synergies through the maximum possible convergence of traffic flows in a material management system. Central handling simultaneously provides a basis for an optimized material management system and the utilization of reusable load-handling equipment. Crucial factors for Fiege Eco-Logistics are the high share of environmentally friendly modes of transport such as railway and waterways and the environmental friendly construction of its Mega Centers.
The company uses construction materials that are 100 percent recyclable and reduce the soil sealing for large-scale projects to a minimum. The roof sealing is PVC-free, and mineral-based insulation materials are used. Independent biotopes are created to accommodate rainfall and collect all roof water and return it to the groundwater. Independent rainwater reservoirs are used to store water for fire fighting as well as to enhance the biotopes on the premises. Additionally, wind turbines and photovoltaic facilities have been used. For example, at the Mega Center Ibbenbüren in Germany, 90 percent of the power required to operate ground conveyors is gained from regenerative wind power. This has enabled Fiege to reduce its energy costs while using environmentally friendly sources for the production of power.
Road and rail instead of road or rail
Logistics provider Schenker, part of DB Logistics, the transport and logistics division of the German railway Deutsche Bahn, has developed an environmentally friendly integrated road and rail concept based on the latest technology. To reduce unnecessary transport mileage and thus CO2, the company has introduced jumbo cargo boxes that are 30 cm (almost 12 inches) higher than traditional bridges. These double-decker swap bodies allow significantly more compact loading of vehicles and up to 50 percent higher utilization.
The use of a modern mega trailer increases the speed of turnaround and doubles transport capacity in the delivery of airfreight pallets. In the local transportation sector, the growth in vehicle capacity from 2.4 metric tons (5,291 pounds) to up to 5 metric tons (11,023 pounds) also leads to a reduction in fleet numbers. Instead of “rail or road,” Schenker promotes a “rail and road” concept that allows the company to use combi-lifter freight cars, and swap bodies can be shuttled between rail and road. The integrated lifting equipment makes the railcars independent of cranes and heavy-duty forklifts.
The freight is trucked over short hauls to the station, then loaded together with the swap body onto railcars for longer distances without using a time-consuming and expensive infrastructure. At the final train station, a truck takes the freight and delivers it to the final destination. The integrated freight transport solution combines the flexibility of trucks with the mass transport capabilities and environmental advantages of rail transport.
To optimize transport and fleet management efficiency, Schenker has also invested in software that has reduced empty runs by over 10 percent, while the introduction of paperless haulage processing has saved over 5.8 million sheets of paper annually.
CO2-free transport
In the Netherlands, TNT has launched its “Planet Me” program this year to improve transparency on the company’s carbon footprint and to drastically reduce CO2 emissions. Part of this program is a trial of electrical vehicles.
In August, TNT presented two Smith electrical trucks that will be driven in the Rotterdam area as part of the Rotterdam Climate Initiative. Both vehicles (a Smith Edison EV and a Smith Newton EV) will operate emission free in congested areas. TNT’s CEO Peter Bakker underscored that the pilot program is a significant step in reducing CO2 emissions by half in Rotterdam by 2025 compared to 1990. “We are very aware of the impact of our operations on the environment and recognize that we contribute to the problem of climate change,” says Bakker. “TNT foresees electric vehicles becoming a key component for future super-urbanized inner city pick-up and delivery networks as more and more restrictions are imposed on emissions in urbanized areas.”
The Edison will be operating in and around the center of Rotterdam and will make approximately 40 stops for pick-up and delivery of documents and small parcels. The Newton will serve the same area, making 15 to 20 stops, but with a bigger payload. It is under these stop-start conditions that conventional combustion engines are least efficient and cause the most pollution, so here the electric trucks have a great advantage. The green electricity for running these vehicles is certified to be produced by hydropower and therefore entirely CO2 neutral. If the Rotterdam pilot proves successful, TNT plans to expand the experiment and will consider employing additional electric vehicles in other urban locations.
A similar trial has been launched by CEVA Logistics (formerly TNT Logistics) with a zero emission electric Newton model in the UK in December 2006. It is based at CEVA’s Starbucks operation in Basildon, Essex, from where it makes deliveries to the coffee retailers’ London stores. If the green trial proves successful, CEVA will consider adding further zero emission vehicles to its fleet to serve in other urban locations in the UK.
The green path ahead
Logistics companies in Europe have already begun to implement a range of measures to increase environmental protection. In view of the scale of global problems, however, they are only a drop in a bucket. Worldwide measures and close cooperation between Europe and the United States are necessary and will pay off—both for the environment and logistics professionals alike.























View All Blogs
