green logistics CarriEr OF GOOD ideas

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1 green logistics CarRiER OF GOOD IDEAS

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3 Preface 03 WE ASSUME OUR RESPONSIBILITY: GREEN LOGISTICS Climate change is the focus of world attention. Emissions like carbon dioxide (CO 2 ) have to be limited. Further accumulation in the atmosphere would lead to a global rise in temperature with severe consequences for humanity and nature. Germany has pledged to reduce its CO 2 emissions by 40 percent, compared to 1990, by 2020 a top promise worldwide. It can only be achieved through a radical structural transformation. The logistics sector therefore has to lower the emissions of greenhouse gases by 32 megatons by World trade and the transportation of goods require energy. That means emissions are released. From the current point of view CO 2, nitrogen oxide, fine dust, sulfur and noise are unavoidable concomitant effects. We achieve the greatest climate impact if more truck loads are shifted to rail or water. This would enable a reduction in CO 2 emissions by as much as two thirds. This is the framework in which we develop our Green Logistics. Green Logistics is not merely a fashionable topic. Public policy specifications are unequivocal and it is a clear fact that ecological responsibility has become an imperative criterion in contract awards. Today some companies already require environmentally efficient logistics in their invitations to tender. Similar to quality certification, environmental compatibility is becoming a standard in assessments of companies. For BLG the topic is not new. What s new is the increased awareness with which we consistently pursue logistics that protect resources.

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5 TABLE OF CONTENTS 05 Photo: dpa TABLE OF CONTENTS 06 We want to consume fewer resources 08 Green Logistics, ecological sustainability 10 Rail protects environment 12 Barges on Rhine and Danube 14 High-bay warehouse in the port 16 Sustainably reducing fuel consumption 18 The dynamo principle applied to gantry cranes 20 High-bay warehouse: Intelligence saves energy 22 The warehouse turns off the light 24 Water treatment saves fresh water 26 Up to the last kilometer 28 Magnets replace valuable wood 30 Our improvement network

6 06 WE WANT TO CONSUME FEWER RESOURCES That s a challenge for us, a voluntary commitment to our customers and a promise to society. We will substantially reduce the amounts of energy sources and other resources used both in logistics processes and in administration. Instead, we will employ smart systems that only provide energy when it is actually needed. We focus on smart technology. It helps to recover and store energy. And we count on the growing readiness of all employees to make responsible use of finite resources. The unfortunately much overused term sustainability also embraces the endeavor to maintain stable, long-term economic substance. Careful and economical use of the raw materials (still) available to us is a daily mission for us. Companies have to constantly remain aware of what resources around them are particularly in demand and particularly scarce and give thought to how they can secure their availability on a long-term basis.

7 Foto: Fotolia Germany wants to reduce its carbon dioxide emissions by 40 percent by For BLG that means: the least possible use of resources.

8 We achieve the biggest climate effect in transportation policy when more truck loads move via rail and water.

9 09 FOCUS ON SUSTAINABILITY: GREEN LOGISTICS, ECOLOGICAL SUSTAINABILITY For us Green Logistics is the key issue of ecological sustainability. Ideally improvements in the environmental compatibility of our services match the requirements of economic and social sustainability. Innovative cargo handling technology for steel sheet in the port diminishes dunnage needs, enhances the attractiveness of the BLG location and reduces the risk of injury. Environmental aspects, improvement of the competitive situation and occupational safety are combined with one another not only in this example. By linking the field of sustainability and new technologies directly to the Group s Board of Management, BLG demonstrates that it takes ecological responsibility seriously. Aside from determining the carbon footprint and the related identification of reduction potential for the company, BLG develops projects on e-mobility and boosts the use of renewable energies. Positioning Ecological sustainability Corporate responsibility for sustainability CO 2 reduction Protection of resources Recycling, waste management Use of renewable energies Environmental protection Economic sustainability Customer satisfaction Financial capacity Risk management Innovation Transparency Social sustainability Health, occupational safety Work standards Equal opportunity Career and family Social commitment

10 10 RAIL PROTECTS ENVIRONMENT: INSTEAD OF 29 TRUCKS; ONLY 1 TRAIN BLG AutoRail has been deploying its own trains for vehicle transport since They operate with the most modern railway wagons currently available worldwide. The 1000th wagon was christened in Kelheim in The target for 2013 is 1,300 railway wagons. A train transports up to 228 passenger cars. Otherwise 29 trucks would be necessary for this job. Our wagons are equipped with whispering brakes. As a result, they remain significantly below the officially permissible maximum level of 82 decibels. At the moment we are working on additional improvements in our Whisper Train project. Special chocks serve the purpose of occupational safety. They can easily be pushed sideways and fixed using foot pressure via a tilt mechanism, and are thus back-friendly. Customers particularly welcome the high load capacity of the wagons, i.e. 30 tons each, and vertical adjustability of the upper loading levels. This makes it possible to transport heavy and high vehicles as well. In 2010 Volkswagen presented BLG its award as best logistics provider based on its commitment to rail transport. Result:: Reduction in noise emissions, costs and energy

11 11 Automobile shipments via rail protect the environment. BLG AutoRail has been deploying its own complete trains since The fleet of railway wagons will grow to 1,300 units by 2013.

12 Up to 650 cars fit on a ship. On the Rhine alone BLG supplies European dealers with new vehicles using five ships and four barges.

13 13 GETTING TO THE CUSTOMER BY SHIP: INSTEAD OF 70 TRUCKS; ONLY 1 SHIP Ford vehicles are transported from the Cologne plant to the dealers in Europe on the Rhine. BLG handles this job with five inland vessels and four barges that carry passenger cars in both directions, up the Rhine to Wörth or downstream to Vlissingen or Antwerp. Up to 650 cars fit on an inland vessel. That corresponds to around 70 to 80 trucks or three freight trains. Ford has already received the Green Supply Chain Award for its automobile shipments via waterway. Two vessels provide a shuttle service between Budapest and BLG s automobile terminal in Kelheim. Primarily Suzuki models from Hungary undertake this 700-kilometer voyage. Suzuki is a firm advocate of automobile shipments via inland waterway. Minoru Amano, President of Suzuki International Europe: Inland vessels are on time, have the lowest damage rate in car transport and are cost-efficient. Result: Less fuel consumption, less road traffic, less CO 2 emissions

14 14 GETTING TO THE WAREHOUSE VIA RAIL: FROM CONTAINER SHIP TO ALTERNATIVE CARRIERS We built our high-bay warehouse in Neustädter Hafen in Bremen because of the good rail, road and waterway connections. Our automotive locations also profit from the proximity to the port. Innumerable containers are delivered, discharged and carried away again every day. The containers arrive via Bremerhaven and Hamburg. There they are loaded either onto an inland vessel or a train. In this way the containers reach Neustädter Hafen and then go from there over a short distance to the warehouse. The route taken by the goods to the retail trade is covered in part via rail, such as to Austria, which means the trimodal transport connections provide relief especially for road traffic. Result: Trimodal transport connections provide relief especially for road traffic

15 15 From the container terminal to the highbay warehouse via rail and water that saves around 80 road shipments a day.

16 16 Intensive driver training, optimized route planning, improved capacity utilization of trucks and use of modern Euro 5 vehicles reduce fuel consumption.

17 17 ONCE LEARNED, NEVER FORGOTTEN: SUSTAINABLY REDUCING FUEL CONSUMPTION BLG car transporters cover around 80 million kilometers a year. To reduce fuel consumption and CO2 emissions, the company has taken various measures. The most effective is ECOTraining for truck drivers. Specially qualified trainers instruct drivers, monitor driving behavior with respect to energy consumption and careful use and handling of the truck. Gasoline consumption, tire strain and speed are recorded by means of telemetry. The training treats both theory and practice. In practice a certain route is driven twice, first without the intervention of the trainer. The second time around the trainer gives tips on how to drive even more economically. The telemetry system records the data and enables comparability. The realistic savings potential is about seven percent. Optimized route planning saves empty runs. In addition, the capacity utilization of the trucks is improved. Around 75 percent of the trucks already operate in line with the Euro 5 standard. Older transporters will be successively replaced with modern vehicles. Result: Up to 15 percent less fuel consumption

18 18 ENERGY SAVINGS AND RECOVERY: DYNAMO PRINCIPLE AND BRAKING ENERGY Containers are loaded and discharged using gigantic gantry cranes. They number among the major power loads at the terminals. Lifting containers requires energy. During lowering and braking, on the other hand, energy is released. Gantry cranes are not driven by motors during lowering and braking, but generate kinetic energy that is transformed into electrical energy by the generator acting as the motor and fed back into the grid. The same principle is also utilized at the Bremen high-bay warehouse. There the energy generated by the braking of the storage and retrieval units is also fed back into the system. Around 18,000 kwh per year and storage and retrieval unit are saved in this way. These intelligent solutions not only reduce consumption, but also CO 2 emissions. The example of the van carriers (VC) used for container transport at the terminals points out another solution for reusing energy. The energy gained while setting down containers and braking is stored temporarily in special capacitors (super caps) and fed back into the system when containers are lifted or the VCs start up. As a consequence, they reduce fuel consumption and protect the environment. Moreover, intelligent routing in the terminal area ensures energy savings. The number of curves is reduced so that significantly fewer braking maneuvers and accelerations are necessary. Result: Reduction in CO 2 emissions amounting to 4,000 tons a year, up to 25 percent savings in total energy consumption

19 19 A smart energy recovery system ensures that the enormous gantry cranes consume up to 25 percent less power.

20 20 Automatic start-stop system and improved operation of the storage and retrieval units as well as needs-oriented lighting have substantially diminished power consumption at the Bremen high-bay warehouse.

21 21 ENERGY SAVINGS AND RECOVERY: INTELLIGENCE SAVES ENERGY Whenever they stand idle, they switch off automatically. The storage and retrieval units at the high-bay warehouse in Bremen put items into and take them out of storage in the three enormous warehouse blocks. When a storage and retrieval unit does not have a transport job, the load circuit switches off. This saves around 400,000 kilowatt hours a year. A new prototype saves additional energy via sequential operation. Customary storage and retrieval units run diagonally to the respective slot they currently serve. The prototype initially moves horizontally, brakes and then changes to the vertical direction. In addition, the electric overhead monorail conveyors in the highbay warehouse only operate in case of need and not permanently. The conveyor belt for empty cartons runs only if cartons have to be conveyed. Result: Less energy consumption and reduced emissions

22 22 ENERGY SAVINGS AND RECOVERY: THE WAREHOUSE TURNS OFF THE LIGHT The lighting in the high-bay warehouse has been improved. In the three warehouse complexes the light is on only during maintenance and repair work. This saves 100,000 kilowatt hours of power a year. Furthermore, the three level switching ensures that the warehouses are illuminated solely where light is currently needed. This reduces power consumption by another 17,000 kilowatt hours. Thanks to these two measures, consumption has been cut by 58 percent. In addition to intelligent light switching, BLG is testing the use of LED lights at various locations. At the cold store facility in Bremerhaven test aisles have been equipped with LEDs. In Neustädter Hafen LEDs are used in test areas in buildings as well as for parts of the outside lighting. Apart from the enormous speed (immediately bright) and lower power consumption (comparison of halogen to LED: 1 kw vs kw) and a 25 times longer service life, the light is considerably less dazzling. Result: Reduction in power consumption of 17 percent or 1 million kilowatt hours a year

23 23 The use of LED lights at BLG Cargo Logistics, BLG Coldstore Logistics and at the high-bay warehouse reduces power consumption.

24 24 Instead of 95 liters per wash, the car wash facility now only consumes 15 liters of fresh water per car. The remaining 80 liters come from the terminal s water treatment plant.

25 25 FILTERED MEANS SAVED: WASTEWATER CAN WASH Every year over 230,000 vehicles are handled at the BLG Auto Terminal in Hamburg. Around 95 liters of water are required per vehicle. A reduction of nearly 85 percent in fresh water consumption is achieved at the terminal by means of a new treatment plant. Only 15 liters of fresh water are needed per car. The remaining 80 liters come from the water treatment plant. It treats process water so effectively that it can be used again several times. A multilayer filter with gravel and coal cleans the water. Before it runs through the filter, it is mixed with a flocculant that even binds the tiniest dirt particles. Water that has been treated several times and can no longer be purified at the in-house facility is retreated at an external recycling plant. This guarantees a closed cycle. The water is utilized optimally. High savings are also achieved at the Logistics Center in Eisenach by virtue of the intelligent design of the washing facility for small load carriers. The water in the small load carrier washing facility there is extremely dirty at the beginning of the process. By adding fresh water at the end of the process, the cleaning water is only slightly dirty and can be used again in the preceding process stages without treatment. This type of adapted water use significantly reduces the consumption of fresh water. Result: 85 percent less fresh water consumption

26 26 TIRES ROLL LONGER: RETREADED TO THE LAST KILOMETER By repairing tires and optimizing road cleaning, BLG was able to reduce purchasing of new tires at its Auto Terminal in Bremerhaven by 25 percent. Over 200 company vehicles operate at the Auto Terminal. Besides natural wear, foreign objects on the road repeatedly caused damage to tires. By cleaning the roads more thoroughly, it has been possible to minimize this damage. In the event of a flat tire, the vehicle is taken to one of the workshops at the terminal. Damaged tires are quickly patched by hand or via vulcanization, depending on the damage. At the same time holes are filled with rubber plugs and vulcanizing agents, heated and thus repaired. In another workshop worn tires are retreaded. The tread grooves are recut to make them up to four millimeters deeper. The tires are used on the double wheel rear axle of car transporters and can run another 20,000 kilometers (approx. 20% more). Result: 25 percent fewer tires

27 Over 200 tractor units and passenger cars operate at the Bremerhaven Auto Terminal. Tire consumption is substantially reduced through targeted measures.

28 28 Today steel sheet is still loaded using, as in the picture, conventional lifting gear. Our new solution simplifies the process, reduces the risk of injury and enhances performance.

29 29 ATTRACTIVE SOLUTION: MAGNETS REPLACE VALUABLE WOOD 16 fully grown beeches are needed to make dunnage for a single shipload of steel sheet. In seaports steel sheet is still handled with conventional lifting gear. Setting and removing the claws and chains is time-consuming, involves the risk of injury and may additionally lead to damage to the steel products in the event of incorrect handling. How can the loading and discharge operation be changed in such a way that dunnage is no longer needed, the risk of injury and damage is reduced and the processes are more effective? We successfully worked on this question together with ThyssenKrupp and the Institute of Production and Logistics at the University of Bremen. The solution: a combination of permanent and electrical magnetism. Permanent magnets keep the steel sheet securely under the crane. A counteracting electrical magnet regulates the force for selectively picking up one or more sheets as well as for setting down the load. In this process dunnage is not necessary to create space for positioning conventional lifting gear. The result is an increase in handling capacity and efficiency with less risk of injury and damage. An example for the present and future: Social, economic and ecological sustainability

30 30 OUR IMPROVEMENT NETWORK: RESOURCEFUL SOLUTIONS WITH A MAP With the TechnikAtlas in our BLG Intranet and regular meetings of experts we maintain an exchange of know-how along with technical improvements. Experience with new technologies is just as important as clever solutions that make our logistics even more efficient. And efficient always means: less consumption and lower emissions. The TechnikAtlas not only points out practicable examples, but also names the contact person who can help with the details. For instance, to reduce fresh water consumption in washing facilities, to design heating systems, power-saving circuits, tracking systems or LED lighting. Behind every idea there is at least one specialist who enjoys improving procedures. The ProKon research project completed in 2012, for example, was aimed at developing a system for automated position and status detection of load carriers in seaport terminals. The objective was to reduce search times in finding rolltrailers, save fuel and improve control capabilities. The rolltrailers are located by means of RFID and satellite positioning. The necessary hardware on the trailers includes passive RFID transponders. The hardware (data terminal, RFID reader, GPS modules) is provided on the tractor units. Result: New solutions for less consumption, lower emissions and more efficient logistics

31 Foto: Fotolia Even the longest journey starts with the first step. Laotse

32 Our contribution to environmentally compatible production of this brochure: The brochure is composed of 100% recycled paper and is awarded with the EU Ecolabel. The printing shop uses a carbon-neutral printing process. Result: Präsident-Kennedy-Platz Bremen Germany Tel.: +49 (0) green-logistics@blg.de