Innovation in Transport & Technology

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1 Innovation in Transport & Technology Green Logistics Session World Bank Transport Forum Washington, 29 March 2011 Jens Hügel Head - Sustainable Development (c) International Road Transport Union (IRU) 2011

2 This is the IRU Page 2 International Road Transport Union (IRU) 2011

3 Evolution of IRU Membership Created 1948 National Associations from 8 founding countries Belgium Denmark France Netherlands Norway Sweden UK Switzerland Page Members 74 Countries International Road Transport Union (IRU) 2011

4 IRU Priority Issues Sustainable Development Innovation Incentives Infrastructure Facilitation Trade Tourism Road Transport Page 4 International Road Transport Union (IRU) 2011

5 The Biggest Innovation is? What does it take to have a cup of coffee in a café? The combined efforts of 29 companies in 18 countries Road Transport! It has become a vital production tool! Source, IRU Page 5 International Road Transport Union (IRU) 2011

6 Innovation reduces Commercial Vehicle Toxic Emissions percentage (1990 = 100) % - 95% - 97% - 98% CO HC NOx particulates Source: IRU based on EU Commission 2008, US Environmental Protection Agency 2010, Japan Ministry of the Environment 2005 Page 6 (c) International Road Transport Union (IRU) 2011

7 Innovation Reduces Fuel Consumption Fuel consumption (l/100 km) % Source: Verband der Automobilindustrie (VDA) e.v., 2008 Page 7 (c) International Road Transport Union (IRU) 2011

8 IRU s 3 i s for Sustainable Development 1. Innovation develop ever more effective atsource technical measures & operating practices to reduce environmental impact. 2. Incentives encourage faster introduction by transport operators of best available technologies and practices. 3. Infrastructure ensure free-flowing traffic through adequate investment in new infrastructure, to remove bottlenecks and missing links and make full use of existing infrastructure. Page 8 International Road Transport Union (IRU) 2011

9 IRU «30 by 30» Resolution - 30% CO 2 by 2030 The road transport sector has voluntarily committed, on the basis of innovative technologies and practices, to reduce CO 2 emissions by 30% by 2030 based on transport performance in tkm and pkm. Page 9 International Road Transport Union (IRU) 2011

10 IRU «30 by 30» Resolution Through investments in innovative engine and latest vehicle technology; Through driver training, as provided by the IRU Academy; Through innovative logistic concepts, such as ITS and optimised weights and dimensions of heavy commercial vehicles. Page 10 International Road Transport Union (IRU) 2011

11 Modular Concept the Innovative Solution for Green Logistics reduction of fuel consumption reduction of CO 2 Longer and heavier vehicles emissions provide better rather than more reduction transport! of number of trips reduction of transport cost Page 11 International Road Transport Union (IRU) 2011

12 Further Examples of Green Logistics Benefits for the environment Benefits for the road transport operator Driver training and Well Driven Campaigns Environmental Management Systems (EMS) Lower fuel consumption Less CO 2 emissions Green Logistics = Profitability! Less waste Less consumption of water, fuel and other resources Lower fuel costs Less vehicle downtime Lower insurance costs Lower taxes and charges Lower fuel costs, water bill, electricity cost Source : IRU, 2008 Page 12 International Road Transport Union (IRU) 20011

13 Implementing Green Logistics Learning from the best Page 13 (c) International Road Transport Union (IRU) 2011

14 Innovation is not a Panacea (road expenditure in million $ / 2004) China USA EU Adequate infrastructure is a sine-qua non condition for green logistics! France Spain Poland Switzerland Source: IRF World Road Statistics 2006, Eurostatt 2008 Page 14 International Road Transport Union (IRU) 2011

15 Comparison of Economic Return from Different Types of Infrastructure World Bank supported infrastructure projects Average rates of return (%) Source: The World Bank Page 15 Page 15 International Road Transport Union (IRU) 2011

16 1. Institutional reforms The Innovative Model Highway Initiative (MHI) 2. Creation of support infrastructure 3. Implementation of best practices 4. Establishment of a multilateral investment fund

17 Innovation in Green Logistic It can go wrong! Biofuels increase food prices! Page 17 International Road Transport Union (IRU) 2011

18 Biofuels are not CO 2 Neutral Page 18 International Road Transport Union (IRU) 2011

19 Innovation in Green Logistics Myths and Reality! Myth: Combined transport is the most environmentally friendly way of transport in terms of CO 2 emissions Combined Transport is not inherently more Reality: environmentally friendly! Rail transport achieves lowest CO 2 emissions where trains use electricity from nuclear power stations.? Page 19 International Road Transport Union (IRU) 2011

20 IRU s 3 i s for Sustainable Development 1. Innovation develop ever more effective atsource technical measures & operating practices to reduce environmental impact. 2. Incentives encourage faster introduction by transport operators of best available technologies and practices. 3. Infrastructure ensure free-flowing traffic through adequate investment in new infrastructure, to remove bottlenecks and missing links and make full use of existing infrastructure. Page 20 International Road Transport Union (IRU) 2011

21 Road Freight Transport: Interconnecting every business and every transport mode

22 Page 22 (c) International Road Transport Union (IRU) 2011

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