World Bank Green Freight Transport Initiative for Brazil Transporte Rodoviário de Carga
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1 World Bank Green Freight Transport Initiative for Brazil Transporte Rodoviário de Carga Georges Darido, Transport Specialist February
2 Convergence of agendas on green freight 1. Logística: eficiência, competitividade e crescimento Supporting improvements in the freight and logistics sector to drive efficiency, competitiveness, and growth 2. Um setor de transportes mais limpo ou verde The Green agenda: Promoting climate change mitigation by supporting steps to reduce the carbon intensity of the freight sector Supporting governments dealing with local air pollution Finding synergies and other co-benefits, such as congestion management in urban areas 2
3 Emissions from the sector will continue to grow Ministério do Meio Ambiente, 1º inventário Nacional de Emissões Atmosféricas Por Veículos Automotores Rodoviários, Janeiro
4 Fuel costs compared to total costs Fuel is a very important part of truck operating costs (excluding maintenance and depreciation costs) Approximate share of total operating costs in Brazil: Tolls; 10% Insurance; 20% Fuel; 40% Wages; 30% In China, fuel can be as much as 59% of operating costs 4
5 Perfil da frota de caminhões no Brasil 2009 profile of trucks fleet in Brazil (>1.3 million) by engine/emissions technology and type of ownership: >20 yrs 6-20 yrs , , , , , , , ,0,0 P1 and Older 2159, , , , , , , , ,0 P2 (Euro 0) P3 (EURO I) P4 (EURO II) 1182,0 P5 (EURO III) Cooperatives Companies Independent Owners , ,0
6 Estratégias de curto e longo prazo Tecnologias para frota de caminhões Vehicle technologies Velhos: programa para sucateamento (scrappage) Em operação: melhorias incrementais incremental technology improvements, incentives for experimenting and adopting low carbon technology Novos (new low-carbon vehicles): e.g. standards, smart incentives (tax) and regulations Comportamento e manutenção Behavior and maintenance Logística Infraestrutura 6
7 Green strategies: short to long-term Infrastructure Improving condition of existing roadways to reduce operating costs Expanding rail/waterway network to induce mode shifts Logistics (reducing empty truck kms) Network optimization with communications equipment and new facilities (terminals, etc.) Behavior and maintenance Driver training (eco-driving) Financing and capacity building for small operators Better regulations and enforcement Technologies for Energy Efficiency Oldest trucks: scrappage programs Trucks in operations: incremental technology improvements, incentives for experimenting and adopting New trucks: standards, smart incentives (tax) and regulations Public-Private Partnerships and voluntary programs to mainstream technologies (e.g. SmartWay) 7
8 A partnership model modelo de parceria Shipper embarcador Partnership Data Reduced Carbon Footprint Fuel $ Savings Technology Vendor Verification Data Facilitator Coordenador Data Partnership Carrier Transportador Facilitation Banker Financer 8
9 SmartWay results in the US 2,700+ Partners Drive approximately 650,000 trucks (10% of industry) Travel over 60 billion miles per year (30% of industry) Consume over 12 billion gallons of fuel (32% of industry) In addition, encompasses - rail operators, freight shippers, logistics companies, technology manufacturers, trucks stops, ports, banks, vehicle and equipment dealer and service centers Since 2004, SmartWay Partners saved 14.7 million metric tons of CO2 1.5 billion gallons of diesel fuel 3.6 billion dollars in fuel costs Equivalent to taking about 3 million cars off the road for 1 year 9
10 Why is SmartWay successful in the US? Shippers: Top of the supply chain, drive marketplace demand Give preferred status to SmartWay Carrier Partners Get better data to improve their own shipping operations Modify logistics operations to improve efficiency & reduce emissions, for example: Inter-modal Shipping Full Truck Loads Warehouse Improvements Idle-Reduction at facilities Get recognition and PR value with SmartWay brand Carriers: Gain competitive advantage: Preferred status, plus Fuel efficiency, savings Reduce emissions Integrate fuel saving technologies and strategies into fleets, such as: Idle Reduction Improved Aerodynamics Efficient Tire Systems Driver Training Renewable Fuels Advanced Lubricants Get recognition and PR value with SmartWay brand 10
11 Sector situation in China Tire pressure Most drivers only use hammer to check tire pressure 14% of drivers check pressure less than once per week Truck loads Empty of partially empty trucks are common Overloading is common Many cost-effective technologies available but not yet widely applied Low rolling resistance tires Aluminum wheels Automatic tire pressure monitoring Aerodynamics: e.g. skirts or nosecone Introduction of Euro IV fuel makes emission reduction technologies possible 11
12 Pilot Testing in Guangzhou, China Carried out Technology testing on 14 trucks in three truck fleets Tire systems Aerodynamics 12
13 Pilot Testing: Tire equipment (a) Dual low rolling resistance tires: reduces rolling resistance Load and Inflation 830 kpa 5,000 kg 455/50R 22.5 RULE: For every 70 kpa under inflationis 1% penalty in fuel economy 13
14 Pilot Testing: Tire equipment (b) Aluminum wheels: reduces weight of wheel 14
15 Pilot Testing: Tire equipment (c) Automatic tire pressure monitoring system: keeps tire pressure more constant 15
16 Pilot Testing: Aerodynamics (a) Skirts: reduce wind underneath the trailer HDPE plastic will last life of trailer 16
17 Pilot Testing: Aerodynamics (b) Nosecone: reduces turbulence 17
18 Pilot Testing: Aerodynamics (c) Gap fairing: reduces the tractor-trailer gap Distance between back of cab and front of trailer Trailer Gap Will make difference in % of savings 18
19 Guangdong Demonstration Proj (1) Technology Demonstration Energy Efficiency truck technologies demonstration trucks Pilot testing of logistics operation technologies: Pilot Advanced Brokerage Information System Pilot Drop-and-Hook freight operations 19
20 Guangdong Demonstration Proj (2) Innovative Finance Green Freight technology rebate based on the prevailing down payment rate for a truck loan performance-based payments based on the prevailing interest rate of a truck loan better access for SMEs to commercial finance creating quality pipeline projects for commercial banks sharing information between banks and SMEs 20
21 Guangdong Demonstration Proj (3) Large-scale Capacity Building Policy research Training for installation and operation of technologies Training for government officials and enterprise managers Marketing and branding Awareness raising and information dissemination Green Freight Trade Fairs and Green Freight Submits Driving market demand for green freight service providers Enhanced Carbon Accounting and Supply Chain Efficiency 21
22 Brazil Green Trucks Project, Phase I: Ongoing activities: Study and market surveys to understand the sector Seeking partners to conduct pilot tests of: Innovative, energy-efficiency technologies Improved behavior and maintenance practices Improved logistics Potential activities: Technical assistance to design/evaluate pilot tests Facilitate policy dialog Technical site visits for officials Workshop(s) to collect and disseminate findings 22
23 Technology pilot test in Brazil Truck fleet (partners: NTC, companies) Proposed technologies to be tested: Aerodynamic deflectors, gap fairings, and trailer skirts Low rolling resistance tires Tracking and dispatch systems Training Others Experimental design Evaluation and auditing (World Bank) Dissemination 23
24 Thanks for your attention Georges Darido Tel: Shomik Mehndiratta Ricardo Marar 24
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