Environmentally sustainable goods transport in Europe

ENVIRONMENTALLY SUSTAINABLE

GOODS TRANSPORT IN EUROPE

ENVIRONMENTALLY SUSTAINABLE

GOODS TRANSPORT IN EUROPE

CONTENTS

PART 1

Time for increased concern Market far from saturated More than new fuels

Meet: Bosch Siemens Hausgeräte

Environmental facts

Impact on the environment by various modes of transport Difficulties in comparing environmental performance

Meet: The Finland Post

Ecology today, economy tomorrow Environmental work already pays

Environmentally-labelled freight transport Internet –  – new opportunities? Environmental certification and  Public procurement regulations

PART 2

Meet: Bang & Olufsen

Survey and formulate environmental goals Map out the current situation

Formulate goals

Meet: 3 Suisses

Make environmental demands The customer decides

Reduce the need for transport More efficient transport Rail transport

Simple measures are often effective Co-operation between modes of transport Choice of wrapping and packaging New vehicle technology

Fuels

Meet: Novo Nordisk

Green Spider and Swedish Environmental Protection Agency                               

INTRODUCTION

FOR THE READER

The aim of this book of ideas is to inspire increased environmental thin-king when purchasing and planning goods transport.

The transport of products and goods is a source of both revenue and problems. Increased transport is a measurement of economic develop-ment but also contributes to unacceptable environdevelop-mental problems such as air pollution, noise and climate change.

We now put our hope in the awakening awareness among the players on the market. An awareness that in many cases points to an understan-ding that signals for stricter regulations must be taken seriously. Are you keeping up with developments? What exactly is good environmental per-formance in goods transport? Which demands can you, as transport cus-tomer, make on transport providers? What are the developments within the ? How have others taken on increased environmental require-ments and what are the driving forces?

Environmentally Sustainable Goods Transport gives you the answers to these questions, suggested methods and practical examples of how the challenge to make transport environmentally sound can be met. A starting-point for renewed efforts in order to improve your finances, image and, not least, your company’s environmental performance.

The publication has been brought out within the framework for co-operation between the European network organisation Green Spider and the Swedish environment authority, the Swedish Environmental

Protection Agency.

Stockholm, March 2000

PART 1.

The time has come; we have to change our

transport systems so that we can continue to reap the

social economic profit generated by transport. Without a

radical reduction of the environmental impact by various

modes of transport, however, society cannot develop in

a sustainable direction. The transport of goods and

pro-ducts is no

TIME FOR INCREASED

CON-CERN

New ring roads, connecting roads and

air-ports. High-speed railways and new

motor-way networks. In the wake of a growing

Europe, freight and transport is ever

incre-asing. At the same time, transport

accounts for a growing part of the total

environmental impact created by

busines-ses. An overhaul of transport is therefore

central for companies wishing to improve

their environmental performance.

Most companies strive to optimise transport. Profitability is the main driving force. But making the most effective use of transport also inclu-des reducing the environmental impact. Signs of increased charges and environmental requirements for vehicles and transport point to the way ahead. Improved corporate image and avoiding the risk of ending up in the backwaters of rapid development are good enough reasons for choo-sing a greener route now.

Trade and industry are in many ways the focus for European environ-mental initiatives. The executive director of the European Environment Agency (), Domingo Jimenez-Beltran, has said that future successes in the area of the environment will largely be achieved by voluntary mechanisms, self-regulation and producer responsibility initiatives and the use of economic instruments.

There is perhaps no sector to which Beltran’s statement better applies than the transport sector. Development trends speak for themselves. Increased environmental impact from the transport sector is incompatible with sustainable development. Isolated initiatives are not enough, trends must be broken. The sector itself shoulders a great responsibility. Creating a sustainable system for European freight could be the biggest challenge so far for transport companies and their customers within the union.

Market far from saturated

A well functioning internal market requires adequate conditions for the

Challenge awaiting

In 1992, business leaders from eight of the world’s largest multinational compani-es reviewed the evidence on the environ-ment and concluded that it was time to »change course«, because »the bottom line is that the human species is living more off the planet’s capital and less off the interest. That is bad business. No one can reasonably doubt that fundamental change is needed«. However, the chal-lenges and opportunities are still awai-ting.

Development of freight and passenger kilometres and energy consumption by trans-port, EU

Total freight transport is expected to grow by around 50 % between 1999 and 2010.

Source: »Environment in the EU at the turn of the century.«

Environmental assessment report no 2 by the European Environment Agency, 1999.

transport of goods and products. But we all know that today’s system results in unacceptable environmental problems. Air and water pollution, noise, accidents, and consumption of energy and raw materials, are just a few. Are the people of Europe willing to pay any price for an internal market?

’s enlargement and the focus on an unrestricted internal market generate an increasing volume of transport of goods and products. At the same time, more products are manufactured on demand, rather than for the warehouse. The market for freight transport in Europe is far from saturated. A considerable increase in transport is predicted for the years ahead. This is true for all modes of transport, although road and air traf-fic represent the highest increase. Railway and inland waterway transport continue to lose shares to road transport. This applies to both freight and passenger transport.

Trans-European networks, the core of ’s transport policy, will result in new motorways and tracks for high-speed railways; an infrastructure expected to bring growth and development to hitherto remote regions. New markets, e.g. the forecasted trade increase with Eastern Europe, could lead to an additional flow of transport. In order to couple this trend with minimal environmental impact and sustainable development, trans-port within  will be forced into self-contemplation and change.

More than new fuels

Most businesses and transport companies are totally dependent on effici-ent and well functioning logistics systems for their transport. Add envi-ronmental aspects to the planning, and you get an even more complex spectrum of factors that have to be maximised.

In reality, environmental considerations are becoming increasingly important for freight customers and transport companies. Quality assu-rance includes a measure for environmental performance. Environmental considerations must be weighed against other aspects such as price, qua-lity and level of service.

Environmental performance is about choosing transport with the least environmental impact, but the ultimate goal must be reduced transport. Good environmental performance is more than using new fuels. The future is both in technology and thinking, with the aim to minimise transport. Packaging, logistics and locations – combining modes of trans-port and planning to meet »just-in-time« requirements without having to resort to high-speed modes of transport and risking empty freight home. Punctuality before speed – could that be a winning environmental argu-ment for tomorrow’s transport companies?

80 100 120 140 160 180 200 10 05 00 95 90 85 Year Index (1985=100) Passenger transport Freight transport Energy consumption transport

0 20 40 60 80 100 1998 1997 1996 1995 1994 0 10 20 30 40 50 60 1998 1997 1996 1995 1994

Percentage of trucks with low emissions for BSH.

Percentage of railway freight for BSH.

wolfgang.erben@bsh.com

osch Siemens Hausgeräte GmbH is jointly owned by Bosch and Siemens and manufactures house-hold goods, e.g. washing machi-nes, dishwashers, refrigerators and microwave ovens. They are sold under various trademarks, of which Bosch, Siemens and Gaggenau are perhaps best known. With more than , employ-ees and produc-tion in more than ten countries, the company is fourth in the world in its field.

The pronounced aim is to become market leader. This also includes the environment, where the company is well known for its determined initiatives. For exam-ple, of the  German opera-tions have externally approved environmental management sys-tems.

TRANSPORT IS IMPORTANT

’s own market research shows that customers demand resource-efficient products, both for econo-mic and environmental reasons.  therefore attaches great

importance to minimising energy and resource consumption in their own operations – as part of the overall corporate image. The natu-re of products and market makes transport an important issue.

»We make around a million washing machines a year, weighing

around  kg each. This means an enormous volume of transport«, says Wolfgang Erben, responsible for environmental issues at  in Berlin. He adds that the white goods market is saturated and pro-fit margins are small.

»Transport represents a signifi-cant part of the total product cost. Linked to our stringent environ-mental requirements, this means that we try very hard to find solu-tions to reduce the amount of transport.

There are several examples of successful initiatives to reduce transport requirements. Our new

»TRANSPORT IS AN

IMPORTANT ISSUE«

DR WOLFGANG ERBEN, RESPONSIBLE FOR ENVIRONMENTAL ISSUES AT BSH’S OPERATIONS IN BERLIN.

B

»The aim of resource-efficient

production linked with

opportuni-ties for increased profitability,

puts initiatives for reduced

trans-port

requirements in focus.«

MEET: BOSCH SIEMENS HAUSGERÄTE (BSH), WHITE GOODS MANUFACTURER, GERMANY

factory, built in  in Nauen, on the outskirts of Berlin, is one of them.

In connection with the buil-ding, we reserved land adjacent to the factory, inviting major suppli-ers to set up. The concrete blocks for our products are now supplied by a manufacturer on the other side of the fence. Even the bulky inside plastic containers for the washing machine are made on the neighbouring site. I hardly dare to mention that prior to this these components were bought from Italy and other places.«

Internally, has worked to develop lighter and more trans-port-friendly packaging. Since , the weight of packaging has been reduced by  percent. Dishwashers, for example, are transported without pallets and supports, thanks to specially desig-ned packaging. This environmental factor is monitored through a key figure kilos-packaging-appliance.

COMPETITION FOR FORWARDING AGENTS

The majority of ’s transport services are provided by outside contractors. The company’s own vehicle fleet is manly used by ser-vice personnel. Various technical solutions, alternative fuels, etc. are being tested, but the company pla-ces more importance on small, gradual improvements made by transport providers.

 freight transport is procu-red through annual agreements with a number of forwarding agents. The agents also take part in an annual competition, inclu-ding environmental criteria. This is seen as one explanation for contin-ued positive development.

Forwarding agents have successi-vely been able to offer transport with better environmental perfor-mance.

By supporting co-ordinated purchasing, the company has achi-eved an increase in the number of vehicles with low emission and noise levels used for urban distri-bution.

»Vehicles used by forwarding agents must meet the requirements for emissions in accordance with  . We want our agents to use so called jumbo trucks with extra loading capacity. Thereby we can reduce the number of jour-neys, as three trucks are replaced by two, thus reducing the environ-mental impact. Currently, around half of our freight is carried out by this type of truck.«

»Three times a year, forwarding agents must put up with being subjected to an audit. We inspect the vehicles at the reloading bays, as part of the quality competition. Certain ratios for freight transport are regularly compiled, which ena-ble employees, shareholders and customers to follow the develop-ment.«

BETTER RAILWAY TRANSPORT REQUIRED

Wolfgang Erben:

»I wish railway transport could be more flexible. Today, percent of our finished products are transpor-ted by rail, and this cannot be increased unless rail services are improved. Customers often spend several weeks looking at washing machines, but once they have deci-ded they want it immediately. We have to offer a next-day delivery service.«

NOxemissions have however remained

sta-ble in the 90’s, implying that engine impro-vements have been offset by the drastic growth in traffic volume.

ENVIRONMENTAL FACTS

Transport affects the environment in

seve-ral ways – this is true for all modes of

transport. Vehicles are responsible for

emissions of air

pollutants and greenhouse gases, and the

environment is also affected by the

infra-structure required by

vehicles.

The European Environment Agency () notes in its  annual report that traffic is one of the main causes of environmental problems within the . Valuable natural landscapes are destroyed and cut up by motorways and other infrastructure. All over Europe, people are feeling the effects of trafficgenerated air pollution and noise. The transport sector’s increased share of emissions of the greenhouse gas carbon dioxide worries the entire world.

Naturally, some advances have been made in the environmental field, even in transport. New vehicles are quieter and cleaner than their prede-cessors. However, many positive effects are negated by the increase in traffic.

Environmental problems mainly associated with traffic are:

AIR POLLUTION

Hazardous emissions from the transport sector mainly include sulphur, nitrogen and so called volatile organic compounds (). They affect human health and also the environment. Emissions contribute to acidifi-cation, which causes damage to soil, forests and water. Nitrogen fallout contributes to eutrophication in seas, lakes and watercourses. Oxygen deficiency and lifeless seabeds follow in the wake of eutrophication, posing a serious threat to aquatic plants and animals.

IMPACT ON CLIMATE

Emissions of carbon dioxide and other greenhouse gases seriously threa-ten to change the earth’s climate. Gases stored in the atmosphere contri-bute to a gradual increase in the average temperature on earth. Emissions stem from the burning of fossil fuels such as coal, oil and petrol and can-not be treated. Emissions can only be reduced by a cut in fuel consump-tion or change to less polluting fuels, preferably based on renewable resources. Other sectors % Other Transport % Road Transport % VOC 57 38 5 NOx 36 50 14 CO2 74 22 4

Emissions from transport

CO2emissions from transport have incre-ased steadily due to the increase in traf-fic flows. Changes in fuel consumption per vehicle are, as yet, very small and an increased use of vehicles leads directly to increased emissions of CO2. This is true

both for road transport and non-road transport.

Source: CLTRAP (November 1998) UNFCCC (December 1998) CORINAIR (February 1999).

VOC emissions from road transport have

been decreasing since 1990, mainly due to the penetration of catalyst systems for road vehicles.

1998, it was estimated that more than 30 % of the EU population (about 120 million people) was exposed to road noise levels exceeding 55 Ldn dB(A) on the facade of their houses.

Source: »Environment in the EU at the turn of the century«.

Environmental assessment report no 2 by the European Environment Agency, 1999.

During the period 1990–1996, it is

esti-mated that approximately 10 ha per day were taken for motorway construction.

Source: Eurostat

Carbon dioxide emissions within the eu show a worrying increasing trend. The eu is committed to reduce emissions of greenhouse gases by eight percent by the year , compared with . Forecasts, however, point to an increase of  percent, fourteen percent higher than the target. Traffic is mainly responsible, with a predicted  percent increase during the period of agreement.

NOISE

Noise from traffic is a problem all over Europe. The majority of distur-bances are caused by road traffic, but noise from air and rail traffic can also be a nuisance. Long and heavily loaded cargo trains give cause to a different type of noise disturbance than, e.g. road haulage traffic.

Speed, road surface and type of tyres play a part, but the age of the vehicle is also a factor for the level of noise.

IMPACT ON THE LANDSCAPE

The transport system infrastructure can in various ways have a negative impact on urban as well as natural and cultural landscapes. Roads and railways create barriers and could fragment previously connected land areas, with negative effects for flora and fauna. Opportunities for outdoor activities and recreation could also be restricted.

Infrastructure for air traffic and shipping normally has less impact, although unsuitable locations for harbours and airports can occur.

0 50 100 150 200 250 >75cB(A) 65-75cB(A) 55-65cB(A) <55cB(A) 0 5 10 15 20 25 96 95 94 93 92 91 90 Year ha

EU population (million) expo-sed to road traffic noise

Average daily land take by new motorways – EU15 (ha per day)

55-

Impact on the environment

by various modes of transport

ROAD TRANSPORT

Road transport is responsible for a large share of airborne emissions, mainly in the form of carbon dioxide, hydrocarbons, nitrogen oxides and particulate matter. Diesel engines, common in trucks, emit more nitrogen oxides and particulates than petrol engines. Carbon dioxide emissions, however, are lower from diesel engines.

Road transport is also a source of noise pollution. Although signifi-cant technological developments have led to a considerable reduction in noise as well as air pollution from vehicles, the increase in traffic means that total noise levels are still high.

RAIL TRANSPORT

Environmental impact from rail transport varies, depending on whether the trains are run on electricity or diesel. Today, most railways are electric.

Electricity can be considered more or less environment friendly depen-ding on how it is produced (coal power plants, hydroelectric power, nucle-ar power, etc.). Diesel-powered trains generate pollution similnucle-ar to other modes of transport using diesel engines, i.e. relatively low levels of carbon dioxide emissions and comparatively high levels of nitrogen oxides and particulates. Freight trains generate more noise than passenger trains.

WATERBORNE TRANSPORT

For low speed freight transport, shipping offers an energy-efficient alter-native. Emissions measured per tonne and kilometre freighted goods are small, although emissions in relation to energy consumption are high. Bunker oil currently used in ships contains high levels of sulphur, causing a considerable amount of hazardous emissions of sulphur dioxides. So far, not many ships are equipped with catalytic converters, which means that nitrogen oxide emissions are also high.

The development is towards faster ships, resulting in higher energy requirements. Increased energy consumption in turn leads to increased fuel consumption carbon dioxide emissions.

AIR FREIGHT

The major environmental problems connected with air traffic are nitro-gen dioxide emissions and noise. Exhaust emissions also contain carbon dioxide, water vapour and hydrocarbons. Air traffic is the only mode of transport that emits into the stratosphere, causing potential damage to the protective ozone layer.

Despite recent technological development that have led to a conside-rable reduction in fuel consumption, emissions and noise, work remains to be done regarding fuel consumption and nitrogen oxide emissions. De-icing of aircrafts and anti-skid control on runways also affects the environment.

Road transport has increased considera-bly since 1970. The shift in modal split from 1970 to 1997 is a result of a long-term trend with gradual transition towards road freight transport at the expense of rail and inland waterways.

The strong growth in road transport finds its explanation in its speed and flexi-bility, which are requirements of just-in-time deliveries and also reflects the ten-dency for out-of-town location of factories and shopping centres. Even when other modes are used, road transport is often needed for the initial and final stages of the journey to and from the place of loa-ding or unloaloa-ding.

Source: DG VII, Eurostat

Difficulties in comparing

environmental performance

A comprehensive survey of the environmental impact of various modes of transport can also include air pollution in connection with electricity production, land use and energy consumption linked to processing and transporting fuels.

Production and scrapping of vehicles, as well as demolition of infra-structure could also have negative effects on the environment. Factors that can affect emission levels include driving methods, utilisation of loa-ding capacity, engine technology, traffic situation, topography, as well as weather, climate and temperature.

Making comparisons between environmental performance in various modes of transport is difficult. Examples, such as varying definitions of net load, the use of different energy sources, and emissions in various locations with differing environmental impact, highlight the difficulties that make it almost impossible to compare modes of transport.

Differences in quality of fuels and type of electricity production in various European countries cause problems when trying to compare countries.

Assessing environmental performance for freight transported a certain distance using a variety of modes of transport requires, as far as possible, information regarding the specific transport situation. Freight forwarders can often supply specific information. Transport customers should toget-her with freight forwarders define the type of vehicles, fuels, distances and loading capacity used in the transport chain. This helps businesses in their own surveys, and also means that transport companies can be com-pared from an environmental point of view.

0 10 20 30 40 50 Pipelines Inland w aterw a y s Ra il Sea R oad 1970 1997

Freight transport: model sha-res

harri.ajomaa@posti.fi

Goals and vision for environmental work

Finland Post’s vision is to be regarded as one of Finland’s most environmentally fri-endly companies. An environmental pro-gramme was adapted in 1995.

Environmental objectives for the peri-od 1995 – 2002 include:

• reduced fuel consumption by 12 percent,

• reduce energy use in heating and elec-tricity by 10 percent

• application of environmental require-ments in procurement,

• creation of new business through envi-ronmentally sound solutions.

inland Post aims to take an integral part in society’s environmental logistiks. Finland Post is a state-owned enterprise, increasingly sub-jected to competition even in areas of previous monopoly. During the ’s environmental demands became evident on the market. Major customers, require extensive documentation on the environ-mental impact of services. Competitors bring out environ-mental solutions and Finland Post responds with extensive environ-mental initiatives.

»A driving force behind the company’s environmental work is the reduction of costs for fuel and vehicle maintenance. Another increasingly important force is the increased market demand for qua-lity and environmentally sound performance«, explains Harri Ajomaa, responsible for environ-mental issues at the company.

INTERNAL WORK IMPORTANT

Finland Post has already taken steps towards more environmen-tally sustainable transport. The internal work to inform and gain

support has been and remains important.

»A major factor for Finland Post has been a proper structure and measurable goals from the start. Simplicity is important, we focus on carbon dioxide as a main indicator, which makes it easier for our employees to see the results, than the complicated talk about all different environmental problems, as acidification, biodiversity, noise, etc. Continual communication and information right from the start is vital, mainly internally, but also to our customers«, Harri Ajomaa says.

EFFICIENT DRIVING METHODS

Finland Post employs , dri-vers. During  and , , drivers have undergone a one-day course in fuel-efficient driving methods, including both theory and practical driving skills. Fuel consumption and average speed is measured before and after training. The result points to a number of improvements.

»Results before and after trai-ning show a - percent reduction in fuel consumption. Apart from

»MARKET FORCES DEMAND

ENVIRONMENTAL

INITIATI-VES«

HARRI AJOMAA, RESPONSIBLE FOR ENVIRONMENTAL ISSUES AT THE FINLAND POST LTD

F

AN ECOCYCLE COMPANY, FINLAND

this, the desired driving methods lead to a higher average speed. We also estimate that brake linings last five times longer. Improved driving methods also clearly reduce the risk for accidents«, Harri Ajomaa claims.

Over the past five years, Finland Post has together with a private company developed an adaptable econometer, which can easily be installed in all cars with electronic fuel injection. The devi-ce measures fuel consumption and speed, helping the driver to deve-lop a more efficient style of dri-ving. After tests, Finland Post plans to install such meters in all their vehi-cles. Tests are also under way to develop a bonus sys-tem related to fuel consumption. ENVIRONMENTAL REQUIRE-MENTS IN PROCUREMENT

In the same way that Finland Post is accountable to their customers regarding their environmental pro-gramme and the environmental impact of their services, they have similar demands on their transport providers.

»When it comes to transport, we still own and maintain the majority of vehicles, but the trend is towards increased purchasing of transport services. When we buy transport services, we do not impose strict requirements on the suppliers. But the procurement process includes a special clause in the contract«, Harri Ajomaa

explains. According to this, the following requirements must be met made prior to an agreement: • environmental regulations and

other legal requirements must be met,

• a contact person for environmen-tal issues must be named,

• the company must be familiar with Finland Post’s environmen-tally policy,

• information about fuel consump-tion must be made available to Finland Post.

In addition, the following applies after - months:

• Companys own environmental policy must be approved by top management,

• environmentally related projects must be started,

• Finland Post must be able to carry out an environmental audit of the process.

In the procurement of goods, labelling with the Nordic Swan label is a used as an indicator for prefarable products.

ENVIRONMENTAL THINKING CRE-ATES NEW BUSINESS

Recycling

Finland Post is currently develo-ping a service, together with mobi-le phone manufacturers, to ensure that environmentally hazardous and financially quite valuable used

»Realising that environmental

thin-king can create new

business opportunities has

had a major impact on the board

of directors.«

Carbon dioxide emission generated by one mail item. The diagram shows the overall view of carbon dioxide emissions shared by employees and customers.

Source: Finland Post

batteries are returned by customers for recycling.

»Finland has more mobile pho-nes per capita than anywhere else in the world – so there is definitely a market«, reasons Harri Ajomaa. »We already have a solution in co-operation with Xerox and Canon for used colour printer cartridges. These are delivered to the custo-mer with a stamped packet card. The customer only has to put the used cartridge in the packet and the post office does the rest.«

»We also set up a waste paper collection scheme with our rural postmen, for people living far from urban collection

points. This was not successful however, and has been dis-continued so far«, Mr Ajomaa says. e-letter

Telecommunications can reduce transport needs. One example is the post office idea for sending out business letters. Rather than prin-ting and posprin-ting letters, the com-pany just sends a digital file to the post office. The post office takes care of printing and distribution. This e-letter market is increasing rapidly.

Internet trading is increasing and Finland Post is testing a sys-tem of delivery to the customer’s work place rather than the home address. When several people at the same work place orders, total transport is reduced.

FINLAND POST IN THE AUTOMO-TIVE SECTOR

On the logistics side, Finland Post is looking for co-ordinated solu-tions for customers with similar

requirements. In Helsinki area there are approximately  shops and garages with daily orders for spare parts. Twelve wholesalers were carrying out independent deliveries, with a total of  vans driving , km a year.

Finland Post was chosen as an independent and reliable partner to take over transport. A system was created whereby goods from the twelve wholesalers were trans-ported to a central depot for reloa-ding and despatch to groups of customers according to a fixed route.

»In this way, vans could

cover the same transport require-ments, with only  percent of the previous driving distance«, Harri Ajomaa explains. », km of van deliveries in central Helsinki are avoided every day«, he adds.

MORE ELECTRIC VEHICLES IN THE FLEET

»We tested the use of electric vehi-cles already in the early ’s. Ten years later, we found a useful model. Developed in Finland, the Elcat is a Subaru Domingo con-verted to electric power with lead batteries and .. engine.

»By , we to have ten per-cent electric cars in our city delive-ry fleet. These will mainly be used in sensitive environments, where their quiet and pollution free qua-lities are best put to use«, Harri Ajomaa says.

Today, Finland Post has 

»Finland Post aims to take

an integral part in society’s

environmental work.«

electric vehicles rolling in different part of the country. Costs have been high, mainly due to service requirements and problems with utilising the maximum daily range. Elcat vehicles are calculated to be total economical in the postal deli-very if they run more than  km per day. But since the maximum range for postal deliveries is just under  km per battery charge, this requires a lot of planning and – most of all – motivated drivers.

»Tests have not been without friction, but we now believe that we have found a solution,« says Harri Ajomaa. Drivers for the

electric vehicles are carefully selec-ted through personality tests. This method has been used since  with clear positive results, both regarding longer driving distances and reduced service requirements. »In ten years time, we will be working more with electronic solutions. A large part of our fleet will be battery or fuel cell operated and the number of streets with deliveries on foot or by bicycle will be larger than today. This is partly due to the fact that people will continue to move into the cities,« Mr Ajomaa believes.

EU strategy on transport and the environment

Work to develop a strategy for the inte-gration of sustainable development in the transport policy is well underway within the EU. By request of the European Council, a comprehensive strategy inclu-ding a timetable for further measures was presented at the European Council in Helsinki (December 1999).

The strategy is now being further developed.

Areas pointed out for urgent action are:

• growth of 2emissions from

trans-port, in particular road transport and aviation,

• harmful emissions from all transport modes, including health hazards, • problems of noise from roads, railways

and aviation.

For further information:

www.europa.eu.int/en/comm/pg07

ECOLOGY TODAY,

ECONOMY TOMORROW

The market is advancing, opportunities are

ripe, and the conflict between

increasing emissions and EU

environmental goals is evident.

Environmental impact caused by transport

must be reduced; this is

in everyone’s interest. You, as a transport

customer have an

important task ahead. Your company and

Europe expect it.

European companies are facing great challenges in an increasingly com-petitive market. The global economy is developing, helped by the present untenable transport structure. Few people believe that environmental regulations, new technology and stricter standards alone can change the trend of steadily increasing environmental impact and emissions from the transport sector. New consumer and production patterns are required. Regulations and economic instruments point to the way forward, but it seems that any major change will have to come from environmentally aware customers and consumers.

EU’s transport policy suggests new times ahead. Serious intentions to reduce carbon dioxide emissions mean, for example, that the expected increase in traffic will not be permitted to contribute to increased emis-sions. Realisation of the ambition to ensure that real costs determine the price of transport will lead to real change for transport providers and cus-tomers.

Environmental work already pays

In a study of initiatives by Swedish companies to reduce environmental impact caused by freight transport, almost all companies taking part in the survey believe that there are financial gains to be made from environ-mentally sustainable transport. They claim that initiatives have resulted in higher efficiency as well as marketplace advantages. Co-ordination and avoidance of empty freight transport are examples of profitable measures.

Environmental performance sells

Sweden is the only country in the world with environmentally-labelled freight trans-port. The non-profit organisation Swedish Association of Nature Conservation has brought out criteria for an environmental label »Bra Miljöval« (Good Environmental Choice). Around ten licences have been awarded since the criteria came into force in 1998. Interest is great, but the strict requirements mean that only a few companies so far have been able to mar-ket their services under this label.

Requirements for vehicles and fuels as well as for energy from certain sources are among the criteria for »Bra Miljöval«. Individual vehicles as well as entire trans-port services can receive the environmen-tal label. Swedish Rail’s combi transport service GreenCargo (rail/truck) is an example of the latter. Other companies qualifying for the environmental label include small delivery services as well as large transport companies.

For further information:

www.snf.se Another way of calculating investment costs for a transition to transport

with better environmental performance is to assess any future environ-mental risks that can be avoided by such action. This could be in the form of avoiding increased road tariffs, kilometre tax, or transitional costs due to drastically increased environmental requirements for vehicles and fuels. Such additional costs for transport would, if it came to the worst, be charged to the end customer, resulting in reduced sales.

Regard improved image, goodwill and environmental performance as a quality aspect. More environmentally aware customers are worth the effort!

Environmentally-labelled freight transport

Environmental labelling of goods and services has so far been most effective in the Nordic countries. In Sweden, environmental labelling serves as a link between strict environmental requirements and the customer. One example is the marketing of the Swedish food industry, which is permeated with environmental information directed at the end customer. Credible environmental labelling enables a company to clearly communicate its ideas behind environmentally sound products and trans-port to the consumer. Information regarding an entire chain of products produced and transported to the shop in the most environmentally- friendly way can be conveyed.

Internet – B2B – new opportunities?

Information technology creates new patterns of information and com-munication. This in turn affects both the need and opportunities for co-ordinated transport. Profitability is brought out as a strong driving force, but what role does environmental impact play?

It is believed that companies making full use of the Internet in their contacts with one another will experience growth increase. The

American investment bank Godman Sachs has in a report studied the effects of Internet-business-to-business (B2B), e.g. between suppliers and customers. The bank predicts increased profitability – reduced purchasing costs and increased efficiency through improved production planning using the Internet.

Environmental benefits are just round the corner – provided they are made use of. New opportunities to compare environmental performance and plan your transport in an environmentally sound way are there for you to grasp.

Swedish initiative for sustainable transport

In Sweden, a joint initiative to promote the integration of an environmental dimen-sion in transport policy and decidimen-sion- decision-making has been taken. In 1994-96, Swedish agencies, motor manufacturers and the and oil industry worked jointly on an environmentally sustainable transport (EST) project. An important result of the Swedish EST-project is a consensus on specific long-range and short-term targets for the transport sector, defining EST.

Based on experience gained from work carried out nationally, the Swedish EST-project has entered Europe under the name Swedish Euro-EST project. The aim is to

promote EU efforts for sustainable trans-ports.

Contact:

lars.westermark@environ.se

Environmental certification and EMS

Ideas and instruments for a sustainable development are being developed by industry. The aim is to change product design and/or manufacturing processes in order to reduce environmental impact. Increasing market demands force companies to develop working methods that comply with current environmental standards. Environmental management systems include a requirement for on-going improvement of environmental work.

Current internationally recognised environmental management sys-tems are EMAS (Eco Management and Audit Scheme), and ISO 14000. In addition,, lifecycle analysis, is used to describe product and company environmental impact.

Operations registered under  or certified in accordance with  are expected to regularly renew operational environmental goals and make demands on subcontractors. When implementing , it is not uncommon to discover that transport represents a considerable share of the company’s total environmental impact.

ISO 14001

  can be applied to any company or organisation, regardless of size and orientation. The aim of the standard is to support environmental protection initiatives and to improve environmental work within the company. Companies can choose a self-certified system to report on whether requirements for the standard are met, or ask an external party to certify the environmental management system. Naturally, the latter alternative lends more credibility.

EMAS

 is a Regulation of the European Commission th Action

Programme, »Towards a Sustainable Development«. Companies within the industry and transport sectors can participate in  on a voluntary basis. The aim of the Regulation is to stimulate companies to further develop their environmental work in a systematic and uniform way. Under the  Regulation, an independent body is used to verify that all stated requirements are met.

The  Regulation is under development. Stricter requirements for performance improvement, legal compliance, and improved commu-nication with customers and shareholders are some new features. Increasing similarities with   include core operations and con-cept definition.

DIFFERENCES BETWEEN EMAS AND ISO 14001

The main differences between   and  are:

•   is used internationally, whereas  is valid in Europe and for European companies.

•   is a standard.  is a Regulation, which can be legally tried.

• An entire company, or a specific plant or activity can be certified accor-ding to , -  is site-based.

•  requires the publication of an environmental statement, available to the public.

•  requires that environmental management systems and environmental audits are verified by an independent accredited environmental auditor.

Public procurement regulations

 regulations for public procurement offer clear directions possible of demands and assessment of tenders. The basic idea behind European co-operation is free trade, wherefore restrictions in the form of geographical or national special regulations are not generally tolerated. The European Communities directives for public procurement aim to offer all suppliers within Europe the same opportunities for tendering procurement agree-ments.

Demanding that tendering companies are -registered does not comply with procurement directives, since  can only be applied to certain groups of suppliers. However, it may be possible to demand that suppliers’ products are labelled with the European eco-label, the -flower.

In the procurement of transport, is may be possible to request certain modes of transport. Further requirements regarding transport and the environment, so called performance requirements, can only apply to sup-pliers whose tenders have been accepted.

The choice of tender can only be influenced by environmental factors if there is a connection between environmental requirements and the subject of purchase, and if the criteria for assessment has been made clear in the quotation.

In the procurement of products it is not permitted to discriminate suppliers on the grounds of distance. Nearby suppliers still have the advantage of shorter transport distances. Alternatively, products and transport can be purchased separately, in which case the purchaser has an opportunity to influence the choice of transport.

PART 2.

From word to action. It is possible to

purchase environmentally sound transport, but

this requires a look at your own needs and

transport flows. Then, the market can be

investi-gated. Work is carried out in three stages:

• Map out the current situation

• Formulate environmental goals

• Make environmental demands

khj@bang-olufsen.dk

»ENVIRONMENTAL

PERFORMANCE PART OF

QUALITY AWARENESS«

HEAD OF TRANSPORT, KNUD HJARSBÆK.

ang & Olufsen is a Danish public limited company producing audio-visual equipment, stereos,’s, etc. The company has sales agents in more than  coun-tries all around the world. Annual transport requirements have during the past decade

increased from , to ,m3_{. The} autumn months (September-December) tend to be a peak season, accounting for 

percent of annual retail sales. Of the main production in Denmark,  percent is for export.

» percent of all transport to our company is by road, percent by sea and five percent by air«, explains head of transport Knud Hjarsbæk. The outgoing transport is slightly different: percent is by road, five percent by sea and the reminder by air.

»Combi solutions are not used, as we do not feel they would meet Bang & Olufsen's quality require-ments regarding precision, time and price. Therefore, we use trucks for our European distribution. The main factor for the delivery of our products is precision, rather that

the actual delivery time«, says Knud Hjarsbæk.

ENVIRONMENTAL POLICY

Bang & Olufsen is not quality assured, but in  the company signed ’s Business Charter for Sustainable Development and

brought out an environmental policy. Since , the company also has a pronounced policy for transport requirements, with resource utilisation and technolo-gical application as key concepts. Head of transport Hjarsbæk says: »Resource utilisation means, for example, that the degree of utilisa-tion for each mode of transport, measured in percent, is as close to  as possible«. This in turn means that:

• avoiding empby driving, • drivers are trained in

environ-mentally sound driving methods, • journeys are planned to conform

with current working regulations,

»Environmental requirements

should not be regarded as

pro-blems, but rather as

opportuniti-es for financial gains.«

B

CONSUMER ELECTRONIC COMPANY, DENMARK

• vehicles are continually maintai-ned to good order.

Technological application means for example that: • trucks conform to  -standard, • only environmentally-labelled diesel is used, • opportunities provided by  are used, • loading is done mecha-nically. ENVIRONMENTAL PERFORMANCE EQUALS QUALITY

Bang & Olufsen value environ-mental work highly.

»Environmental commitment is in line with our aim to produce high quality products. A customer purchasing one of our products should be assured that any require-ments for quality and the environ-ment have been met. Environmen-tal work is part of our quality awa-reness.«

»For the past four years we have published an environmental report«, the head of transport explains. »Since , we have also carried out a life cycle analysis for all our new products«.

»Our environmental awareness is reflected in our transport policy, which has led to better planning. This in turn has led to a levelling out of transport, avoiding flow peaks. The key concept “resource utilisation” is important – it requi-res good planning and leads to financial gains for the company. But action is required, not only pretty words!«

TransECO2

Bang & Olufsen has also in recent years become engaged in a project to develop a measuring system for air pollution. The project is carried out by the Danish ministry of transport under the name trans. The aim is to reduce

carbon dioxide emissions through co-operation between forwarding agents and freight customers. An important feature is that environ-mental gains should lead to finan-cial gains.

»Together with the forwarding agent Schenker- ⁄ we have developed a measuring system for 2(and other pollutants)

origina-ting from transport between our production in Struer and retailers in Sweden. Emissions from each delivery are measured. Our part of the project is finished and we can now use the measuring system«, says Knud Hjarsbæk.

The Trans project is still ongoing and the results will be published in .

»I would like to point out the importance of including manage-ment in environmanage-mental issues. Environmental requirements should not be seen as problems, but on the contrary as opportuniti-es for improving financial ropportuniti-esults. And one has to go from pretty words and golden promises to concrete action!«

»Resource utilisation and

techno-logical application

are key concepts in the

company’s transport policy.«

Transport related environ-mental goals, three examples: Schenker/BTL, Transport company, Germany

• Increase knowledge and awareness of environmental issues among all our staff, which will give them opportunities for considering environmental aspects in their daily work routines.

• Influence, set standards for and colla-borate with other companies, authoriti-es and organisations.

• Strive continuously to improve utilisation of our resources.

• Support and participate in research and development in the areas of fuel, trans-port technology and logistics. • View environmental measures as

long-term investments.

• Continuously improve our environmental performance and do more than simply meet the requirements set out in envi-ronmental legislation.

• Work against pollution to the air, ground and water by giving serious consideration to the environment for each new development of a service or product.

ASG – Transport company, Sweden

• Prevent and minimise our negative envi-ronmental impact.

• Continuously improve our performance regarding the environment and safety in a businesslike way.

• Prevent incidents and accidents that have a negative impact on health, the environment and materials.

• Comply with laws and other require-ments, and assume social and ethical responsibility.

• Communicate and co-operate with all stakeholders and report openly on per-formance and new developments.

CARREFOUR, supermarket chain, France

• Environmental demands on forwarding

Mapping out the current transport situation

regarding scope, volume and

environmen-tal impact is the first step towards

con-scious and qualitative environmental

consi-derations in procurement. Goals for further

environmental work are based on results

of the survey.

Map out the current situation

The first step towards reduced environmental impact from freight trans-port is to survey the current situation. What are the company’s transtrans-port requirements? Volumes of raw materials transported to the plant; pro-ducts leaving the plant; destinations? Are there any special requirements regarding fast delivery, temperature or loading capacity? What are the transport alternatives; is there access to a port or railway station? What is the environmental impact of the company’s freight transport?

There is no standard solution as to the best mode of transport from an environmental point of view. However, basic knowledge of environ-mental impact from various modes of transport regarding emissions, noise, etc., should be available when deciding on a transport solution. Environmental surveys are required for plants to be -registered. You will find an introduction to environmental impact from various modes of transport in Chapter , Environmental facts.

Volume of transport, transport chains, type of transport, type of vehi-cle (including age), loading efficiency, type of fuels, emissions and energy consumption are some of the factors that can be included in the survey.

In addition to yearly transport requirements expressed in  mor tons, it is a good idea to look at yearly or daily variations.

Formulate goals

SURVEY AND FORMULATE

ENVIRONMENTAL GOALS

agents: Procurement of transport in 1999 included environmental require-ments for e.g. EMS, emission assess-ments, and requirements for maintenan-ce products.

• Introduction of new ratios, e.g. for die-sel consumption/rolling

container.

• Reduction of hydrocarbons, carbon monoxide, nitrogen oxides and particu-lates.

• New fuels: More vehicles will use »new« fuels, with the aim to phase out fossil fuels.

• Phase-out of HCFC.

Swedish transport handbook model

Many countries have a variety of hand-books for assessing environmental per-formance in freight transport. These inclu-de Sweinclu-den, Denmark and France. Several documents also include compu-ter-based calculation models for a more precise assessment of environmental per-formance for various modes of transport (mainly emissions).

The environmental handbook published by the Swedish Transport Research Institute, TFK, has been the basis for the comprehensive methods presented in the following section.

TFK, is an independent, co-operative transport research organisation, based on membership by companies, organisations and administrations from the private as well as the public sector.

The aim of TFK is to promote the development of systems for efficient, safe and environmentally friendly trans-port of people and goods. All major areas in transportation are covered by TFK´s research.

For further information:

www.tfk.se Environmental goals are important tools in both internal and external

environmental work. Setting the goals requires careful consideration and making priorities. One idea is to set goals according to priorities of envi-ronmental aspects made in connection with the survey.

Good environmental goals point to the level of ambition, offer gui-dance, and become tools for measuring and assessing the results of envi-ronmental work. Remember that formulating goals is an on-going pro-cess. New information and changing factors in the world around may necessitate a review of the goals at regular intervals.

Company environmental goals could relate to international, regional and national objectives. A typical comprehensive goal for the transport and logistics department could be to reduce environmental impact from transport by environmentally sound purchasing, increased loading effici-ency and reduced transport and travel requirements. An initial interim goal could be to formulate an action programme for transport.

Comprehensive and long-term goals can be broken down into detai-led interim goals. Transport customers could, for example, express their goals as reduced emissions and energy consumption within a certain time period.

Examples:

• Transport energy consumption will be reduced by  percent in  (compared with ).

• Sulphur emissions will be reduced by  percent during the same period. • Carbon dioxide emissions will be reduced by  percent during the

same period.

A graphic illustration of transport flows, taken from STORA’s (now Stora Enso) Environmental Report of 1996. Transport flows offer a general view and could

rsouchon@3suisses.fr

he mail order company  Suisses has its  outsi-de Lille in northern France. The company’s high ambition to reduce carbon dioxide emissions has attracted much attention.

» Suisses’ environmental com-mitment stems from a former  who believed that environmental consideration must be integrated in the company’s strategy«, explains environmental director Rémy Souchon. »The

’s personal conviction left a mark on the whole

compa-ny. Even after he left, environmen-tal commitment had a firm hold and is now part of the corporate identity. In , we signed ’s Business Charter for Sustainable Development, and since  we have defined goals for transport in a document co-signed with the French ministry for the environ-ment,« he adds.

»In this document we undertake to work for a reduction of carbon dioxide emissions by  percent within five years before .

Since we know that  percent of the company’s total carbon dioxide emissions originate from transport, they will be in focus for attention.«

SYSTEMATIC WORK

FOR CO2 REDUCTION

Efforts to achieve the desired 

-reduction are carried out in three areas; mode of transport, fuels and loading methods:

• a combination of sea and air transport rather than just air freight for urgent deliveries, is estimated to reduce carbon diox-ide emissions by  percent, • replacing some road transport

with rail, so called combi traffic,

is estimated to reduce carbon dioxide emissions,

• green fuels should be used: for company and private cars, and natural gas for trucks, • electric cars should be used for

urban deliveries,

• total weight per transport unit should be increased for more efficient vehicle use,

• waterways should be used for connections between harbours and central Lille.

The reason for concentrating on reduced carbon dioxide emissions is, according to the environmental director, a combination of environ-mental commitment and the

amb-»STEP-AHEAD INITIATIVE TO

REDUCE CARBON DIOXIDE

EMISSIONS«

ENVIRONMENTAL DIRECTOR RÉMY SOUCHON

»Environmental commitment is now

part of the corporate image.«

T

MAIL ORDER COMPANY, FRANCE

ition to be a step ahead in view of forthcoming carbon dioxide regu-lations.

»There are already strict regula-tions for the emissions of other air pollutants such as nitrogen and sulphur. When it comes to carbon dioxide, however, there are no cur-rent requirements, which has led us to set our own targets. In time, carbon dioxide emissions will also be regulated, and we hope to be one step ahead when this happens. It is also possible that the process to tighten up requirements will be speeded up if players on the market can show that carbon dioxide emis-sions can be greatly reduced«, the environmental director believes.

The company does not have a special policy for procuring trans-port. But they do have an ambi-tion to steer purchasing in an envi-ronmentally friendly direction.

»By trying to set up functional transport with combi solutions and natural gas fuelled trucks, we strive to gradually be able to require such solutions in the procurement pro-cess«, Rémy Souchon says.

INTERIM ASSESSMENT

At this halfway stage, the work to reduce carbon dioxide emissions is being assessed. The environmental director points out that the company has come far in some areas, whilst progress in other areas is slower.

»Some things take long time; for example, we have been working for four years to find a truck fuel-led by natural gas,« says Rémy Souchon. In April  we got a prototype – the only natural gas fuelled truck in France. We would like to see mass-production!

 Suisses is not environmentally certified. Rémy Souchon explains why:

»Environmental management sys-tems are not in themselves a goal – what is important is the company’s environmental impact and the aim to reduce it. I believe that we have already achieved the results that an  would lead to.«

NO NEGATIVE ECONOMIC EFFECTS

»Our customers are not prepared to pay more because of our envi-ronmental considerations«, says Rémy Souchon. Our commitment to the environment has not, on the whole, had any negative economic effects. Because of government grants towards combi traffic, costs are not greater than if we relied only on road transport. When it comes to other environmental ini-tiatives, e.g. wind power, energy forests and woodchips, any addi-tional costs are balanced by savings made through waste sorting, redu-ced packaging, etc.,« he adds.

From a business point of view, there are still few advantages with environmental work, according to the environment director. There is little demand for environmentally sound products, and not many people are aware of the company’s environmental efforts.

»We currently have  pro-ducts labelled with the official  -label, and we publicise our environmental commitment in the product catalogue and on our web-site. But I don’t think that the general public knows much about our ideas and objectives for the environment. In France today, an active environmental commitment is not of additional value from a marketing point of view. But when the customers wake up – we will be ready!«

DHL chose the waterway

In Amsterdam, the distribution company DHL has chosen to return to a mode of travel from the 17th century – using the canals to avoid traffic congestion and the-reby improving their service and reliabili-ty. The company rents one of the canal tourist boats as a distribution centre for more than 1,000 express parcels despat-ched every day.

Onboard is a captain from the rental company and three DHL employees who prepare parcels for international distribu-tion. The ship takes a fixed route every day and staff on the boat keeps in contin-uous contact with six bicycle messengers and two delivery vans (for large parcels) via mobile phones.

MAKE ENVIRONMENTAL

DEMANDS

Much can be done to make freight

trans-port more efficient and reduce its

environ-mental impact. As purchaser, you are an

important cog in the wheel. By adopting a

comprehensive view of environmental work

and making well considered demands, you

can ensure that your company contributes

to changing the trend of increased

environ-mental impact from European freight

trans-port.

Today’s discussions on future requirements for environmentally sustaina-ble transport are mainly focused on vehicle technology and fuel. But as a transport customer, you are also able to influence your company’s trans-port in a more efficient and environmentally sound direction in other ways. In addition to demands for environmentally sustainable technology, proposed action could include reduced transport requirements, higher efficiency and increased co-operation between modes of transport.

Solutions are not necessarily found in truck engine technology. Environmental impact from transport is largely determined by other parameters, e.g. optimised logistics that provide high loading efficiency in order to reduce the volume of transport and total transport require-ments; demands for training drivers in fuel-efficient driving methods; establishing combi-solutions; stricter requirements for fuels, tyres, aero-dynamics, newer vehicles, catalytic converters and alternative fuels. By using data for such factors, transport purchasers can make demands on environmental impact from transport in future transport assignments and agreements.

The customer decides

In an open market it is the customer who decides. Even though environ-mental responsibility is shared, the customer has a large say when it comes to available alternatives, today and in the future. As transport cus-tomer, you have influence over available transport solutions.

Parma ham causes unnecessary emissions

EU’s protected designation of origin (PDO) is a mixed blessing. The best known example is perhaps »champagne«. The term may only be used for a drink originating from a certain part of France. Not many people realise that the PDO system results in extensive transport across the European continent.

Italian Parma ham is one example. The well-known ham has to originate in Parma. Therefore, fattening pigs are transported to Italy for slaughter in Parma. This way, the ham can be labelled with the desirable designation of origin – immediately increasing the retail value of the end product for sale in the shops. In procuring transport, it can be difficult to make demands on the

exact details of various solutions. On the other hand, it is quite possible to request tenders that demonstrate the transport company’s environ-mental stance. As purchaser, you can also ask for proposed transport solutions with low environmental impact.

The most effective, but possibly also the most difficult way to reduce environmental impact from transport, is to create a corporate culture per-meated by environmental behaviour. Everyone in the company should always be asking themselves whether there is an alternative way of doing things that is better for the environment without compromising quality.

Reduce the need for transport

Best for the environment is no transport at all. There are ways of redu-cing transport requirements without reduredu-cing production. Needless to say, it is not always financially justifiable from a national or corporate point of view to look for such solutions. But it is vital to always question the need for transport and to look for alternative solutions. Many com-panies have significantly reduced their transport requirements by making changes in location and packaging. The example of Parma ham (see mar-gin) shows that market forces sometimes give rise to strange transport flows.

EXCHANGE OF PRODUCTS

Certain products, e.g. oil and some forestry products are interchangeable. Co-operation between companies selling the same product can lead to elimination of or shorter transport. By exchanging equivalent products, companies can also take advantage of each other’s warehouses in diffe-rent locations.

SITING OPERATIONS

As far as possible, factories and offices should be located with the envi-ronmental impact of transport in mind. For many operations, particularly in the service sector, transport constitutes the single largest load on the environment. This includes travel to and from work. On the other hand, locating plants near raw material sources can reduce the need for long-distance transport.

REDUCE TRANSPORT DISTANCE

Transport distances can be limited by for example production near the market and increased number of local suppliers within the industry.

Electronic trading is changing the transport of purchases. In theory at least, a solution whereby goods are ordered on the Internet and then delivered to the customer by some form of postal or delivery service, could lead to considerable environmental gains. The volume of transport is reduced and, furthermore, households become less dependent on having a car, easing congestion on urban streets.

Efforts towards more efficient logistics

The project Logistik Austria is an initiative for rationalised and networked transport in Austria. More than 40 com-panies participate in the project backed by the Austrian Ministry of Science and Transport. Five project areas are dealt with in various pilot projects and initiati-ves under the umbrella project Logistik Austria:

• innovative transit systems • new logistics management systems • rolling shelves

• city logistics

• information systems for navigation on the Danube.

More than Euro 35m is invested in the project with the idea that rationalised logistics will contribute to better condi-tions for industry and reduce the load on the environment. Participating companies include Alcatel, Siemens and Kühne + Nagel.

Dutch companies in transport collaboration

Dutch frozen food manufacturers Iglo-Ola and Mora, both part of the Unilever Corporation, have since the end of 1998 co-ordinated their transport. The compa-nies import raw materials from e.g. Scandinavia and Germany for delivery to production plants in eastern and southern Holland.

Reasons for co-operation are similar processing methods and in many cases selling to the same large-scale wholesa-lers. Improved stock-keeping and reduced transport was in the interest of both com-panies. Iglo-Ola and Mora now carry out the majority of distribution from two towns, Hoogeveen in northern Holland and Tilburg in the south. The newly built premises in Tilburg represent Europe’s most modern distribution centre for fro-zen food and are also used by Albert Heijn, Holland’s largest supermarket chain.

Logistics are complicated, but consti-tute an area where the companies have noted large financial and environmental gains. In the long run, Iglo-Ola expects a 35 percent reduction in transport.

More efficient transport

The most common measure to make transport more efficient (and envi-ronmentally sustainable) is co-ordination, within the company or toget-her with ottoget-her companies.-solutions, for example, can offer signifi-cantly improved logistics. Other measures include improved efficiency for certain modes of transport or more efficient driving methods.

It is an advantage if transport customers order transport services in good time. Also, by allowing longer time for loading or unloading, trans-port providers have a better chance of co-ordinating transtrans-port in order to minimise empty freight journeys. It may even be possible to find special solutions in consultation with the transport provider.

CO-ORDINATION

One form of co-ordination is when several suppliers organise consolida-ted transport to a customer. For example, food items delivered from seve-ral wholesalers to one, or a chain of shops. Consolidation ensures a more efficient use of vehicles and reduces the number of vehicles unloading at the bays.

Companies can also have significant volumes of internal transport of people, goods and post. Organising such transport in a well-thought out manner and using suitable means of transport – a large van is not needed to deliver a couple of sacks of internal post – can lead to considerable gains. Timetables and central collection points are two possible measures for improved internal co-ordination.

IT FOR MORE EFFICIENT USE OF ROADS AND VEHICLES

Telematics, i.e. telecommunication and informatics, is an increasingly powerful tool for rationalising transport. Costs for cordless communica-tion to and between various transport units are rapidly decreasing at the same time as more advanced information can be transmitted. Below are some examples of how telematics can be used:

• Communication with drivers. Cordless speech, data and images can be transmitted for direct use or further processing in the vehicle.

• Navigation. With the aid of satellites, vehicle positioning can be exactly determined. Using an electronic map, route descriptions are obtained. Positions can then be conveyed to a transport central.

• Traffic information. Several options for more or less advanced traffic information systems are under development. The principal aim is to help drivers avoid getting stuck in traffic queues and also to help them find the best route in view of the current traffic situation.

• Route planning. Computerised route planning systems enable efficient use of vehicle fleets. The better the system, the easier it is to handle sudden changes in transport requirements, maintaining a high degree of efficiency. By combining the above systems for communication, navi-gation and traffic information with a route planning system, large financial and environmental gains can be made.