Jan 19, 2015
China Green Freight Initiatives
Transforming Transportation Roundtable Washington DC, January 27 2010
Ke Fang, Shomik Raj Mehndiratta, Holly KrambeckThe World Bank
World Bank: Low Carbon Freight Transport & Logistics Initiatives in China and Brazil
Green Freight Transport
Road Freight in China
• Trucks account for 54% of total transport sector fuel consumption in China.
• Road freight volume grew rapidly along with the fast growth of China’s manufactory-dominated economy.
19851986
19871988
19891990
19911992
19931994
19951996
19971998
19992000
20012002
20032004
2005
2005(adjuste
d)2006
2007
2007(adjuste
d)2008
0
200
400
600
800
1,000
1,200
Frei
ght T
on-K
ilom
eter
s (10
0 m
illio
n)
Total Freight Ton-Kilometers Transported by Road in Guangdong Province (1985 – 2008)
Green Freight Transport
Energy Efficiency
• Energy efficiency in the sector remains very low. o Poor fuel economy of truckso A large portion of “empty miles”
• Energy efficiency technologies and practices are not well utilized, despite potential fuel savings and economic benefits
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Green Freight Transport
Barriers on Energy Efficiency
• Market failure occurs mainly because:o Trucking companies reluctant to experiment with
new or unknown technologies o Lack of information and confidence on the
performance, cost and availability of fuel efficiency technologies
• National and local governments are reluctant to take “heavy-handed” measures, worried about their impact on economic growth
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Green Freight Transport
Objectives of Green Freight Initiative
• Aiming to address the market failure by – providing better information and better confidence
in the performance of proved energy efficiency technologies and practices,
– increasing awareness and demand for energy efficiency technologies, and
– facilitating the increase of the technology supply in Chinese market.
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Green Freight Transport
Areas & Steps for Policy Intervention
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1. Technologies
2. Behavior & Maintenance
3. Improved Logistics
4. Modal Shift
Green Freight Transport
A Partnership Framework
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Green Freight Transport
The Project Development Process
• Snowball-effect:
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a tiny-sized pilot testing
Dissemination Communication
Training
Developing a conceptual
framework for collaboration
Preparation of a demonstration project, incl.
suveys of the industry and
financing market
Green Freight Transport
Pilot Testing
• Carried out in Guangzhou, 2008-2009– Technology testing on 14 trucks in three truck fleets
• Tire systems• Aerodynamics
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Green Freight Transport
Pilot Testing: Tire equipment (a)
• Dual low rolling resistance tires: reduces rolling resistance
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Load and Inflation • 830 kPa• 5,000 kg
455/50R 22.5
RULE: For every 70 kPa under inflation is 1% penalty in fuel economy
Green Freight Transport
Pilot Testing: Tire equipment (b)
• Aluminum wheels: reduces weight of wheel
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Green Freight Transport
Pilot Testing: Tire equipment (c)
• Automatic tire pressure monitoring system: keeps tire pressure more constant
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Green Freight Transport
Pilot Testing: Aerodynamics (a)
• Skirts: reduce wind underneath the trailer
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HDPE plastic will last life of trailer
Green Freight Transport
Pilot Testing: Aerodynamics (b)
• Nosecone: reduces turbulence
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Green Freight Transport
Pilot Testing: Aerodynamics (c)
• Gap fairing: reduces the tractor-trailer gap
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Distance between back of cab and front of trailer Trailer GapWill make difference in % of savings
Green Freight Transport
Training and Overseas Study Tour
• Training workshops for government staff and enterprise management in Guangzhou
• Two-week tailor-designed training program (including site visits) in the US for senior officials• 17 directors, chiefs, and general mangers across different
government agencies in Guangdong, learned about:
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• Smatway Program (US EPA)• Freight Logistics (CS Robinson, Safeway, Port of Tacoma)• Emissions Policy (California Resource Board )• Green Freight Technology & Financing (CSS) • Vehicle Scrapping (Port of Seattle Truck Scrapping Program)
Green Freight Transport
Dissemination/Communication/Collaboration
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Guangzhou Transport Committee
Guangzhou Environmental Protection Bureau
World Bank Project Management Office,
Guangzhou
Green Freight Transport
Guangdong Demonstration Proj (1)
• Technology Demonstration– Energy Efficiency truck technologies demonstration
• 1500-1800 trucks
– Pilot testing of logistics operation technologies:• Pilot Advanced Brokerage Information System• Pilot “Drop-and-Hook” freight operations
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Green Freight Transport
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
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Green Freight Transport
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”
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Green Freight Transport
Challenges Ahead
• Get the project implemented properly…– “Green Freight Trade Fairs”: mobilizing
stakeholders, particularly trucking companies and technology vendors
– Selecting participating companies– Installing and operating technologies– Monitoring and evaluation– Making incentive payments
• Keep the “Snowball” rolling and keep it “Cool”…– Nation-wide dissemination and consultation– Policy dialogue with national agencies– More demonstration and replication – Development of green finance market
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Brazil Green Freight Initiatives
Transforming Transportation Roundtable Washington DC, January 27 2010
World Bank: Low Carbon Freight Transport & Logistics Initiatives in China and Brazil
Georges DaridoThe World Bank
Green Freight Transport
Brazil Green Freight Initiatives
• Majority of all freight in Brazil carried by trucks• Growth is expected to continue in net ton-
kilometers: 886 billion in 2005 to 1,607 billion in 2023 (PNLT 2007)
• Mainstreaming “Green Trucks” Project, Phase I:– 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
– Technical assistance to design/evaluate tests and conduct policy dialog
– Technical site visits for officials– Workshop(s) to collect and disseminate findings
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Green Freight Transport
Approach according to market segment
• Profile of trucks fleet in Brazil (>1.3 million) by engine/emissions technology and type of ownership:
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P1 a
nd ..
.
P2
(.
..
P3
(E...
P4
(EU
...
P5
(EU
...
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
597,219
48,755 71,668 98,18924,478
125,834
30,31663,171
186,592
108,075
2159
392524
1182
606
CooperativesCompaniesIndependent Owners
>20 yrs 6-20 yrs
Green Freight Transport
Freight Management in São Paulo
• Area and time restrictions for trucks
• Urban Freight Vehicle (VUC): size and performance standard
• Distribution hubs and logistics platforms
• Exclusive corridors and bypasses: ring road and rail
• Tolling/pricing?• World Bank/GEF funded effort
to develop tools:– Freight origin-destination
study (commodity flows)– Urban freight transport
model
THANK YOU!Email: [email protected] [email protected]
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Project is a work-in-progress….lessons learned everyday! Questions and comments most welcome.