Green Freight Initiatives in China and Brazil
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Transcript of Green Freight Initiatives in China and Brazil
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.
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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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48,755 71,668 98,18924,478
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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.