Green Freight Initiatives in China and Brazil

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By Ke Fang, The World Bank. Transforming Transportation 2011. Washington, D.C. January 27, 2011.

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  • Total freight traffic, in tons, moved by truck increased by more than 125%. The provincial highway network grew at an average rate of 11% per year.The number of registered trucks grew by 56%.
  • Fuel economy 20-30% lower than advanced OECD countries30-40% of all freight vehicle-kilometers traveled in Guangdong Province.
  • 78% of trucking companies registered in Guangdong Province comprise only one truck, and more than 99% of registered trucking companies in Guangdong Province own fewer than 100 trucks.
  • Green Freight Initiatives in China and Brazil

    1. 1.
    2. 2. World Bank: Low Carbon Freight Transport &<br />Logistics Initiatives in China and Brazil <br />China Green Freight Initiatives<br />Ke Fang, Shomik Raj Mehndiratta, Holly Krambeck<br />The World Bank<br />Transforming Transportation Roundtable <br />Washington DC, January 27 2010<br />
    3. 3. Road Freight in China<br /><ul><li>Trucks account for 54% of total transport sector fuel consumption in China.
    4. 4. Road freight volume grew rapidly along with the fast growth of China’s manufactory-dominated economy. </li></ul>Total Freight Ton-Kilometers Transported by Road in Guangdong Province <br />(1985 – 2008)<br />
    5. 5. Energy Efficiency<br /><ul><li>Energy efficiency in the sector remains very low.
    6. 6. Poor fuel economy of trucks
    7. 7. A large portion of “empty miles”
    8. 8. Energy efficiency technologies and practices are not well utilized, despite potential fuel savings and economic benefits</li></ul>4<br />
    9. 9. Barriers on Energy Efficiency<br />Market failure occurs mainly because:<br /><ul><li>Trucking companies reluctant to experiment with new or unknown technologies
    10. 10. Lack of information and confidence on the performance, cost and availability of fuel efficiency technologies</li></ul>National and local governments are reluctant to take “heavy-handed” measures, worried about their impact on economic growth <br />5<br />
    11. 11. Objectives of Green Freight Initiative<br />Aiming to address the market failure by <br />providing better information and better confidence in the performance of proved energy efficiency technologies and practices, <br />increasing awareness and demand for energy efficiency technologies, and<br />facilitating the increase of the technology supply in Chinese market.<br />6<br />
    12. 12. Areas & Steps for Policy Intervention<br />7<br />4. Modal Shift<br />3. Improved Logistics<br />2. Behavior & Maintenance<br />1. Technologies<br />
    13. 13. A Partnership Framework<br />8<br />
    14. 14. The Project Development Process<br />Snowball-effect:<br />9<br />Preparation of a demonstration project, incl. suveys of the industry and financing market<br />Developing a conceptual framework for collaboration<br />Dissemination Communication<br />Training<br />a tiny-sized pilot testing <br />
    15. 15. Pilot Testing<br />Carried out in Guangzhou, 2008-2009<br />Technology testing on 14 trucks in three truck fleets <br />Tire systems<br />Aerodynamics<br />10<br />
    16. 16. Pilot Testing: Tire equipment (a)<br />Dual low rolling resistance tires: reduces rolling resistance<br />11<br />Load and Inflation <br /><ul><li> 830 kPa
    17. 17. 5,000 kg</li></ul>455/50R 22.5<br />RULE: For every 70 kPa under inflationis 1% penalty in fuel economy<br />
    18. 18. Pilot Testing: Tire equipment (b)<br />Aluminum wheels: reduces weight of wheel<br />12<br />
    19. 19. Pilot Testing: Tire equipment (c)<br />Automatic tire pressure monitoring system: keeps tire pressure more constant<br />13<br />
    20. 20. Pilot Testing: Aerodynamics (a)<br />Skirts: reduce wind underneath the trailer<br />14<br />HDPE plastic will last life of trailer<br />
    21. 21. Pilot Testing: Aerodynamics (b)<br />Nosecone: reduces turbulence<br />15<br />
    22. 22. Pilot Testing: Aerodynamics (c)<br />Gap fairing: reduces the tractor-trailer gap<br />16<br />Distance between back of cab and front of trailer <br />Trailer Gap<br />Will make difference in % of savings<br />
    23. 23. Training and Overseas Study Tour<br />Training workshops for government staff and enterprise management in Guangzhou<br />Two-week tailor-designed training program (including site visits) in the US for senior officials<br />17 directors, chiefs, and general mangers across different government agencies in Guangdong, learned about:<br />17<br /><ul><li>Smatway Program (US EPA)
    24. 24. Freight Logistics (CS Robinson, Safeway, Port of Tacoma)
    25. 25. Emissions Policy (California Resource Board )
    26. 26. Green Freight Technology & Financing (CSS)
    27. 27. Vehicle Scrapping (Port of Seattle Truck Scrapping Program)</li></li></ul><li>18<br />Guangzhou Environmental Protection Bureau<br />Guangzhou Transport Committee<br />Dissemination/Communication/Collaboration<br />World Bank Project Management Office, Guangzhou<br />
    28. 28. Guangdong Demonstration Proj (1)<br />Technology Demonstration<br />Energy Efficiency truck technologies demonstration<br />1500-1800 trucks<br />Pilot testing of logistics operation technologies:<br />Pilot Advanced Brokerage Information System<br />Pilot “Drop-and-Hook” freight operations<br />19<br />
    29. 29. Guangdong Demonstration Proj (2)<br />Innovative Finance<br />Green Freight technology rebate<br />based on the prevailing down payment rate for a truck loan<br />performance-based payments<br />based on the prevailing interest rate of a truck loan<br />better access for SMEs to commercial finance<br />creating quality pipeline projects for commercial banks<br />sharing information between banks and SMEs<br />20<br />
    30. 30. Guangdong Demonstration Proj (3)<br />Large-scale Capacity Building<br />Policy research<br />Training for installation and operation of technologies<br />Training for government officials and enterprise managers<br />Marketing and branding <br />Awareness raising and information dissemination<br />“Green Freight Trade Fairs” and “Green Freight Submits”<br />21<br />
    31. 31. Challenges Ahead<br />Get the project implemented properly…<br />“Green Freight Trade Fairs”: mobilizing stakeholders, particularly trucking companies and technology vendors<br />Selecting participating companies<br />Installing and operating technologies<br />Monitoring and evaluation<br />Making incentive payments<br />Keep the “Snowball” rolling and keep it “Cool”…<br />Nation-wide dissemination and consultation<br />Policy dialogue with national agencies<br />More demonstration and replication <br />Development of green finance market <br />22<br />
    32. 32. World Bank: Low Carbon Freight Transport &<br />Logistics Initiatives in China and Brazil <br />Brazil Green Freight Initiatives<br />Georges Darido<br />The World Bank<br />Transforming Transportation Roundtable <br />Washington DC, January 27 2010<br />
    33. 33. Brazil Green Freight Initiatives<br />Majority of all freight in Brazil carried by trucks<br />Growth is expected to continue in net ton-kilometers: 886 billion in 2005 to 1,607 billion in 2023 (PNLT 2007)<br />Mainstreaming “Green Trucks” Project, Phase I:<br />Study and market surveys to understand the sector<br />Seeking partners to conduct pilot tests of:<br />Innovative, energy-efficiency technologies<br />Improved behavior and maintenance practices<br />Improved logistics<br />Technical assistance to design/evaluate tests and conduct policy dialog<br />Technical site visits for officials<br />Workshop(s) to collect and disseminate findings<br />24<br />
    34. 34. Approach according to market segment<br />Profile of trucks fleet in Brazil (>1.3 million) by engine/emissions technology and type of ownership:<br />25<br />6-20 yrs<br />>20 yrs<br />
    35. 35. Freight Management in São Paulo<br /><ul><li>Areaand time restrictions for trucks</li></ul>UrbanFreightVehicle (VUC): sizeand performance standard<br />Distribution hubs andlogisticsplatforms<br />Exclusive corridorsandbypasses: ringroadandrail<br />Tolling/pricing?<br />World Bank/GEF fundedeffort to developtools:<br />Freightorigin-destinationstudy (commodity flows)<br />Urbanfreighttransportmodel<br />
    36. 36. Project is a work-in-progress….lessons learned everyday! Questions and comments most welcome. <br />Email: kfang@worldbank.org<br />gdarido@worldbank.org<br />Thank You!<br />27<br />

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