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Green Logistics: New Solutions in Trucking - Team Carbon


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This is an intro slide show by Hiroko Kawai to promote the Team Carbon symposium presentation at the NCSE "New Green Economy" Conference. Hiroko will deliver a more detailed slide show at the conference, including relevant case studies.

For more information: or

Green Logistics: New Solutions in Trucking - Team Carbon

  1. 1. Moving to Future States: From Today to Green and Beyond NCSE 2010 The New Green Economy Transportation & Distribution Subsystems Kawai
  2. 2. Discussants <ul><li>Patrick M. O'Shei, Associate, Metamorphosis Management Group </li></ul><ul><li>Hiroko Kawai, Principal, Transportation Sector Practice, Rocky Mountain Institute </li></ul><ul><li>Dave Mosby, Senior Consultant, Talisen Technologies </li></ul>
  3. 3. Transportation Subsystems 17% of the total U.S. petroleum consumption is by heavy trucking, and 70% of all U.S. goods and freight involves trucking at some point in the process of delivery to consumers and businesses. Along with the building sector, this is a sector with high leverage to improve the environment, increase national security, and reduce dependence on foreign fossil fuel. For the last 30 years, efficiency in trucking and freight mobility has been stagnant, despite the range of numerous technological innovations and R&D efforts. The sector is fragmented and challenges are plenty. To create a more sustainable future for the U.S., and to address the environmental issues and increase efficiency in the mobility sector, we will need to focus our attention on the truck platform based innovations, commercialization of such technology advancements, and accelerate better coordination among the stakeholders (shippers, logistics providers, mega fleets as well as independent owner operators, truck and trailer manufacturers, component suppliers and innovators, and policy makers).
  4. 4. As a mechanism of transport, how familiar are we with trucking? PEOPLE FREIGHT
  5. 5. This country could not function without a robust trucking industry...
  6. 6. ... but the sector consumed nearly 44B gallons of diesel in 2008! 61% Transportation 67 % Source: EIA. Annual Energy Outlook 2007 with Projections to 2030 . Tables 2 and 7. Report #:DOE/EIA-0383(2007). http:// 8/6/07 U.S. Liquid Petroleum Consumption by Sector 16% 9.8%
  7. 7. What has [or has not] changed? Source: , http:// , US DoT Transportation Energy Book, 8
  8. 8. In July of 2008, RMI uncovered proven boundaries of efficiency and productivity in Transformational Trucks report. Source: RMI Analysis 8.7 mpg 335 ton-mile/gal 12.5 mpg 275 ton-mile/gal 6.5 mpg 130 ton-mile/gal Reduce energy consumption of the vehicle Maximize delivered cargo per vehicle and trip
  9. 9. The technology is ready, but regulations, disincentives, and cultural barriers have stifled efficiency increases. Particulate matter (PM) as of 2008: US = 0.01 EU = 0.02 JP = 0.027 EU NOx US NOx Japan NOx EU PM US PM Japan PM Federal limit: 80,000 lb. Between 80,000 and 100,000 lb. Between 100,000 and 120,000 lb. Between 120,000 and 140,000 lb. Between 140,000 and 165,000 lb.
  10. 10. <ul><li>Motivation </li></ul><ul><li>Cut billions of present-valued dollars </li></ul><ul><li>Achieve energy-efficiency and climate leadership </li></ul><ul><li>Boost U.S. productivity, jobs, and competitiveness </li></ul><ul><li>Reduce U.S. oil dependence, trade deficit, GHG emissions, and climate impact </li></ul>* , 2/4/09, Photo courtesy of <ul><li>Goals </li></ul><ul><li>Double Class 8 trucks’ fuel efficiency </li></ul><ul><li>Optimize fleet logistics </li></ul><ul><li>Vehicle cradle-to-cradle sustainability </li></ul>2005: Wal-Mart worked with its suppliers to find bigger, faster improvements in its ~7,200-tractor heavy-truck fleet Wal-Mart reported a 38 percent increase in efficiency (mi/mpg) between 2005 and 2008. Estimating $350M in savings each year*
  11. 11. Transportation: Six levers for Fleet Efficiency Photos courtesy of, Establishing the cheap and easy fixes will free up capital for the end-to-end solutions
  12. 12. Low-hanging fruit will yield [large] net profits from energy savings. 500,000 400,000 300,000 200,000 100,000 0 number of transformed trucks Source: RMI Trucking Industry Model, assumes 6% discount rate, standard Bass Adoption curve and EIA diesel price projections. Technology Cost of $52k spread out over 5 year lease period with 6% interest, includes equipment, installation, and maintenance costs. Assumes constant market for trucks at 500k long haul in the U.S. [U.S. Department of Commerce] (efficiency grows, but so does the freight quantity). $$$
  13. 13. RMI convened a Charrette of 38 high-level industry experts.
  14. 14. Charrette participants quickly converged upon common cross-disciplinary troubles. “ Fleets won’t invest in new technologies and new trucks unless those potholes are fixed and they are certain to reap the benefits of their investments.” - Charrette Participant “ in many ways the EU is more cohesive in transportation regulations than the U.S.” - Charrette Participant “ the future [of trucking efficiency] is already here, it’s just not well distributed.” - Charrette Participant Lack of Trustworthy Information BARRIER Inconsistent and Competing Policies BARRIER Ambiguous Measurement and Reporting BARRIER
  15. 15. Launched North American Council for Freight Efficiency Mission: The NACFE will drive the development and adoption of efficiency-enhancing, environmentally-beneficial, and cost-effective technologies, services, and methodologies in the North American freight industry by establishing and communicating credible and performance-based benefits. Vision: A rapidly evolving, more profitable, efficient, and safe freight industry that ensures the environmental sustainability of North American goods movement.
  16. 16. “ If any one of the stakeholders fails to see value in the implementation, it will not prevail.” - Greg Skjodal, Ward N.A.
  17. 17. In Conclusion: Incrementalism Is A High Risk National Strategy—integrative, Systems Thinking Enables The Nation’s Competitive Edge <ul><li>Raise the bar—exhaust efficiency measures before starting with renewables </li></ul><ul><li>Energy: Use whole system design to “de-scale” and de-risk” infrastructures and sub-systems </li></ul><ul><li>Transportation: Leverage key drivers: large fleets “make-over”, light-weighting and electrification, via vehicle application </li></ul>
  18. 18. <ul><li>For MORE —see Team Carbon symposium, at the National Council on Science & the Environment, “New Green Economy” </li></ul><ul><li>Jan 22, 2010 (PM) </li></ul><ul><li>For more info: </li></ul><ul><ul><li>Meeting Overview </li></ul></ul><ul><ul><li>Team Carbon Symposium </li></ul></ul><ul><ul><li>NCSE Symposium Overview </li></ul></ul><ul><ul><li>To register for the meeting </li></ul></ul>For more info: [email_address] –