Presentation by Alan C. McKinnon, Kühne Logistics University.

1. Decarbonising Freight Transport
a brief overview
Professor Alan McKinnon
Kühne Logistics University
Hamburg
8 March 2023
Foresight workshop : Rethinking Infrastructure for
Sustainable, Resilient Development

2. Developing a Strategy for Decarbonising Freight Transport
Collaborate with others
Consider possible options
10 C approach
Corporate motivation Calculate emissions
Commit to targets
Cost evaluation
Choose appropriate actions
Calibrate the strategy
Cut emissions
Carbon offset
https://bit.ly/332rxrf
https://bit.ly/3bLieRF
https://bit.ly/37O2B8D

3. Technology
Infrastructure
Market
Behaviour
Energy
Regulation
Shift freight to lower carbon modes
Improve utilization of vehicle capacity
Increase energy efficiency
Reduce carbon content of energy used
external factors affecting logistics decarbonisation company decarbonisation levers
TIMBER framework and Freight Decarbonisation Levers
Impact of External Factors on the Decarbonisation of Logistics Operations: An Assessment of this Impact in Thirteen Countries
including Indonesia (2014 assessment)

4. Shifting Freight to Lower Carbon Transport Modes
Average carbon intensity of freight transport modes: gCO2 / tonne-km
• globally rail share of freight tonne-kms declining
• difficult to reverse past modal trends
• long term logistical ‘lock-in’ to trucking
• few countries managed to increase rail freight share
Decline in fossil fuel traffic – hard to replace with other commodities
Carbon intensity of trucking falling faster than for rail freight –
narrowing the gap
rapid growth in rail freight tonnage: raising rail share to 30% by 2030?
4
16
25
51
78
210
612
1128
2198
0 500 1000 1500 2000 2500
BULK CARRIER VESSEL
CONTAINER SHIP
FREIGHT TRAIN
ROLL-ON ROLL-OFF FERRY
ARTICULATED TRUCK
RIGID TRUCK
VAN
AIRFREIGHT LONG-HAUL
AIRFREIGHT SHORT-HAUL
rail emits 3.3 times less CO2 per tonne-km
source: DBEIS / DEFRA 2020
Indonesia: 3-way modal split – road sea rail
public policy recommendations
take holistic view of freight / logistics market
target interventions by sector, commodity and corridor
coordination of multiple policy instruments
learn from long modal shift policy experience elsewhere

5. Optimising Capacity Utilisation of Freight Vehicles
over-loading of freight vehicles
also carries heavy carbon penalty
11 major reasons for under-
utilisation of freight vehicles
McKinnon (2021) https://bit.ly/3vRd9zS
Indonesia: annual emissions of CO2 per truck per
annum inflated by between 22 and 54 tons,
depending on vehicle type and size, for every 10%
increase in overloading. Source: Wahyudi et al (2013)
large potential CO2 savings low or negative carbon mitigation costs short-medium term implementation
need system-wide CO2 analysis
under-loading
empty

6. Optimising Capacity Uutilisation of Freight Vehicles: enablers and public policy interventions
public policy interventions
digitalisation supply chain collaboration
role for multinational companies
high capacity transport
articulated vehicles – ‘drop and hook’
enforcement of over-loading regulations road user charging advisory schemes
support for green freight programmes
54,000 trucks
430 warehouses
infrastructural investment / relaxation of truck size and weight limits

7. changes to business practice: e.g. deceleration
fuel economy standards: applied to trucks and ships
ship energy efficiency ratings
EEDI for new vessels
EEXI for existing vessels
vehicle operation: IT , training, monitoring
eco-driver training telematic monitoring
platooning automation
fuel savings from
slow steaming
4. Increasing the Energy Efficiency of Freight Transport Operations
uptake of new technologies
-15%
-30%
57
48
40
penalties per vehicle
sold for non-
compliance
per gCO2 / tkm
2025-2029
€4250
post 2030
€6800
2019 2025 2030
EU fuel / CO2
standards for
new trucks
enhanced vehicle maintenance
longer term short-medium term
trucking
retrofitting fuel saving devices
shipping
75% of new trucks sold
in 2021 in countries with
fuel economy standards
(IEA, 2022)
https://bit.ly/3jCmm9e
McKinnon (2016) Freight Transport Deceleration
https://bit.ly/3ECn3Mf

8. Increasing the Energy Efficiency of Freight Vehicles
wide international variations in carbon intensity
of trucking and rate at which it is declining
inhibiting factors
road freight
fuel subsidies
poor road infrastructure
old, under-maintained vehicles
low levels of retrofitting
inferior tyres
lack of skill / training in fuel-
efficient driving
vehicle overloading
public policy interventions
regulatory
Fuel economy standards
for new and imported trucks
financial
Phase-out fossil fuel subsidies
Vehicle scrappage scheme
Subsidies for retrofitting and
purchase of low carbon trucks
infrastructural
Improving road maintenance
Relieving congestion
advisory
Support for green freight
programmes, training in eco-
driving etc
https://bit.ly/2BWWkfj
Source: ITF Transport Outlook 2019

9. Cutting the Carbon Content of Freight Transport Energy
short haul road long haul road rail shipping airfreight
battery battery catenary e-methanol biofuel
hydrogen hydrogen battery green ammonia e-kerosene
e-highway hydrogen hydrogen hydrogen
biogas battery battery
HVO wind
Several low-carbon energy options for each freight mode: uncertainty and disagreement about future energy mix
heavily dependent on direct or indirect electrification of the freight transport system
coordinating the development of transport and energy infrastructures with the manufacture of new low
carbon vehicles and operators’ fleet replacement cycles.

10. Critical Role of Electrification in Freight Transport Decarbonisation
secure adequate and reliable supply of battery materials
• mining and processing capacity
• Intensifying global competition
• geopolitics
intensify use of scarce battery materials in the road fleet
metric: CO2 savings / kg of battery material / day
decarbonisation of electricity supply
China: 79% of EV battery production (80% of cobalt processing)
Democratic Republic of Congo: 56% of battery-grade cobalt
prioritise battery use in commercial vehicles that
are used much more intensively than private cars
develop networks of fast chargers for electric trucks
supplement static with dynamic charging of trucks using ERS
catenary
micro-generation
• downscaling battery size and weight
• reducing required static charging capacity
prioritise truck decarbonisation with
catenary over development of surface-
based ERS for all vehicle types
0
100
200
300
400
500
600
2010 2018 2040 2040
-10%
-32%
Stated Policies
Sustainable
Development
scenario
gCO2 / kWh
Carbon intensity of electricity generation
global average
Source: International Energy Agency (2019)
http://bit.ly/3Yrrsrw

11. Center for Sustainable Logistics and Supply Chains
Kühne Logistics University – the KLU
Wissenschaftliche Hochschule für Logistik und Unternehmensführung
Grosser Grasbrook 17
20457 Hamburg
tel.: +49 40 328707-271
fax: +49 40 328707-109
e-mail: Alan.McKinnon@the-klu.org
website: www.the-klu.org
www.alanmckinnon.co.uk
Professor Alan McKinnon
@alancmckinnon
https://bit.ly/3CkUQWc
www.linkedin.com/in/alan-mckinnon-a3a79722
online course