Green Technologies & Solutions E-Mobility in Urban Logistics Potentials and Implications Resilient Urban Logistics Forum, May 2012, Bonn Achim Juechter DAX30 CO2 Emissions Top League Company Emissions [million tons of CO2] 2a 287,6 1c 126,0 1a 28,4 DPDHL's carbon footprint 2010 [million tons of CO2] 1c 26,6 1a 25,2 2c 15,3 28.4 28.4 2c 13,6 1b Subcontractor Air 8,5 Emissions Scope 3 1c 82% 7,7 Road 1c 3,7 Direct Emissions Ocean Scopes 1 and 2** 3.71a Real Estate 2,21c 18% 1a 1.9 By control By mode* 22,51a 2010 15,21a 2,71a 1) on basis 2010 a) including Scope 1-3, reporting the scopes separately *Including consolidation 2) on basis 2009 b) including Scope 1-3, without reporting the scopes separately ** Owned or leased operations and real estate c) excluding scope 3 Source: Deutsche Post DHL Dep 072 GoGreen, Sustainability reports or internet, focus on DAX30 companies with external reporting GoGreen | Bonn | May 2012 Deutsche Post DHL | Page 2 Reaching Goals through Efficiency Deutsche Post DHL was the first globally operating logistics company to set itself a concrete CO2 efficiency target DPDHL CO2 Efficiency Target – DPDHL CO2 Index – 100 % We aim to improve our -10% CO2 efficiency 1) DPDHL CO2 efficiency -30% including subcontractors by CO2 from energy 30% by the year 2020, consumption compared to our 2007 Service baseline. delivered Source: GoGreen, Deutsche Post DHL, Green Strategy 1) Direct and indirect emissions Scope 1, 2 and 3 GoGreen | Bonn | May 2012 Deutsche Post DHL | Page 3 Increase CO2 Efficiency Inside DPDHL Different abatement levers are being analyzed to detect reduction potentials Vehicles Real Estate Network Biogas-/Biodiesel/ Fossil Innovative energy concept Consolidation points such gas/Vegetable Oil vehicles Efficient lighting and as Packstation Hybrid Trucks heating systems Network & route Refleeting aviation Photovoltaic, solar panels, optimization Teardrop trailer hange of energy mix, etc. Modal shift, e.g. air to road Environmental friendly Load factor/ capacity company cars optimization Supplier Management GoGreen | Bonn | May 2012 Deutsche Post DHL | Page 4 Share of Fuel Consumption and Carbon Footprint SCOPE1 A big part of DP DHL total emissions comes from suburban and Footprint in ´000 t CO rural transportation. 2 [%] share of URBAN SUBURBAN RURAL total fuel consumption 5 7 90 2 Share of total exposure [%] 0.3 4.6 0.1 More than half of < 3.5t total emissions are 66,0001) (80%) produced through high mileages from 100 545 56 37 trucks 5.3 29.2 3.0 3,5t3.5 -– 12t12t Three groups account for 81% of total exposure, 58 driven in rural and 110 614 390 suburban areas by vans and trucks 5.7 31.7 20.1 > 12t 11 66 23 100 15,000 (20%) 1) Source: GoGreen Team, McKinsey, DP Fleet, Sustainability Report and CO2 Footprint and Fleet data 2007 GoGreen | Bonn | May 2012 Deutsche Post DHL | Page 5 DPDHL Technology Roadmap – Project Cluster Green Pilot, already started Detected innovations and technologies along driving cycles 1 Green Pilot future focus 2 Divisional responsibility and vehicle types vary in their impact on CO2 efficiency Vehicle 1) class CO2 share Top Abatement Levers Hybrid Technology Electric vehicles TYRES HYBRID 26t FUEL DUAL Aerodynamics SPEEDLIMITING AERODYNAMICS HYBRID Dual Fuel Technology HYBRID CNG Engines 18t >80% Tyres (BIO-)CNG Speed limiting 12t Eco-chip tuning ELECTRIC 7.5t HYBRID Telematics 3.5t HYBRID max. Driver trainings 2.8t (BIO-)CNG ECO CHIP TUNING 20% 2.3t ELECTRIC Annual Market availability and maturity 10 60 100 mileage [tkm] Source: Dep 072 GoGreen 1) Share of total CO2 own fleet, global GoGreen | Bonn | May 2012 Deutsche Post DHL | Page 6 E-Mobility Projects in DPDHL Electric vehicles offer benefits especially in the short and start-stop intensive driving cycles in “Last Mile” delivery Renault MAN12t Street Smith Kangoo e-truck Scooter Ford Electric Z.E. E-Transit 9t EnBw Ford Cargo- Transit Scooter connect VW e-bikes eT Mitsubishi S&T i MIEV Modec Motors VW eCaddy Mitsubishi Wheel i MIEV bikes and Mercedes- trailers Benz Columbia Vito E-Cell ParCar Iveco Smart Daily fortwo Electric A systematic testing of more than 130 vehicles across all classes and manufacturers shows future potentials but also challenges Source: GoGreen, Deutsche Post DHL GoGreen | Bonn | May 2012 Deutsche Post DHL | Page 7 Findings – Standard Operations Pros and Cons of E-Vehicles in standard operations Pro Contra • high durability - no major • low range safety margins in winter breakdowns during vehicle testings operations due to high energy demand • sufficient range for standard delivery of auxiliary consumers (e.g. heating) procedures and low battery performance in cold • high user acceptance due to stress outside temperatures reduction in daily work by automatic • high costs for charging infrastructure gearbox characteristics and low noise hardware and installation level • demand for intelligent strategies for • low operational costs charging of large vehicle fleets (> 20-50 • free access to urban environmental vehicles) due to high local energy zones demands • Payload loss leads to process implications in operations with 3,5t class due to driver license issues Source: GoGreen, Deutsche Post DHL GoGreen | Bonn | May 2012 Deutsche Post DHL | Page 8 Findings – Time shifted delivery with E-vehicles Costumer perception towards the use of E-Vehicles in time shifted delivery Public acceptance towards… …recieving or sending shipments …recieving or sending …letting e-vehicles in early or late time of the day shipments outside drive in pedestrian opening hours zones all day B2B costumers and 80 B2C costumers differ significantly in their acceptance towards 60 time shifted delivery. This offers no overall preferred delivery model for logistics 40 providers. 20 Even e-vehicles offer low noise operations, an all-day access to pedestrian zones is 0 not appreciated by Retailer Residents Retailer Residents residents Yes No Don´t Know Source: DLR, supported by Deutsche Post DHL, Berlin 2011 GoGreen | Bonn | May 2012 Deutsche Post DHL | Page 9 Levers for traffic reduction To address all challenges of future urban logistics - emissions and traffic - a combination of E-Mobility with additional levers is mandatory Consolidation Smart Center Scheduling Target Target Traffic avoidance based on real-time info and Consolidation of freight deliveries to achieve historic data 85-90 % load factor and reduce vehicle use Simulation tool for traffic congestion Projects in DPDHL Projects in DPDHL Bristol, Heathrow, Kuala Lumpur Berlin, Dresden, Bangalore Benefits Benefits 6.000 trucks less (43%) during peak hours 15 % less driving due to traffic avoidance Reduction of ~ 35,000 tons CO2 per year (Berlin example) (Nişantaşı example) Source: 1) Bureau of Public Roads speed formula, SCAG calibration, IBB data and DHL assumptions GoGreen | Bonn | May 2012 Deutsche Post DHL | Page 10 Summary Summary • E-Vehicles are generally operationally suitable for inner city delivery and offer significant emissions reductions • Remaining challenges besides costs are the implications of winter operations and the development of dedicated charging infrastructure solutions for large fleets • E-Vehicles do not offer improvements to the challenge of increasing traffic density in urban areas. A combination with additional levers is therefore mandatory for a sustainable city logistic approach • Additional levers for traffic reduction are consolidation of goods (e.g. consolidation centers, Packstations) and dynamic route planning (e.g. smart scheduling) GoGreen | Bonn | May 2012 Deutsche Post DHL | Page 11 Green Technologies & Solutions Thank You! Achim Juechter Senior Expert GoGreen [email protected] .