Port Sustainability and Energy Security Workshop - CAIT

A U.S. Department of Transportation
University Transportation Center
Port Sustainability and
Energy Security Workshop
Panel III:
Port User and Third Part
Perspectives
March 1, 2013
Panel III: Port User and Third Party Perspectives >>
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•
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Participants
Angela Billings-Soini, IKEA North America
William Goetz, CSX Transportation
Thomas Heimgartner, Best Transportation
Douglas P. Morgante, MAERSK
Reema Loutan, EPA Region 2
Facilitator
Abbas Sarmad - AECOM
Topics
Corporate strategies, plans to work with ports,
road maps to success
Panel III: Port User and Third Party Perspectives >>
Angela Billings-Soini is Sustainability Manger for
IKEA Distribution Services with a responsibility for
North America. She is responsible for implementing the
IKEA global sustainability direction in North America
with all transport service providers and IKEA
warehouses. Her area of responsibility includes
exploring ways to reduce CO2 from transportation and
own buildings as well as environmental and social
audits of all North American carriers.
Formerly, Ms. Billings-Soini worked for Nokia in the
Corporate Social Responsibility department focusing
on CSR reporting and communications. Ms BillingsSoini holds a BA in International Relations from the
University of the Pacific, a MSc in Environmental
Assessment and Evaluation from the London School of
Economics and a MSc in Environmental Science from
Lund University in Sweden.
Panel III: Port User and Third Party Perspectives >>
William G. M. Goetz is Resident Vice President with
CSX Transportation, a company operating the largest
railroad in the Eastern United States.
Mr. Goetz
represents CSX with the City of New York, State of New
Jersey, and City of Philadelphia.
Mr Goetz’s 30-year railroad career has included projects
resulting in new terminals and infrastructure throughout
the Eastern United States, many of which were publicprivate partnerships.
Mr. Goetz is a board member of the Schuylkill River
Development Corporation in Philadelphia and the
Transportation Research Forum’s New York City
Chapter.
He graduated from the Boston University School of
Management and the Wharton Graduate School of the
University of Pennsylvania. He and his wife Susan
reside in Pennsylvania and New York City.
Panel III: Port User and Third Party Perspectives >>
Thomas Heimgartner is the President of Best
Transportation, which he founded in 1982 modestly as a
one-truck operation with Tom himself behind the wheel.
Through his insight and leadership, Best Transportation has
evolved into a major intermodal carrier now owning over 100
vehicles and servicing the northeast region through The Port
of New York and New Jersey
Tom has been an advocate for improving the work
environment, productivity, and safety of intermodal
transportation. As an industry leader, Tom has met with and
established relationships with many local, state, federal
officials and elected representatives in an ongoing effort to
resolve the problems of unsafe, poorly maintained intermodal
trailers and containers being driven on our highways. He
remains actively engaged in improving highway safety of the
Motor Truck Industry and promoting the growth and efficiency
of The Port of New York and New Jersey.
Tom holds a degree from Rutgers University and has more
than 35 years of transportation experience. He is a member
of the Board of Directors of The Intermodal Motor Carriers’
Conference of The American Trucking Association and the
Association of Bi-State Motor Carriers.
Panel III: Port User and Third Party Perspective >>
DOUGLAS P. MORGANTE was appointed Director of State
Government Relations of MAERSK Inc. in May 2005. As
Director, he works closely with business owners and
colleagues from A.P. Moller – Maersk and all affiliated
companies and departments, as well as with legislators and
staff members of state legislatures on a national basis to
positively influence Maersk Inc.’s legislative and regulatory
interests.
Mr. Morgante joined the A.P. Moller-Maersk Group in
January 1994. He has served in several management
positions for Maersk Line, including route management, and
as representative in Ocean Carrier Rate Conferences and
Discussion Agreements. Prior to his current position, he was
responsible for Regulatory Affairs.
Mr. Morgante currently chairs the Legislative Committee for
the Ocean Carriers Equipment Management Association
(OCEMA).
Education:
- Rutgers College, NJ, B.A. Political Science, 1988.
- Harvard University, John F. Kennedy School of
Government - Infrastructure in a Market Economy
Panel III: Port User and Third Party Perspective >>
Reema Loutan has worked in the Mobile
Source Section of EPA Region 2 for 10
years. Reema's program responsibilities
include ports, the SmartWay program,
fuels, inspection and maintenance, and
grants. Reema has a Masters in Chemical
Engineering from Manhattan College, and
Bachelor degrees in Chemistry and
Chemical Engineering from NYU and
Stevens Institute of Technology.
Towards More Sustainable
Transportation
Angela Billings-Soini
IKEA Distribution Services, North America
2013 03 01
2013-03-01
At IKEA we are good in using Unit loads
- Transport
T
t starts
t t att the
th drawing
d
i
table!
t bl !
Products developed to… …fit flat packages that are… …optimized for pallets that are…
…optimized for containers that can…
…be unloaded directly to point of sales.
SCOPE
We secure movementt off products
W
d t &
materials between IKEA associated
locations including customers
customers’ homes
OUR SCOPE
in figures
• 1
1.3
3 million shipments per year,
year >99% FL
• 30 Million net m3
• 9 500 different articles, produced at
1000 suppliers
• Transit through 26 DCs and 27 CPs
• Making their way to >300 stores
• Approx.
Approx 20 000 units on the road/sea
everyday
• In addition, deliveries of materials and
deliveries directly to 5 million
customers’ homes
• Approx. 13 000 movements every day
• All this in cooperation with 400 carriers.
carriers
CO2 emissions reduction target
C
Compared
d to
t the
th FY11 emissions
i i
Actions in reducing CO2
Equipment utilization

–
–
–
Inter modal set-ups

–
25 000
000+ units
i last
l
year
Direct deliveries

–



New handling material
Filling rate
Optimal equipment
>50%  shorter distances
Regional sourcing
Carrier fuel reduction
Truck age
HM NOW – Phase out of wooden pallets
•
•
IKEA has
decidedout
to phase
wooden pallets
Phase
of out
wooden
pallets
Lower costs & more sustainable:
–
–
–
–
•
No return flows of empty wooden pallets
More efficient use of wood as raw material in recyclable paper pallets
Lower total cost
Less emissions
HM NOW is an enabler for higher equipment
© Inter IKEA Systems B.V. 2011
– A combination of lower handling material and higher transport
equipment enables a reduction of number of transports.
Filling rate activities




27 Consolidation points
Transit set ups in DCs
Co-loads & Milk Runs
Load optimization tools at
suppliers
 Combine heavy & light goods
while fulfilling
g availability
y
demands
Combination of activities g
gives result
C40HC
+
+
+
Utilization of the extra space is key
Green Freight
g
Initiatives
Thank you!
y
© Inter IKEA Systems B.V. 2011
Railroads At Sustainable Ports
1
March 1, 2013
Freight Rail’s Long-Term Fundamentals: Best in 50
Years.
Eisenhower Era
21st Century
Rail Significance
Virtually Unlimited Supply of
Cheap Petroleum
Erratic Commodity Prices;
Long-Term Supply Questions
Compared to Long-Haul
Trucking, Rail Uses 1/4 Fuel
Environmental Insignificance
Environmental Awareness
Freight Rail: Part of the Solution
Not Part of the Problem
Rapid Growth of Limited Access
Highway System
Rising Highway Repair Cost;
Extensive New Untolled Route
Mileage Unlikely
Re-think Asphalt-Only
Strategies. Reconsider Rail and
Water Solutions
Sprawl
Urban Rebirth
Revival where Rail
Infrastructure is Strong
Railroad Management Mindsets
Shaped by WWII
Railroad Industry Pragmatism
Customer-Driven Business
Strategy
4
Liberty Corridor Freightway
Bergen Tunnel
Waldo Tunnel
Waldo Tunnel Was Improved by Daylighting Its
South End
Bergen Tunnel:
4200 feet of Very Hard Rock
Bergen Tunnel:
Well Built…150 years ago
Construction Completed Under Budget
in One Construction Season
NW Ohio Terminal Improves the Flow of
Freight.
Before NWOH
Interchange
with western rails
After NWOH
Chicago Bypass
for Western
interchange
Opening of Northwest Ohio Terminal is a Major
Milestone.
•
•
•
•
•
•
•
•
•
•
Opened February 22, 2011
Cost: $175 million
Construction Time: 18 months
500 acres
200 employees at opening
24,000 feet of working track
100,000 feet of block swapping track
Parking for 280 units
Five cranes spanning eight tracks
Will process 30 trains daily when fully
network integrated
• CSX’s largest Intermodal terminal
Northwest Ohio Terminal Anchors National Gateway
and Other CSX Intermodal Corridors
GenSet Locomotives
• Replaces locomotive’s large
diesel engine with two or three
smaller engines, each with its
own generator
• Locomotive only powers on
engines sufficient for its pulling
load
• Best suited for yard switching
applications
• Cuts fuel consumption 25%
• Cuts CO2 emissions 25%
• Cuts NOx emissions 80%
• $1.5 million to retrofit an existing
locomotive
Thank You
BEST
TRANSPORTATION
Tom Heimgartner
President
Best Transportation LLC.
Port Newark, NJ
Rutgers
Port Sustainability and Energy Security Workshop
Friday, March 1, 2012
CHASSIS TIRES
BIAS ON OPEN WHEEL =
HIGH ROLLING RESISTANCE
VS
RADIAL ON HUB PILOTED WHEEL =
LOW ROLLING RESISTANCE
Maersk Line:
Environmental and
Operations Perspectives
Port Sustainability & Energy Security Workshop
Rutgers University -- 3/1/2013
Doug Morgante – Director, State Government Affairs
Lee Kindberg - Director, Environment & Sustainability
Agenda
• Challenges we faced due to
Hurricane Sandy
• Operational challenges
• What we are doing about
climate change
• Emissions reduction on our
cargo vessels
1
Hurricane Sandy – aftermath
• Ports were closed over a week
• Vessels had few alternatives – Halifax?
• Maersk Line had 2785 containers in
Norfolk and 680 in Philadelphia that
needed to get to Port Elizabeth.
• Some containers were cleared and picked
up by customers. The rest moved in bond
to Newark.
• It took 26 days to clear the backlog.
• Cost est. $2.5M to Maersk Line and our
customers, truck, rail, extra bunker).
Possible Future Solutions:
1. Jones Act waiver in an emergency: The Jones Act requires that all goods
transported by water between U.S. ports be carried in U.S.-flag ships, built
in the US, owned by US citizens, and crewed by US citizens/permanent
residents. For the future a one-time waiver would allow faster recovery with
Lower cost and environmental impact.
2. Review changes to the Stafford Act (Relief and Emergency
Assistance
2
The Bayonne Bridge is an operational
limitation for vessel operations.
• A solution is in place, the bridge will be raised.
• We already have problems getting under the bridge today.
• This is due to the vessel’s high air draft -- transit of the bridge is sometimes not
possible to meet the scheduled arrival.
• Less water draft = higher air draft. Full vessel = lower air draft.
• With 50+ feet of water depth and a raised bridge, we should not
experience delays.
Possible outcomes due to delays
in project completion:
Local cargo
Discretionary cargo
Panama Canal Expansion
More cargo volume?
Economies of scale: larger vessel
mean more cost efficient moves per
container – less emissions –
increased volumes good for the
economy.
3
Vessels are increasingly fuel efficient.
This reduces fuel use, CO2 and other air emissions.
Maersk Line CO2 Reductions
80
75
70
CO2 Emissions g/TEU*Km
65
Met 2020 goal
for CO2
reduction 8
years early!
60
Previous 2020 Target
reduction from 2007
baseline
55
50
45
2007
2008
2009
2010
2011
2012
Revised 2020 Target
reduction from 2007
Baseline
2007-2011 data
was verified by:
CO2 and other emissions were reduced 25% per TEU km from 2007 to 2012.
CO2 reduction goal has now been raised to 40% for 2020
Reductions were achieved through a combination of vessel size, technologies,
route planning and operational changes.
4
Innovation is essential for sustainability
 Propeller, hull & trim
optimization
 Waste heat recovery
system
 Slow steaming and
super-slow steaming
Other Initiatives
 SOx scrubber studies
 Alternative fuel tests
 Antifouling hull paint
 New propulsion technologies
 QUEST: Low energy
chilled containers
 ISO 14001 certified
 Crew awareness and engagement  Modified bulbous bow
 Maintenance of hull and propeller  Micro bubbles
 Voyage Efficiency System (VES)
 Trim optimization
5
 Ballast water optimization
and treatment systems
Vessel environmental improvements take
time and partnerships.
New vessels
Existing fleet
• Optimize vessels for intended
services
• Identify or develop technologies
• Potential energy efficiency
improvements 20-50%
• Partner with technology, software and
engine suppliers
• Work with shipyards, equipment
and fuel suppliers
• Identify the right mix for each vessel
• Work with Charter vessel owners
• Long-term view plus short-term
impact
Personnel
•Vessel crews
•Shore side teams
•Structures, metrics, idea sharing
6
Improvements go beyond the vessels
• Reefers – a new, innovative control system
reduces energy consumption by 50%
(some by 63%).
• Dry Containers - flooring is now recycled
plastic, bamboo or FSC certified timber.
• Slow or “steady” steaming – voyage
efficiency systems improve on-time
delivery at the same time they are
minimizing fuel usage.
• Testing alternative fuels and propulsion.
• Using our vessels to assist ocean scientists.
7
Study Period On-time % Ranking Among Top 20
3Q11
83
1
2Q11
76
1
1Q11
66
3
4Q10
70
1
3Q10
79
1
2Q10
77
1
1Q10
69
1
4Q09
63
1
3Q09
71
2
2Q09
79
1
1Q09
78
1
4Q08
77
1
3Q08
68
1
2Q08
76
1
1Q08
63
3
Maersk Line Terminal Efficiency Project:
Port Captains at larger ports work with terminals to reduce port
stays through process improvements
Example: performance (hours)
A Previous port to Pilot
1 Arrival at sea
25,3
0,1
3,5
1,0
Buoy/pilot
station
Pilot time
2
Arrival
3(first line to first move)
-26%
18,8
0,0
3,0
0,2
16,5
12,2
4 Operations
Departure
(last move to last line)
5
6
B
8
Pilot time
Pilot to next port
More
timely
and
accurate
planning
Vessels
on time
1,1
3,2
0,4
2,9
2012
Actual
Best
observed
/Target
Optimized
port stay
and
Reduced
emissions
Thank you
9
Mode selection is a major factor in supply chain
environmental impact.
Ocean shipping has the
lowest environmental
impact for long distance
transportation…
Then rail…
Then truck…
And air has the highest
impact.
Graphic provided by Edgar
Blanco, MIT Center for
Transportation & Logistics
10
Reducing Drayage Emissions
U.S. EPA SmartWay Transport Partnership Program
Port Sustainability and Energy Security Workshop
Rutgers University
03/01/2013
Reema Loutan
Mobile Source Section
US EPA Region 2
1
Moving Goods the SmartWay
• Goals:
– Improve the environmental and energy efficiency of goods movement
– Promote investment in clean, efficient technology and operational
strategies
– Enable and complement EPA regulation
• Outcomes:
– Achieved climate and air quality benefits - national and place-based
– Contributed to economic growth and energy independence
– Drove innovation and investments in clean truck, trailer & tire
technologies
– Leveraged existing market forces through collaboration and brand
value
2
Businesses use SmartWay to Demonstrate
Commitments to Sustainability
3
A Few of SmartWay’s 3000+ Partners
4
Addressing Drayage Emissions
• Dray Trucks: Unique, Challenging
–
–
–
–
Very old trucks
Low income owner-operators
Limited benefits from fuel-saving equipment
PM, ozone and toxics are the major priority, not GHG
• Created SmartWay Drayage criterias that balance:
– Financial consideration
– Available emission reduction technologies
– Superior environmental performance
5
SmartWay Drayage Program
• SmartWay shipper and logistics Partners assess the emissions
performance of their carriers, including drayage carriers
• Drayage carriers commit to track and report their emissions on
an annual basis with SmartWay tools
• With access to environmental performance data
– Carriers can cut costs, benchmark internally and against competition,
and attract customers looking for greener choices
– Shippers can identify greener choices to reduce carbon footprint and
improve supply chain efficiency through carrier/mode selection
– Information supports competition & demand for top performers
6
EPA Commitments
• SmartWay commits to support our drayage partners by:
– SmartWay provides a network of proven technologies and driving
techniques that reduce emissions and fuel consumption
– EPA assists SmartWay drayage carrier Partners in developing and
meeting goals
– Drayage carriers gain access to SmartWay Partner Account Managers
who serve as important sources of personalized insight into how you can
improve performance
• For details on the SmartWay Drayage Program, visit:
– www.epa.gov/smartway/partnership/drayage.htm