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Freight Performance Indicators –

“Map the Gap”

Sudhir Gota
Consultant / Advisor
Regional Workshop on Green Freight & Logistics in Southeast Asia
2-3 June 2016
Bangkok
Is freight becoming more “efficient” ?
Indicator Pyramids

High-Level The Public,


Indicators Policy makers

Experts, NGOs,
Technical Level Policy advisors

Academics
Technicians,
Detailed Data Survey experts,

Henrik Gudmunsson, DMU


Indicator Pyramids

Danger Signal
to the Mayor?
Health Impact
Ambient air analysis
Pollutant by type and vehicle Design and
CO2,PM,NOx Implementation
of Mitigation
Actions
(emissions/km*kilometers)
for each vehicle type, fuel

Detailed freight Data: survey of trucks, movement, fuel use and


emissions coefficients ( segregate by category of vehicle,
fuel,emission standard)
“Gold Standard” of Indicators
A good indicator should meet the following standards:

1. The indicator is needed and useful.


2. The indicator has technical merit.
3. The indicator is fully defined.
4. It is feasible to measure the indicator.
5. The indicator has been field-tested or used operationally.
6. Weighted (relative importance in comparison to other indicators)
7. Comparable (quantified in all organizations in the same way)
8. Mutually exclusive and collectively exhaustive
9. Sensitive to the company’s classified information
10. Easy to use & communicate

“if indicators are not selected carefully, they can consume extensive resources
and generate data with little or no value”
Communicating Indicators
Move towards Standardization?
Global City Indicators Program Report (2008) - The eight pilot cities were collecting over
1,000 various indicators, only three of which were common to all cities”
ISO 37120:2014 - Sustainable development of communities
— Indicators for city services and quality of life

Core Indicators (requirement)

1. Kilometres of high capacity public transport system per 100 000 population
2. Kilometres of light passenger public transport system per 100 000
3. Annual number of public transport trips per capita
4. Number of personal automobiles per capita

Supporting Indicators (recommended)

1. Percentage of commuters using a travel mode to work other than a personal vehicle
2. Number of two-wheel motorized vehicles per capita
3. Kilometres of bicycle paths and lanes per 100 000 population
4. Transportation fatalities per 100 000 population
5. Commercial air connectivity (number of non-stop commercial air destinations)
Challenges in Green Freight

Intermodal &Other infra

Poor Enforcement, I&M


Infrastructure - Roads

Fragmented Industry

Access to Finance

Urban Freight

Partnerships
Overloading

Institutional
Technology

Awareness
Old Trucks

High Cost
Capacity

Data
IT
Major Challenges
Matrix
Bangladesh     
Bhutan   
Cambodia  
India    
Indonesia      
Laos   
Maldives 
Myanmar    
Nepal       
Philippines    
Sri Lanka 
Thailand  
Viet Nam       

Central &West Asia


       : ADB (2014)
Source
Challenges in Green Freight

Central Asia
Bangladesh
Hong Kong
Philippines

Singapore
Indonesia
Sri Lanka

Malaysia
VietNam
Thailand

Pakistan
Japan
China
India
Laos
No of Trucks registered
No of trucks on road
Trucks distributed by emission standard
Tonkm by various mode (official source)
Freight transport mode share (tons and/or tonkm)
Number of kilometres of freight rail lines
Number of inland dry port
Freight transport intensity (ratio of freight to GDP)
Traffic fatality related to freight transport
Logistics cost
Empty trips (%) (official)
Average loading (tons) (official)
average handling factor (official)
average length of haul (official)
Fuel efficiency of trucks (official)
Average speeds of modes (official)
Key Questions

• How much freight is being moved?

• Where is the freight going and where it is coming from?

• What is the relative use of different transport modes?


• What is the quality of freight infrastructure

• How efficiently is freight being transported?

• How does freight transport performance compare among


neighboring countries/cities/competitor companies?

Source :Alan McKinnon (2015) & others


Freight KPI – Balanced Approach

Transport Intensity
Freight
Demand
Growth Modal Split

Freight
Freight
Society Market Diversity
Impact
Infrastructure

Implementation

Freight Operational Efficiency


Freight
Environmental System
Impact Efficiency

Service Quality
Freight
Economic
Impact

Environmental impact
Freight KPI – Implementation

Freight Mode Share

Visioning

Freight cost and


Measurement emissions per unit
Freight shipped
Benchmarking & Target
external costs/ Setting
($/ tonkm )

Freight Fatal Average Age of truck


Crash Rate Operations Policy
/Freight km
travelled
Investments

Freight Investments/Ton or tonkm


Smart Freight System Approach

> 250+ elements / 500+ connections / 130+ Indicators

Source :Smart Freight Center (2016)


Examples
Japan KPI’s

Company Targets Indicator


a 22% reduction per unit of domestic sales in fiscal 2013 compared to fiscal
Casio CO2/Sales
2006
Reduce emissions per unit produced by 6% by 2012 from 2006 using CO2/ unit
Toyota
logistics produced
Hino Global Reduction in CO2/tonkm of 12% from FY 2008 by 2012 (logistics) CO2/ tonkm

Komatsu 8% reduction in CO2 per Cargo Weight in 2015 with 2011 CO2/Weight

Sharp CO2 emissions per shipping volume by 1% or greater/year CO2/ Volume


Mitsubishi
CO2 emissions 3% reduction from 2009 in 2010–2012 Logistics
Electric
Global net sales to CO2 emissions improvement by 30% by 2020 (2010 Sales/CO2
Omron
baseline) Emissions
Reduction of gross CO2 emission by 6% (compared to fiscal year 2002) Gross CO2
Sagawa Express
before FY 2012 Emissions
Sumitomo Improving efficiency in the use of energy due to domestic carriage by 1%
Energy efficiency
Corporation annually

Revised Energy Conservation Act mandates submission of energy conservation plans; report;
and the status of efforts related to energy conservation measures.
Indicators used - Fuel Consumed, CO2 emissions and Tonkm
US Smartway Data & KPI
Truck and multi-modal carriers data: gCO2/truck mile CO2 g/tmile
• Total miles driven Truckload dry van
• Revenue miles versus empty miles
• Road speed and operational characteristics Tanker
• Total fuel consumed Expedited
• Alternative fuel (e.g., biodiesel, natural gas)
Moving
consumed
• Number of trucks by class Auto Carrier
• Fuel and payload by truck class Heavy/Bulk
• Truck model engine year
Specialized
• Payloads
• Trailer capacity volume and utilization Refrigerated
• Average idle-hours per truck Package Delivery
Shipper and logistics companies
Mixed
• Ton-miles driven
• Total miles driven Less-than-truckload dry van
• Payload Flatbed
• Number of loads
• Type of cargo by commodity group Drayage
• % By Smartway and other carriers
-30 -20 -10 0 10 20
Annual Growth Rates 2011-2013 (%)
EU TERM Indicators
Core Indicators

TERM 01: Transport final energy consumption by mode


TERM 02: Transport emissions of greenhouse gases
TERM 03: Transport emissions of air pollutants
TERM 04: Exceedances of air quality objectives due to traffic
TERM 05: Exposure to, and annoyance by, traffic noise
TERM 12a/b: Passenger transport volume and modal split
TERM 13a/b: Freight transport volume and modal split
TERM 20: Real change in transport prices by mode
TERM 21: Fuel tax rates
TERM 27: Energy efficiency and specific CO2 emissions
TERM 31: Share of renewable energy in the transport sector
TERM 34: Proportion of vehicle fleet by alternative fuel type.

Supporting Indicators = 29
New Zealand KPI
Transport Volume
Transport Price Indices
Travel Patterns
Safety and Security
Public Health
Network Reliability
Infrastructure and Investment
Freight and the Transport Industry 21
Environmental Impact
Access to the Transport System
0 10 20 30 40 50 60 70 80 90 100
% Complete Total Indicators
Tonkm
Vehicle km
Tonnes of CO2e emitted from domestic transport per vehicle km driven
Tonnes of CO2e emitted from domestic transport per tonne-km
Energy use (PJ) per vehicle kilometres travelled by domestic transport
Energy use (PJ) per tonne-km by domestic transport
France KPI

About 50 Indicators , Impact Categories - freight volumes and commodities, urban


freight transport fleet, urban deliveries, contribution to economy, environment &safety

Indicators
• Number of deliveries and pick-ups per week • Average operating cost per collection/delivery
per employee in an activity • Road occupancy by vehicles transporting food
• Loading/unloading density • Weight average transported in a round
• Car-purchasing density • Average cost of purchase
• Loading/unloading intensity per activity • Average cost of food per home delivery
• Loading/unloading time • Average distance covered by a trip for
• Length covered for Loading/unloading purchase
• Average length of the first trip from platform • Average cost of home delivery
to the delivery area • Freight Intensity
• Average distance travelled per • Lorry traffic intensity
collection/delivery • Goods moved (tonkm/region)
• Total distance travelled on roads in urban • Goods lifted
area transporting goods by vehicles • Average length of haul
• Average time taken per delivery • Distance travelled
• Average driving time and stationary time • Loading factor
• Average speed per round • Empty running
• Greenhouse gas and pollution • Energy intensity
Source : Jean-Louis Routhier and Danièle Patier Laboratoire d'Economie des Transports Lyon
UK Indicators for Fleet Management
1) Costs - Average cost per unit delivered ($), Total whole vehicle cost ($/km), Average
running cost ($/km), Average standing cost ($/km), Average driver cost ($/km), Total
maintenance cost ($/km)

2) Operational - Average km per liter, Total km run (km), Total empty miles run (km),
Percentage empty running total (%), Percentage average vehicle fill (%), Percentage
average time utilization (%)

3) Service - Percentage of late deliveries total (%), Percentage of damages total (%),
Percentage of complaints total (%)

4) Compliance - Total number of overloads, Total number of vehicle traffic infringements, Total
number of drivers’ hours infringements, Total number of traffic accidents

5) Maintenance - Percentage of failed inspections total (%), Percentage of defects rectified in


24 hours total (%)

6) Environmental - Total fleet CO2, Average fleet CO2

Source : UK DFT, “Fleet Performance Management Tool Incorporating CO2 Emissions Calculator”
Urban Freight Indicators
London Freight Plan Stockholm Freight Plan
1. Total number of commercial vehicle 1. The percentage of distributors and end
parking-related Penalty Charge Notices customers that are satisfied with traffic
(PCNs) per million freight vehicle flow,
kilometres, 2. The percentage of vehicular journeys with
2. Overall reliability measure for freight, good journey time reliability,
emissions impact of freight road vehicles, 3. The number of loading zones,
notably CO2, particulates and NOx 4. Unauthorized parking in loading zones,
emissions, 5. Number of clean vehicles
3. Freight fly-tipping incidents, 6. CO2 emissions &
4. Overall number of people killed or 7. Number of meetings with both the internal
seriously injured in collisions involving and external freight networks
freight vehicles,
5. The number of thefts linked to freight California Sustainable Freight Action Plan
activities on London roads & Target KPI’s
6. Freight Operator Recognition Scheme
membership at each level 1. Freight system efficiency – GDP/Freight CO2
2. Number of near-zero emission freight
vehicles
Freight Intensity
1.6

Highest Lowest Average


Freight Intensity (tonkm/GDP)

1.4

1.2

1.0

0.8

0.6

0.4

0.2

0.0
0-4999 5000-9999 10,000- 19,999 20,000-34,999 >35,000
GDP/Capita PPP (2005 USD)
• Freight transport intensity of countries tends to decline as they become wealthier i.e. “de-
coupling”
• Varies with type of economy, commodity-mix, infrastructure and the geographical characteristics
of the country
• Not appropriate for benchmarking countries
Kuala Lumpur Transport Strategic Plan

5 Rules to Remember

1. No silver bullet but also avoid analysis-


paralysis

2. Acknowledge data limitations and use


staircase approach i.e. multi-year action
program

3. Harmonize – data collection, definition


and methodology for analysis

4. Stakeholder consultations & partnership


to avoid double counting

5. Improve capacity of local stakeholders


over time
Breakout Session

What priority indicators should be included for green freight in the ASEAN
region?

Priority Data? What Frequency of Institutions?


Indicators Surveys? reporting?
Thank you

sudhirgota@gmail.com

sudhirgota

Skype - sudhirgota
Lee Schipper 1947-2011

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