GREEN FREIGHT AND LOGISTICS IN ASIA

The demand for freight and logistics in Asia and the Pacific is expected to grow significantly in the coming years, and it will continue to play a large role in driving economic growth and alleviating poverty in the region. Within the transport sector,
freight and logistics account for a significant portion of total energy use – in many countries upward of 40% – and a correspondingly large share of CO2 emissions.
The promotion of efficient, environmentally sustainable and safe freight transport is an issue of substantial importance and urgency.
Based on the need for countries across Asia and the Pacific to address this issue, the Asian Development Bank (ADB) and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) organized this first regional workshop to take stock of best
practices and systematic approaches towards efficient logistics and green freight.
The event, held 25-27 June 2014 in Singapore, aimed to give recognition to and provide a platform for the exploration of the multiple initiatives currently being developed at different levels of governance (local, national, sub-regional and regional) and by actors from different sectors (public, private, NGOs).
The workshop was arranged as a mix of predefined presentations by global contributors to the green freight and logistics discussion, as well as through facilitated peer learning and exchanges among the key stakeholders active in freight and logistics. Specifically, it aimed to (i) to foster discussion on the potential and benefits of green freight policies in the region; (ii) to identify opportunities that can
be developed into actions and projects; (iii) to shape a broad work plan for national activities; and (iv) to identify training needs according to select target groups (thus establishing a knowledge base in support of green freight and logistics programs in the region). The outputs of the workshop will also provide inputs to the ASEAN Working Groups on Land Transport and Transport Facilitation as well as the United Nations Center of Regional Development (UNCRD)-led initiative to develop a Regional
Framework on Green Freight and Logistics.This document is meant to summarize the workshop, draw out the key messages from each session, and includes a short synopsis of the group work that was
undertaken during the workshop. It also provides recommendations for future action, by ADB and GIZ.

Panel discussions: Green freight and logistics in Asia: Current trends and future pathways
The second panel discussion built on the lessons learned from the first panel to describe the current state of affairs in green freight and logistics in Asia. The panel was chaired by Ms. Glynda Bathan, Deputy Executive Director of Clean Air Asia, who set the stage by requesting panelists to describe steps taken by the stakeholders to make the freight and logistics sector greener, identify “What” are
the key drivers that can facilitate this development; and on “Opportunities” and “Barriers”.The discussion began with a short speech by Mr. Tran Anh Duong, DeputyDirector General of the Ministry of Transport, Viet Nam. He noted that emissions
from transport are not well regulated in Asia in general, and Southeast Asia in particular. With around one million trucks in the country, monitoring stations indicate that levels of PM10 are 1.5 – 2 times greater along the ring road in Hanoi and Ho Chi Min City than legal standards permit. Viet Nam has designed a National
Green Growth Strategy that highlights tasks for the freight sector in the comingyears:
• Increase energy efficiency
• Utilize alternative or renewable fuels
• Implement coastal shipping and inland waterway transport.
Next, Mr. Karmjit Singh, Fellow and Chairman of the Chartered Institute of Logistics and Transport (CILT) Singapore, noted that even in Singapore, the industry is always learning. Singapore is a logistics hub that developed from nothing to become one of
the most efficient airport and seaports ranking globally, not only serving regional but also global trade. In order to improve building energy efficiency, Singapore has implemented incentives for green buildings, with a goal of 80% of buildings being “green” by 2020. The city also needs to deal with new traffic patterns related to movement of the port by 2025, and terminal 5 of the airport constructed around the same time.
Mr. Singh concluded that there are challenges related to the human aspect of freight and logistics. Habits are hard to change, even with incentives. Furthermore, companies and governments look at freight as trucks moving, rather than as drivers driving trucks. Without recognizing the importance of drivers, they are unlikely to
take a role in better driving and emissions reduction.

Mr. Thibodee Harnparasert, Executive Advisor of the Federation of Thai Industries (FTI) then described some of the green freight work being undertaken in Thailand. Thailand has about one million trucks, 140,000 buses, 6.5 million passenger cars, and 6 million diesel pickup trucks. Transport alone consumed 36% of energy in the country, 80% of that from inland transport. In order to deal with this situation, the FTI proposed to government an energy
efficiency program in logistics and transport management, which trained over 2500 professionals from 240 companies in four areas:
• Management: e.g. standardizing maintenance, utilizing GPS and RFID, and shortening loading cycles and space utilization
• Engineering and technologies: e.g. tires can reduce fuel consumption 3-5% if tire pressure is managed
• Middle management: e.g. understanding what load is suitable for what trucks
• Driving: e.g. implementation of daily check sheets, idle time reduction, and being familiar with normal operating performance of the vehicle – not to mention being alert and sober. The final effort discussed by Mr. Harnparasert was that by utilizing GPS and
monitoring truck movement, and standardizing data for logistics, load optimization and back loading could increase significantly. Industry is generating data through this system for decision making by government. The last speaker in the second panel was Mr.
Stephan Schablinski, Executive Director of Green Freight Asia, who advocated that the private sector is not just part of the problem rather, it can be an important part of the solution to freight emissions. He noted that 90% of trucks in Asia and the Pacific are
owned by individual drivers, and only 0.1% are owned by big fleets. Most companies don’t have the capacity to work in terms of
GHG emissions and other global issues related to their work, and therefore economic incentives are necessary. Companies want to
reduce costs and improve profits through more sustainable operations. At the same time, manufacturers would like to choose
greener carriers, but they have little information on which carriers are greener.Green Freight Asia aims to use a methodology to identify companies that are acting to improve their emission profiles, or have committed to act. The organization also
aims to develop a clear-cut matrix of technologies for trucking companies that can help quickly identify which technologies are appropriate for their businesses.
Key discussion points During the panel discussion, several key points were raised:
• Asian countries face a huge challenge in enforcement of fuel and vehicle standards. The reality is that governments need to become more committed to fuel quality standards enforcement, and need to financially support truck owners to upgrade their fleets. Singapore is leading in technology standards for trucks, aiming to shift to Euro VI emission standards by 2017, but challenges remain with cross-border traffic, in a context where each country has its own
standards
• In order to promote its private sector backed green freight labeling scheme, Green Freight Asia requires assistance from intermediaries in each country, and in many cases needs help in providing balanced information in local languages on technologies appropriate for trucks