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LOGISTICS DECARBONISATION CHALLENGES

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The logistics sector is under pressure to decarbonise operations as the net zero
goal is increasingly adopted by Governments worldwide. Innovations and new
technologies have elevated alternative fuel vehicles to genuine contenders to
the traditional fossil fuel-powered internal combustion engine. Consequently,
alternative fuel vehicles have become a prime contender for decarbonising
logistics. However, decarbonising operations is not without its challenges.
Failure to understand, prepare and address these challenges could negatively
impact the speed at which the logistics sector decarbonises.

To explore the logistics decarbonisation challenges, risks, and opportunities
this paper examines five technical, economic and environmental factors
identified in evidence being produced by industry and academic research. The
five aspects are:

 * Alternative fuel vehicles performance
 * Alternative fuels delivery
 * Renewable energy availability
 * Return on investment
 * Emissions modelling and reporting.

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TRUCK DRIVER SHORTAGES AND LANDSIDE PORT CONGESTION

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Many of the world’s biggest economies are experiencing major supply chain
challenges because of the convergence of several factors: worker absenteeism due
to the COVID-related restrictions, incidents like the Ever Given Suez Canal
obstruction and growing electronic commerce have all impacted on timely delivery
of many goods and services.

These disruptions, however, are only part of two broader longer-term challenges
facing global supply chains. The first challenge is the significant projected
shortage of qualified truck drivers that had already started to create goods,
fuel and food supply disruptions for business and the general population in
several countries 1–3. The second is the global experience of landside port
congestion that has emerged partly due to ever greater reliance on mega-ships
and mega-ports and have directly contributed to significant landside transport
inefficiencies.




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SUPPLY CHAINS FOR FUTURE TRANSPORT FUELS AND ENERGY SOURCES IN AUSTRALIA

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The increased adoption of alternative fuels in road transport, such as
electricity for battery electric vehicles (BEV) and hydrogen for fuel cell
electric vehicles (FCEV) has improved the prospects of decarbonising the sector.
Indeed, powering BEVs entirely from renewable electricity promises emissions of
just 0.6 kg CO2-e/100km2, as opposed to 25 kg CO2-e/100km currently emitted by
the average Australian gasoline powered car or 20 kg CO2-e/100km indirectly
emitted by BEVs. 




However, entirely renewable energy is a long way away from becoming a reality in
much of the world, including many Australian states. While electricity
generation is increasingly turning renewable, it is important to understand the
energy consumption and emissions of BEVs and FCEVs today and in the near future.

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EFFICIENT YET EXPOSED WHY CONTAINER PORT CONGESTION ISN'T GOING AWAY ANYTIME
SOON

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In the wake of the Ever Given incident in the Suez Canal on March 23rd 1 and the
production stoppages due to pandemic-related restrictions, the world witnessed
the implications of  serious port congestion. As of the 12th of October 2021,
143 container ships totalling more than 1 million TEU in capacity were at anchor
outside some of the world’s largest ports.




Containerised shipping has been the main driving force behind unprecedented
growth in international trade. It has been instrumental in the globalisation of
supply chains because of its immense transport efficiency. However, it is also
vulnerable and recent events have pushed many large companies to adopt less
efficient, more expensive, and/or less environmentally sustainable transport
modes.

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SUPPLY CHAINS FOR VEHICLE POWER PACKS: LI-ION BATTERIES AND HYDROGEN FUEL CELLS

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The push towards transport decarbonisation has led to the emergence of Li-Ion
battery (BEV) and hydrogen fuel cell (FCEV) powered vehicles as key contenders
to traditional fossil fuel vehicles. With an increasing number of countries
proposing bans or restrictions to fossil fuel vehicles within the next 10-20
years. In this context it is critical to understand the key challenges and
opportunities in the battery and hydrogen fuel cell manufacturing supply chains
for road vehicles.




This report is part of a series of discussion papers produced by Foresion that
aim to holistically explore contemporary supply chain issues and future
directions, focusing on logistics, emerging technologies, and environmental
sustainability. These papers are aimed at business practitioners, policymakers
and governments as a vehicle for improving integration and visibility along key
supply chains.

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Academic Papers


WHY ARE WE STILL QUEUING? EXPLORING LANDSIDE CONGESTION FACTORS IN AUSTRALIAN
BULK CARGO PORT TERMINALS

This research explores truck congestion in 3 bulk cargo ports in Australia to
understand contributing factors. Although congestion manifests itself in ports,
causal factors may appear across and along supply chains. Some factors include:
lack of coordination, misaligned incentives, disruptions, lack of supply chain
flexibility, infrastructure limitations, the interdependence of operations or
stakeholders' performance expectations




Read full paper here




Image Copyright: Elsevier


USING DISCRETE-EVENT SIMULATION TO COMPARE CONGESTION MANAGEMENT INITIATIVES AT
A PORT TERMINAL

This research uses discrete event simulation to model the operations at a bulk
cargo port terminal and evaluate the potential impact of several congestion
management initiatives, including IT upgrades, increased truck capacities,
terminal infrastructure upgrades and the introduction of a terminal appointment
system










Read full paper here





COLLABORATIVE EXCHANGE OF CARGO TRUCK LOADS: APPROACHES TO REDUCING EMPTY TRUCKS
IN LOGISTICS CHAINS

Reducing the volume of trucks carrying empty or below capacity loads on road
networks are both socio-economic and environmental sustainability issues for the
logistics industry. Planning concepts for a collaborative logistics exchange
based on real-time data are described as well as the benefits in terms of
optimizing load capacity utilization, minimization of empty running, reducing
costs, traffic congestion, and truck emissions.




Read more here





UNDERSTANDING THE IMPACT OF USER BEHAVIOURS AND SCHEDULING PARAMETERS ON THE
EFFECTIVENESS OF A TERMINAL APPOINTMENT SYSTEM

This research improves understanding of the impact of specific types of truck
driver behaviour and temporal scheduling on the effectiveness of a terminal
appointment system. The modelling presented in this research was used to inform
their investigation into developing an appointment system solution.







Read more here





EXPLORING THE ROLE OF INFORMATION SYSTEMS IN MITIGATING GATE CONGESTION USING
SIMULATION

This research presents a terminal gate simulation model that improves
understanding of the complex interactions at the terminal gate and describes the
potential of information and digital systems alternatives for mitigating
congestion













Read full paper here





EXPLORING CONGESTION IMPACT BEYOND THE BULK CARGO TERMINAL GATE




Bulk cargo terminal congestion management, approaches have tended to be almost
exclusively focused on the sea side of bulk terminals. To-date there has been
very limited work on land-side approaches to mitigate congestion in bulk
terminals. This paper develops a discrete event simulation model based on data
collected from an Australian bulk wood chip export maritime terminal and
analyses the effect of infrastructure and process improvements on gate
congestion and hinterland logistics chains


Read full paper here







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