Posts that would appear under the “Educational Approach” section (Transport and Logistics Classroom).

Navigating the Currents of Change: Insights from the Helm of P&O Ferrymasters

Oscar Rodenas, General Manager for Spain – P&O Ferrymasters

This month we are launching our “Journeys in Learning” series, during which we will be interviewing key members of our community on topics that are near and dear to us. For this first issue, we have interviewed Mr. Oscar Ródenas Ujaque, the General Manager for Spain of P&O Ferrymasters.

Combining Teaching and Professional Practice

Q1: Reflecting on your extensive experience in the logistics sector, how does this enrich your role as a teacher at TecnoCampus, and conversely, how does teaching inform your professional practice as a logistics manager at P&O Ferrymasters?

The integration of theoretical knowledge with practical application benefits both students and educators. Students gain foresight into their career goals, and educators solidify and expand upon these aspects, infusing their teaching with insights drawn from actual industry experience. This dual approach, particularly for those of us with substantial sector experience, allows us to share real-world scenarios in the classroom, bridging gaps that traditional academic teaching might leave.

The Role of English in Logistics

Q2: With the introduction of teaching Warehouse Management in English, can you discuss the importance of English proficiency for logistics and transportation professionals, especially in your role with the European Management Team at DP World?

Mastery of English is indeed vital, given that it is the lingua franca of business. Ensuring fluency in English is crucial if one aspires to work internationally or maintain cross-border professional relationships. For me, teaching in English is a step towards normalizing its use as a primary means of communication that must be navigated with ease and precision. Professionally, staying current with the logistics market and educational offerings, like the European School’s innovative programs on sustainable transportation, is imperative. Initiatives like the ‘Motorways of the Sea’ demonstrate logistics’ potential to be eco-friendly and innovative, pushing the industry forward alongside societal advancements in digitalization and sustainability.

Hiring for the Logistics Sector

Q3: In your capacity as a hiring manager at a company renowned for its fast-paced logistics operations, what key competencies do you seek in candidates, and do you find that today’s young applicants meet these criteria?

The hiring landscape has indeed shifted; we look beyond impressive resumes and training, which we now consider a given. Instead, we seek individuals who bring unique talents, can relate well to others, and enhance their work environment. We expect newcomers to challenge the status quo with innovative, efficient, and sustainable logistics solutions.

The Attraction and Challenges of the Logistics Sector

Q4: How would you portray the dual nature of the logistics sector, with its exhilarating pace yet demanding environment, to the younger generation?

The logistics sector is challenging and unyielding, requiring professionals to be agile and perpetually learning. It pushes individuals out of their comfort zones and demands their utmost dedication. Simultaneously, it offers an invigorating career—never dull, always rewarding—making it compelling despite its demands. As they say in logistics, once you’re in, you’re hooked, due to its captivating nature. One must be ready to navigate its intensity.

Impact of E-commerce on the Logistics Sector

Q5: Considering the transformation brought by e-commerce to logistics, how do you envision its future development, and what advice would you offer aspiring professionals?

E-commerce, having surged during the pandemic, has since stabilized to a steady growth trajectory. It remains a pivotal force driving logistics innovation, increasingly intertwined with digital technologies and AI. Looking forward, students should remain abreast of industry trends and developments, perhaps through reputable logistics publications.

Experience as Accompanying Professor in the Escola’s MOST Course

Q6: Having served as an accompanying professor on the MOST course by Escola Europea, could you share your experience and the main insights you’ve gained? Would you endorse this experience for your peers?

Concluding with my utmost endorsement, the course was exceptional in every facet. From a professional standpoint, the high-caliber presentations and up-to-date content were impressive. The practical exercises and case study methodology brought a high level of engagement and inspiration for all participants. Witnessing the dedication of students working into the night on case solutions reaffirmed my confidence in the capabilities of the upcoming generations. Beyond the professional realm, the human connections forged during this course were invaluable and deeply enriching.

The photo features representatives from SOC, Barcelona Activa, Pimed, Escola, Transcalit, and the Consortium of Education.

E. Rodés: The great transformation is for companies and educational institutions to work together

The Barcelona New Economy Week (BNEW) came to a close on Thursday, but its significant panels continued until the very last day. In his presentation, Eduard Rodés explained that when discussing the collaboration between companies and educational institutions, it may seem as if we are referring to separate worlds. However, I believe that the most significant transformation in recent years has been the successful integration of these two entities.

The photo features representatives from SOC, Barcelona Activa, Pimed, Escola, Transcalit, and the Consortium of Education.

The photo features representatives from SOC, Barcelona Activa, Pimed, Escola, Transcalit, and the Consortium of Education.

Eduard Rodés, the director of the Escola Europea, spoke during the BNEW Talent event titled “Building the Future Training for Today’s Companies.” He emphasized that it is imperative for companies and educational institutions to collaborate to ensure effective training.

The panel, introduced by Núria Casas and moderated by Lourdes Sugranyes, Director of Inclusive Employment and Training at Barcelona Activa, featured other professionals from the sector, including Eva Expósito, who is responsible for Youth Support Services at the Public Employment Service in Catalonia; Silvia Miró, the director of the working area at PIMEC; Yolanda Redondo, the Secretary-General of Transcalit, and Gemma Verdés, the director of Post-obligatory Education and Special Regime at the Consortium of Education in Barcelona.

During his presentation, Eduard Rodés pointed out that while discussing the alignment of companies and educational institutions, it might seem as if we are dealing with entirely separate realms. Nonetheless, he stressed that the most significant change in recent years has been the successful integration of these two entities. The goal is not merely to train individuals and hope for subsequent employment but to equip them with the specific skills required for immediate integration into the workforce. Both initial training and ongoing education are of vital importance.

He also highlighted a shift in the role of the “triple helix,” which encompasses the public administration, academia, and businesses. Achieving alignment among these entities is crucial for making education a standard component of a company’s operations. Business owners need to take an active role, and educational institutions must become an integral part of the system to adapt their curriculum, ensuring that teachers and students are prepared to meet industry demands, according to the director of the Escola.

A while back, the Escola Europea initiated a programme called “Aprenem junts” with the intention of sending teachers to companies and having industry professionals teach in schools. Now, such participation is a requirement. In other words, companies interested in joining the talent pool they create must commit to taking on dual students, hosting teachers, and providing instruction to schools, as explained by Eduard Rodés.

These programmes are becoming almost obligatory, fostering a commitment between companies and educational institutions, as noted by the director of the European School. Lastly, he emphasized the importance of language acquisition, particularly English, stating, “We all need to ponder a question: Is Barcelona ready to take on a leadership role in the Mediterranean? For instance, all our courses are conducted in English because proficiency in the language is essential.”

Back to Basics: Blue vs. Green Hydrogen

Anyone who follows current events knows that we are currently in a race against time when it comes to offsetting the effects of global warming. Transport emissions are a key part of this race as, in today’s globalised society, they contribute significantly to the rises in temperatures throughout the globe. According to the International Energy Agency tracking report from 2022, transport emissions are responsible for roughly 7.7 Gt CO2 annually – a number that needs to drop to less than 6 Gt before the end of the current decade if we want to reach the Net Zero goal set by the UN.

From biofuels, to liquified natural gas, to electric batteries – the transport sector is currently exploring a variety of solutions that can be put in place to make transport cleaner whilst maintaining its efficiency. One such alternative fuel source is hydrogen – a lot of hype has been given to this fuel source in the industry – and this is why we chose it as the focus of our #BacktoBasics article this month.

What is hydrogen?

Most of us know the formula for the element – H2. We know it is colourless, has no taste or smell, and is highly combustible –we learned this in school. In recent years, research has helped us develop systems that can transform the heat generated by this element into energy.

Today, in many sectors of our society, hydrogen is already being used as a “clean” source of energy. Some such examples are:

  1. Fuel cell electric vehicles (FCEVs): FCEVs use hydrogen fuel cells to generate electricity, which then powers the vehicle’s electric motor. FCEVs have a longer range than battery electric vehicles and can be refuelled in a matter of minutes.
  2. Hydrogen internal combustion engines (HICEs): HICEs are like traditional gasoline or diesel engines but use hydrogen as the fuel source. HICEs produce lower emissions than traditional engines, but not as low as fuel cell electric vehicles.
  3. Hydrogen-powered buses: Several cities around the world have implemented hydrogen-powered buses in their public transit systems (including London (England), Aberdeen (Scotland), Cologne (Germany) and Tokyo (Japan). These buses emit only water vapor and have similar range and refuelling times as FCEVs.
  4. Hydrogen-powered trains: Hydrogen fuel cells are being used to power trains in some areas, such as Germany and the UK. These trains emit only water vapor and have lower noise levels compared to diesel trains.

When thinking about the freight transport sector, we can see that we already have:

  1. Hydrogen fuel cell trucks: Several companies are developing fuel cell-powered trucks for cargo transport (including Toyota and Kenworth). These trucks have a range of several hundred miles and emit only water vapor.
  2. Hydrogen-powered forklifts: Hydrogen fuel cells are being used to power forklifts in warehouses and distribution centres. These forklifts have the advantage of emitting only water vapour and refuelling quickly, reducing downtime compared to battery-powered forklifts.
  3. Hydrogen-powered trains: hydrogen fuel cells are being used to power trains in some areas. These trains could potentially be used for cargo transport as well, with the added benefit of emitting only water vapour and having lower noise levels compared to diesel trains.
  4. Maritime transport: There are several projects underway to develop hydrogen-powered ships for cargo transport. For example, the Hydrogen Energy Supply Chain project in Japan is developing a hydrogen-powered supply chain for liquefied natural gas transport.
  5. Air cargo transport: While hydrogen is not yet being used for commercial air transport, there are several projects underway to develop hydrogen-powered aircraft. For example, Airbus is developing a concept for a zero-emissions aircraft powered by hydrogen fuel cells.

Green or Blue (or both?)

Hydrogen is a clean-burning fuel that can be produced from a variety of sources, including natural gas, biomass, and renewable energy. Blue and green hydrogen are two different types of hydrogen production methods that have distinct differences in terms of their environmental impact and production processes;

  1. Green hydrogen

It is produced through the process of electrolysis, which uses electricity to split water molecules into hydrogen and oxygen. The electricity can be generated from renewable sources such as wind, solar, and hydroelectric power. Since green hydrogen is produced using renewable energy, it is generally considered a clean fuel that has a low carbon footprint. It can be used in fuel cell vehicles, which are powered by hydrogen and emit only water vapor as a by-product. The use of green hydrogen in transport can significantly reduce greenhouse gas emissions and contribute to a more sustainable future.

  1. Blue hydrogen

It is produced from natural gas using a process called steam methane reforming (SMR). During SMR, natural gas is heated with steam to produce hydrogen and carbon monoxide. The carbon monoxide is then converted into carbon dioxide, which is captured and stored underground. This process is known as carbon captureutilisation, and storage (CCUS), which helps reduce greenhouse gas emissions by storing carbon dioxide instead of releasing it into the atmosphere. While blue hydrogen is considered to have a lower carbon footprint than conventional natural gas, it still relies on fossil fuels, making it less environmentally friendly than green hydrogen.

Both green and blue hydrogen can (and are) be used in fuel cell vehicles. However, since green hydrogen is produced using renewable energy, it is considered the most sustainable and environmentally friendly option for transport today. Blue hydrogen, on the other hand, is considered a transitional fuel that can help reduce greenhouse gas emissions while the world transitions to a fully renewable energy system.

According to a report by the International Energy Agency (IEA), the use of blue hydrogen in transport can reduce greenhouse gas emissions by up to 30% compared to conventional gasoline or diesel vehicles. However, the report also notes that blue hydrogen should be used as a stepping stone to green hydrogen, which is the ultimate goal for a sustainable hydrogen economy.

Final thoughts

At the moment it is still unclear which hydrogen option the markets will favour. Blue and green hydrogen are essentially depictions of two different types of hydrogen production methods that have differences in terms of their environmental impact and production processes. Most experts agree that “green” is the better option as it appears to be a net-zero fuel. It is unfortunately also true that green hydrogen is the most expensive one to make (Forbes estimated the production of green hydrogen at $6/kilogram – 2-3 times more expensive than blue hydrogen). Thus, it can be said that most industry members would opt for the blue option – at least in the short term. While blue hydrogen can help reduce greenhouse gas emissions, green hydrogen remains the more sustainable and environmentally friendly option for transport. So, while we work on making green hydrogen more accessible to the markets, we can remain satisfied with the knowledge that even with blue H we are keeping pace with the global warming race. After all, the use of hydrogen (any hydrogen) as a fuel in transport can significantly reduce greenhouse gas emissions and contribute to a more sustainable future.

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Back to Basics: Port Terminals

Normally, it is easy to think about a particular port as one, indivisible entity. However ports themselves have a number of actors that comprise the overall port community. Just like pieces of a puzzle, port terminals are the different parts that make up a port. In this article we take a closer look at port terminals, looking at the kinds of port terminals that exist and at their corresponding characteristics.

What are Port Terminals?

“Ports are harbour areas in which marine terminal facilities are transferring cargo and passengers between ships and land transportation” by Dr. Jean-Paul Rodrigue and Dr. Theo Notteboom

Essentially, ports are areas where land and sea merge and where cargo ships and vessels dock to load and unload cargo, fuel and passengers. To facilitate this, ports are hosts to terminals. Depending on the size, they can have one terminal or several. These terminals, in turn, are specialised in the handling of the different types of cargo.

Terminals can be divided into three major categories:

  1. General Cargo (unitized cargo)
  2. Bulk Cargo (loose cargo)
  3. Passengers (passengers and vehicles)

Furthermore, within this division of categories of port terminals, more divisions can be identified, each serving a different purpose and classified by the type of traffic or cargo that is processed.

Divided by types of cargo these are:

Diving deeper, we can take a closer look at how these types of terminals operate.  Let’s take a closer look at these terminal types.

  1. Container terminals

Perhaps the most easily recognised terminals in (cargo) ports are ones that can process containers. These terminals are designed to handle the large containers that are used to transport goods across the world. They have cranes and other handling equipment to move containers from ships to trucks or trains for further transportation.

  1. Roll-on/Roll-off (RoRo) terminals

As its name indicates, these terminals are used for vehicles -to roll on and off- like a cars, trucks, and buses that are driven onto ships for transportation. They have ramps or elevators to load and unload vehicles. A modern Roll-on/Roll-off (Ro-Ro) terminal is a facility designed to handle the loading and unloading of vehicles from ships quickly, efficiently and safely.

  1. Liquid terminals

When talking about liquid terminals we intend those handling liquids such as petroleum, chemicals and liquefied natural gas. For this, they have pipelines and storage tanks for the transfer of liquids from ships to land-based storage facilities.

  1. Dry bulk terminals

For handling dry cargo such as grain, coal, and minerals exist Dry Bulk Terminals. They have storage silos and conveyor systems to move the cargo from ships to storage or onto trucks and trains. These terminals are designed to ensure the safe and efficient handling of these goods, while minimizing the risk of damage or spoilage.

  1. Breakbulk terminals

These terminals exist for the handling of cargo that is too large or too heavy to be shipped in standard shipping containers. This type of cargo includes heavy machinery, steel, and lumber that is not packaged in containers, oversized equipment, etc. They have cranes and other handling equipment to move the cargo from ships to trucks or trains. Modern breakbulk terminals use technology to streamline the handling of cargo and minimize the risk of damage or loss, while also incorporating environmentally sustainable practices

  1. Passenger terminals

 Designed to handle the boarding and disembarking of passengers on cruise ships and ferries, they tend to  include amenities such as baggage storage, restaurants, and shopping areas for tourists. Modern passenger terminals are designed to provide a comfortable and efficient experience for passengers, while also ensuring the safety and security of people on board and their belongings, while also incorporating environmentally sustainable practices.

Conclusion

To summarise then it can be said that the type of terminal found in a port depends on the types of cargo and vessels that frequent the port. Some terminals specialize in handling specific goods, such as containers or liquids, while others are equipped to handle dangerous goods. Each terminal has its own unique features and facilities to handle specific types of cargo efficiently and safely. What determines the number of terminals in a port is the size of the traffic that frequents it – busier ports with better connections tend to be hosts to more terminals than smaller enclaves. Nevertheless all of them depend on the efficient management of said terminals and their successful operation is connected to the successful network within the existing port community.

If you are interested to know more, or if you’d like to witness port operations to a vessel or to goods, get in touch and check out our upcoming annual summer school on port operations.

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Smart logistics concept

Back to basics: What is a Smart Port?

This year at the Escola we thought that we would go back to some basic (but modern) concepts connected to intermodal transport. With the series that we are calling #BackToBasics, we will begin explaining some concepts that are central to the transport sector today, but which can be confusing to some. We will kick-start our series with the concept of a “Smart Port.”

Daily Logistik: Asian Development Bank describes a smart port as a port that ensures “no waste of space, time, money and natural resources.”

What is a Smart Port?

 The inclusion of the word “smart” in the name implies the capabilities of the port and the integrated workflow (Marine Insight).  So what is it exactly? A smart port is a modern port that uses advanced technology and digital systems to improve the efficiency, sustainability, and competitiveness of its operations. Smart ports often use digital tools such as sensors, data analytics, augmented reality, big data, digital twins and automation to optimize the movement of cargo, reduce waste and emissions, and provide better services to stakeholders (which include shipping companies, customs authorities, and local communities). Smart ports may also include features such as renewable energy sources, electric charging stations (Onshore Power Supply), and smart infrastructure for logistics and transportation

“The goal of a smart port is to enable a more efficient, sustainable, and profitable port ecosystem that can support economic growth and regional development.”

What are Smart Port’s Digital Tools ?

Smart ports are classified as “smart” because they use a variety of digital tools to optimise their operations. These include:

  1. Sensors: Smart ports often use sensors to monitor various aspects of their operations, such as cargo movement, traffic flow, environmental conditions, and security. These sensors can provide real-time data that can be used to optimize operations and improve decision-making.
  2. Data analytics: Smart ports use data analytics to process and analyse the data collected from sensors and other sources, such as shipping manifests and customs declarations. This data can be used to identify trends, patterns, and opportunities for improvement.
  3. Automation: Smart ports may use automation technologies such as robots, drones, and self-driving vehicles to improve the efficiency and accuracy of certain tasks, such as cargo handling and inspection.
  4. Digital platforms: Smart ports may use digital platforms, such as cloud computing, blockchain, digital twins and internet of things (IoT) technologies, to connect various stakeholders and enable more efficient and transparent communication and collaboration.
  5. Clean technologies: Smart ports can incentivize the use of cleaner technologies, such as electric vehicles and renewable energy sources, to reduce the environmental impact of port operations.
  6. Energy efficiency measures: Smart ports can implement energy efficiency measures, such as LED lighting and energy-efficient systems, to reduce energy consumption and greenhouse gas emissions.

Why? For cleaner, greener ports

The use of digital tools helps smart ports reduce costs, improve service quality, and increase agility and responsiveness to market demands. There is no doubt about it. However, another characteristic of a smart port is its emphasis on sustainable operations and the creation of a greener port.

Below you can find some elements that help characterise a smart port that as “green”:

  1. Promoting recycling and waste reduction: Smart ports can implement recycling programs and encourage the use of reusable containers and packaging materials to reduce waste and improve resource efficiency.
  2. The use of renewable energy: Smart ports can use a variety of renewable energy sources to power their operations, including
    1. Solar power: Smart ports can install solar panels on rooftops, car parks, and other suitable areas to generate electricity from the sun.
    2. Wind power: Smart ports can install wind turbines on land or offshore to generate electricity from wind.
    3. Hydroelectric power: Smart ports located near rivers or oceans can use the flow of water to generate electricity through hydroelectric power plants.
    4. Geothermal power: Smart ports can use geothermal energy, which is generated from the Earth’s internal heat, to generate electricity and heat buildings.
    5. Biomass: Smart ports can use biomass, such as wood chips or agricultural waste, to generate electricity through combustion or anaerobic digestion.
  3. The use of electric vehicles: Many ports have begun to use electric vehicles, cranes and container stackers within their terminals to minimise emissions and ensure cleaner air around the port community area. By providing multiple charging points, smart ports make it easier for the port community companies to operate these clean energy vehicles.

Overall, reducing waste and emissions is an important aspect of sustainable port operations and helps smart ports contribute to global efforts to combat climate change and protect the environment.

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Rail as key strategic freight transport

Railway is key part of the Spanish and European commitment to decarbonise the freight transport sector. Initiatives such as ‘ecoincentivos’, digitalisation, and automation, or “usage per load volume” are some of the challenges and characteristics that have been identified to help include rail as strategic freight transport.

Spain has the most kilometres of high-speed rail (3,402) in the European Union, and is the second country in the world (only surpassed by China). Nevertheless, despite these impressive numbers, beyond the road infrastructure equipment there are still several services linked to this transport that need to be developed, including the developments of digitalisation and the lack of equipment for its use. 

Within the area of freight transport (discounting passenger traffic), the commitment to multimodal supply chains could be the key to achieving the ambitious objectives of the European Union toward environmental goals; especially by making use of an existing and easily applicable means of transport such as rail. 

 

SURCO Operations II, que será en Madrid del 23 al 31 de enero 2023.

SURCO Operations II, que será en Madrid del 23 al 31 de enero 2023.

 

According to the Community of European Railway and Infrastructure Companies (CER), transport accounts for 31% of energy consumption of land transport in the European Union. Rail, for its part, is seven times more efficient than road transport. In terms of emissions, rail accounts for 0.4% of all transport. If only freight transport were to be taken into account, the railway would play a fundamental role to reach a sustainable system and meet the global objectives set, since the train emits 80% less CO2 than its equivalent by road, according to sources from El Economista. In addition to reducing emissions, it reduces external costs by up to 50%: a train replaces 40 lorries and thus helps decongest roads, reduce accidents and lowers noise. It also consumes six times less energy and is eight times better in terms of air pollution.

 

Within freight transport, commitment to using multimodal supply chains could be the key to achieving global objectives, especially by making use of an existing and easily applicable means of transport such as rail.

According to Xavier Flores, the General Secretary of Infrastructures of the Spanish Government, one of the challenges towards achieving the expansion of this system is the fact that only between 4% and 5% of the total freight is moved by rail in Spain. 

 

The most efficient freight transport 

The following factors can be attributed to the efficiency of rail transport:  

  1. Low resistance: thanks to the wheel tread, the elastic deformation of the wheel-rail contact is comparatively low, as both elements are made of steel.  
  1. Optimal aerodynamic drag: In long trains, the friction depends mainly on the cross-section of the vehicle, not the length. This results in minimal energy consumption. 
  1. High-capacity transport: especially when the train reaches European standards of 740 m in length, and by boosting the electrification of railway lines, rail transport becomes a much more sustainable and competitive mode of transport than road for medium and long distances.  

Key for decarbonizing the transport sector 

There are several agreements that have created a roadmap for transport to reduce emissions: the 2030 Agenda, the Paris Agreement and the Green Deal in Europe are just some of them.  

In 2011, the European Commission’s White Paper set a target of shifting 30% of road freight transport over 300 km to rail or inland waterways by 2030. Since then, European governments, institutions and companies have been working to reach agreements to tackle climate change. Combined or multimodal transport has been presented as the most economically and environmentally sustainable option solution for achieving this goal.  

‘Ecoincentivos’: a commitment to the environment 

To get on board the decarbonisation train and encourage the use of rail for freight transport, the Spanish Ministry of Transport, Mobility and Urban Agenda (Mitma) promoted the ‘eco-incentives’ programme. This was designed to last for the upcoming three years within the framework of the Recovery, Transformation and Resilience Plan. 

This initiative has encountered some setbacks, as it is only applicable for those companies that have or will see a minimum growth of 8% in the volume of cargo transported. During the first half of the year this figure was being reached by almost all rail companies in the sector. Nevertheless, starting from June 2022, there was a radical turn downwards experienced by the dependence on such sectors as: chemical, aluminium, metallurgical or automotive, industries which in turn have also seen a fall in their activities, according to sources from the newspaper Transporte XXI. 

Because of this, the Ministry of Transport is considering reformulating its aid plan in view of the decrease in activity suffered by railway companies in the second half of the year. However, the unused part of the total allocated budget for the current year (20 million) will not be lost, but will be rolled over to 2023. 

Furthermore, in accordance with the proposals set out in the “Safe, Sustainable and Connected Mobility Strategy” 2030 of the Mitma (Ministry of Transport, Mobility and Urban Agenda of Spain), called “Intermodal and Smart Logistics Chains”, the Mercancías 30 initiative was announced and will be launched, aiming to promote rail freight transport as the backbone of multimodal logistics chains. From the dual perspective of the post-COVID19 economic recovery and the achievement of the objectives of decarbonisation and sustainability of transport. This programme will allocate around 8.8 billion euros for the development of rail freight, both for infrastructure (6.8 billion euros) and equipment (2 billion euros). All actions are to be carried out before 2030.  

The long road towards digitisation  

The road to rail digitisation is a long one, with outdated systems and obsolete technology being among the main challenges to optimisation. According to McKinsey’s report titled ‘Digitizing Europe’s railways: A call to action‘ (2020), despite its robustness, Europe’s railways have outdated systems that are increasingly difficult to maintain. Some major European railways have several types of interlockings, some of which are more than a century old and use very obsolete technology. 

According to a PierNext article – an initiative of the Port Authority of Barcelona – to become the transport mode of the decarbonised Europe, railway must meet five digital axes: 

  1. Digitalising and interconnecting infrastructures 

  1. Automation as the basis for its operations and infrastructures 

  1. Processing and exploiting data 

  1. Run everything in the Cloud 

  1. Safety and security as top priorities  

The European rail sector can continue to promote technology systems. Digitalisation is key to this, especially when looking to become the central freight transport system in Europe and Spain.  The challenge is significant, as the window of opportunity is narrow, and regardless of their interests or wills, the whole industry must be willing to collaborate to drive change. 

The potential gains in cost and capacity efficiency, as well as the benefits of reduced CO2 emissions, are considerable, both within and outside Spain and Europe. To achieve this, operators, governments and companies must cooperate and act to promote the use of rail and co-modality as the most economically and environmentally sustainable response to today’s global challenges. 

 

Look out for our upcoming courses: SURCO Madrid 2023 – Escola Europea – Intermodal Transport

#DidYouKnow – Intro to the Cold Chain

In the past year the Cold Chain has been in the spotlight. With the mRNA vaccines getting a lot of media coverage, people from all trades sought to understand why the logistics of transporting certain types of products at (sometimes very) low temperatures proved tricky.

The Cold Chain is not a new concept. It has been used for centuries to help transport fresh products, and with the emergence of freezing technologies it made it easier to transport frozen items and medicinal products across large distances. But what exactly is the Cold Chain? Why is it called that and why do we care?

We sought to address these issues in this month’s #DidYouKnow piece:

What exactly is the Cold Chain?

The Cold Chain refers to the management of products that need to transported at stable temperatures throughout the supply chain. Though not limited to pharmaceutical supplies, it has been in the spotlight over the past two years due to the risks associated with the pandemic-related vaccines potentially deteriorating during transport that can’t support the extremely low temperatures needed to maintain their integrity.

There are four main groups of products that fall under the Cold Chain systems:

  • Pharmaceuticals
  • Food
  • Beverages
  • Chemicals

What are the elements of a Cold Chain?

At the root of it, the Cold Chain is a series of logistic management steps taken to protect the integrity and quality of certain types of perishable products. These steps range in product preparation, storage and the transport itself.

The main elements are:

  1. Storage – the transport begins with the storage of the products in a refrigerated facility. These tend to be equipped with refrigerated containers, chillers, cold boxes, cold rooms, and blast freezers, among other things
  2. Packaging – The products have lower risks of contamination if they are properly packaged. This also increases the energy efficiency throughout the whole chain. To ensure proper packaging, refrigerants are used, which include dry ice, gel packs, phase change materials, Styrofoam or gel bricks.
  3. Monitoring – Careful monitoring of the conditions during all steps of the cold chain is essential. Cold Chain managers can monitor things like temperatures and environmental parameters. Nowadays the Internet of Things is being used to help in these processes, and digital software that allow for the management of transport are integral to monitoring the data collected by the sensors stationed throughout the supply chain.
  4. Delivery – The final step of the Cold Chain is the delivery of the product – and this step may or may not involve the provision of temperature-controlled equipment by the transport operators. This depends on the preferences of the buyers and end-users.

Classification

The Cold Chain has a set of standardised temperature ranges that helps transport operators determine which methods are most appropriate for the transport of their products.

  1. Banana – temperatures range between 12 degrees to 14 degrees Celcius
  2. Pharmaceutical – temperatures range between 2 and 8 degrees Celcius
  3. Chill – temperatures range between 2 and 4 degrees Celcius
  4. Frozen – temperatures range between -10 and -20 degrees Celcius
  5. Deep frozen – temperatures range between -25 and -30 degrees Celcius
  6. Ultra low – temperatures fall below -70 degrees Celcius

What kinds of temperature controls are we talking about?

In general the temperature controlled supply chains refer to cold temperatures – which is where the term “the cold chain” comes from. Typically the products transported along these supply chains need to be kept under stable temperatures that range from 2 degrees Celcius (35 degrees Fahrenheit) to negative 70 degrees Celcius (negative 158 degrees Fahrenheit).

What are the consequences of improper cold chain management?

The Cold Chain is very important in maintaining the functionality of today’s supply chains. Failure to do so could result in discolouring, bruising and bacterial growth, as well as product degradation. All of those could then have devastating impacts on public health, as well as affect the satisfaction of the end-users (which would then drive greater demand for the products).

What industries rely on the Cold Chain?

 The main industries that need to use temperature controlled supply chains are:

  • Food and beverage
  • Pharmaceutical
  • Chemical
  • Oil and gas
  • Military

European legislation

The European Union has come up with a set of guidelines on manufacturing and distribution practices of all products. These were designed to ensure both the safety and the quality of the products transported, and include specifications that would need to be applied to storage areas and transport equipment. For more information you can check out the EU Good Manufactoring Practices.

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Want to know more? Check out these additional resources:

Hydrogen

A Spotlight on Hydrogen Fuel Cells

Written by Lidia Slawinska

Written by: Lidia Slawinska, Digital Communications

Over the past decade hydrogen has really taken centre stage in the search for an alternative fuel for maritime transport. Different applications of the gas have been researched and trialled in various maritime scenarios. The most recent and most successful case in recent years, without a doubt, has been the development and implementation of hydrogen fuel cells. In this #DidYouKnow article we take a look at this technology and consider its impact on the maritime industry.

Hydrogen Fuel Cells

Fuel cell technology has been around since the early 1800s. A fuel cell is an “electrochemical energy conversion device that was invented in 1839 by William Grove to produce electricity by combining hydrogen and oxygen into water” (GenCell Energy). Like regular batteries, fuel cell batteries can convert potential energy into electricity, and result in heat as a by-product. In the 1950s, in the heart of the Cold War arms and space races that took place between the USA and USSR, liquid hydrogen was explored as a powerful fuel and finally used to send rockets into space – taking it one step closer towards the hydrogen fuel cell.

In recent years this technology has been considered for freight transport journeys. As more and more research is being done on different sustainable alternatives to fossil fuels, fuel cell technology took centre stage. Using the example of green hydrogen to power ships, researches have adapted Grove’s traditional concept to be able to use hydrogen’s energy and convert it to electricity and heat, and therewith power the vessels’ propulsion mechanisms. In other words, hydrogen fuel cells combine hydrogen with oxygen, and therewith produce electricity. The hydrogen is sourced from a tank that is built into the cell, where it then reacts with oxygen that is “sourced” from air. The resulting chemical reaction produces electricity, water and heat. The water and heat are released as water vapours, and thus are considered zero-emission by-products.

The electricity provides continuous energy to the ships as long as the cell is fed with the “fuel” – in this case hydrogen gas. This proves to be an advantage over conventional electric batteries that have a fixed shelf-life or need recharging . Fuel cells generate very little noise pollution, can easily be modified for different-sized vessels, and have no distinct moving parts. There is a general consensus that the vast majority of vessels could easily be retro-fitted with this technology – therewith lowering the carbon footprint of the shipping industry.

Hydrogen Sourcing

 It is not difficult to understand why scientists are excited about such capabilities of hydrogen – as it is the most abundant element on our planet. However, it is rare to find it in its isolated form. It can found in water and other hydrocarbon chemical elements such as methane. In order for it to be used in hydrogen fuel cells, the element needs to first be isolated through chemical, biological or solar-driven processes. (An interesting side-note is that nearly 85% of hydrogen is already being produced daily in fossil fuel refineries during the processes of removing sulphur from gasoline).

There are sustainable sourcing solutions utilised by some companies in the world. Hydrogen can be produced using biogas, or through electrolysis that uses electricity generated by solar or wind power. Relying on such sourcing alternatives will help keep CO2 emissions low from the entire hydrogen fuel operation in the transport sector.

Sustainable Shipping

One kilogram of hydrogen has the same energy density as a gallon of diesel.

At the end of the noughts, the European Commission began to direct its policies more actively towards sustainable transport amid growing concerns related to climate change. In the 2008 European Strategic Energy Technology Plan, hydrogen and fuel cells were singled out as the new technologies that would help the transport sector achieve a 60-80% reduction in GHG by the middle of the century.

Because hydrogen fuel cells already exist, and don’t require a huge investment of shipowners to install them in vessels, they are being considered as a fore-runner in the field. William Alan Reinsch, Scholl Chair in International Business estimates that “hydrogen fuel could replace 43 percent of voyages between the United States and China without any changes, and 99 percent of voyages with minor changes to fuel capacity or operations.”

Currently there is already one hydrogen powered ship – the Energy Observer – carrying out a six-year trip around the world. In its virgin voyage, the ship uses solar panels, wind and wave turbines to power the process. Its success coud determine whether the method could prove efficient and effective for various ocean voyages.

Challenges to Hydrogen

It wouldn’t be prudent to assume that hydrogen was the faultless solution that would eliminate all GHG within the shipping industry – as it has some challenges and complications. Hydrogen gas is extremely flammable, and its chemical properties mean that it can burn at both low and high concentrations when combined with oxygen in an uncontrolled reaction. Shipowners need to make sure that important safety measures are in place to lower the risk of such explosions during their transport and storage.

An added complication that would need to be addressed is that the element (even in its liquid form) is very energy dense. This means that the fuel cells themselves take up more volume on larger vessels – potentially lowering the profitability of the voyages themselves for ship owners (with diminished cargo spaces on the vessels themselves).

Finally, the cost of the type of hydrogen sources is also important to take into account. Hydrogen Fuel Cells use so-called “Green Hydrogen” (there are three types – Gray, Blue and Green, with Green being touted as the most ecologically sourced) – which currently is the most expensive hydrogen available on the market. For the shipping industry to be truly sustainable, this is the hydrogen type that would need to be used, and therefore its costs would need to be adjusted to make it appealing to the private sector.

A Greener Future

There is no doubt that the path ahead for the shipping industry is difficult and full of unknowns. There is no one-answer-fits-all solution to try to eliminate GHG emission from the oceanic trades. Different solutions are currently being tested and are being developed at astonishing rates. More than one would need to exist for the goals set by the IMO for 2050 to be reached.

Hydrogen Fuel Cells are proving to be very effective and, if embraced by the shipping industry, could prove integral towards the goal of zero emissions maritime transport. Even though no giant vessels have embraced the technology, smaller ferries and ships have begun operating in the USA, France, Norway and Belgium. Moreover, “oil major Royal Dutch Shell has invested in several hydrogen production projects in Europe and China, arguing that hydrogen is “advantaged over other potential zero-emissions fuels for shipping,” as attested by William Alan Reinsch – a huge sign that even the traditional fuel sourcing companies are coming on board.

There is still a long road ahead, but with the continuous innovations from scientists and financial contributions from big players in the industry, the goal of achieving global net zero emissions by 2050 could, perhaps, be attainable. Hydrogen fuel cells could be responsible for a significant step in that direction.

Sources

Infographic: Why Real-Time Data Matters to the Maritime Industry

Big Data is a field that extracts and analyses data from data sets that are too large or complex to be dealt with by traditional data-processing application software. But why does it matter to the maritime industry? For this month’s #DidYouKnow series we have prepared an infographic that details the main concepts that surround real-time data and maritime transport. 

Curious to know more? These and many other concepts are covered in our Motorways of the Sea course. Contact us to find out what are the upcoming courses this year.

Why real-time data matters to the maritime industry 1/2 Why real-time data matters to the maritime industry 2/2

#DidYouKnow: Spotlight on Algeria

Mohamed Lazhar Benaissa

Mohamed Lazhar Benaissa Academic at the Ecole Nationale Supérieure de Technologie – ENST – Alger

In 2017 the Escola Europea, along with the Escola’s founding partners, has launched the MOS Magreb project. Its objective was to increase the cooperation between the countries in the North and South of the Mediterranean Sea. The project evolved into TransLogMed, which now counts with 42 partners from Spain, Italy, Morocco, Tunisia, Algeria, with the goal of incorporating other partners from Egypt in the future. The long-term objective of this project is to foster the development of the Motorways of the Sea between the Mediterranean countries, which will in turn help promoting inclusive growth and youth employability, as well as sustainable development in the region.

This month we have caught up with Mr. Mohamed Lazhar Benaissa, an academic at the École Nationale Supérieure de Technologie (ENST) in Alger, the deputy director for external relations and continuing education and a lecturer at the Escola Europea to give us an overview of the logistics scene in Algeria.

 

Logistics in Algeria

Algeria’s geographical location as the largest country in Africa, situated at the crossroads of important trade corridors (Europe-Africa, Mediterranean Sea), gives it the opportunity to play a major role in the field of logistics. To the north, Algeria has a 1,200 km long seafront overlooking the Mediterranean Sea and is home to 11 trading ports through which more than 95% of its foreign trade passes. However, this situation should not mask the numerous constraints related to the characteristics of these ports and their current organisation. According to the United Nations Conference on Trade and Development, the Maritime Transport Connectivity Index [1]for Algeria in 2019 is only 12.81/100, far behind countries such as Egypt (66.72) and Morocco (58.19).  This is because the ports are often of ancient foundation[2] and are located within large cities that have prospered without sparing the land reserves necessary for their harmonious development. Whether first or second generation, these ports are subject to simple load breaks and do not meet the criteria that characterise modern logistics ports[3]. Currently the feedering used consists of coupling transoceanic containerised traffic headed towards large European ports with short-distance traffic headed towards Algeria, which increases the transit time of inputs. This will subsequently see their time lengthening once again during the transhipment operations. This results in insufficient yields and malfunctions that generate incessant bottlenecks and yields additional logistics costs.

The Algerian fleet

As regards the Algerian maritime fleet, as of the end of 2017, it was made up of 16 (often) obsolete units distributed among :

  1. 8 bulk carriers, 4 multi-purpose vessels and 2 RO-RO vessels belonging to the public company CNAN[4],
  2. 1 RO-RO and 1 bulk carrier belonging to the private company Nolis, a subsidiary of the Cevital[5]group.

What about containerisation?

As for containerisation, which has been gaining significant market share value over the past several years, it has proven of great benefit to foreign shipping lines as, in the virtual absence of the national flag, it allows them to freely set transport prices. According to World Bank figures[6], container traffic increased from 2007 to 2018 from 200.050 to 1.465.800 TEUs respectively, which is equivalent to an average annual growth rate of 20.6%. Given this growth opportunity, it is not surprising that we are witnessing the establishment of international terminal operators in Algerian ports such as the Singaporean Portek in Bejaia and the Emirati DP World in Algiers and Djendjen.

Where is Algeria on the digitisation scene?

During port passage, the lack of a rapid information systems makes it difficult to forecast the capacity of goods to be loaded, which, in the case of temperature-controlled products for example, would keep them on the quayside without any guarantees of preservation and respect for the cold chain. At the time of writing, only the Algerian customs can use a computer system called SIGAD in order to speed up the customs declaration circuit. In its most recent version, this system has a risk management system that classifies goods according to 3 circuits: green, orange and red. In the green circuit, goods are not subject to examination. In the orange circuit, the control consists of a documentary examination and in the red circuit, a physical inspection of the goods is required.

What of intermodal transport?

In terms of land transport infrastructure, Algeria has substantial networks whose quality has improved in recent years. Nevertheless, the motorway network is still insufficient and the lack of connections to several ports bears a cost. The rail network, for its part, is still in the process of development in terms of quality and coverage.

Road transport logistics, which dominates 90 per cent of goods flows, is only slightly outsourced by companies, since more than 50 per cent of the market is still handled by own-account transport. There is currently a growing awareness of the advantages of using transport for hire or reward and outsourcing the transport function, and the opportunities for growth for this sector are ample.

The provision of road transport services has long been a public monopoly. The opening up of the sector in 1988 led to an atomisation of the sector through the creation of very small companies with vehicles of all ages and of varying condition. It is therefore more a question of small-scale, or even informal activities that risk increasing the financial and organisational risks and reducing the scope to optimise the services offered. Air transport plays only a marginal role and rail freight activity, which is already weak, has been in inexorable decline for decades and is limited to heavy goods transport. Multimodal transport is almost non-existent.

Distribution is dominated by wholesalers present in most economic sectors and in particular in agri-food products (beverages, sugar, etc.). Few of them follow known logistics models, such as Numidis of the Cevital group. Indeed, with the exception of large conurbations (Algiers, Oran, Sétif…), where large modern warehouses are beginning to appear, storage facilities are of modest size (from 2 to 4,000 m²), of old-fashioned design, lack functionality and do not have special equipment such as loading docks. The players are either industrialists (acting on their own account), wholesalers or retail traders.

Logistics Warehouse in Algeria

Modern logistics warehouse in Bouira (Cevital)

Thus, logistics services are essentially limited to the subcontracting of transport operations.

Can you tell us a little bit more about the training situation in Algeria?

The current supply of training is insufficient in many areas, no doubt due to the lack of formal demand from the sector and a lack of impetus from the public authorities.

The Algerian authorities have been trying to improve the logistics situation since 2007, when the first master plan for the establishment of new logistics platforms was prepared. However, the implementation of the latter has not yet materialized. The other actions undertaken were :

  • The World Bank has been approached to prepare a logistics strategy and upgrade the legislative and regulatory framework, as several ministries and agencies are currently involved in logistics and are sometimes in conflict of jurisdiction;
  • The preparation of a project for the construction of a modern port in Hamadania about 100 km west of Algiers with a Chinese partnership;
  • Digitisation through the implementation of an electronic port one-stop shop. This will help unite the whole logistics chain of the ports and the segments that interact in its activities. It will also enable the digitisation of procedures and a better coordination and planning of port operations.

One can already wonder whether these actions will end up putting logistics in Algeria on the rails of modernity.

 

References:

[1] https://unctadstat.unctad.org/wds/TableViewer/tableView.aspx

[2] With the exception of the oil ports of Arzew, Skikda and the general cargo port of Djendjen, built after Independence, the rest of the infrastructure was built between 1840 and 1959, initially built to allow exports during the time of colonization.

[3] Algerian ports are characterised by shallow draughts and narrow gravel pits, which are incompatible with modern port operating requirements.

[4] The average age of the CNAN fleet is between 30 and 35 years, which corresponds to that of the technical reform.

[5] The two Nolis vessels are mainly used to cover the transport needs of the Cevital group.

[6] Site https://donnees.banquemondiale.org/indicateur/IS.SHP.GOOD.TU?locations=DZ consulted in May 2020