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

Rail as key strategic freight transport

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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

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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.

Sources:

Want to know more? Check out these additional resources:

Hydrogen

A Spotlight on Hydrogen Fuel Cells

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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

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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

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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

The Ship Agent

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When we think about the arrival of a vessel to the port, the first thing we think about is the loading or discharging of the cargo. Even though this is not entirely incorrect, many ships have more specific requirements and needs upon arrival. This is where the role of the ship agent comes in, and this is what we chose to focus on in this post for our #DidYouKnow series.

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