ERA OF RISING FUEL COST AND ENVIRONMENTAL IMPACT
In the era of rising fuel cost and the environmental impact awareness, industries should collaboratively work together to address the issues for better sustainability. There are so many initiatives for cost savings and carbon emission programs. One of the single and most none value added logistics activities that do not add much value to the consumers is the empty backhaul. An empty backhaul is a when a shipper send goods to the customers destination, it returns empty known as an “empty backhaul”. This is a complete waste of energy, resource, and produces more trucks in the road as well as emission of green house gas which is a major negative contribution to climate change.
MANANUFACTURING AND TRANSPORATION TAKES THE LEAD IN ENERGY CONSUMPTION
To drive the point, I would like to bring you to the statistics of energy consumption. Transportation accounts for 36.3% of national energy consumption. It is just one percent below the manufacturing sector. In fact, if you are looking from a total supply chain energy consumption in Thailand is 85.7%. The fact sheet is from the joint study of the World Bank and NESDB, the Energy Consumption in KTOE (Kilo Ton of Oil Equivalent) in Thailand in 2006. The sartorial ratios are as follows:
It has been estimated that about 96.5 percent of all road transports returns with an empty backhaul. The benefits of backhauling are well accepted as a major cost saver for shippers and providers.
GREEN TRANSPORT WORKING GROUP
I am so happy that Thai Logistics and Production Society (TLAPS) and ECR Thailand, has collaboratively set up the ECR Green Transport Working Group (GTWG) to address the issue of rising fuel cost, carbon emission, and a safer, healthier society from the hazards of transport vehicles. This will lead to the development of a National Backhaul Exchange and recording system with funding from the Office of SMEs Promotion (OSMED). From the government sector, Mrs. Anong Paijitprapaporn, Director of the Logistics Bureau, DPIM, Ministry of Industry, and Mr. Panot Punyahotra, Director of the Office of Trade Logistics, DEP, Ministry of Commerce have agreed to be advisors of the GTWG. The Green Transport Working Group kick off the first meeting on Feb 25, 2011, chaired by Dr. Krizz (Nuthanakrizz Chantjiraporn) and vice chair by Mrs Poachaman Passawat. The joint public and private initiative is necessary for an open collaboration, non conflict and good governance system for the betterment of the industry and society. Although the kick off meeting by TLAPS and ECR Thailand under the Federation of Thai Industries but will expand the working to include the Chamber of Commerce and TNSC and other interest group to collaborate and help to have a stronger transport system.
Although the Office of the SME Promotion (OSMEP) has approved the funding and the roll out of a national backhaul system proposed by TLAPS, but the requirements and standard must drive from the cooperation of the industry and should be on a national scale or else it will not work.
ISSUES TO BE ADDRESSED BY GTWG
When addressing the issue of backhauling transport at a national level, service level standards by big users, total cost saving opportunities explored, openness for collaborations, code of practices, industry standard of cooperation, a common neutral not for profit green transport portal, ease of communication, use of SMS or phone for backhaul updates by small truck operators, certifying operators for truck safety, safety and eco-driving, and many activities are part of the working group to come up with practical solution and practices. (at the time of this report, small operator has no means to communicate to become an effective part of the supply chain because they don’t have web access).
The national portal will incorporate the above as part of the system functional specifications.
After the endorsement and adjustment of major users to proactively engage the system to support the backhauling effort, the next step is to engage the transport operators. Transporters include small operators will be certified and classified by their safety, quality, safety standards and even the type of commodity transported should be open to the potential users. By providing the right information, the systems must be user friendly and the service should be free and members should not be obligated to invest in any expensive gadgets. The focus will include phone access as everyone has phones and are not phobia to the use of phones.
When small operators are classified and there is a certification, than government agencies know what it the target to upgrade operators. The whole transport supply chain will be more cost effective, cheaper and safer. The next is to study if there is the possibility of carbon credit and the participation of the UN Voluntary Carbon Reduction program or any other scheme appropriate for these green transport initiatives. At least an incentive or recognition scheme must be set up to give recognition to the active participants of the program. The Green-Ambassador dot com website will announce the active participants and their company engaged in green initiatives and promotion of sustainability as Green Ambassador.
We are very happy that Mrs. Anong Paijitprapaporn, Director of the Logistics Bureau, DPIM, Ministry of Industry, and Mr. Panot Punyahotra, Director of the Office of Trade Logistics, DEP, Ministry of Commerce see this initiative as an important industry driven project and will assist the GTWG as advisors. Their valuable advisors and participation will make the joint private public collaboration to the transport sector.
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