an overview of its for freight and logistics in europe

Prof. G.A. GiannopoulosProf. G.A. GiannopoulosDirector, Hellenic Institute of Director, Hellenic Institute of Transport Transport Tel Tel : : +30 2310+30 2310 498261498261EmailEmail: : [email protected]@certh.grWeb: www.hit.certh.gr Web: www.hit.certh.gr

An overview of ITS for freight An overview of ITS for freight and logistics in Europe and logistics in Europe

General facts and figures for European freight Transport• Traditional freight forecasts suggest continuous

growth of Freight transport across Europe.

• Between 2000 and 2020 the estimated total growth

was (in 2000) 20%, in tn - kms, but now probably

less.

• Growth rates for freight transport traditionally

exceed those of the economy in general.

• “Intermodal” transport (i.e. using more than one

transport mode for a major part of the door-to-door

journey comprises as small 9-15 % of the total freight

market ( more on distances over 500 kilometers).

Modal split 1995-2006 (Freight tn-kms, EU-27)

Rail freight will compete with road only if:1. A new rail freight business model, is adopted which is

characterized by: A more customer oriented philosophy; Open competition on rail tracks with all actors allowed

to access the network on equal terms; A multi-products marketing oriented culture rather

than the traditional mono-product rail freight transport service culture;

Use of new skills, techniques, competences, marketing knowledge, tools and technologies, management and training.

2. The rail part is fully integrated to the overall (demand-driven) supply chain management of logistics activities.

3. The conflict with passenger transport, and the limited capacity of the lines is resolved.

Freight by railway transport is loosing Freight by railway transport is loosing ground (<10% in EU12, <20% in EU27)ground (<10% in EU12, <20% in EU27)

… Maritime transport:

1. is particularly suited for long distance freight.

2. forms the backbone of major intermodal

corridors across Europe and the world.

3. shows upward trend in spite fluctuations in the

economy.

4. is particularly promoted by EU’s e-maritime

and MoS policies.

Freight by maritime transport is going Freight by maritime transport is going strong and has quite an untapped strong and has quite an untapped potential, because … potential, because …

Areas of Innovation in Freight & Logistics (in red red the ITS related)

onon--vehiclevehiclepowertrain

turbo-charginghybridisation

electric vehicles

chassisLHVs

double-deckteardrop profilelightweighting

tyresLow rolling resistance

exhaust

particulate traps

SCR

ancillary equipmentrefrigeration

air conditioningpower deck / tail-liftanti-idling devices

fleet (management)fleet (management)

Dynamic vehicle routing

ICT apps ‘ control tower’

Online freight exchange

networknetwork--basedbasedAutomatic traffic monitoring and reporting

Active traffic management

Electronic road tolling

materials handling Load handling

Unitised loading New systems of intermodal transferNew loading / unloading devices

Logistics

Terminal management apps

Supply chain event management“Green” logistics

powertrainturbo-charginghybridisation

electric vehicles

chassisLHVs



electric vehicles

chassisLHVs



electric vehicles

exhaust

particulate traps

SCR

chassisLHVs



electric vehicles

tyresLow rolling resistance

exhaust

particulate traps

SCR

chassisLHVs



electric vehicles

Ancillary equipmentRefrigerationair conditioningpower deck / tail-liftanti-idling devices

TyresLow rolling resistance

Exhaust

Particulate traps

SCR

ChassisLHVs Double-deckingteardrop profileLight-weighting

Power trainTurbo-charginghybridisationelectric vehicles

ICT / ITSICT / ITS

Dig. Tachograph

Tracking

Mobile coms

Route guidance

Electronic POD

Dynamic routing

Smart cruise control

CO2 monitoring and reporting

B2C & B2A apps Door_to_door transport chain monitoring and control PLATFORMS

Environmental traffic management

Definition of ITS / ICT (‘Soft infrastructures’)

ICT stands for “Information and Communication Technologies”, including individual technologies and systems using the capabilities of modern Information Technology (IT) and Telecommunications. ITS “Intelligent Transport Systems” is the combination of several ICT applications, that are put in place at the:

vehicle or load, network infrastructure, and “office”

in order to optimise the use of the network, the efficiency and effectiveness of the door-to-door transport of persons and goods, and provide reliable, real-time information and data to the users in an “intelligent” way.

Mainly proprietary systems of one large, usually globally operating forwarder or integrator, for resource allocation / fleet management, consolidation and sorting of shipments, positioning and navigation, automatic vehicle or load unit identification via RF tags, barcodes, freight management functions, re-routing and re-scheduling. Distinction between:

• Onboard the vehicle : Information about the vehicle or the load Relate vehicle to its “environment” (e.g. establish location

information ) Link vehicle to the home-base Mobile office (e.g. send quotes, confirm bookings or

delivery, send electronic documents, etc) • Home-base systems:

Transport planning, route planning, fleet management, instructions to vehicles

communication from vehicle.

A TYPOLOGY OF FREIGHT ICT APPLICATIONS AND A TYPOLOGY OF FREIGHT ICT APPLICATIONS AND SYSTEMS (1/7)SYSTEMS (1/7)

ICT for the actual “transport” ICT for the actual “transport” operation operation (within a mode)(within a mode)

• Door-to-door transport chain monitoring and supply chain management in a multimodal environment

• “Intermodal” information on schedules and services (using common definitions and data models)

• Interoperable and seamless data exchanges between all the parties in the intermodal chain irrespective of the technologies they are using for data capture.

• Integrating subcontractors and fulfilling functions across transport modes (usually through proprietary systems ).

• Functions of “Network operators”, that operate systems for data collection (positioning, etc) that employ roadside or rail side tags to measure traffic flows or provide vehicle or rolling stock positioning information

• Algorithms for the optimization of decision making, scheduling and dynamic re-scheduling along the door-to-door transport or supply chains , and

• Many more …


ICT for Integrating Transport ICT for Integrating Transport operations operations (several modes)(several modes)

TransportCentreOperator

Consignor

Forwarder

carrierRail

Operator

authoritiesCustomsHazGoods

TransportCentreOperator

Consignee

Forwarder

carrier

RailOperator

authoritiesCustomsHazGoods

“Virtual”Terminal

(Internet Based)

Forwarder’sdatabase

carrier’sdatabase

Other databases

. . . . . . . .

User View

The fundamental concept of Intermediary “Platforms” (Web based )

Diagrammatic representation of the idea of a “ICT Platform”, “unifying” data from various sources and presenting them in a user friendly

way to the end user.

• Systems that are operated at specific sites such as ports and other Terminals, Terminal gates, Freight distribution centres, border crossings, etc.

• Typical Functions: Terminal management, automatic vehicle or driver identification, warehouse operation and management and planning functions, loading / unloading operations, etc. Also linking technologies such as freight scanning (e.g. barcodes) with other transport related tasks such as sorting, inventory systems, or invoicing and deduction.


Site-specific ICT systems Site-specific ICT systems

ICT systems for fulfilling public administration related tasks such as: dangerous goods declaration; customs clearance systems; electronic fee collection for toll roads; smart card based functions such as driver ID, electronic tachograph, etc. Used in order to:▫ Implement safety, security or revenue mechanisms

▫ Run (public, or private) administrations such as customs or port authorities

Often outsourced to private operators or PPPs (Public-Private-Partnerships).

Special emphasis on systems that connect transport related data to administrations for advance clearance and simplification of procedures (e.g. for containers green lanes).


Public Administration related systemsPublic Administration related systems

• Freight deliveries in urban areas• Coordination of shippers and carriers • Consolidation of shipments from various shippers,

carriers, and customers in the same (energy efficient and environmentally friendly) vehicle. E.g. the “City Logistik” concept developed in Germany.

• Central concept the City Distribution Center (the facility where shipments are consolidated prior to distribution).

• Individual routing and control depending on the individual vehicle profile, type of cargo and traffic situation.

• Access to real travel time and traffic status information.


Systems for City logisticsSystems for City logistics

• Concepts, technological solutions and business models for

information service platforms centered on the context of

individual cargo items and their interaction with the

surrounding environment and the users.

• Possibility to dynamically combine services at different

levels.

• Possibility for services associated to any specific cargo

item, context and user request.


Individual load item applications - E- Individual load item applications - E- FreightFreight

e.g. “Intelligent” containers

• Convergence between ICT and e-business technologies for full exploitation of Internet-based operations, electronic commerce, etc (business-to-consumer and business-to-business sides of the freight transport operation)

• Internet-based communities of interest and electronic auction mechanisms.

• Internet-based transport exchanges (business models from mere brokerage to full transport responsibility) - various interfaces (web/internet, mobile phone/handheld, roadside kiosks, etc).

• “Customer-focused” ICT systems (to help shippers find appropriate transport connections and modes, simplify transport-related tasks, or track bookings and shipments)

• Ancillary transport functions such as customs brokerage, insurance or warehousing


Freight business applications (E-Freight business applications (E-Business)Business)

Key technologies developed and implemented:• Mobile transmission technologies - GSM transmission

networks• GPS (Global Positioning Systems) for Automatic Vehicle

Location (AVL) and Computer-Aided Dispatch (CAD). • ‘Mobile Internet‘ capabilities - high speed multimedia,

document exchange, access to other ICT services• RFiD and other read / write chips, (meta-language for the

definition of non-proprietary data exchange standards).• Route guidance and navigation systems conventional or

congestion sensitive• Onboard sensors for vehicle mechanical condition,

monitoring of the state of the loaded goods, automatic payment for toll roads, vehicle or load unit identification at terminals, etc.

• Smart cards applications, electronic tachograph, electronic driver licence, storage of load-related information, etc.

KEY ICT DEVELOPMENTS TODATE (1/6)

Interoperability and standardization of messages• UN/EDIFACT - EDI• XML (eXtensible Markup Language) perhaps the most important

data interchange format for e-business. Several variations produced: o ebXML, (United Nations Centre for Trade Facilitation and

Electronic Business (UN/CEFACT) and the Organization for the Advancement of Structured Information Standards (OASIS)

o TransportXML, (an XML based standard for electronic collaboration within and/or with the transport and forwarding industry in the period from 2001/2002)

o Shortsea XML for streamlining the administration processes within a short sea based logistics chain for scheduling, booking, operations and invoicing.

• SOAP (Simple Object Access Protocol) (for remote procedure calls between applications in a distributed environment)

• ... And others


Progress in creating reference Architectures for ICT based Freight and logistics operations

• Need for an overall common “Reference architecture” for transport management and data transfer and use.

• Need for common generic data models, process specifications and message schemes.

• FREIGHTWISE - a standardized platform for freight transport (in terms of roles, functions, processes and messages).

The issue still remains largely unresolved …


Linking Traffic Management to Freight Transport operation and management . Info available on:

▫ Traffic conditions, closures of streets, traffic restrictions, etc.

▫ waiting hours at specific congestion “hotspots” such as entry to ports, or railways, or borders to third countries

▫ schedules of ferry links▫ parking areas and service stations for freight transport▫ the height of bridges (services still being developed)▫ permits for freight transport▫ freight transport related associations▫ general information on ports▫ customs (in the port or freight centers) including their

location, opening hours, etc.▫ terminals (locations, etc).

KEY DEVELOPMENTS TODATE (4/6)

Freight operations Advanced ICT systems simplifying and automating freight operations, for:a. commercial vehicle activities, e.g. electronic vehicle and

cargo identification, location and tracking, pre-clearance and in-motion verifications.

b. integrating the basic and enabling technologies into data “platforms” for presenting information to both the vehicle and the control center at the office, or even at the roadside. Information combined into internet based “platforms", allows a commercial vehicle to share urgent information with nearby vehicles, and to dialogue with its control center, or with infrastructure operators and service providers.

c. Virtual business-to-business communities of interest (European Cooperative Resource Management of Unit Loads - Trident Transport Intermodality - Data Sharing and Exchange Network of ERTICO).


SMART Container Chain ManagementSMART Container Chain ManagementA “Single Window” Platform

SMART-CM PlatformSMART-CM Platform

Value-Added S ervices

L ogistics V is ibility “Neutral” Vis ibility

Neutrallayer

SMART-CMplatform

X ML 1

X ML

Vendor-specific XML

Technology-agnostic/neutral XML

X ML 1 X ML 2 X ML 3

E DCE DCE DC

XML

K &N C O S C ON DHL

X ML

X ML

XML

S AVI (S IC IS )

S AVI (S IC IS )

S AVI (S IC IS )

G UI

G UI

O therO therO ther

T“Neutral” / S ecure/un-tampered

end-to-end (e.g. digitally s igned)T

T

Business logistics layer

Advanced Fleet and Terminal management

• Systems that enable communications between dispatchers

in control centers and vehicle operators in the field, for

timely and correct fleet management (through data

delivery to the planning and monitoring systems of the

firm).

• Systems for integrated management and control of

Terminal operations (e.g. port container Terminals,

Freight Centers, etc).


Thessaloniki Container Terminal Thessaloniki Container Terminal PanoramaPanorama

Entry/Exit ControlEntry/Exit Control

Yard PlanningYard PlanningLoading/Unloading ControlLoading/Unloading Control

Resource ManagementResource Management

e-Documents Handlinge-Documents Handling

The integrated The integrated FRETISFRETIS Terminal Terminal management system operating in management system operating in Thessaloniki portThessaloniki port

Entry/ExitControl Systems

GeographicalInformation

System

Central Management System:• Central Data Base• Interfaces for the real time

communication with the control points

Yard ManagementSystem Loading/Unloading

Control Systems

• Formal Documents Submission System• Information Dissemination System• Promotion System

Yard PlanningSystem

Yard InventorySystem

AdministrativeSupport System

CentralCentralDataBaseDataBase

EKLU2362147EKLU2362148

Invoicing Invoicing

BenefitsBenefits from ICT Applications in freight Transport operations• Traditionally monetary benefits vary by type of

application, size of fleet / freight carried, overall

environment (critical mass of other applications).

• For fleet management applications overall benefits

can vary from 5 – 20% of cost reduction for the

daily operation of the fleet (per vehicle).

• For Terminal management systems the total benefit

may result from various sources but reduction in

delays per operation (e.g. entry / exit control) can

vary from 2% to 50% of the time required.

Steps in implementing Steps in implementing ICT Applications in freight Transport1. An interested party will have to approach a

specialized service provider in IT and / or logistics

for advise and an initial feasibility study which will

calculate the expected costs and benefits of the

application for the specific application.

2. Based on this study the interested user will decide

on the scope and extend of the investment

necessary.

3. Traditionally monetary benefits may take from 3 to

10 years to accrue (i.e. after the amortization of the

investment).

Vision of an ITS system materializing : Integration, Intermodal context, Internet based, and Intelligence.

The future Freight Intelligent Transport System (Freight ITS) will incorporate Globally integrated ICT applications facilitating freight movement and data transfer.

Main challenge: increase the intelligence of freight transport operations and make it available to all players irrespective of their size.

The FUTURE …

A. The European Union Action Plan on freight / logistics; Several initiatives in the field of maritime

transport, (MoS, European ports policy, Marco Polo);

Freight-oriented rail network; Freight research agenda.

B. The National GovernmentsC. Other Organizations (UNECE, ITF, EIA, etc)D. Major Market players and the logistics

industry

Stakeholders and policy makers inStakeholders and policy makers inEuropean Freight ITSEuropean Freight ITS

More than 30 actions to be implemented over the More than 30 actions to be implemented over the coming years coming years boosting efficiency and sustainability

• Innovation, Encourage the use of ICT in freight. It outlines the vision of paperless information flows accompanying the physical shipment of goods. Also make traffic management more efficient by promoting ITS

• simplification, Paperless transfer of information on the transport of goods - create a single transport document to replace the many mode-based versions etc.

• quality, Tackle the more than 500 reported bottlenecks, which create unnecessary obstacles to the efficient flow of goods, from lack of parking spaces for trucks, to red tape.

• green corridors. Improve urban environments and create environmentally sensitive solutions along major European transport corridors.

• Updating the regulatory framework. developing standards for loading units suitable for all modes of transport. Also review the current limitations of road vehicle weights and dimensions.

The EU Freight Transport Agenda (1/5);Action Plan for Freight Transport Logistics (18 October 2007 )

The EU Freight Transport Agenda (2/5) ITS in the EU’s Transport Policy“Information systems are essential in overseeing complex transport chains involving several actors, as well as in informing transport users of available and alternative options and of possible disruptions.

Transport documents and tickets should be made electronic and multimodal, while preserving privacy of personal data. Questions of liability, dispute settlement and complaints handling across the whole transport chain should be clarified and streamlined. ICT solutions should be developed as a support for better management and integration of transport flows.”

• Objective: Shift international increase off road (12 bill. tkm/year)

• Duration: 2003 - 2010• Budget: 100 Mio€ for 2003 – 2006 (Double currently) after

Mid-term review in 2006 • Modal shift actions, Catalyst actions, Common learning

actions• Scope

▫ All segments of the international freight market▫ Services only, i.e. no RTD, no studies, no (core)

infrastructure

Marco Polo is still relatively small in spite its recent increase

The EU Freight Transport Agenda (3/5) The Marco Polo programme

Aim to :▫ improve existing or establish new viable, regular and

frequent maritime links▫ make transnational maritime links as important as

motorways and railways in the trans-European network▫ improve links with countries isolated by natural barriers▫ improve links with islands and peripheral countries ▫ Secure key infrastructure at ports ▫ Complete the Trans-European networks.

In essence the MoS is a new logistics concept aiming at the high quality integration of door-to-door supply chains, with the maritime transport mode as the workhorse – therefore a prime promoter of intermodality !

The EU Freight Transport Agenda(4/5) Motorways of the Sea

European axes of

MoS

The EU Freight Transport Agenda(5/5)

The EU e-Maritime initiative• The EU e-Maritime initiative is intended to be a broad and all-encompassing initiative going beyond pure maritime transport services; addressing additional supports to customs, border, environmental, fishing control services and demands emphasizing the importance of the whole and the interdependence of the parts in any area of operations that is applied .

• The EU e-Maritime takes fully into account the international nature of shipping and the recommendations of the international organisations concerned with maritime safety and security (idem e-Navigation)

The EU e-Maritime components

1. The e-Maritime Strategic Framework

• Will specify a coherent view of the way Maritime Transport could operate at a future date (say 2020)

• Reflects the framework directive on the key stakeholder requirements, basic principles to ensure interoperability (standards), policies, legal, technology, human factors, ongoing developments.

• To be completed by 2012

2. The e-Maritime Support Platform

• Enabling technologies: communication, navigation and surveillance networks

• EU value adding networks: SSN, databases, e-Customs, e-Freight

• Standards, ICT and software engineering tools for interoperability and integration of data and services

• facilitating the development and deployment of e-Maritime applications

• To be completed by 2015

3. The e-Maritime reference Applications

• Demonstrating the potential benefits of e-Maritime in real life situations involving administrations and business across Europe

• Grouped in main categories of operations where benefits can be easily appreciated. Administration Domain Applications; Improved Shipping Operations; Improved Port Operations; Integration into Logistic chains; Promote seafaring profession and sea-shipping

• to be in operation by 2018

The EU e-Maritime will be implemented through:

• A framework Directive that embodies legal, organisational, and technical frameworks (including Human Factors, Change Management, Standards) that defines: The scope, context, definitions and the minimum

requirements The general rules seeking the active encouragement of best

ICT practices throughout the industry. The key application domains where competitiveness and

performance can be strengthened and enhanced The objectives, structure and mandate for policy/technical

bodies that would facilitate or undertake the development solutions and the regulatory framework to support them (through subsequent Directives).

• Subsequent Directives or soft and voluntary measures will address and link specific objectives, e.g. e-learning and improved working conditions with information management.

Related Developments

Community Vessel Traffic Monitoring and Information System Directive (2009/17/EC, amending 2002/59/EC)

Other directives on:

e-Navigation

e-Customs

e-Freight

Integrated Maritime Surveillance System - EUROSUR

A new priority: Decarbonisation Framework for Logistics

Weight of goods produced / consumed

Weight of goods transported by road

Road tonnes-lifted

Road tonne-kms

Total vehicle-kms

carbon intensity of energy

energy consumption

CO2

modal split

average handling factornumber of links

average length of haullength of links

average load on laden trips

average % empty running

Vehicle operation / fleet management

energy efficiency

Similar analyses for other modes

timing of deliveries

aggregate key parameter - lever

supply chain structure

asset utilisation

energy efficiency

carbon content of energy

modal splitmodal split

warehousing / materials handling

space / equipment use

Carbon Dioxide emissions from transport are unsustainable

“Transport accounted for close to a quarter (23.8 %) of total GHG emissions and slightly more than a quarter (27.9 %) of total CO2 emissions in the EU-27 in 2006.”

“Compared with 1990 levels, in no other sector has the growth rate of GHG emissions been as high as in transport.”

The example of the Decarbonisation Scenario for UK Road Freight in 2050

Total tonne-kms stable at 2007 level

Road share of freight tonne-kms reduced from 64% to 50%

% of truck kilometres run empty reduced from 27% to 17%

Average weight-based load factor up from 59% to 70%

40% improvement in energy efficiency

30% reduction in the carbon content of the energy

76% reduction in CO2 emissions

Combination of radical changes in key parameters required

Ignores complex inter-relationship between freight transport and other activities

McKinnon and Piecyk, 2009

March 2010

References

• Maritime Transport Policy: http://ec.europa.eu/transport/index_en.html

• Logistics: http://ec.europa.eu/transport/logistics/ • http://ec.europa.eu/transport/logistics/index_en.htm

• Customs: http://ec.europa.eu/taxation_customs/taxation/index_en.htm

• Integrated Maritime Policy: http://ec.europa.eu/maritimeaffairs/

• SafeSeaNet: http://www.emsa.eu.int/

• MarNIS (Maritime Navigation and Information Services): www.marnis.org

• FREIGHTWISE: http://www.freightwise.info/cms

• SKEMA: http://www.skematransport.eu/

References• Logistics: http://ec.europa.eu/transport/logistics/• FREIGHTWISE: http://www.freightwise.info/cms

• Maritime Transport Policy: http://ec.europa.eu/transport/index_en.html

• Customs: http://ec.europa.eu/taxation_customs/taxation/index_en.htm

http://ec.europa.eu/taxation_customs/customs/policy_issues/electronic_customs_initiative/index_en.htm

• Integrated Maritime Policy: http://ec.europa.eu/maritimeaffairs/

• SafeSeaNet: http://www.emsa.eu.int/

• MarNIS (Maritime Navigation and Information Services): www.marnis.org

• SKEMA: http://www.skematransport.eu/

an overview of its for freight and logistics in europe

Documents

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transport planning

intermodal transport

railway transport

passenger transport

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freight management functions

freight tnkms