reducing freight energy costs in europe
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The European Union (EU)Comparable size in Economy and Population
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Europe Energy Consumption61.3% of Oil used in Transportation96% of Transportation relies on Oil
Transport32%
In-dus-try
27%
Households
25%
Ser-vices13%
Agricul-ture2%
EU27 Final Energy Consumption by Sector (%)
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The ProblemDependency on oil: volatile and non reliable
source
Price will increase over time
Challenges:Freight movement doubled by 2050Already heavy road congestion
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The Situation: EU vs US
Rail Road PipelineWater Air
27.4
18.5
26.9 27.1
0.1
39.5
28.6
19.6
12
0.3
US Modal Freight Transport Share (%)
1980 2007
Sea shipping between European ports can improve
Rail mode has fallen by 6.3% since 1995Road is saturated
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The Rail ProblemPotential to save oilRail system is a glue of 27 different rail
networksDifferent standards, train sizes and rail widthUnreliable time schedules
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Rail SolutionStandardization of platforms, trains and
systems.European wide approach vs “glue” approach:
European “Corridors”Separate infrastructure ownership from
service providerTrue market liberation
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Short Sea Shipping ProblemMost efficient mode but no free movement of
goods intra EU ports
Extensive normative on borders, transportation and health enforcement
Different procedures in each country
Different organs to deliver documentation
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Short Sea Shipping SolutionHighway of the Sea:
Free movement for “normal” goods for ships moving between European ports
Connect ports to Transportation Hubs
Simplify procedures and deliver to an unique government agency
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Utilization ProblemFreight Vehicles in Europe
24% run emptyNon empty vehicles run at 56% capacity
43% Global Efficiency
Solution:Mandatory 60% average efficiency within first
yearUp to 70% load efficiency within 5 years
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Alternative fuel enginesEuropean initiative potential:
Bring technology cost down
Offer network of refuel points across Europe for freight
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Alternative fuel engines solutionLiquid Natural Gas:
Mature proven technologyEquivalent cost to gas is $1.50 per gallonPrice down due new drilling technologies
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Alternative fuel engines solutionEuropean approach
Tax refunds to LNG buyers (earned thorough taxes on oil) to increase offer and demand
Deploy a European wide network of refuel points on highways to assure system viability Mandatory by law Government owned but installed in current stations
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ConclusionsIncrease transportation efficiency per energy
unitMoving freight from road to water and railIncrease road efficiency
Reduce dependency on oil:Natural Gas engines
Reply Short Sea Shipping to the United States