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Green Freight & Logistics in Asia

25-27June 2014, Singapore


UNCRD's effort on the promotion of Green
Freight under the Regional EST Forum in
Asia

Ganesh Raj Joshi (PhD)
Researcher, UNCRD
26 June, 2014
Outline
Asian EST Initiative
Background: Preparation of the Regional Cooperation
Agreement on Green Freight in Asia
Rational Behind the Agreement
UNCRDs Effort on Green Freight in Asia & Latest
Developments on Regional Cooperation Agreement
Challenges, Opportunities and Way forward
Development process of the Regional Cooperation Agreement


24 EST Member Countries

Organizing Annual Regional EST
Forum in Asia

Formulation of National EST Strategy

Asian Mayors Policy Dialogues

Capacity building: Regional/Sub-
regional/In-country EST Training
Workshops

Promotion of Green Freight under the
Regional EST Forum in Asia

Supporting to Regional EST Forum in
Latin America & Africa
UNCRD has been leading the promotion of the Sustainable Transport
and Green Freight policies in Asia, in collaboration with MoE-Japan
through ASIAN EST INITIATIVE since 2004.
Asian EST Initiative
At the 5
th
Regional EST Forum held in Bangkok in 2010- participant
countries agreed on the Bangkok Declaration for 2020. The declaration
includes 20 sustainable Goals and relevant indicators. The Goal 12
was agreed on Freight transport Achieve improved freight
transport efficiency, including road, rail, air, and water,
through policies, programmes, and projects that modernize
the freight vehicle technology, implement fleet control and
management systems, and support better logistics and
supply chain management.


At the 6the EST Form held in Delhi in 2011, Chair concluded that
green Freight should become more prominent on Asias
policy agenda and proposed the consideration of a Regional
Cooperation Agreement or convention to collectively address
freight issues under the framework of the Regional EST
Forum in Asia.

Background: Preparation of the Regional Cooperation
Agreement on Green Freight in Asia

In BAQ 2012 in Hong Kong, UNCRD announced the development of a
Regional Cooperation Agreement (RCA) on Green Freight in Asia to
collaborate on collectively addressing freight issues under the framework
of the Regional EST Forum in Asia.

Rio+20 outcome document The Future We Want also viewed Freight as an
important for the economic development and significance for issues like
environment, public health, road safety and working conditions of drivers,
etc.

7
th
Regional EST Forum in Asia was agreed on the further development of
the Regional Cooperation Agreement on Green Freight in Asia and this
process is led by UNCRD and UN ESCAP and supported by ADB, GIZ, ITDP,
SLoCaT and CAA.

Rational Behind the Regional Cooperation Agreement
Asian GDP & Per capita
In 2010: $16 trillion-27% of Global GDP;
In 2050: $148 trillion-51% of Global GDP, and Per capita could rise six fold i.e. $38,600 to
reach the global average and the similar to European levels today.

By 2050, A-7 (China, India, Indonesia, Japan, Republic of Korea, Malaysia and Thailand)
countries will account for 45% of Global GDP and their average per capita income would be
$ 45, 800-25% higher than the global average of $ 36,600.
Source-ADB, 2012
Growth of Asian Economy
Population Growth
Urbanization trend
Urbanization in Asia in 2010: 41% -with 12 megacities out of 21 cities in world.
North-East Asia will be the most urbanized region of the Asia
Asian Urban Population Growth: An estimated 3
billion people now live in urban settlements, and 45%
of this population lives in Asia.
44 million people are being added to Asias urban
population annually which is equivalent to
0.12million/day.
In 2050, out of 3.3 billion Asians population will lives
in urban areas.
Asias urbanization is rapid. Ex: China transitioning
from 11% of its population in urban area to 51% urban
in just 61 years while it takes 210 years for Latin
America & Caribbean; 150 years for Europe and 105
years for North America. Source: ADB, UN HABITAT, UNESCAP, WB.



By 2050: Urbanization rate will reach 65% with 21 megacities out of 37 cities in world.
Projected Freight Transport Activity (2000-2050)
Road and Rail Freight in Asia (2000-2050)
Fig: Road freight share (ton) in total freight in Asia
Fig: Rail freight (ton-km) growth in Asia ranges 2-4%
annually from 2000-2050.
Source: ICCT Road Map Projections.
Road freight Growth in Asia: 645% from 2000 to 2050
compare to 241% globally.
Source: http://unctad.org/en/pages/PublicationWebflyer.aspx?publicationid=380
Annual rail freight growth (in ton Km) 2 to 4%.
The Transportation share of world total liquid fuel consumption increase 55% in 2010 to 57 % in 2040 in the IEA
2013 reference case. Source: IEA,2013
World Transport Sector and Energy Consumption (2010-2040)
Freight now accounts for 35% of the worlds transport energy use
It is estimated that by the year 2050, medium
and heavy freight trucks worldwide will
consume 1,240 billion liters of fuel (gasoline
equivalent), 138% more than 2000 levels.
Fig: Energy Consumption of Truck and Rail globally,
2000-2050
Fig: World Transport Sector Energy Consumption (2010-2040)
CO2 and PM emissions across Asia by Diesel trucks
Source: Clean Air Asia, 2012. Accessing Asia
Trucks are large contributor to CO2 and PM emissions across Asia
Trucks represent as less than 10% of national vehicle
populations and generate around 60% of transport
emissions.
Trucks impact on environment and society is high: in
Example: India 5% of vehicles are trucks involved in 26% of
road accidents,46% of transport fuel consumption and
general 63% of CO2 and 59% of particulate matter
emissions.
The global share of trucks operating within Asian countries is
expected to increase from 19% in 2000 to 34% in 2050
Between 2000 to 2008, the average per capita greenhouse gas
emissions grew by 97% in Asia compared with only 18% in the rest of
the world.CO2 emissions could reach 10.2 tons per capita by 2050
i.e.3-times the 2008 levels as present scenario.
Logistic cost as % of GDP : Very high for example 15%-India, 16%-Thailand, 18%-China, 24% -Indonesia &
25%-Viet Nam compare to developed countries less then 10%.

Flight logistic value: China-US$ 19.84 trillion in 2012 -18% of GDP. India-35% and Thailand 49% of total
logistic cost

Fuel Cost: Lao PDR, Thailand and Viet Nam- 40 to 60% of overall operating costs of transport carriers.

Waterway/Marine Freight Growth: Container-6%, trade-6% in 2011, and the growth of freight activity (ton
km) increased by 4.3% over past decade.

Air Freight Growth: Air freight volume growth worldwide by 3.7% annually in the past decades. It is
predicted that over the next 20 years it will increased by 5.2 % .



Sources: http://news.xinhuanet.com/english/china/2012-04/19/c_131536275.htm;
http://www.internationaltransportforum.org/jtrc/DiscussionPapers/DP201204.pdf;
http://www.gms-eoc.org/uploads/resources/141/attachment/Gota_CAI_evaluating_impact_green_freight_technologies.pdf )
ICCT Road Map Projections
http://unctad.org/en/pages/PublicationWebflyer.aspx?publicationid=380
http://unctad.org/en/PublicationsLibrary/rmt2012_en.pdf
Position paper for the promotion of green freight in Asia.
Logistic Cost and Freight Growth in Asia
Challenges, Opportunities and Way forward
Social Environment Economic Policies
Public health
Road safety
Working conditions
of drivers
Employment
Insurance system
Energy security
Air pollution
Noise pollution
CO2 and GHG
emissions
Natural disasters
Climate change/global
warming related
Energy efficiency
Competitiveness
Logistic cost
Institutional
arrangement
Lack of assess of
funding
Data collection
Lack of adequate
policies, planning, and
enforcement
Rule & regulations
Fragmented freight
sector
Lack of mutual
cooperation among
stakeholders

Mutual cooperation/collaboration and collective effort
among Governments, International organizations,
Development banks, Research institutions, Private
sectors, NGOs and Academia, and all concerned
stakeholders on Green Freight
Regional Cooperation
Agreement on Green Freight in Asia
UNCRD formulated three background/position
papers for the promotion Green Freight and
preparation of the possible Regional
Cooperation Agreement on Green Freight in
Asia.
(Please see for detail: http://www.uncrd.or.jp/)

http://www.uncrd.or.jp/
http://baq2014.org/
Thank you!