How to retrofit your way to increased profitability – and planetary health

This article will focus on what can be done for the thousands of existing logistics assets that are already out in the world, being used to move a wide array of products every minute of every day across maritime, rail and trucks: how you can retrofit your way to a greener, more profitable future.

Before we go into what can be added, let’s just set the scene. Initiatives like turbines and solar panels are important. In the manufacturing of logistics transport, whether producing trucks, trains, boats, aircraft, or delivery vans, achieving true sustainability requires much deeper thinking. The real opportunity lies not only in using greener energy, but in using less energy, fewer raw materials and greener raw materials (above and beyond recycled materials), to build each vehicle in the first place.

Given the large amounts of CAPEX, return on investment and payback periods – and the long-term thinking that developing new trucks, trains, planes and ships takes  – along with manufacturing facilities and new manufacturing technology and processes; the manufacture of logistics vehicles is only one step in the value chain.

Whilst it’s easy to focus on sustainability within the factory walls, I find when speaking with senior logistics leaders across many industries in my role as a consultant that it’s an understanding of what technologies can be retro fitted to existing logistics assets (which often have many years of serviceable life left), to reduce carbon impact and improve results, that interests them the most.

In my experience in working with many companies of all sizes to improve their end-to-end logistics efficiency, having full truckloads of your products is key from a cost and product availability perspective. For one such client, a blue-chip beverage company we were assisting in revolutionising its global logistics, from the goods out warehouse all the way through to the beverage in someone’s hand, we found that in certain geographies such as Europe the gross vehicle weight is in the region of 40 tonnes. For our beverage client this would often mean that full truck loads couldn’t always be transported as it would be over this weight.

For trucks and delivery vans, weight reduction translates directly into improved fuel economy, extended electric range, and higher payload capacity. A lighter vehicle requires less energy to accelerate and climb hills. In electric vehicles, reduced mass can mean smaller battery packs for the same range, further cutting material use and cost. For diesel-powered fleets, it means fewer litres of fuel burned per kilometre. Whether measured in miles per gallon or kilometres per litre, efficiency gains compound over millions of kilometres.

Light weighting a truck/tractor may sound like the solution – however it’s the trailer, particularly the chassis, that can really make a difference. In the case of the beverage company, a lighter weight trailer would allow for full truck loads and if the truck and trailer were being driven empty, the fuel consumption would be significantly better. It only takes one trailer company to think outside of the box to revolutionise trailer chassis design and materials used for everyone to benefit.

So what technologies can be added to logistics assets to reduce their carbon footprint and make them greener in use?

For trucks, companies such as Cova Power offer bolt on solutions to add propulsion and batteries to trailers, resulting in a reduction of diesel consumption of around 50%.

Power density of batteries is also increasing, with organisations such as Donut Labs’ solid state EV battery having significantly reduced charge times and the ability to store far more energy than any other EV battery today, resulting in more kilometres between charges.

Aerodynamic improvements help with the truck, trailer side skirts and also trailer tails, each offering anything from 4-6% fuel savings.

Next is wheels and tyres, where low rolling resistance tyres can bring between 3 and 5% fuel savings. That, coupled with lightweight wheels, helps with payload capacity, and automatic tyre inflation systems mean optimal tyre pressure is maintained, preventing fuel loss from under inflation.

From a power perspective, the use of auxiliary power units is helping to provide cabin power without idling the main engine, and solar panels conversion efficiency is on the rise, so the space on the roof of a trailer can power lift gates and refrigeration to reduce alternator loads.

It’s not just physical technologies that can be added, but also digital. A wide range of telematics systems is available with a variety of features and functionality. Telematics consists of a hardware device fitted to a vehicle that connects a variety of sensors and onboard diagnostics and GPS to enable operational data to be collected.

For a fleet company we were advising, adding telematics brought visibility to a totally new level. Once implemented, the organisation had visibility on fuel consumption across the whole fleet, but more than that they could see aspects of driver behaviour such as who was braking harshly or who had their right foot to the floor when accelerating. Whilst on one hand this might seem like Big Brother, if handled in the right way and treated more as a development opportunity for additional driver training, it results in more economical driving styles.

Other telematics features include health/alertness monitoring of drivers in the cabin, route optimisation and predictive maintenance based on sensor data which helps to ensure trucks are maintained in optimum condition and therefore working at their optimum fuel efficiency.

When it comes to the engine and exhaust, different bio diesel fuels are continuing to be developed and refined. There is a variety of hardware that can be fitted depending on the age of the vehicle such as: SCR (Selective Catalytic Reduction) + AdBlue/urea dosing (big NOx reduction), DPF (Diesel Particulate Filter) for soot/PM reduction, DOC (Diesel Oxidation Catalyst) upstream of the DPF and sometimes an ammonia slip catalyst (ASC) after SCR.

Upgrading turbo chargers and improved air intake cooling (“charge” cooling), along with improved air intake flow improvements, all help with power and efficiency.

When it comes to existing rail stock, a very worthwhile upgrade is to add a regenerative braking system to capture energy and feed that back either to the overhead grid, onboard batteries or wayside energy storage systems. Regenerative braking can reduce energy use from anywhere between 15 and 30%. Regenerative braking, coupled with adding a lithium-ion battery pack to a diesel train, allows diesel engines to be shut off at stations and reduce fuel consumption.

Upgrading trains with lightweight materials helps to reduce energy consumption as well as track wear. As in road trucks, train aerodynamics play a part, whether it’s adding a nose cone, gap fairing between the cars, underbody covers or smooth roof panels – they all help. Smart energy management systems can also help, especially when it comes to real time eco-driving advice, smart HVAC control and idle reduction automation.

Maritime transport can also benefit from retro fitting technologies. Whilst many of the technologies are not new (often originating in the 1950s) their commercial applications are fairly recent due to rising fuel prices and pressure to reduce shipping emissions.

Examples include air lubrication systems for hulls of ships. This reduces drag, lowers the loads on the engines and brings a 5 to 10% reduction in fuel consumption. Wind assisted propulsion systems such as Flettner rotors (rotating cylinders that generate thrust using the Magnus effect) can bring fuel savings from 5 to 18%. Wind assisted systems are generally easy to fit and once installed have a low operational cost.

Alternative fuels for maritime transport such as liquefied natural gas and green methanol are becoming more prominent, with a key low carbon fuel being hydrogen, either burnt or for use with fuel cells to create electricity stored in large batteries and electric propulsion. The use of hydrogen fuel cells reduces emissions to zero, with the only waste product being water and the potential to source hydrogen from green sources. Smart hull coatings are also available to reduce biofouling from algae and barnacles, which increase drag and fuel consumption. The use of shore power whilst docked in harbour instead of running the engines for power can also help to reduce emissions.

As global demand for transport continues to grow, the stakes are high. Trucks, trains, boats, planes and vans will remain essential to modern economies. The challenge is to upgrade existing assets that still have a long service life in a cost-effective way that provides a cost and competitive advantage – given that logistics margins are tight – and also to respect nature and the planet we call home. By shifting the focus from simply “green energy” to holistic thinking, the transport industry has an opportunity not just to reduce its footprint, but to redefine what sustainable logistics transport manufacturing truly means.

The question is: who will grab the opportunity with both hands to disrupt the world of logistics transportation manufacturing to create a better world whilst carving out a massive competitive advantage? By using sustainability to increase competitiveness, everyone wins.

Simon Clark is founder of Julius & Clark, a UK management consultancy.

Connect with him on LinkedIn.