Green Logistics, Urban Air Quality Management And Biofuels Use By Dr. S. K. Modak

Introduction				16.20 73.20
Logistics constitute a vital link in the present day				162.24 255.31
transportation systems. They have improved the cost,				Chennai
efficiency and reliability aspects of our delivery				2.34 2.02
systems comprising the end part of supply chain.				28.21
However, the negative environmental impact of				50.46 143.22 226.25
transport movements leading to high fuel consumption				Hyderabad
emissions, enhanced noise levels, movement vibrations				1.94 1.56
and accident rates have now reached such high				16.84
proportions that the sustainability issues have inevitably				56.33 126.17 202.84
come to the forefront of discussions all the world over.				Jaipur
Logistics, including the reverse distribution logistics, have				1.18 1.25
to be made environment friendly. In this context,				15.29
‘Green Logistics' assumes great significance.				20.99 51.28
Present day transportation owes much to modern				88.99
technology which has indeed helped develop a high				1. Kanpur
degree of organization and control over freight				1.06 1.08
movements not only within a country but also across				13.37
the seven seas. Technology could be called the most				22.24 48.42
effective driver of growth of transportation industry				6.17
today. It is however paradoxical that logistics providers				Lucknow
in their eagerness to serve own narrow and				1.14
commercial interests have lost sight of the objectives				0.95
of green logistics. The conflict between industry's				9.68
self-interest and the much-avowed green objectives				22.50 49.22
therefore deserves serious debate and action.				83.49
The objective of this paper is to discuss the				Nagpur
significance of the concept of green logistics, transport				0.55
industry related green house gas (GHG) emissions, air				0.41
quality management in urban agglomerations, modal				5.10
shift issue, use of bio-fuels and sustainability issues in				16.32 34.99
general.				57.37
What is Green Logistics?				Grand Total 35.31
The concept of ‘greenness' came to be				29.84 422.88
discussed in relation to the transportation industry				809.69 2299.21 3597.20
during the eighties and nineties, especially after the				Source: (3)
World Commission on Environment and Development				The air pollution levels in our cities are disturbing
Report, 1987 announced environmental sustainability as				indeed. The number of motor vehicles moving on Indian
a goal for international action. The transportation				roads today is certainly much more than the figure of
industry was identified as one of the culprits				7.2 crore in 2004 (See Table 3). What is more
contributing to environmental degradation. Studies and				alarming is their concentration in metropolitan cities like
reports had also suggested that environment ought to				Delhi, Mumbai, Kolkata and Chennai. Delhi, for instance,
be incorporated in the logistics framework or supply				which had 1.4 percent of Indian population accounted
chain paradigm. The term ‘green logistics' has since				for 7 percent of total motor vehicles in the country.
then become a catchword.				Another worrying feature is that while the share of
Traditionally, logistics takes care of the forward				mass transport (buses) is quite below the desired
distribution of products which includes transport,				range of 60-85 for two million plus cities, the share of
warehousing, packaging, inventory management and				personalized transport (cars and two wheelers) and
information processing starting from the producer to				para- transit (autorikshaws and taxis) is above the
the retailer and end user. Environmental considerations				optimal range of 10-20 in most cities.
require that, as a corollary, care has also to be taken				The impact of such a rapid growth of vehicle
of ‘reverse logistics' which involves recycling and				population in the background of grossly inadequate
disposal of waste and used materials. Reverse flow				road space, poor street furniture, illegal encroachment
logistics have, in fact, opened up a new market for the				by hawkers, parked vehicles and pavement dwellers
take back (10). In fine, the entire life cycle of a product				can be easily imagined. Most Indian cities today face
- production, distribution, consumption and disposal - has				severe traffic congestion, especially during peak hours
to be considered as part of logistics. Since quite a few				when vehicle speeds slow down to 5-10 kms per hour
related operations like inventory, materials handling,				in central business district areas. Vehicular emissions in
packaging etc may be outsourced to other agencies,				the form of CO2, HCs and NOx drastically increase
operational integration assumes great significance in				the pollution levels.
the total supply chain. In other words, the various				Mass transport services like buses and suburban rail
independent operations linked together on a				systems are generally overcrowded. They are
transactions-to-transactions basis are buffered by				irregular and involve long waiting times. This naturally
inventory. The focus is on maintaining a continuous				leads to a massive shift to personalized transport and
flow of desired velocity by synchronizing all the				para-transit modes. In India owning a motor car is still
activities which form part of the supply chain.				considered a status symbol. As a result the neo-rich
The key benefit of establishing an effective				are fast joining the car-owners club and it is feared
connectivity is the minimization of transport costs				that the situation may worsen after the rupees
incurred by firms. The logistics expenditure is				one-lakh nano car arrives on Indian roads. All this may
comprised of following elements: (a) In-bound logistics				also lead to a soaring up of accident rates to dizzy
cost (operations), (b) Out-bound logistics cost				heights. It is time we listen to the wake up call and
(marketing and sales), (c) Service cost, and (d)				save ourselves from turning into a car-oriented society.
Management profit (12). The hallmark of an effective				Air Quality Management - Measures
integration in supply chain is (a) Transit time				It is obvious that we need to act without delay
compression, (b) Reliability of service,, (c) Just in time				through effective intervention in the transport sector.
(JIT) delivery (d) Good information systems support,				Green transport through green logistics should be our
(e) flexibility in operations (f) Customization and (g)				goal. Maintenance of air quality standards is possible
Minimization of ‘back haul' or empty trucks in return				through setting an ambient air quality monitoring
journey. The same criteria apply to reverse logistics				network for vehicular emissions and simultaneously
which require management of products returned by				helping motorists to make the transition. The variety of
customers, their recycling or reuse, repair or removal				measures that need to be undertaken can be on
of products and finding alternate channels to sell				following lines:
impaired assets (18). All these have environmental
implications.				- (a) Diesel engines emit carbon particles TSP, heavy
Transport administration, as part of supply chain is				hydrocarbons, sulphate and other by-products of
also of great significance. It involves expertise in				combustion, and petrol engines also emit CO, NO and
vehicles and equipment scheduling, load planning, routing				other volatile compounds. However, diesel engines are
of freight, advance shipment notification, consolidation				considered as relatively dirtier and government should
of cargo, tracing the movement of cargo as part of				discourage their use through suitable policy measures
control and an efficient information system. It also				including differential pricing (14).
involves documentation in terms of bill of lading and
shipment manifest and what is quite important, a				- (b) The government should promote the use of
competitive pricing strategy (2, 4).				alternative cleaner fuels like liquefied petroleum gas
In modern times international trade has become a				(LPG) and compressed natural gas (CNG). Thankfully,
bigger part of world's economic activity. The role of				it is already doing this gradually and effectively. The air
transportation in the global supply chain is now all the				quality in Delhi and Mumbai has certainly improved after
more important. Transporters may use a combination				their use in public transport buses and autorikshaws. It
of modes like air, road, rail, water, pipelines and				should also take care to establish CNG filling stations
inter-modal. Trucking is normally more expensive than				along all major roads. Another good news, according
rail or water but it provides the advantage of				to a Research Report by Frost and Sullivan ( ), is that
door-to-door shipment and shorter delivery times. It				car makers in India are soon likely to roll out models
also eliminates the need for transfer or transshipment				that run on alternative fuels like CNG and LNG. They
between pick-up and delivery points. Shippers				are also developing a converter kit which will transform
therefore often prefer road transport over rail for all				an existing petrol and diesel vehicle into a CNG/LPG
short distance movements within the country. When it				driven vehicle. Such converter kits for three-wheelers
comes to global trade, water transport becomes the				are already in the market. After this conversion India
dominant mode, although air transport is also preferred				will actually need 10,000 CNG pump stations whereas
for light-weight and perishable cargo.				today their number is less than 5000 across 15 cities.
Transport Industry and Green House Gas (GHG)
emissions				- (c) Use of old vehicles should be effectively curbed.
Transport is certainly an energy- intensive industry				Shortage of finance or fear of unemployment should
involving high levels of direct and indirect GHG				not come in the way of enforcement of government
emissions. According to Carbon Budget and Trends				directives. Petitions for judicial intervention should be
Annual Report, 2007, global carbon emissions rose				quickly dealt with. Obsolete models, except those used
rapidly during 2007 with industrializing nations like China				for vintage car ralleys, ought to be made to retire.
and India producing more than half of mankind's output
of carbon dioxide CO2 which happens to be the main				- (d) Improvement in fuel quality in terms of lower
cause of global warming (11). The Report states that				surphur content in diesel and lower benzene and
emissions from burning fossil fuels was the major				aromatics in petrol should be enforced. The
contributor to CO2 increase and India would soon				Department of Road Transport of the Government of
overtake Russia to become the world's third largest				India has rightly promulgated Rules in April 1995
emitter of CO2. It should be noted that 450 parts per				regarding use of unleaded petrol and fitting of catalytic
million (ppm) of CO2 leads to two degrees Celsius				converters in new petrol-driven cars. Similarly, the
increase in atmospheric temperature with disastrous				norms for sulphur content in petrol have been fixed at
consequences in terms of global warming. A wake- up				0.1% and for diesel at 0.25%
call to industry, business and our wily politicians is given
by recent figures of atmospheric CO2 concentration in				- (e) Setting up of emission standards for all kinds of
general which rose to 383 ppm in 2007. This was 37%				motor vehicles is necessary. Happily, the next
higher than the mean level. China, India, Russia and				generation emission norms for two-wheelers and
Japan are considered as the big players in CO2				three-wheelers have been made effective from April
emissions and in that the vehicular pollution is the main				2005. If feasible, the government may start conducting
culprit(6). Country wise figures in the accompanying				emission testing of motor vehicles prior to their
table 1 illustrate the severity (23).				registration. It may be stated that the automotive
.Table 1 : Showing GHG emissions for select countries				sector of Indian industry is quite sensitive to
Country CO2				environmental risks and safeguards.
Emissions Growth Rate
(In million tones) (1990-2004)				- (f) The local enforcement agencies should launch
				sustained drives against smoke-belching vehicles which
United States				abound in small and medium sized Indian cities. For this
� 25				purpose they should bring emission testers to
� 5,007				roadsides for inspection of vehicles. Forced retirement
109				of older high-polluting vehicles may be resorted to. The
�				government should also bring in pedestrian safety laws
� 23				and clear footpaths of all encroachments to allow
�				pedestrians their right to walk safely.
� 97
�				- (g) Better integration between rail transport systems
� 17				and other ‘feeder' bus services and water
�				transport facilities should be brought about by linking
� -18				them together. Common ticketing and information
Canada				systems to offer seamless connections between
� 54				different transport modes can also be thought of.
United Kingdom				Elevated railways integrating LRT and MRT lines may
� 01				be constructed to discourage private car ownership.
� 465				(20)
93				Modal Shift
�				The question of changing the modal split in favour of
� 15				railways and waterways also needs to be addressed
World				seriously. It is a well-established fact that road freight
� 28				vehicle movements give out greater carbon emissions
_____________-				per tonne kilometer than rail or water borne freight.
Note: Share of developed countries is 15% in world				The road arteries in India these days are getting more
population,				and more congested affecting climate change. The
				share of rail transport in freight movements, not in
but 50% in CO2 emissions.				absolute but relative terms, has been declining relative
It is also felt that since Russia is effectively				to road transport, because of the accessibility and
reducing the emission rate, India may soon rank as third				door-to-door delivery advantage enjoyed by road
greatest polluter after U.S.A. and China.				transport. This however does not augur well from the
Addressing Urban Transport Air Pollution				environment and sustainability viewpoint. There is no
Transport no doubt plays a crucial role in the proper				doubt that Indian rail freight traffic during the last
and efficient functioning of our cities.\, but it is also				decade has increased in absolute terms thanks to the
responsible mainly for air pollution. Vehicle emissions				Container Corporation of India - a subsidiary of Indian
are considered a serious issue in most metro cities of				Railways- playing a more customer-friendly role in
the world including India. The levels of Suspended				providing ISO containers both at port terminals and
Particulate Matter (SPM) is much higher than the				inland container depots (ISDs). However, for logistics
standard of 90 (as in 1992) set by the World Health				providers road transport still continues to be the
Organization (WHO). A comparison of the SPM				favoured mode for the reason that their criterion of
concentration in selected Indian Cities with that in other				measuring transportation costs differs from that of the
Asian cities is given in Table 2.				government. The costs of environmental degradation
As can be seen, in 1992 each of the three Indian				for them are external and do not need internalization
cities of Delhi, Mumbai and Kolkata had exceeded				for business accounting purposes.
many times over the WHO limit of 90 SPM and our				It is here that policymakers should use their ingenuity
national capital was the worst offender.				in evolving such fiscal, regulatory and organizational
Table 2: Figures of Average Annual SPM				measures which will bring about a modal shift from
Concentration in Cities of Asia- During 1990-1999				road to rail and water transport. Unfortunately, there is
(WHO SPM limit 90 as in 1992)				no evidence yet of serious thinking on the part of
_				policymakers to bring about such environmentally
Bangkok				desirable modal shift from road to rail and water. The
215 Hong				reason is not far to seek. The decision about mode
Kong 55				choice by shippers of freight involves many complex
New Delhi				issues. It depends upon a variety of factors influencing
490				performance of rail freight movements and the costs
Beijing				in terms of money and time that is to be borne
380				ultimately. It is therefore necessary to identify the
Kolkata				barriers that prevent the desired modal shift and
394				evolve suitable measures to achieve the objective. It is
Seoul 101				the logistics managers who can really enlighten us on
Busan				the eco-friendly way of influencing mode choice.( )
100				Switch to Bio-fuels
Manila				Due to soaring prices in the world oil market during the
198				last few decades, need arose to break free from oil
Shanghai 250				and use alternative energy sources like bio-fuels which
Chonguing				would cut oil demand, provide energy security and
250				prevent climate changes. Simultaneously, efforts were
Mumbai 252				begun to promote research and development in clean
The blame for rising pollution levels can be laid at the				alternative energy options like wind, water, solar and
door of steeply rising vehicle population in Indian cities				hydrogen resources. However, a switch to bio-fuels-
as show in Table 3.				specifically ethanol - was looked upon as the easier
Table 3: Total Number of Registered Motor Vehicles				way to achieve the objective (7)
in India during 1951-2004				The question often being asked is whether reliance
�				on bio-fuels would prove a good strategy. Researches
(Figures				undertaken by International Food Policy Research
in thousands)				Institute (IFPRI) reveal a different story (17). During the
Year All				period 2000-2007 there was a boom in ethanol
Two Cars, Jeeps				production. Brazil and USA controlled the market
Buses Goods Others				producing 90% of ethanol. European Union (EU) also
Vehicles				followed suit. Large tracts of land were diverted
Wheelers &				towards production of palm and soya-bean to produce
Taxis				bio-diesel and towards corn and sugarcane to produce
Vehicles				ethanol. This led to a surge in commodity prices
				throughout the period. According to IFPRI, if this trend
1951 306				continues, by 2020 prices of corn are estimated to rise
27				from present 26% to 72%, of sugar from 12% to
159				277% and of oilseeds from 18% to 44%. This scenario
34				is bound to have a serious impact on the poor strata
82 4				of society with diet quality getting reduced and
1961 665				malnutrition spreading to large parts of Asia and Africa.
88				In this situation, rich countries may continue to emit
310				majority of green house gases (GHGs) and the poor
57				countries will bear the burden of climate change in
168 42				terms of hotter climate, lesser rain, and deforestation,
1971 1865				and also low incomes, malnutrition and greater
576				dependence on agriculture and natural resources for
682				living.
94 343				It is feared that the risks in switching to agro-based
170				fuels are real. The switch may trigger further
1981 5391				deforestation and destruction of the ecosystem.
2618				Warnings are therefore being given that agro-fuel
1160 162				policies should not be pursued further without a proper
554 897				risk analysis. (1). According to a UNIDO document, "the
1991 21374				key concern here is the competition between land use
14200 2954				for bio-energy production and food and animal food
331 1356 2533				production." The fuel versus food issue is really
2000 48857				enigmatic. The document further states that "the
34118 6143				coupling of energy market with food market can
562 2715 5319				increase food prices and hence worsen the access to
2001 54991				affordable food for many" (25). This warning can be
38556 7058				ignored only at our peril.
634 2948				It should be clearly understood that increased
5795				prices may result in increased incomes for farmers
2002 58924				and give them their food security, but the overall effect
41581 7613				would depend upon the distribution of increased
635 2974 6121				incomes. In the opinion of the Food and Agriculture
2003 67007				Organization (2006) the food versus fuel issue needs
47519 8599				detailed analysis of the possible outcomes of bio-fuels
721 3492 6676				policy. The Stanford University's Wood's Institute for
2004 72718				Environment claims that reliance on bio-fuels as part of
51922				America's new energy plan is not a good strategy. It is
9451 768				a fact that USA's Ethanol-from-Corn Program has led
3749 6829				to a rise in prices of food crops due to farmland
				diversion. (23) This can happen anywhere and in India
Source: (19) and Transport Research Wing, Ministry of				too. Lands can be diverted for production of
Road Transport, G.O.I.				soya-bean and sugarcane. The decision to switch
Motor vehicles are prone to emit large quantities of				from fossil fuels to crop-based fuels has therefore to
Total Organic Gases (TOG) including hydrocarbon				be taken with extreme caution. Scientists state that
(HC), Carbon Mono oxide (CO), Fine Particulate Matter				agro-fuels production from oilseeds and corn has the
(PM), Nitrogen Oxide (NOx), and Sulphur Oxides (SOx).				potential to damage our climate catastrophically.
These air pollutants cause severe health and				Researches are being carried out to produce liquid
environmental effects. The fine Particulate Matter (PM)				bio-fuels for transport as such. Here the ‘first
results in aggravating respiratory and cardio vascular				generation fuels refer to bio-energies made from
diseases and impairing lung function. Besides, the				sugar, starch, vegetable oils or animal fats using
environment may get degraded by way of acid rain,				conventional technologies. ‘Second generation' fuels
eutrophication, visibility impairment and, of course,				refer to those from lingo-cellulose biomass feedback
climate change. According to a study published in				using advanced technologies. In India, we have
Current Science (5), while the Indian economy grew by				resorted to gasification of solid bio-mass through
2.5 times during 1975-1995, the vehicle pollution level				setting up small scale plants mainly in rural areas which
increased by 7.5 times. This is disturbing indeed. It				produce heat and energy. We should upgrade the
shows that transport system and air pollution are				technology so as to feed the gases into pipelines or
directly co-related. The emissions from motorized				alternatively compress them for use in transport
vehicles in practical terms depend on vehicle				vehicles. In this respect Brazil has a success story to
kilometers, vehicle speeds, life of vehicles and				report. The production of sugarcane ethanol has
composition of vehicle fleet. The emission rates of				reduced that country's dependence on fossil fuels and
different categories of vehicles are shown in Table 4.				also ‘cleaned' the industry. ( )
Table 4: Emission Rates of Different Categories of				In fine, as long as the thrust is on producing
Vehicles in Typical Indian City in gms/km				‘clean' energy and on scaling down petroleum
				consumption, bio-fuels can be considered as welcome.
Vehicle category CO				But we must carefully assess the fall outs of switching
HC NOx				to bio-fuels. President Obama's New Energy Plan for
SO2 Pb TSP				USA supports greater use of ethanol produced from
				maize. This has led to increase in food prices,
Two- wheeler				especially of wheat. If we in the same way produce
8.3 5.18				sugar ethanol in India, it may deplete our water levels
- 0.013				and degrade soil quality. Bio-fuels may not prove to be
0.004 -				so ‘green' after all. (23) The sustainability of
Motor car				bio-fuels does not seem to be as strong as it
24.03 3.57				appeared earlier.
1.57 0.053				References
0.012 -
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195.36 304.47				(2002), "Urbanization and Urban Transport in India- The
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54.69 43.88				- 23. Times of India, November 28, 2007, "Global
188.24 239.71				Warming- Earth on Fire"- Subodh Varma
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2.39 1.28				e-mail: shankermodak@yahoo.co.

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Green Logistics, Urban Air Quality Management And Biofuels Use By Dr. S. K. Modak

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