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California’s road to sustainable freight – Capitol Weekly


California's road to sustainable freight - Capitol WeeklyA freight-laden train makes its way through a city’s core. (Photo: Serjio74, . via Shutterstock)

by TED LAMM posted 05.09.2018

When most of us receive a package at our door from Amazon or another delivery service, we rarely think about the complex system that brought it to us, from manufacturing and packaging to shipping, sorting and last-mile delivery . But California s massive freight system is key to both our economy and our environmental health.

The state s network of highways and railways (thousands of miles worth), seaports (including the two largest in the country), airports, distribution centers, and border crossings supports a freight system that is responsible for one in three California jobs and much of our air pollution .

Any solution to California s environmental health and climate change challenges must include more sustainable freight.

Freight is responsible for nearly half of all statewide emissions of diesel particulate matter and smog-forming nitrous oxide, two of the most health-harmful air pollutants.

Freight is an essential driver of the state, national and international economies . California receives the bulk of goods imported from Asia to the United States, and supplies more food to the rest of the country than any other state . Over five million Californians are employed in freight-related industries such as trade, manufacturing and transportation and warehousing, including hundreds of thousands of jobs generated directly or indirectly by the San Pedro Bay and Oakland ports.

But this expansive system comes at a significant environmental cost.

Freight is responsible for nearly half of all statewide emissions of diesel particulate matter and smog-forming nitrous oxide, two of the most health-harmful air pollutants .

These emissions are associated with hundreds of deaths and hospitalizations each year, at billions of dollars in cost effects felt most severely in the primarily low-income communities of color that neighbor our ports, highways, and other freight hubs.

Freight operations also contribute approximately six percent of California s climate-warming greenhouse gas emissions . By law, the state must reduce total emissions 40 percent below 1990 levels by 2030.

The state government has begun to address the concerns of community and environmental advocates alike with a series of initiatives such as the Sustainable Freight Action Plan, which seeks to reduce the harmful impacts of freight while also supporting a system that is anticipated to more than double in total volume transported by 2040 . At the same time, companies like Tesla and ProTerra are developing technologies like electric heavy-duty trucks that have the potential to revolutionize freight efficiency, although they require supportive infrastructure.

But these initiatives aren t enough on their own .

Moving the freight system toward economic and environmental sustainability will also require California to embrace greater coordination among policy, technology, infrastructure and more . Specifically, state and industry leaders should collaborate on measures related to funding, information sharing and workforce development, such as:

Funding for new infrastructure, such as electric vehicle charging stations and freight-dedicated highway lanes, which can facilitate deployment of efficient technologies like heavy-duty truck electrification and truck platooning ;

Public-private information sharing platforms that encourage member organizations to share and analyze efficiency-related data while protecting valuable IP; and

Expansion of workforce development initiatives, and high school and college supply chain management and logistics programs, to ensure that new freight projects will boost local economies.

Ultimately, the complexity and scale of California s freight system means that no single entity has the power to drive these changes alone . However, leaders at state agencies such as the Air Resources Board, the Energy Commission, Caltrans and others can collaborate to provide adequate funding and outreach to industry, local communities and labor groups .

Through their combined efforts, they can ensure that California s future freight system is sustainable and generates the job growth, consumer benefits and health protections needed for a twenty-first century economy.

Ed s Note: Ted Lamm is research fellow in the climate program at UC Berkeley Law s Center for Law, Energy & the Environment (CLEE) .

He is co-author of the new report Delivering the Goods: How California Can Create the Sustainable Freight System of the Future.

Strategic Cooperation with Freight Forwarding 3PL Aims to Expand Shipments

Another Belt and Road Collaboration Looks to Boost Business Opportunities Shipping News Feature HONG KONG Freight forwarding and 3PL group Kerry Logistics 1has announced a strategic cooperation with D&G Technology2, also a Hong Kong listed company, through an investment in that company’s wholly-owned subsidiary Topp Financial Leasing (Shanghai) . The cooperation serves as a first step for the two parties to further explore collaboration opportunities under the Belt and Road initiative.

D&G Technology is principally engaged in the manufacturing, distribution, research and development, and leasing of asphalt mixing plants and the provision of road construction support services, mainly to China, Australia, Russia, South and Southeast Asia, the Middle East, and a number of countries in Africa . Through the alliance, Kerry Logistics expects to generate significant business synergy by providing logistics services to D&G Technology in the delivery of products to customers along the Belt and Road trade routes, and enhance the development of its operations in the region.

D&G Technology s subsidiary, Topp Financial Leasing, is primarily engaged in the business of finance leasing of asphalt mixing plants and road construction equipment to D&G Technology s customers in China . Edwardo Erni, Kerry Logistics Executive Director and Managing Director – China & North Asia, said: The strategic cooperation is part of Kerry Logistics global development strategy to tap into the growth opportunities brought forth by the Belt and Road initiative .

The new venture allows us to support D&G Technology in the service of its customers in the Belt and Road countries . We have been expanding our business across Central Asia and countries in the Commonwealth of Independent States in recent years and believe this collaboration can bring in new business and customers in the region. Currently, Kerry Logistics is moving 200-300 TEUs per week through its twice-weekly block train service from China s Lanzhou to Central Asia s Kazakhstan and Uzbekistan, via the Alashankoy or Khorgos gateway .

The company is also running a weekly rail freight service from Yinchuan to Kazakhstan and Uzbekistan, handling approximately 100 TEUs per week .

Kerry Logistics says that it will continue to explore and capture opportunities arising from the Belt and Road initiative.

Photo: Part of a D&G Technology plant.

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  1. ^ Kerry Logistics (www.kerrylogistics.com)
  2. ^ D&G Technology (www.dgtechnology.com)

Agility reports 30% net profit growth in Q1 2018 – Construction Business News

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Global logistics provider, Agility, reported a net profit of KWD18.9mn, an increase of 29.8% over Q1 2017.

Revenue for the quarter reached KWD371.8mn and EBITDA was KWD37.7mn.

Tarek Sultan, AgilityTarek Sultan, Agility CEO and vice chairman, said: Agility continues to deliver results . Our double-digit EBITDA growth affirms the company s momentum over the past three years . GIL continues to drive profitability gains through strong performance in Ocean and Air Freight, in addition to improving its efficiency .

Companies in the Infrastructure group posted healthy gains and are delivering consistent with their roadmap.

In Q1 2018, Global Integrated Logistics (GIL) gross revenue grew 15.7% to KWD278.1mn . Air freight revenue increased 22.1%, driven by strong volume growth (4.8% increase in air tonnage) and ocean freight revenue grew 14% as a result of an 11.5% increase in TEUs . Contract logistics revenue increased 15.1% and road freight showed 8.4% revenue improvement in Q1 2018.

GIL s Q1 net revenue (NR) rose 7.9% from the same period in 2017, primarily due to growth in freight forwarding and contract logistics .

Air NR grew by 18.7% due to improving yields, and Ocean NR increased 7.1% . Contract Logistics NR increased by 5.8% . However, GIL s NR margin was 23.3%, down from 24.9% during the same period a year earlier due to yield pressure in road freight and project logistics.

Regionally, air freight and ocean freight performed well in Asia Pacific, Europe, and the Americas .

Contract Logistics continued its solid growth, primarily in the Middle East and Asia Pacific, as a result of effective utilisation of facilities.

Commenting on that, Sultan said: We recently launched Shipa Freight, an online freight service aimed at a market with massive potential: the small and medium-size companies that account for most of the world s businesses . Shipa Freight lets them get rate quotes and book, pay and track, ocean and air shipments around the world, all online in a matter of seconds.

First quarter revenue for the infrastructure group grew 20.7%, and EBITDA increased 24.6% to KWD34.1mn as margins expanded from 33.5% to 34.6% . Agility continues to invest in those companies to drive its future growth.

Agility Industrial Real Estate (RED) continues to improve the efficiency of its Kuwaiti assets by offering a range of warehousing services to its customers .

RED will soon deliver the first 80k sqm warehouses in Riyadh . In Africa, Agility is growing its existing operations and identifying new locations to develop new logistics parks.

Tristar, a fully integrated liquid logistics company, won new turnkey contracts in Q1 . Tristar continues to invest and diversify its operations by expanding in shipping and broadening its geographic reach.

National Aviation Services (NAS) operations posted good growth in the first quarter .

Contributing to its growth were the successful launch of operations in Uganda and significant improvement in Cote d Ivoire and Afghanistan . NAS was also able to improve its business performance in Morocco and Tanzania, with the latter expecting a very good year and turnaround in 2018.

UPAC, a real estate and facilities management company in the Middle East, continues to improve the operational efficiencies of key operations in Kuwait . UPAC is developing the 450-store Reem Mall in Abu Dhabi in partnership with National Real Estate Company (NREC).

GCS, a company specialised in customs modernisation, showed improved performance in the first quarter .

GCS manages all customs activities at ports of Kuwait and aims to enhance customs modernization through its services.

Agility is accelerating a fast-moving transformation to establish itself as a digital leader in the logistics industry, Sultan said .

We are rapidly introducing new digital products, aggressively piloting and pioneering new logistics models and technologies, and re-engineering our systems for speed and competitive advantage .

We want to identify technology that makes logistics more efficient and lowers costs for customers.

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