The Possibilities of Intermodal Transport to reduce Carbon Emissions in Logistics by Heineken

Abstract

The global commitment to combating climate change has led to initiatives like the Paris Agreement and the European Commission's 2030 climate target plan. Heineken, aligning with this, has set its own sustainability goals for 2030, aiming for net-zero emissions in its production line and a carbon-neutral value chain by 2040. To address emissions from logistics, Heineken introduced the Net-Zero Logistics program, with a focus on reporting emissions and implementing carbon reduction measures, particularly through increased use of intermodal transport.

Intermodal transport involves using various modes such as roads, railways, and waterways during transportation. Studies suggest that intermodal transport can aid in carbon reduction, aligning with Heineken's sustainability goals. The report aims to assess the impact of intermodal transport on Heineken's emissions, costs, and lead time compared to the current transport mode.

The study's primary objective is to identify opportunities for reducing transport emissions through intermodal transport, considering costs and lead time. A model and methodology were developed for the comparison between road and intermodal transport, utilizing available data.

Emission calculations follow a globally agreed framework, using emission factors per country, modality, and payload. Three methods are outlined based on the availability of intermodal transport data. The first relies on existing intermodal transport data, while the second uses locations of intermodal hubs when specific data is unavailable. The third method employs open-source data to identify intermodal hubs and is applied in regions like Africa.

Costs are determined through two methods: an internal intermodal pre-tender for Europe and average historical transport rates per kilometer for the U.S. and Africa. Lead time is calculated using intermodal databases when available or average transport speeds multiplied by distance with added dwell time.

Experiments were conducted on Heineken's existing transport routes with variations in region, lane distance, and transshipment hub distance. Findings from 34 experiments suggest that intermodal transport can reduce emissions and costs on distances exceeding 600 km. Additionally, for shorter distances, savings are possible if the first and last mile distance is below 30% of the total intermodal distance.

The study identifies that longer lanes show more significant reduction potential, especially in the U.S. where substantial opportunities remain untapped. Intermodal costs in the USA and Ethiopia should be verified with carriers for accuracy. The report recommends Heineken focus on longer lanes and explore integrated tools for real-time transport data analysis.

In conclusion, intermodal transport offers Heineken the potential to achieve its sustainability goals, with the report providing valuable insights into emissions, costs, and lead time comparisons. Future research could expand the analysis to more routes globally or within local operating companies, refining input values in collaboration with carriers.