CarriEr OF GOOD iDEaS

green logistics

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WE ASSUME OUR RESPONSIBILITY:GREEN LOGISTICS

Climate change is the focus of world attention. Emissions like car-bon dioxide (CO2) have to be limited. Further accumulation in the atmosphere would lead to a global rise in temperature – with severe consequences for humanity and nature.

Germany has pledged to reduce its CO2 emissions by 40 percent, compared to 1990, by 2020 – a top promise worldwide. It can only be achieved through a radical structural transformation. The logistics sector therefore has to lower the emissions of greenhouse gases by 32 megatons by 2020.

World trade and the transportation of goods require energy. That means emissions are released. From the current point of view CO2, nitrogen oxide, fine dust, sulfur and noise are unavoidable con-comitant effects. We achieve the greatest climate impact if more truck loads are shifted to rail or water. This would enable a reduc-tion in CO2 emissions by as much as two thirds.

This is the framework in which we develop our “Green Logistics“. Green Logistics is not merely a fashionable topic. Public policy specifications are unequivocal and it is a clear fact that ecological responsibility has become an imperative criterion in contract awards. Today some companies already require environmentally efficient logistics in their invitations to tender. Similar to quality certification, environmental compatibility is becoming a standard in assessments of companies.

For Blg the topic is not new. What’s new is the increased awareness with which we consistently pur-sue logistics that protect resources.

PREFACE

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tABle oF contents

06 We want to consume fewer resources

08 Green Logistics, ecological sustainability

10 Rail protects environment

12 Barges on Rhine and Danube

14 High-bay warehouse in the port

16 Sustainably reducing fuel consumption

18 The dynamo principle applied to gantry cranes

20 High-bay warehouse: Intelligence saves energy

22 The warehouse turns off the light

24 Water treatment saves fresh water

26 Up to the last kilometer

28 Magnets replace valuable wood

30 Our improvement network

TABLE OF CONTENTS

Photo: dpa

WE WANT TO CONSUME FEWER RESOURCES that’s a challenge for us, a voluntary commitment to our customers and a promise to society.

We will substantially reduce the amounts of energy sources and

other resources used – both in logistics processes and in adminis-

tration. Instead, we will employ smart systems that only provide

energy when it is actually needed.

We focus on smart technology. It helps to recover and store ener-

gy. And we count on the growing readiness of all employees to

make responsible use of finite resources.

The unfortunately much overused term “sustainability” also

embraces the endeavor to maintain stable, long-term economic

substance. Careful and economical use of the raw materials (still)

available to us is a daily mission for us. Companies have to con-

stantly remain aware of what resources around them are particu-

larly in demand and particularly scarce and give thought to how

they can secure their availability on a long-term basis.

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Germany wants to reduce its carbon dioxide emissions by 40 percent by 2020. For BLG that means: the least possible use of resources.

Foto: Fotolia

We achieve the biggest climate effect in transportation policy when more truck loads move via rail and water.

Ecological sustainability

Economic sustainability Social

sustainability

CO2 reduction Protection of resources Recycling, waste management Use of renewable energies Environmental protection

Customer satisfaction Financial capacity Risk management Innovation Transparency

Health, occupational safety Work standards Equal opportunity Career and family Social commitment

Corporate responsibility

for sustainability

Positioning

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FOCUS ON SUSTAINABILITY:GREEN LOGISTICS,

ECOLOGICAL SUSTAINABILITY

For us Green Logistics is the key issue of ecological sustainability.

Ideally improvements in the environmental compatibility of our

services match the requirements of economic and social sustaina-

bility. Innovative cargo handling technology for steel sheet in the

port diminishes dunnage needs, enhances the attractiveness of

the BLG location and reduces the risk of injury. Environmental

aspects, improvement of the competitive situation and occupa-

tional safety are combined with one another not only in this

example.

By linking the field of sustainability and new technologies direct-

ly to the Group’s Board of Management, BLG demonstrates that it

takes ecological responsibility seriously. Aside from determining

the carbon footprint and the related identification of reduction

potential for the company, BLG develops projects on e-mobility

and boosts the use of renewable energies.

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RAIL PROTECTS ENVIRONMENT:INSTEAD OF 29 TRUCKS; ONLY 1 TRAIN

BLG AutoRail has been deploying its own trains for vehicle trans-

port since 2008. They operate with the most modern railway

wagons currently available worldwide. The 1000th wagon was

christened in Kelheim in 2012. The target for 2013 is 1,300 rail-

way wagons. A train transports up to 228 passenger cars.

Otherwise 29 trucks would be necessary for this job.

Our wagons are equipped with “whispering brakes”. As a result,

they remain significantly below the officially permissible maxi-

mum level of 82 decibels. At the moment we are working on

additional improvements in our “Whisper Train” project. Special

chocks serve the purpose of occupational safety. They can easily

be pushed sideways and fixed using foot pressure via a tilt mech-

anism, and are thus back-friendly.

Customers particularly welcome the high load capacity of the

wagons, i.e. 30 tons each, and vertical adjustability of the upper

loading levels. This makes it possible to transport heavy and high

vehicles as well. In 2010 Volkswagen presented BLG its award as

best logistics provider based on its commitment to rail transport.

Result::Reduction in noise emissions, costs and energy

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Automobile shipments via rail protect

the environment. BLG AutoRail has

been deploying its own complete trains

since 2008. The fleet of railway wagons

will grow to 1,300 units by 2013.

Up to 650 cars fit on a ship. On the

Rhine alone BLG supplies European

dealers with new vehicles using five

ships and four barges.

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GETTING TO THE CUSTOMER BY SHIP:INSTEAD OF 70 TRUCKS; ONLY 1 SHIP

Ford vehicles are transported from the Cologne plant to the deal-

ers in Europe on the Rhine. BLG handles this job with five inland

vessels and four barges that carry passenger cars in both direc-

tions, up the Rhine to Wörth or downstream to Vlissingen or

Antwerp.

Up to 650 cars fit on an inland vessel. That corresponds to around

70 to 80 trucks or three freight trains. Ford has already received

the Green Supply Chain Award for its automobile shipments via

waterway.

Two vessels provide a shuttle service between Budapest and BLG’s

automobile terminal in Kelheim. Primarily Suzuki models from

Hungary undertake this 700-kilometer voyage.

Suzuki is a firm advocate of automobile shipments via inland

waterway. Minoru Amano, President of Suzuki International

Europe: “Inland vessels are on time, have the lowest damage rate

in car transport and are cost-efficient.”

Result:Less fuel consumption, less road traffic, less CO2 emissions

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GETTING TO THE WAREHOUSE VIA RAIL:FROM CONTAINER SHIP TO ALTERNATIVE CARRIERS

We built our high-bay warehouse in Neustädter Hafen in Bremen because of the good rail,

road and waterway connections. Our automotive locations also profit from the proximity

to the port. Innumerable containers are delivered, discharged and carried away again

every day. The containers arrive via Bremerhaven and Hamburg. There they are loaded

either onto an inland vessel or a train.

In this way the containers reach Neustädter Hafen and then go from there over a short

distance to the warehouse. The route taken by the goods to the retail trade is covered in

part via rail, such as to Austria, which means the trimodal transport connections provide

relief especially for road traffic.

Result:Trimodal transport connections pro-vide relief especially for road traffic

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From the container terminal to the high-

bay warehouse via rail and water – that

saves around 80 road shipments a day.

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Intensive driver training, optimized route planning, improved capacity utilization of trucks and use of modern Euro 5 vehicles reduce fuel consumption.

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ONCE LEARNED, NEVER FORGOTTEN:SUSTAINABLY REDUCING

FUEL CONSUMPTION

BLG car transporters cover around 80 million kilometers a year. To

reduce fuel consumption and CO2 emissions, the company has

taken various measures. The most effective is “ECOTraining” for

truck drivers. Specially qualified trainers instruct drivers, monitor

driving behavior with respect to energy consumption and careful

use and handling of the truck. Gasoline consumption, tire strain

and speed are recorded by means of telemetry. The training treats

both theory and practice.

In practice a certain route is driven twice, first without the inter-

vention of the trainer. The second time around the trainer gives

tips on how to drive even more economically. The telemetry sys-

tem records the data and enables comparability. The realistic sav-

ings potential is about seven percent.

Optimized route planning saves empty runs. In addition, the

capacity utilization of the trucks is improved. Around 75 percent

of the trucks already operate in line with the Euro 5 standard.

Older transporters will be successively replaced with modern vehi-

cles.

Result:Up to 15 percent less fuel consumption

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ENERGY SAVINGS AND RECOVERY: DYNAMO PRINCIPLE AND BRAKING

ENERGY

Containers are loaded and discharged using gigantic gantry

cranes. They number among the major power loads at the termi-

nals. Lifting containers requires energy. During lowering and

braking, on the other hand, energy is released. Gantry cranes are

not driven by motors during lowering and braking, but generate

kinetic energy that is transformed into electrical energy by the

generator acting as the motor and fed back into the grid.

The same principle is also utilized at the Bremen high-bay ware-

house. There the energy generated by the braking of the storage

and retrieval units is also fed back into the system. Around 18,000

kWh per year and storage and retrieval unit are saved in this way.

These intelligent solutions not only reduce consumption, but also

CO2 emissions.

The example of the van carriers (VC) used for container transport

at the terminals points out another solution for reusing energy.

The energy gained while setting down containers and braking is

stored temporarily in special capacitors (super caps) and fed back

into the system when containers are lifted or the VCs start up. As a

consequence, they reduce fuel consumption and protect the envi-

ronment. Moreover, intelligent routing in the terminal area

ensures energy savings. The number of curves is reduced so that

significantly fewer braking maneuvers and accelerations are nec-

essary.

Result:Reduction in CO2 emissions amounting to 4,000 tons a year, up to 25 percent savings in total energy consumption

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A smart energy recovery system

ensures that the enormous gantry

cranes consume up to 25 percent

less power.

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Automatic start-stop system and

improved operation of the storage and

retrieval units as well as needs-oriented

lighting have substantially diminished

power consumption at the Bremen

high-bay warehouse.

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ENERGY SAVINGS AND RECOVERY: INTELLIGENCE SAVES ENERGY

Whenever they stand idle, they switch off – automatically. The

storage and retrieval units at the high-bay warehouse in Bremen

put items into and take them out of storage in the three enormous

warehouse blocks. When a storage and retrieval unit does not

have a transport job, the load circuit switches off. This saves

around 400,000 kilowatt hours a year.

A new prototype saves additional energy via sequential operation.

Customary storage and retrieval units run diagonally to the respec-

tive slot they currently serve. The prototype initially moves hori-

zontally, brakes and then changes to the vertical direction. In

addition, the electric overhead monorail conveyors in the high-

bay warehouse only operate in case of need and not permanently.

The conveyor belt for empty cartons runs only if cartons have to be

conveyed.

Result:Less energy consumption and reduced emissions

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ENERGY SAVINGS AND RECOVERY:THE WAREHOUSE TURNS OFF THE LIGHT

The lighting in the high-bay warehouse has been improved. In the

three warehouse complexes the light is on only during mainte-

nance and repair work. This saves 100,000 kilowatt hours of power

a year. Furthermore, the “three level switching” ensures that the

warehouses are illuminated solely where light is currently need-

ed. This reduces power consumption by another 17,000 kilowatt

hours. Thanks to these two measures, consumption has been cut

by 58 percent.

In addition to intelligent light switching, BLG is testing the use of

LED lights at various locations. At the cold store facility in

Bremerhaven test aisles have been equipped with LEDs. In

Neustädter Hafen LEDs are used in test areas in buildings as well as

for parts of the outside lighting. Apart from the enormous speed

(immediately bright) and lower power consumption (comparison

of halogen to LED: 1 kW vs. 0.290 kW) and a 25 times longer ser-

vice life, the light is considerably less dazzling.

Result:Reduction in power consumption of 17 percent or 1 million kilowatt hours a year

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The use of LED lights at BLG Cargo

Logistics, BLG Coldstore Logistics and

at the high-bay warehouse reduces

power consumption.

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Instead of 95 liters per wash, the car wash facility now only consumes 15 lit-ers of fresh water per car. The remain-ing 80 liters come from the terminal’s water treatment plant.

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FILTERED MEANS SAVED:WASTEWATER CAN WASH

Every year over 230,000 vehicles are handled at the BLG Auto

Terminal in Hamburg. Around 95 liters of water are required per

vehicle. A reduction of nearly 85 percent in fresh water consump-

tion is achieved at the terminal by means of a new treatment plant.

Only 15 liters of fresh water are needed per car. The remaining 80

liters come from the water treatment plant. It treats process water

so effectively that it can be used again several times.

A multilayer filter with gravel and coal cleans the water. Before it

runs through the filter, it is mixed with a flocculant that even binds

the tiniest dirt particles. Water that has been treated several times

and can no longer be purified at the in-house facility is retreated at

an external recycling plant.

This guarantees a closed cycle. The water is utilized optimally.

High savings are also achieved at the Logistics Center in Eisenach

by virtue of the intelligent design of the washing facility for small

load carriers. The water in the small load carrier washing facility

there is extremely dirty at the beginning of the process. By adding

fresh water at the end of the process, the cleaning water is only

slightly dirty and can be used again in the preceding process stag-

es without treatment. This type of adapted water use significantly

reduces the consumption of fresh water.

Result:85 percent less fresh water consumption

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TIRES ROLL LONGER:RETREADED TO THE LAST KILOMETER

By repairing tires and optimizing road cleaning, BLG was able to

reduce purchasing of new tires at its Auto Terminal in Bremerhaven

by 25 percent.

Over 200 company vehicles operate at the Auto Terminal. Besides

natural wear, foreign objects on the road repeatedly caused dam-

age to tires. By cleaning the roads more thoroughly, it has been

possible to minimize this damage. In the event of a flat tire, the vehi-

cle is taken to one of the workshops at the terminal. Damaged tires

are quickly patched by hand or via vulcanization, depending on the

damage. At the same time holes are filled with rubber plugs and

vulcanizing agents, heated and thus repaired.

In another workshop worn tires are retreaded. The tread grooves

are recut to make them up to four millimeters deeper. The tires are

used on the double wheel rear axle of car transporters and can run

another 20,000 kilometers (approx. 20% more).

Result:25 percent fewer tires

Over 200 tractor units and passenger

cars operate at the Bremerhaven

Auto Terminal. Tire consumption is sub-

stantially reduced through targeted

measures.

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Today steel sheet is still loaded using, as in the picture, conventional lifting gear. Our new solution simplifies the process, reduces the risk of injury and enhances performance.

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ATTRACTIVE SOLUTION:MAGNETS REPLACE VALUABLE WOOD

16 fully grown beeches are needed to make dunnage for a single

shipload of steel sheet. In seaports steel sheet is still handled with

conventional lifting gear. Setting and removing the claws and

chains is time-consuming, involves the risk of injury and may addi-

tionally lead to damage to the steel products in the event of incor-

rect handling.

How can the loading and discharge operation be changed in such

a way that dunnage is no longer needed, the risk of injury and

damage is reduced and the processes are more effective? We suc-

cessfully worked on this question together with ThyssenKrupp

and the Institute of Production and Logistics at the University of

Bremen.

The solution: a combination of permanent and electrical mag-

netism. Permanent magnets keep the steel sheet securely under

the crane. A counteracting electrical magnet regulates the force

for selectively picking up one or more sheets as well as for setting

down the load. In this process dunnage is not necessary to create

space for positioning conventional lifting gear. The result is an

increase in handling capacity and efficiency with less risk of injury

and damage.

An example for the present and future:Social, economic and ecological sustainability

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OUR IMPROVEMENT NETWORK:RESOURCEFUL SOLUTIONS WITH A MAP

With the TechnikAtlas in our BLG Intranet and regular meetings of

experts we maintain an exchange of know-how along with techni-

cal improvements. Experience with new technologies is just as

important as clever solutions that make our logistics even more

efficient. And efficient always means: less consumption and lower

emissions.

The TechnikAtlas not only points out practicable examples, but

also names the contact person who can help with the details. For

instance, to reduce fresh water consumption in washing facilities,

to design heating systems, power-saving circuits, tracking systems

or LED lighting. Behind every idea there is at least one specialist

who enjoys improving procedures.

The ProKon research project completed in 2012, for example, was

aimed at developing a system for automated position and status

detection of load carriers in seaport terminals. The objective was

to reduce search times in finding rolltrailers, save fuel and improve

control capabilities. The rolltrailers are located by means of RFID

and satellite positioning. The necessary hardware on the trailers

includes passive RFID transponders. The hardware (data terminal,

RFID reader, GPS modules) is provided on the tractor units.

Result:New solutions for less consumption, lower emissions and more efficient logistics

Even the longest journey starts with the first step.

Laotse

Foto: Fotolia

Präsident-Kennedy-Platz 1

28203 Bremen

Germany

Tel.: +49 (0)421 398 - 6220

green-logistics@blg.de

www.blg.de

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Result:Our contribution to environmentally compatible produc-tion of this brochure:The brochure is composed of 100% recycled paper and is awarded with the EU Ecolabel. The printing shop uses a car-bon-neutral printing process.