As sustainable development moves up the corporate agenda, Cargo Carriers paves the way in logistics
Sustainability is gaining traction as the world begins to take more notice of carbon emissions and its impact on the environment. The major players of every industry simply cannot afford to do business with those organizations which do not demonstrate a commitment to reducing their carbon footprint.
The supply chain is an obvious area to begin as 75% of South African companies’ carbon footprints are derived from their logistics systems. South Africa contributes to roughly 1% of the world’s annual carbon emissions and 13% of those emissions stem from the transport sector.
Recently, leading South African logistics players were interviewed by the Centre for Supply Chain Management. It was concluded that logistics service provision is becoming ever more prominent and that standards need to improve. Today, not only have South African consumers begun to give preference to those companies who adhere to strict sustainability principles but businesses are increasingly under pressure from their consumer-facing clients to do so too.
In the US and European economies initiatives to reduce carbon emissions have already been introduced, and the newly introduced tax on vehicles that is punitive to the high level polluters in South Africa is just the tip of the iceberg.
In America the Environmental Protection Agency (EPA) started SmartWay, a body that identifies environmentally cleaner, more fuel-efficient transport options. Many transporters and logistics providers are partnering with SmartWay to reduce their emissions.
The European emission standards were introduced in 1991 with the goal of reducing emissions in all vehicles used in European Union states. These standards were set to define the acceptable limits for exhaust emissions, starting with the initial Euro 1 standard. Today, Euro 4 is the latest acceptable standard for large-load vehicles.
Cargo Carriers, a prominent logistics company in Southern Africa, has joined the fight against carbon emissions and has completed the first phase of an aggressive campaign to reduce its carbon footprint.
“Much of the trouble the world currently finds itself in is due to companies and governments paying scant regard to the concept of sustainability.” says Andre Jansen van Vuuren, Marketing Director of Cargo Carriers. “The fact is that at the heart of our current crisis is a short-term focus on profits, which overrides a long-term strategy for sustainability. The same thinking is allowing governments and corporates to pollute with the full knowledge that someone else will deal with the inevitable consequences.”
Cargo Carriers recently commissioned Global Carbon Exchange (GCX) to conduct an analysis on their operation’s carbon footprint in South Africa. GCX is a leading international carbon and energy measurement, management and reduction consultancy. GCX works with companies across the world in assessing and reducing carbon emissions.
GCX found that the Cargo Carriers fleet, unsurprisingly, was far and away the biggest contributor to Cargo Carriers’ carbon emissions. Their electricity usage was the next biggest contributor.
Cargo Carriers were told that a reduction of carbon emissions by just 10% would be equivalent to removing 753 cars from the road.
Excited by this prospect, and the fact that lower emission levels would position them well for future business, Cargo Carriers has proceeded to take steps to reduce their fuel emissions and electricity consumption. With a high commitment to Safety, Health, Environment and Quality (SHEQ), the company is determined to raise its standards and lower its emissions.
“The way we live our commitment to SHEQ should enhance our competitive advantage, as well as those of our clients.” says Andre Jansen van Vuuren. “Embracing a more environmentally friendly approach to transportation has become a non-negotiable.”
In an effort to reduce electricity consumption, Cargo Carriers set up a completely solar-powered depot in Evander. Sasol Synfuels, the major client serviced out of the Evander depot, places the highest importance on sustainable business practices and the depot is a big step towards ensuring responsible sustainability. The depot has been running successfully for six months and future Sasol projects that can make use of this energy-efficient hub are already in the pipeline.
Ezethu, sister company to Cargo Carriers, has introduced South Africa’s first fuel distribution Euro 4 compliant fleet in the battle against carbon emissions, raising the local status quo for sustainable transportation.
“In the fuel sector, companies such as Sasol and Total set high standards for sustainability.” says Jansen van Vuuren. “If carried out aggressively and constructively, you can build a solid business that wins in the short and long term. The big plus comes with the respect of employees and clients alike.”
As trucks account for 5% of the worlds carbon emissions, the reduction of CO2 is imperative for the transport industry.
There are numerous ways that a logistics company can cut down its carbon footprint. These methods differ from company to company depending on their supply chain design. CargoSolutions, a division of Cargo Carriers, is continually innovating solutions that reduce inventory levels, warehouse size, time spent on the road, fuel consumption and carbon emissions within green, service and cost optimised supply chains.
“The concepts of green, high service and lower costs are not mutually exclusive” asserts David Janse van Rensburg who heads up the CargoSolutions division. “Essentially it is about eliminating bottlenecks and taking out the waste, it is incredible what one can achieve.” He should know, his division recently received a “gold” award at the Annual Logistics Achiever Awards for their work within the footwear industry.
According to a recent survey conducted by consultancy firm Accenture, as many as 90% of businesses would be willing to switch suppliers if they can aid in the reduction of carbon emissions. As transport and logistics is one of the world’s fastest growing sectors, as well as one of its biggest polluters, it is crucial for companies like Cargo Carriers to set the bar high to boost their own competitiveness. Those players that do not adapt risk losing out on big contracts.
Although Supply Chains pose complex challenges with fuels, vehicle technology and infrastructure issues being just a sub-set, there is no business in a non-sustainable world anymore. Logistics providers need to embrace change in all areas of their carbon emissions if they are to win future contracts. Managers and CEOs across the board are asking themselves: Is my transport green enough? Am I?
Cargo Carriers is a JSE-Listed specialised transportation, supply chain and logistics service provider. They provide a full suite of transportation solutions in industry verticals, namely sugar, steel, powders, fuel, chemicals, mining and gases which are backed up by an extensive national and cross-border infrastructure, industry expertise and best-of-breed software.
Log onto www.cargocarriers.co.za for more information
