Warehouse Greenhouse Gas Emission in Freight Transport - Research Proposal Example

WAREHOUSE GREENHOUSE GAS EMISSIONS By Course Professor’s Name Institution Location of Institution Date ABSTRACT Activities within the warehouse operations such as forklifts’ loading and offloading and freight transportation among others are a large contributor to emissions of carbon dioxide (CO2) and therefore to mitigate their environmental impact is essential in strive for a sustainable future. The published related reports usually discussed the issues from a global perspective thus rarely provide any essential or practical information in an organizational level. Therefore, this paper intends to investigate how much does warehouse contributes to GHG emission in freight transport compared to other emission caused by other modes of transport. In most cases, customers who are at longer distances from the production warehouse to the distribution warehouse tend to lead to a heavily increased usage of air freight resulting to higher emission levels. The study will hence show a clear correlation between the amount of CO2 emitted and the share of air freight or any of the mode of transport usage from one warehouse to another. This study will show that a lower share of mode of transport and the use of a number of decentralized warehouse centers will often work towards reducing the emissions significantly. Other mechanisms that may come in handy to minimize these emissions includes relocation of production sites, training so as to enhance the awareness amongst the warehouse workers of the organization and including environmental performance when evaluating third party logistics Table of Contents ABSTRACT 2 Table of Contents 3 1.0 Background of the study 4 2.0 Literature Review 5 2.1 Overview of freight transportation emissions 5 2.2 Warehouse operations and it emissions of GHG 8 2.3 Monitoring Solution for Warehouse Emissions 10 2.5 Research Gaps 12 3.0 Objective of the study 13 3.1 Main objective 13 3.2 Specific objectives of the study 13 3.4 Research questions 13 4.0 Research Methodology 14 4.1 Data analysis 15 Time table schedules 16 Planned Budget 17 Reference 17 1.0 Background of the study Over the past two decades, the greenhouse gas emission (GHG) which are assumed to induce substantial environmental damages and cause climate change has significantly increased due to due to increase to the number of carbon dioxide (CO2) produced by different sectors of the economy. With increase in awareness and environmental consciousness, most business have been forced to reduce the GHG emission associated with their industries. Many developed countries shows high level of GHG emission than emerging economies and there is continues increase in the GHG emission across the globe. The logistic activities like transportation and storage of goods, though important in any economy, it is one of the largest contributors of GHG emission across the globe. It is estimated that around 5.5% to 13% of the global GHG emission are caused by logistic activities in the supply chain management (IPCC 2007). Out of this, the transport sector accounts of around 23% of the total CO2 emitted globally. This include emission from the road, and freight transport which contributes to about 40%. Another aspect that should be taken into consideration is the toxic mold which often grows in poorly ventilated parts of the warehouse. Out of the large amount of toxic gases emitted in the warehouse, carbon monoxide is considered to be the most predominant thus in most cases its regarded as the ‘silent killer’ since it tends to be tasteless, invisible and odorless (Shi, et al., 2015). Hence, in relation to this significant risk factor that goes along with having these toxins emitted in various warehouses in the course of transportation, it is advisable to have more information about them so as to come up with strategies on how to manage these emissions. Therefore, this paper intends to investigate how much does warehouse contributes to GHG emission in freight transport compared to other emission caused by other modes of transport. 2.0 Literature Review 2.1 Overview of freight transportation emissions According to researchers, the adverse effects of occupational emissions such as carbon monoxide (CO) exposure especially from the exhaust gases of propane and liquefied petroleum gas (LPG) - fueled equipment and vehicles within the warehouse set-up are often well known (Kökeritz 2008). In review of the reported three incidents in Iowa in a single year of 1998 are typical case. In one of the three incidents, workers within the warehouse reported signs of nausea, dizziness and frequent headaches for a number of days (Cachon 2014). According to expertise that were involved in investigating the cause of the reported signs, the three LPG-fueled forklifts that operated in the said warehouse were believed to have exhaust carbon monoxide levels from approximately 40,000 to 70,000 tones, hence contributing to ambient carbon monoxide levels slightly above 250 ppm within the occupied warehouse arrears (Fiorelli et al., 2014). Another event that was reported in the same period was regarding ten employees of a certain plastic manufacturing plant in need of urgent medical treatment for acute carbon monoxide toxicity after which it was confirmed that the exhaust gas of existing two LPG-fueled forklifts that were being used in the occupied area contained more than 40,000 ppm carbon monoxide and thus was responsible for the illness that befall the ten warehouse employees in that firm. The third incident, an LPG-fueled forklift with carbon monoxide levels of 75,000 in the exhaust was reported to be responsible for the emission of ambient air concentrations of 200 to 450 ppm in a certain pallet manufacturing plant (Fiorelli et al., 2014). Therefore, in reference to the three incidents, a study of Carbon monoxide related violations from 1994 to 1999 that was spearheaded by the Washington State Industrial Safety and Health administration discovered that LPG-fueled forklifts accounted for close to 25 percent of the reviewed inspections with most of the carbon monoxide exposure complaints emanating from the warehouse related operations (Kökeritz 2008). According to the United States Environmental Protection Agency (EPA), LPG-burning forklifts trucks tend to account for more than 60 percent of all the material handling vehicles and more than 80 percent of all the internal combustion forklifts used globally (Fiorelli et al., 2014). According to these expertise, it is critical that forklifts mechanics and machine operators be trained in carbon monoxide and the health risks associated to unnecessary exposure so as to minimize the poisoning as well as other health related complications. It was reported that installation of a catalytic converter on a propane forklift helps to drastically minimize carbon emissions within the warehouse premises (Cachon 2014). The catalytic converter works to convert harmful exhaust emissions of carbon monoxide, hydrocarbons as well as nitrogen oxides into less harmful emissions of water vapor, nitrogen and carbon monoxide. Likewise usage of the electric forklifts other than diesel forklifts tend to significantly minimize the level of the carbon monoxide within the warehouse (Fiorelli et al., 2014). The electric forklifts though will lead to high electricity costs within the warehouse, they do not normally emit carbon monoxide regardless of the fact that they often require enclosed warehouse with little or no ventilation. According to researchers, transportation and distribution systems tend to emit a similar proportion of carbon dioxide emissions as manufacturing operations. This implies that in comparison to other parts of the business process and the wider value chain, transportation and distribution is often a relatively low contributor greenhouse emissions (Hoolohan et al., 2013). As a matter of fact, there are a number of companies that manufacture millions of products which must be moved from the factories to their points of sale. Transportation of such goods tend to have extremely high dependency (almost over 90%) on a particular energy source, that is, fossil fuels. This implies that as business grow, carbon dioxide emissions from transportation of these goods also increases (Hoolohan et al., 2013). It is reported that, emissions may arise from the following transportation and distribution activities throughout the value chain:- Air Transport Marine Transport Road Transport Rail Transport Warehousing Storage of produced and purchased products in warehouses, distribution centers and retail facilities. In order to be able to minimize the emissions from freight transport especially in the warehouse, a clear picture of the prevailing situation is often required (Emery and Brown 2016). The necessary calculations should be performed on a regular basis so as to be able to tract the organization’s performance and evaluate the impact of different measures so as to lower the emission levels. As outlined by the Asian Developing Bank (2009), the following is a summary of activities for measuring and evaluating carbon dioxide (CO2) emissions:- Analyzing and monitoring present transport activity and CO2 emissions. Having projection of the future transport activity and resulting CO2 emission levels. Evaluating the significant impact of the policies aimed to reduce both the transport activities and CO2 emissions (Dekker et al., 2012). 2.2 Warehouse operations and it emissions of GHG As reported by experts, it is of great importance for organizations to have a clear knowledge of the amount of toxic gases emitted so as to be able come up with alternative mechanisms to reduce the emissions during freight transportation in the warehouse. The two widely used methods are the energy-based approach or activity-based approach. The aim of the these methods is not to estimate the total carbon footprint of freight transport operations but to estimate the direct emissions from fuel burned in the engine of the transport vehicle involved in the transportation. In the energy-based approach for instance, the starting point is normally the total amount of the energy consumed by the means of transport from initial warehouse to the final warehouse (Dekker et al., 2012). On the basis of the fuel consumed in the entire process and the amount of the CO2 created, emissions can easily be estimated. Each of the fuel types have a specific conversion rate known as emission factor, responsible for showing how much CO2 is emitted when a unit of that fuel is burnt (Petersen et al., 2013). The factors though vary based on the carbon content in the fuel. The energy-based approach is based on the following formula:- CO2 emissions = litres.kg CO2 per liter fuel The activity-based approach on the other hand, has the starting point being the actual transport activities. The calculation is normally based on the combination of the freight being transported within the warehouse, the length of haul as well as transport mode (Air, Road, Sea or Rail). To ensure accuracy, it should also include the loading factor and the type of vehicle (large or small truck and forklifts). In activity-based approach, there are normally distance emission factors developed, that is on the basis of the vehicle type used in the process (Dekker et al., 2012). This gives the explanation of the quantity of CO2 emitted in the course of transporting one tonne of goods within one kilometer using that vehicle type (Heavy lorry, light lorry, container ship and bulk ship among others) (Owen and Silver 2015). To ensure accuracy of the estimate of the emissions while using activity based approach, factors such as loading factors and transport routes must be taken into consideration. The activity based approach is often based on the formula below:- CO2 emissions = tonnes. Kilometer.g CO2 per tonnekm Some of the average distance emission factors for road, air and sea are:- Road 62g CO2/tonne-km Sea 10g CO2/tonne-km Air 600g CO2/tonne-km While reporting the estimated emission from the freight transportation, it is advisable to use absolute figures as well as an intensity measurement (Owen and Silver 2015). The aim is often to lower the absolute figures in terms of the tonnes of the CO2 emitted which is normally the figure reported in the organization’s annual report. When comparing emissions from different business areas within an organization, some sort of relative measurement or intensity ratio is often necessary. This ratio can be based on the units of activity such as emissions per tonne lifted, per pallet or per tonne-kilometer (Owen and Silver 2015). According to researchers, three toxic gases that may be present within a warehouse are carbon monoxide (CO), nitrogen oxides (NO/NO2/NOX) and volatile organic compounds (VOC’s). As discussed earlier, the elevated levels of any of these gases may result to immediate health related issues such as shortness of breath, nausea, headaches as well as long term effects comprising of the respiratory distress, cancer and even in extreme cases may lead to death. These gases are generated from a number of causes necessary for successful daily warehouse function and thereafter exacerbated by poor ventilation especially when warehouses are sealed off from cold weather (Chang et al., 2016). Warehouse technology influences Intralogistics that is material flow within business operations and this technology associated with a warehouse matters when it comes to greenhouse gas emission. Materials handling like wheel conveyors using manual handle which does not emit any kind of gas in the environment. Cranes are used to serve warehouse supply and dispose equipment’s using fuels that emit CO2 in the air. Electric trolley conveyor and forklift trucks all uses various fuels that emit gas into the atmosphere contributing to greenhouse gas emission. 2.3 Monitoring Solution for Warehouse Emissions As outlined, a number of warehouse managers and supervisors have a number of strategies for optimizing performance of equipment and workers’ safety so as to enhance productivity. These strategies include:- Monitoring of the Warehouse Equipment Emissions and Efficiency: They tend to have periodic monitoring of emissions from gas and diesel powered forklifts as well as other equipment that emit toxic gases so as to have adequate information on each machine’s contribution to air quality as well as vehicles efficiency. In most cases, high emissions from forklifts and other sources may be an indication of the equipment’s malfunction thus requiring maintenance so as to optimize the equipment’s efficiency and maximize savings (Kanellos 2014). Investing in alternative fuels: During freight transportation from one warehouse to another, organizations often consider usage of alternative fuels such as Compressed Natural Gas (CNG) and Liquefied Natural Gas (LNG). The LNG is reported to be generated 11 percent less carbon dioxide, 95 percent less particular matter emissions as well as 35 percent less nitrogen oxide than diesel. Likewise, trucks that uses LNG often produces 50 percent less noise pollution in the warehouse which is a key consideration especially in urban set up. In certain parts of the world, LNG tends to be cheaper than diesel and the price continues to fluctuate annually (Hoolohan et al., 2013). The same is applicable for CNG, in November 2014 for instance, US supply chain operations started a pilot whereby one truck was running on CNG rather than diesel. The same increased to 40 trucks at the end of 2015 and still expected to increase to 250 trucks by 2018. This is expected to potentially cut fuel bill by $12 million while reducing CO2 emissions by approximately 6,000 tonnes over the three years (Owen and Silver 2015). Although these alternative fuels such as CNG and LNG tend to reduce CO2 emissions as compared to diesel, they are however not long-term sustainable fuel solutions. They are considered to be transition fuels as possibility of sustainable fuel sources such as hydrogen and biogases in the long-term are explored. The usage of electricity or hydrogen to power trucks over long distances is still a venture way off exploration (Hoolohan et al., 2013). Key indicators in the warehouse 2.5 Research Gaps Warehouses play a vital role in supply chains and are one of the major determinants of operational efficiency and business success. Thus, it is understandable that research on warehouse design and management has constantly been growing over the last decades. However, a topic within warehousing research that has been overlooked to a large extent is the environmental impact of warehousing operation. However, it has been noticed that elements of warehouse transport contributed much to GHG, this has not been taken into consideration for many years and there is need to explore as gap exist. Furthermore, the number of literature available in this areas are very limited meaning the available literature tends to focus on warehouse in general. Therefore, this study tends to fill this gap by concentrating on freight transport within warehouse Although the available literature tends to explore the various gas emissions especially during freight transportation. The approach used to calculate the total emissions during freight transportation may not give accurate information, this is based on the fact that, in addition to the absolute figures that may be given by the activity based approach or energy based approach, supporting information may not be available to give an illustration of the absolute figures that will have been arrived at. Therefore, this study will fill the gap by using all inclusive approach to the calculation of gas emission. 3.0 Objective of the study 3.1 Main objective The main aim of this paper is to investigate how much does warehouse contributes to GHG emission in freight transport compared to other emission caused by other modes of transport 3.2 Specific objectives of the study 1. To give an overview of freight transportation emissions 2. To investigate the various measurements and methods used in calculating Greenhouse Gas Emission of multi transport. 3. To establish warehouse operations and it emissions of GHG (fuel emissions, electricity usage emissions, .ect) 4. To establish how to calculate all types of warehouse emissions. 5. To find out how much does storage/waiting (warehouse) contribute to GHG emissions 3.4 Research questions How much does warehouse contributes to GHG emission in freight transport compared to other emission caused by other modes of transport? 1. What is the overview of freight transportation emissions? 2. What are Measurements and methods to calculate Greenhouse Gas Emission of multi transport? 3. What are the Warehouse operations and their emissions (fuel emissions, electricity usage emissions)? 4. How to calculate all types of warehouse emissions? 5. How much does storage/waiting (warehouse) contribute to GHG emissions? 4.0 Research Methodology Given the nature of this research study, appropriate approaches should be invented to help in the collection of data. Therefore, the qualitative research method will come in handy. Toxic gas emissions is within the within and without warehouse set up is a major concern to every organization thus strategies to curb this menace will often be given the priority whatsoever. Data collection The emission calculation requires the use of two data types which include activity data and the emission data. The activity data in this case is a quantitative measures of the level of activity within the warehouse that may results into GHG emission. For instance, the amount of liters of fuel consumed within warehouse and the number in kilograms of material purchased. The collection will be done using activity factor where the activity factor is what converts activity data into GHG emission data. Two main sources of data will be used. They include primary data which are data from specific activities within a company value chains and secondary data which are from specific activities within the company. Data will be collected through meter readings purchase records, utility bills, engineering models, direct, monitoring and the stoichiometry. 4.1 Data analysis All energy consumption for warehousing needs to be collected by energy type (e.g. fuel, electricity). The fuel consumption can then be converted into CO2e by applying the specific CO2e conversion factor by fuel type. Electricity consumption is converted into CO2e emissions by applying a country-specific conversion factor of indirect CO2e emissions per kWh of electricity. The data was collected from the international transport forum (ITF) since they collect data on fuel consumption to calculate the amount of emissions which are associated with international transport. In the calculation process, ETodg as the amount of GHG emission associated with moving a given good let it be good g from the point of (o) origin to the point of destination (d).VAL is given as the value of the flow and weight to value ratio is given by WV so that we get is the quantity of the flows in kilograms. In most cases, transportation in different parts of the world are being done using different modes of transport. The quantity share of mode m in that flows is QSmodg so we have Therefore the general model to be used in analysis in this project will be Where Will be distance travelled from point (0) to (d) when multiple modes of transport are used. The data will be presented using tables and graphs where necessary. Emission factor for electricity The amount of CO2 emissions related to purchase electricity depends on the way this electricity was generated. This conversion factor, in kg CO2 per kWh, can be provided by the utility company. If this information is not available, a country-specific conversion factor should be used, as provided by GHGP in the tool “GHG emissions from purchased electricity”. Time table schedules Week Activity From to 1 Project selection 18/7/2016 22/7/2016 1 to 3 Methodology development 22/7/2016 5/8/2016 3 to 4 Project Proposal 29/7/2016 12/8/2016 3 to 5 Observation 5/8/2016 19/8/2016 5 to 9 Collecting data 19/8/2016 16/9/2016 6 to 9 Writing Literature review 26/8/2016 16/9/2016 8 to 10 Data and results Analysis 9/9/2016 23/9/2016 10 to 13 Final report and submission 23/9/2016 14/10/2016 12 Presentation Practice 30/9/2016 7/10/2016 14 to 15 Final Presentation 14/10/2016 28/10/2016 Planned Budget Items Cost per unit Number of units Total cost Printing materials $5 6 $ 30 Software $ 200 1 $ 200 Equipment $ 35 1 $ 35 Traveling cost $ 40 1 $ 40 Consultation $ 15 1 $ 15 Writing materials $ 7 5 $ 35 Total $ 355 Risk related to data collection The data accuracy is not 100% and this may results from the equipment’s being used and other external sources associated with data collection. The data will be subjected to reliability test and validity test to ensure that there is both internal data validity and reliability. Cronbach’s alpha will be used to establish the reliability and reliability test of 0.70. Reference Cachon, G.P., 2014. Retail store density and the cost of greenhouse gas emissions. Management Science, 60(8), pp.1907-1925. Chang, Y., Huang, Z., Ries, R.J. and Masanet, E., 2016. The embodied air pollutant emissions and water footprints of buildings in China: a quantification using disaggregated input–output life cycle inventory model. Journal of Cleaner Production, 113, pp.274-284. Dekker, R., Bloemhof, J. and Mallidis, I., 2012. Operations Research for green logistics–An overview of aspects, issues, contributions and challenges. European Journal of Operational Research, 219(3), pp.671-679. Emery, I. and Brown, S., 2016. Lettuce to Reduce Greenhouse Gases: A Comparative Life Cycle Assessment of Conventional and Community Agriculture. 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