VOL. 5, ISSUE 1 SPRING 2013

HIGHLIGHTS IN THIS ISSUE The Downside of Polar Flights UPS Heading Down Electric Ave., California Boeing 787 Dreamliner: Growing Pains Fireworks in China

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MITL NEWS

Photo by yletou via Flickr

WELCOME TO THE SPRING 2013 EDITION of our newsletter, now published biannually. We have adopted a new for-mat that will focus on MITL updates, research, events and media followed by transportation and logistics news of interest. Two new sections are allocated to the news stories; one is Sustainable Transportation which is an important theme for MITL; the other is Multimodal which discusses interesting developments across the primary modes of goods and people movement.

ANNOUNCEMENT MITL has entered into a partnership with Mr. Robert Armstrong, President, ATLAS Trade Advisory Services. Bob will develop new relationships and strengthen existing relationships between MITL and various public and private sector transportation stakeholders. He is the President of The Chartered Institute of Logistics and Trans-portation (North America) and former President of Supply Chain & Logistics Association Canada. Bob has over 40 years of experience in the fields of Global Supply Chain, International Trade, Cross Border Logistics and more.

PUBLIC EVENTS March 7, 2013 Advancing the Big Move through the Greater Toronto and Hamilton Area. 70 guests attended this presentation on public transit by Bruce McCuaig (President and Chief Executive Officer of Metrolinx). This event was sponsored by MITL and the Hamilton Chamber of Commerce. Please click here to access the presentation. January 23, 2013 Maximizing the Potential of the Foreign Trade Zone Concept in Canada Sponsored by the McMaster Institute for Transportation and Logistics (MITL), the Chartered Institute of Logistics and Transport (CILTNA) and the City of Hamilton 30 guests enjoyed a hot breakfast followed by a presentation by Dr. Mark Ferguson on the results of MITL's most recent study. CURRENT RESEARCH PROJECTS Estimating Road Link-Based Emissions for Key Canadian Census Metropolitan Areas This research for Environment Canada seeks to provide emissions estimates for passenger and commercial vehicles asso-ciated with major metropolitan road links in select Census Metropolitan Areas in Canada. An Examination of Freight Generators in the Province of Ontario This work is being carried out in partnership with the Ontario Ministry of Transportation to identify important freight gen-erators in each of the major regions within the Province..

Photo by Jason Jones, McMaster University

CONFERENCE SUMMARY This excellent, diverse program was attended by 100 guests from Canada, US, Thailand and Africa. KEYNOTE ADDRESS featured renowned logistics expert Dr. Yossi Sheffi (Elisha Gray II Professor of Engineering Systems, and Director of the Massachusetts Institute of Technology (MIT) Center for Transportation and Logistics). Dr. Sheffi presented the Canadian Launch of his recent book entitled “Logistics Clusters: Delivering Value and Driving Growth”. His book and keynote address spoke to supply chain and logistics leaders seeking new insights about their highly competitive business environment. Policymakers and academics heard the latest about how this power-ful trend is having great influence on the location patterns of logistics and related firms. Day Two’s keynote featured Dr. Bill Anderson (Professor and Ontario Research Chair in Cross Border Transportation Studies at the University of Windsor) who spoke on his recent report entitled: “the Border and the Canadian Economy”. This report examines what the Canada-US border means for Ontario’s economy. DELEGATE COMMENTS: “the conference was …. “ thought provoking and engaging, covering a wide and diverse subject matter” “a good opportunity to reconnect with people and to make some new contacts” “ the quality of sessions and speakers was quite engaging” “I learned many new things related to the trade between US/Canada and the importance of improving the

crossings( bridges-policies…etc) to achieve better results” “it was refreshing to go to a conference where such a broad array of real issues and challenges get discussed”

TRANSLOG October 15th-16th 2012

MEDIA CHML Radio (the Bill Kelly Show) featured Christopher Higgins of the McMaster Institute for Transportation and

Logistics and Dr. Bill Anderson, Professor and Ontario Research Chair in Cross Border Transportation Studies at the University of Windsor

Chris Higgins discussed the North American Light Rail Experience and the Implications for Hamilton on The Bill Kelly Show.

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Co-hosted by Robert Armstrong, CILTNA and Lou Smyrlis, Transportation Media. CLICK HERE to receive TRANSLOG 2014 updates

Dr. Bill Anderson talked about "Cross Border Issues" on The Bill Kelly Show, CHML Radio.

MITL report illuminates issue of LRT for the City of Hamilton, Hamilton Spectator. Subsequent editorial on the topic can be found here.

Cross-border shopping still affected by 9/11 Hamilton Specta-tor

JOIN US FOR

TRANSLOG Coming June 2014!

SUSTAINABLE TRANSPORATION Photo: _gee_, Flickr

AIR TRAVEL AND THE ARCTIC ICE

washingtonpost.com A new paper in Climate Change by Mark Jacobson et al says that air travel over the Arctic Circle significantly contributes to melting sea ice. Although cross-polar flights account for a relatively small percentage of global greenhouse gas emis-sions, they do deposit significant amounts of black carbon and other pollutants directly on the sea ice, which contributes to warming. In particular, black carbon absorbs sunlight better than sea ice, as well as blocking snow and ice from reflecting heat back towards the sun. When an entire bed of ice is blanketed in black carbon, temperatures can be raised past the melting point. According to the article: “Climate data suggest greater warming over the Arctic than lower latitudes, and the most abundant direct source of black carbon and other climate-relevant pollutants over the Arctic is cross-polar flights by international aviation.” In Jacobson’s model, rerouting air traffic to avoid the Arctic Circle results in a slight recovery of the sea ice over the next 22 years. Rerouting “may delay the elimination of Arctic sea ice, which will otherwise likely occur within the next 2 to 3 decades due to global warming in general.” The model accounted for emissions from individual flights (a micro-level model) that crossed the Arctic Circle (66.56083 °N) using 2006 global aircraft emission inventories. A second simulation dealt with the same flights routed to avoid the Arctic Circle. The rerouted simulation increased global fuel use by 0.056%, but greatly reduced the global warming effects of black carbon and associated pollutants, which are more easily washed away at lower latitudes. Emissions within the Arctic Circle were reduced by 83%. According to Jacobson et al, the cost of rerouting would amount to approximately $99 million USD per year. As reported in The Guardian, a recent study commissioned by 20 governments concluded that: “climate change is already contributing to the deaths of nearly 400,000 people a year and costing the world more than $1.2 trillion, wiping 1.6% annu-ally from global GDP.” At the global level, black carbon’s reputation is taking a serious hit. Here, coal and diesel fuel are the most serious culprits for global warming, while all sources, including open-fire cooking, have been linked to adverse health outcomes. On the bright side, black carbon stays in the atmosphere for only a short period of time before being washed away, and so a reduction in its emission would produce almost immediate results. In contrast, CO2 persists in the atmosphere for centuries. According to the Washington Post article: “commercial flights didn’t start routinely traveling over the Arctic until 1998, when Russia finally gave other countries permission to use its airspace. Since then, these routes have become increasingly popular for air travel between Europe, North America and Asia. By 2010, some 50,000

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GROWING DEMAND FOR ELECTRIC MOTORCYCLES PREDICTED: STUDY

environmental-expert.com A new report by Pike Research forecasts strong growth in e-motorcycle and e-scooter sales in the next decade. According to the report, annual worldwide sales will reach $18.7 million by 2018, mainly driven by demand in China. China currently accounts for approximately 98 percent of the global market. Senior research analyst Dave Hurst: “Two-wheel vehicles are growing in popularity as a form of transportation, particularly in large cities in the Asia Pacific region. Urbanization in Asia Pacific is expected to grow to 55 percent by 2015. The resulting increased traffic and pollution have driven significant gov-ernment interest in promoting e-motorcycles and e-scooters.” From the report: “The significantly lower operating cost and falling prices of e-motorcycles and e-scooters have grown interest from fleet customers like delivery companies, police and security forces, and even taxi services in some regions. As these products provide more robust features, including longer range capability and higher speeds, demand for e-motorcycles and e-scooters will accelerate even more quickly.”

Photo: epSos.de. flickr

SUSTAINABLE TRANSPORATION

WASTE COLLECTION AND TRANSPORTATION: DOING AWAY WITH THE TRUCKS

ecoaction.gc.ca In the 1970s, Roosevelt Island, NYC implemented a vacuum based waste disposal system. Refuse is collected from 33 inlets dispersed throughout the island to a centralized collection station. The system currently serves about 14,000 resi-dents and handles eight tonnes of waste per day. During the aftermath of Hurricane Sandy, Roosevelt Island’s waste col-lection service remained operational while neighboring sanitation districts experienced massive failures. According to Envac, the company behind the system, it “has a unique ability to deal with adverse weather conditions, which is becom-ing an essential part of future-proofing our cities. Just like the words retrofitting and sustainability – which have become an essential part of the built environment’s language – future-proofing has become a term that resonates with a number of industries and sectors. After all, if the infrastructure, skills and services required for the future are not in place well in ad-vance then a building, development or area may become unsustainable.” In addition to being more resilient in the face of unpredictable and extreme weather, the company claims that its system reduces carbon emissions relative to conventional systems that rely on heavy vehicle fleets. “From a design, sustainability and daily operational perspective, a vacuum waste system can cut carbon emissions through reducing the number of heavy RCVs (Refuse Collection Vehicles) on the roads. It can handle in minutes what multiple RCVs take all day to do.”

UPS HEADING DOWN ELECTRIC AVENUE, CALIFORNIA

newenergyworldnetwork.com UPS has deployed a fleet of 100 electric vehicles (EVs) to carry out its delivery operations in Northern California. The new vehicles will primarily operate around the cities of Sacramento, Fresno, and Bakersfield, and are expected to reduce fuel consumption by around 126,000 gallons. The California built EVs will have a range of 75 miles, joining the more than 2,500 alternative fuel vehicles that UPS operates worldwide. Jerry Brown, Governor of California: “These trucks were built here, they’ll be driven here and they’re already changing the way business is done here – cutting emissions and eliminating the need for tanker trucks worth of fossil fuels.” Myron Gray of UPS added: “We use our technology and logistics expertise to reduce emissions around the world and help test new automotive technologies.”

MEXICO CITY WINS 2013 SUSTAINABLE TRANSPORT AWARD

ens-newswire.com The Institute for Transportation and Development Policy, ITDP, has awarded Mexico City the 2013 Sustainable Transport Award. The award, presented at a ceremony during the recent annual meeting of the Transportation Research Board (TRB), recognizes “leadership and visionary achievements in clean, efficient transportation and urban livability.” Over the course of the last year, Mexico has expanded its Metrobus BRT system, pedestrianized streets, rebuilt public parks and plazas, expanded its bike sharing system Ecobici, added bike lanes, and piloted a parking program called ecoParq. “Sustainable transport systems go hand in hand with low emissions development and livable cities. Mexico City’s success has proven that developing cities can achieve this, and we expect many Asian cities to follow suit,” said Sophie Punte of Clean Air Asia. Walter Hook, CEO of ITDP, added: “Mexico City was like a patient sick with heart disease, its streets were some of the most congested in the world. In the last year, Mexico City extended its great Metrobus BRT system straight through the narrow congested streets of its spectacular historical core, rebuilt public parks and plazas, expanded bike shar-ing and bike lanes, and pedestrianized streets. With the blood flowing again, Mexico City’s urban core has been trans-formed from a forgotten, crime ridden neighborhood into a vital part of Mexico City’s future.”

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MULTIMODAL

BOEING 787 DREAMLINER: GROWING PAINS bloomberg.com

A recent lithium-ion battery fire on a Boeing 787 Dreamliner operated by Japan Airlines Co. has prompted the grounding of the fleet worldwide. According to the company: “We have informed our customers expecting 787 deliveries in the near-term that those aircraft either have been or are at risk of being delayed. Boeing deeply regrets the impact that recent events have had on the schedules of our customers and their passengers.” The 787 is the first U.S. commercial airliner grounded by the FAA since the DC-10 in 1979. In the 1990s, Boeing began developing the Sonic Cruiser, an aircraft that would travel at 95 percent the speed of sound, enough to reduce the flight from New York to London by an hour. In the 2000s, due in part to high oil prices, the company changed direction on the project, focusing instead on fuel efficiency. The new aircraft - which built on the Sonic Cruiser’s technology - was called the 7E7, and while flying at the same speed as current planes, would burn 20 percent less fuel. The 7E7 was later renamed the 787, and was supposed to be ready in time for the 2008 Beijing Olympics. The 787 is constructed of far more composite plastics than any previous commercial airliner, making it lighter and more fuel efficient. In an effort to increase fuel efficiency even further, it would not use its engines to power certain electrical systems on board the plane, such as air conditioning, instead relying on batteries. Mike Sinnett, the 787 project engineer, said that lithium-ion batteries were chosen because they hold more energy that other batteries and can be quickly re-charged. He added that “those capabilities also make lithium-ion cells more flammable than other battery technology, and they can create sparks and high heat if not properly discharged. Chemicals inside the battery are also flammable and hard to extinguish because they contain their own source of oxygen.” Although the planes are designed to maintain basic func-tionality in the event of a battery fire, the recent fire and groundings have raised questions about their safety. John Hans-man, aeronautics professor at MIT commented on the batteries: “What’s known so far suggests Boeing will have to come up with a new design.”

AEC IMPLEMENTATION A CHALLENGE TO LARGE JAPANESE AUTOMAKERS’ REGIONAL DOMINANCE

marketwatch.com According to Frost & Sullivan, implementation of the ASEAN Economic Community (AEC) in 2015 could challenge Japanese automakers’ current dominance in the region. The Association of Southeast Asian Nations (ASEAN) was founded in 1967 by Indonesia, Malaysia, Philippines, Singapore, and Thailand, and has since been joined by Brunei Darussalam, Viet Nam, Lao PDR, Myanmar, and Cambodia. One of the stated purposes of ASEAN is “to accelerate the economic growth, social progress and cultural development in the region through joint endeavours in the spirit of equality and partnership in order to strengthen the foundation for a prosperous and peaceful community of Southeast Asian Nations.” In this spirit, ASEAN is endeavouring to establish the AEC in 2015, with the goal of furthering regional economic integration. In particular, they envisage: “A single market and production base; a highly competitive economic region; a region of equitable economic de-velopment; and a region fully integrated into the global economy.” With respect to the regional auto sector, Dushyant Sinha of Frost & Sullivan commented that smaller Japanese players such as Suzuki, Mitsubishi, Isuzu, and new entrants will gain the most from the implementation of AEC, as the more “level playing field” will make it easier to expand their presence and challenge incumbents. He added that, despite this, large Japanese firms are likely to continue to lead the market in the foreseeable future.

Photo: Mollenborg, flickr

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CHICAGO TRAINS KEEP AN EYE ON PASSENGERS chicagotribune.com

The Chicago Transit Authority (CTA) has announced plans to retrofit 840 of its current fleet of railcars with surveillance systems. In particular, each railcar will be furnished with four high-definition security cameras capable of panning 360 degrees and a video recording device. There are plans to eventually operate a “real-time surveillance feed aboard trains so that law enforcement personnel can monitor suspicious activity,” however funding for that project has yet to material-ize. The existing system was funded with a $13.9 million Homeland Security grant, and will allow for footage to be downloaded and saved for possible investigations. The CTA’s newer railcars come pre-equipped with the cameras, which, according to CTA President Forrest Claypool, “have helped police arrest at least 14 suspects in connection with 15 cases over a recent eight-month period.” After the acquisition of 706 new rail cars, and the retiring of 250, the size of CTA’s rail-car fleet will be about 1,350 cars. In addition, the CTA operates about 1,800 buses, each with 10 cameras on board.

IMPROPER TRANSPORT OF EXPLOSIVES CAUSES MAYHEM IN CHINA

english.cri.cn Recent reports of a large explosion in China’s Henan Province have raised concerns over the transportation of fireworks. The explosion caused the collapse of a 30-meter-high viaduct and the deaths of 10 people, and was reportedly caused by a truck carrying about 10 tons of fireworks. The incident has brought some attention to Chinese hazardous materials trans-port practices; in rural China, unqualified operators transport a large share of fireworks. Liao Jun, director of a logistics company that is qualified to transport explosives: “According to our statistics, in Jiangxi and Hunan Province, the major fireworks production provinces, more than 100 thousand trucks transport fireworks to other cities in China every year. Only half of the transportation is done by qualified companies. The rest is done by other unqualified individual drivers or com-panies." According to Jun, the reason for this is cost; using a qualified transport company can cost up to 20% more per delivery than relying on regular unqualified trucks and vans. China’s demand for fireworks and firecrackers is considerable, so more incidents resulting from improper transportation are possible in the future unless regulations are better adhered to.

MULTIMODAL Photo: j.o.h.n. walker via flickr

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2013

April Transport Futures’ Mobility Funding Symposium, April 8, 2013, Toronto, ON CITT Webinar- CentrePort: Creating Canada’s First Trimodal Inland Port, April 10, 12:00-

12:45 Online May SCL & CITA’s 46th Annual Conference, May 14-15, Mississauga, ON CITT Webinar - Freight Claims: From a Shipper’s Perspective, May 29, 12:00-12:45 Online June 48th Annual CTRF Conference, June 8-10, Halifax, Nova Scotia The Threats, Opportunities and Game-Changers of 2013 and Beyond - Drive Your 3PL Towards a More Profitable Future, June 18-

20, Chicago, Illinois September Transportation Association of Canada (TAC) Annual Conference, September 22-25, Winnipeg, Manitoba October EVVÉ2013 5th Annual Conference and Trade Show (Canada’s Leading Electric Vehicle Conference), October 21-23, Gatineau, Ot-

tawa November Reposition 2013, November 3-5, 2013 Toronto, ON

2014 TRB 93rd Annual Meeting, January 12-16, 2014, Washington, D.C. North American Green Trade Corridors Summit*, March 2014, Chicago, Illinois 2014 Transportation Planning, Land Use and Air Quality Conference* , March 2014, Charlotte, North Carolina TRANSLOG 2014, June 2014, Burlington, ON

UPCOMING EVENTS

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