Increasing Focus in Sustainable End-to-end Logistics Solutions
By Dr Sven Hermann
From Issue 2, 2024 of Breakbulk Magazine
It can be assumed that the major challenges and uncertainties of our time will increase rather than decrease in the coming years. Taking a look at selected current issues shows the major developments and decisions that will be made in the coming months. What will happen in the conflict in the Middle East? How long will the war in Ukraine continue? What about the Green Deal after the European elections? What will it mean for Europe if Donald Trump becomes president again in the U.S.? And how will relations between China and the West develop? Whatever the answers to these questions turn out to be, they will also have a major impact on the development of project logistics. These uncertain times could therefore tempt us to adopt an even more cautious approach, postponing investments in holistic improvements and paying less attention to the change necessary to shift to a more sustainable economic model.
However, there is hope that the course toward greater sustainability – that has only just been embarked upon in many places – will remain in place for project logistics companies. It is a course that is ultimately thought through holistically, in cycles, and would bring with it a much higher degree of resilience.
The basic coordinates of this end-to-end approach have long been on the table. With transparency, cooperation, technology and the continuous striving of all partners for constant and collaborative improvement, processes in project logistics could be improved far and wide. However, despite all the well-meaning intentions, there is usually a hitch somewhere. In addition, the traditional linear approach from engineering to the construction site has not yet done justice to the concept of sustainability.
The cycle-orientated model of the circular economy offers a promising orientation option here. Important topics such as shared logistics, more sustainable transport alternatives and opportunities to reuse and recycle packaging are coming more into focus.
The following industry quotes illustrate the vigor with which the shipper side is currently promoting sustainable end-to-end approaches despite all the challenges.
“Going forward, it is imperative that logistics companies integrate environmental, social and governance criteria more fully into their daily operations,” said Andreas Ulrich, global head of logistics at SMS group.
“The availability of comprehensive real-time data, which remains one of the biggest barriers to complete and sustainable end-to-end logistics solutions, is a key factor in achieving this. Currently, the challenges arising from increasing regulation are overemphasized, while the transformative potential of an expanded service portfolio for upstream players is not fully exploited.
"The logistics sector has significant untapped potential for innovative business models and collaborative task sharing. For this reason, we are currently focusing on collaborative approaches for improvements and solutions. We are also working closely with our logistics partners to promote these developments through ongoing training and innovation initiatives.”
Meanwhile, André Starke, head of project logistics at Andritz Hydro, said: “Our logistic setup is following new approaches and concepts to meet the requirements of a modern project landscape but also to mitigate the challenges of skilled labor shortages and growing environmental needs.
“In the course of the last 10 months, we have already made substantial progress thanks to the support of our internal stakeholder, but also due to the commitment of our project logistics provider. We can already recognize improvement during the execution of our hydropower projects in Southeast Asia and other parts of the world.
"The early involvement in engineering, extensive feasibility studies, HUB consolidation at strategic locations and on-site logistic support allow us to reach our goal of an integrated logistics in particular for larger projects. The basis for all this is the common approach together with our project forwarder, but also new IT interfaces to allow a proper deviation tracking and supplier management. Working together to steadily improve these processes will also provide opportunities for our partner as we can only reach these holistic goals following the same path together.”
Daniel Duus, global head of logistics at thyssenkrupp Uhde, gives his observations:
“thyssenkrupp Uhde has been awarded a contract by ENOWA, NEOM’s energy and water company, for engineering services and the supply, design and procurement of equipment for a new CO2-to-methanol and methanol-to-gasoline demonstration plant at ENOWA’s Hydrogen Innovation and Development Center in Saudi Arabia. This project is contributing to the reduction of global emissions and a huge milestone for climate protection.
"Together with the involved logistics partner and scientific support, our aim will be to analyze existing processes and procedures, react proactively to changes, learn from the project and jointly develop a kind of blueprint for the holistic end-to-end logistics of tomorrow. Our far-reaching modularization and transport engineering expertise will certainly continue to play an important role in this as it gives us major advantages in terms of risk management and adherence to scheduling, among other things.”
Logistics companies are showing their willingness to actively help shape the change towards more sustainable project logistics and to incorporate the basic principles of a circular economy into the development of their services and future business models. Current training programs and innovation workshops – such as ProLog’s E2E Master Class Project Logistics – offer the opportunity for both sides to exchange ideas about their plans and to look for new ideas together.
Dr Sven Hermann is the founder and managing director of ProLog Innovation GmbH.
Dr Hermann, Daniel Duus, André Starke and dteq’s Boris Dykiert will be appearing on a main stage session at Breakbulk Europe 2024 on Wednesday, May 22 from 11:50-12:30. The session, “A Circle of Possibilities”, will present three ongoing projects in Europe, Laos, and Saudi Arabia as exemplars of how end-to-end logistics are shaping up for a more sustainable future. Breakbulk Europe 2024 is happening at Rotterdam Ahoy in the Netherlands on 21-23 May.
TOP PHOTO: SMS Group ladle turret and casting platform, CREDIT: SMS Group
