Express delivery plays a critical role in supporting many types of businesses by offering rapid, time-definite delivery of goods and documents to customers throughout the world. An export-led recovery is dependent on the sector.
UPS established its UK operations in 1988, and today has 58 operating facilities, over 800 points of access, approximately 7,200 employees and a fleet of more than 2,200 vehicles. At UPS we take pride in developing business practices which deliver a more efficient and more sustainable logistics operation. This responsible approach is not only good for the environment but it makes good business sense and is central to our success. While we’re helping millions of customers to reduce their environmental impact, we’re applying specific principles and practices to reduce our own.
At UPS, we work to minimise the miles we fly and drive on a daily basis, and we continually strive to increase the energy efficiency of our transportation network. UPS’s carbon footprint is measured in detail, on a global basis, so it can be reported publicly in a transparent way.
Climate change and the urban challenges of air quality and noise pollution require an examination of the fuels that our vehicles use in order to identify better potential alternatives. Different fuels and propulsion methods have distinct qualities and are better suited to one journey type or another. Our fleet of electric vehicles, for instance, is ideal for short journeys in city centres but may not necessarily be apt for the transportation of goods over long distances on the motorway. Sourcing the right fuel is vital for maintaining operations and reducing emissions in the supply chain.
UPS has recently deployed a fleet of 10 dual-fuel liquefied biomethane-diesel heavy goods vehicles at our hub in Dordon, north Warwickshire. Biomethane is recycled methane captured from landfill and anaerobic digestion and is an exciting development for the transport sector. It can be used for short distances but, more importantly, also in heavy vehicles which typically cover longer distances and carry more goods. Few, if any, other alternatives currently exist that can substantially reduce emissions in HGVs. Crucially, not only does biomethane reduce emissions, but it is also reliable and reduces fuel costs.
One of the biggest challenges we are facing, even when deploying just ten of these heavy vehicles, is restricted fuel supply. There is only one supplier of liquefied biomethane in the UK, with a limited stock available for transportation. Most biomethane is used for electricity and heat generation due to the existence of more attractive government incentives for these uses, despite the fact that, unlike for transportation with HGVs, viable alternative means of reducing emissions already exist for the energy sector. Renewed emphasis needs to be placed on the advantages of biomethane for transportation if transport operators are to be able to share in the benefits of environmental incentives. Tariffs must reflect the usefulness of this fuel as a key enabler of the lower-emission transport system that we would all like to see.
Government can play a critical role in levelling the playing field so that UPS and other large fleet operators, including major retailers, can use more biomethane. This would not only help achieve the government’s required HGV carbon reductions, but would also support a new growth sector and job creation. There would be considerable benefits, not just for transport operators, but up and down the entire supply chain. To make this possible, there would need to be major expansion of the filling station network to service vehicles throughout the country. Increased demand for biomethane would also see the need for more production plants, along with improved infrastructure with which to transport the fuel, as well as skilled technicians and engineers. All this would act as a green light, catalysing the use of more biomethane vehicles on Britain’s roads.
The promotion of biomethane and its use in transportation is an innovative environmental initiative which also has the potential to be an economic success story and a driver for growth in the UK. There is much talk of the need for this type of growth initiative. At a time when public finances are tight, many solutions are failing to get off the ground because of their budgetary implications. This, however, is one we hope all political parties will support.
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Peter Harris is EMEA director of sustainability at UPS
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This article is part of a series we are running on Labour’s relationship with business and how we create growth, to coincide with our event on Tuesday: ‘Going for growth: How can Britain pay its way in the coming decade?’ with Chuka Umunna MP, Paul Drayson and Joe Greenwell. Follow the series here.
If you would like to attend the event, please email [email protected]
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