Toll Today March 2011 - TOLL Group

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Toll Group 30 Smarter Green Upd Smarter Green Strategy Tackles Climate Change and Energy risks Demand for logistics services will grow markedly over the next few decades, as the global population leaps by up to 40 percent by 2050 and new powerhouse Asian economies dictate significant changes in patterns of wealth and influence. This represents a major growth opportunity for Toll, which is positioning itself as a key global logistics operation focused on Asia, in particular the region’s three largest economies of China, Japan and India. All this requires energy. For Toll this is currently gained by burning fossil fuels, mainly diesel. This reliance comes with a number of problems, as our global fossil fuel supply is finite and it generates greenhouse gases which are attributed to causing climate change. “Toll therefore faces the dual risks of meeting rising energy demands in its operations and at the same time transitioning to lower carbon emissions intensities,” said nick Prescott, Toll’s Group Environment and Energy Manager. Toll’s Smarter Green strategy is addressing these risks through a number of complimentary programs by focussing on Smarter Energy Efficiency and Smarter Fuels transitioning Toll Global Forwarding’s involvement in one of the world’s toughest air quality programs in the US will have a positive impact on Toll globally as lessons learnt are applied to other Toll businesses. Toll Global Forwarding in the US is an active partner in the groundbreaking San Pedro Ports Authority’s Clean Air Action Plan in California. “The company must meet and exceed some of the toughest global air quality standards in a precinct rated as the world’s fifth busiest container seaport,” said Hugh Cushing, CEO of Toll Global Forwarding. from diesel to a range of alternative fuels such as biofuels, natural gas, hydrogen and in the longer term to pure renewable energy sources, in order to reduce our intensity of carbon dioxide emissions. This strategy is being coordinated globally across Toll by the Group Environment and Energy team. Nick said, “Effectively dealing with risks and adapting to change is nothing new for Toll, we have always had an appetite for smart solutions to minimise risk, particularly through the ingenuity of our people and systems, and by applying innovative technologies to problems. So we are confident of meeting these major environmental and energy challenges over time”. Toll’s drive for smart, efficient solutions has put us at the leading edge of energy efficiency and greenhouse gas emission strategies in many of our operations. However, much more needs to be done. And Toll recently announced a target to further cut its Australian carbon dioxide emissions by 20 percent of 2010 levels by 2020. Similar targets will be set for overseas operations. n Toll Global Forwarding Cleans up in the uS 1 – 2 The Toll truck bearing its accreditation. 1 2 “We will continue to do this, and will look for opportunities to apply the lessons learnt to other Toll businesses”. Toll’s fleet of 50 company owned vehicles, as well as various sub-contractors, provide a cartage service, known as ‘pier drayage’, to the Port Authority’s Los Angeles port. They must meet stringent exhaust emission standards for registration with the Plan’s Clean Truck Fleet Program to gain access to the ports without paying a volume-based emission fee of US$35 per TEU. Registration standards require vehicles to run on diesel fuel which emits no more than 15 parts per million (ppm) of sulphur, equivalent to trucks manufactured after 2007. By comparison, diesel sold in Australia in 2007 had a sulphur content of no more than 50 ppm. “Our fleet’s ongoing participation is a major point of differentiation for us as we minimise the impact of doing business to our environment and help the bottom line,” Hugh said. n
ate Fuels of the Future: Toll’s Search for Alternatives The fuels of the future: what are they and how will they impact on Toll’s ongoing energy requirements and our bid to reduce carbon emissions? “Diesel based fuels currently dominate our transport operations, but alternative fuels have the long term potential to help meet Toll’s targets to cut its emissions and well as provide increased energy security,” said nick Prescott, Toll Group Environment and Energy Manager. “A range of alternative fuels will gradually assume importance in certain segments of the business, including synthetic diesels, biodiesels, electric vehicles, hybrids and natural gas,” he said. Toll’s alternative fuel research teams are working with energy and equipment suppliers, industry research partners and customers so we can: n Understand our alternative fuels options and where they can be applied wHo wE aRE When the former Toll Solutions was restructured into Toll Global Information Services, it was important to make sure its supply chain strategy, consulting and modelling capability was preserved. Toll Supply Chain Solutions has therefore been established within Group Business Development, providing supply chain services to the entire Toll Group. wHaT wE Do Our purpose is to assist Toll business units in their business development activity by differentiating Toll’s offer from commodity logistics competitors. We provide tender response support and assist with existing accounts that are in need of ‘value add’ or n Determine where they sit on the product lifecycle n Decide when and how to apply them into our operations. “Twelve key programs are now evaluating alternative fuels and their applications, along with related issues such as new vehicle configurations and technologies, refuelling infrastructures, specialist maintenance requirements, warranty issues and resale issues. We also need to consider their comparative costs, operational characteristics and environmental impacts,” Mr Prescott said. One program has successfully trialled compressed natural gas (CNG) in the five-vehicle Toll IPEC fleet in Canberra, and Toll IPEC now plans to introduce a CNG fleet into Melbourne this year. The key issue overall for Toll will be where, when, why and how these alternative fuels should be applied to our business. Sound risk management means we will not play at the ‘bleeding edge’ of the product lifecycle of alternative fuels. “Our preferred position is towards the leading edge where the risks have been qualified, technologies largely proven and we can adopt the ‘early pragmatist role’. Ideally, the technologies then provide scope for Toll in energy efficiency, costs and reduced greenhouse gas emissions,” Nick concluded. n Introducing Toll Supply Chain Solutions differentiation. Our team members have a strong background in supply chain management, business analysis, consulting and project delivery. We assist in the development of supply chain strategies and solutions with an aim to improve service levels, optimise cost, improve efficiencies and add value. We use supply chain modelling tools to perform complex data modelling for fleet mix, route designs and network designs at an operational, tactical and strategic level. Our project delivery capabilities cover business process analysis, gap analysis and the identification of business improvement opportunities. We assist in the development and implementation of cross business unit and industry specific supply chain solutions. Our project approach provides for engagement with Toll Global Information Services when design and delivery of IT components are required for a given solution. nEED To ConTaCT uS? wanT MoRE inFoRMaTion? Please contact Bas Huibers, General Manager Supply Chain Solutions at: bas.huibers@tollgroup.com for further information regarding our capability, credentials and any customer opportunity which we may be able to assist with. n 3 3 L-R: Tamuka Mushangi, Phillipa Smyth, Andrejs Millers, Sam Pluciennik, Bas Huibers. Toll Group Toll Today March – May 2011 31
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Toll Today March 2011 - TOLL Group

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