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Third Industrial Revolution Consulting Group<br />

cooperatives to share unused spaces, allowing carriers to drop off and pick up shipments using<br />

the most efficient path en route to their destination.<br />

The Internet of Things platform will provide real-time logistical data on pick-up and delivery<br />

schedules, weather conditions, traffic flows, and up-to-the-moment information on warehouse<br />

storage capacities en route in Luxembourg. Automated dispatching will use Big Data and<br />

analytics to create algorithms and applications to ensure the optimization of aggregate<br />

efficiencies along the logistical routes and, by so doing, dramatically increase productivity while<br />

reducing the marginal cost of every shipment.<br />

Globally, by 2020-2025, at least some of the shipments on roads, railways, water, and air<br />

corridors, as well as some of the movement of passengers, will likely be carried out by<br />

automated electric and fuel cell transport, powered by near zero marginal cost renewable<br />

energies, and operated by increasingly sophisticated analytics and algorithms. Driverless<br />

transport will accelerate productivity and reduce the marginal labor cost of shipping goods and<br />

moving people toward near zero on a smart automated Transportation and Logistics Internet.<br />

Luxembourg already has a highly advanced and integrated logistics infrastructure upon which<br />

to build out and scale up an automated transportation and logistics platform. Cargolux,<br />

LuxairCargo, and CargoCenter provide world class service in air shipments, while CFL Cargo<br />

provides state of the art rail freight logistics, and CFL Multimodal provides a wide range of<br />

freight services. The Cluster for Logistics has been established to advance the various logistics<br />

services across Luxembourg. Its mission, in part, is dedicated to driving new innovations and<br />

collaborations to streamline the logistics infrastructure and operations. Luxembourg currently<br />

ranks second in the world for best performance in logistics according to the World Bank’s<br />

logistics performance index. 64 Luxembourg’s highly advanced logistics infrastructure and<br />

operations will enable the country to speed its transition into an automated, digitalized, and<br />

soon driverless transportation and logistics hub.<br />

The erection of the automated Transportation and Logistics Internet will also have to transform<br />

the very way people living and working in Luxembourg view mobility. According to Eurostat,<br />

with 672 passenger cars per 1,000 inhabitants, Luxembourg has the highest number of vehicles<br />

per capita in Europe, while the average across the EU is 486 passenger cars per 1,000<br />

inhabitants in 2013. Traffic congestion is compounded by a daily influx of workers from France,<br />

Germany, and Belgium. More than 175,000 commuters travel into Luxembourg daily, and 86%<br />

of them travel by car. Approximately 75% of the oil products sold in Luxembourg are consumed<br />

outside of the country. Luxembourg offers the most lightly taxed fuel in Europe, resulting in<br />

“gas pump tourism.” With transport accounting for 64% of global warming emissions in<br />

64 See: http://lpi.worldbank.org/international/global<br />

67

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