May 17, 2020

Australia's carbon tax could hurt trucking

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Freddie Pierce
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Rail freight could take advantage of rising fuel surcharges to Australia’s trucking industry thanks to new carbon tax
The debate over Australias proposed carbon tax continues to make headlines, as a professor warned today that the tax could hurt public transportation...

The debate over Australia’s proposed carbon tax continues to make headlines, as a professor warned today that the tax could hurt public transportation.

Professor John Stanley from the Institute of Transport and Logistics Studies at Sydney University took a stand against the proposed carbon tax at a transport summit on Sunday. The carbon tax is scheduled to be announced on Sunday, and is aimed at limiting Australian road congestion.

“Congestion costs the Australian economy almost $15 billion annually,” Stanley said. “It is a problem that hurts everyone who lives in our cities by lowering their quality of life and affecting them financially.”

Still, the bill could actually hurt public transportation, which could have an adverse impact on helping get some Australian vehicles off the road.

“At the moment, we (public transport) probably look like we’re collateral damage,” Stanley said.


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At the summit, 1,500 Australians were polled on the carbon tax and other transportation questions. Roughly 75 percent said that they would like to see the revenue generated from the carbon tax spent on improving public transportation, walking and cycling.

More than 80 percent polled wanted to see an increase in federal government spending on public transportation, while 87 percent believed government investment in public transportation would help address the traffic congestion in major cities.

The agreement stipulates that the only fuel exempt from the carbon tax will be for cars and light commercial vehicles. The carbon tax would deal a blow to freight trucking companies and other freight forwarders, who will likely tack on increased fuel surcharges to transportation costs.

With an expected increase in transport costs, rail freight could be a better option now more than ever. Shipping via rail is very cost-effective on long and even medium distances, and there are several rail companies and existing rail infrastructure within the Australian continent to take advantage of the situation.

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Jun 24, 2021

Kuehne+Nagel cuts carbon footprint by 70% for Honda China

2 min
Road-to-rail logistics solution will reduce carbon emissions at the automaker by 70%, stripping 16,000 tonnes of CO2 from its supply chain

Around 16,000 tonnes of CO2 has been cut from the supply chain of Honda's China-based manufacturing division through a road-to-rail transformation in partnership with logistics leader Kuehne+Nagel

The programme was developed through KN Sincero, the joint venture between Swiss headquartered Kuehne+Nagel and Chinese automotive logistics firm Sincero, established in 2018. 

KN Sincero worked with Honda China to develop an integrated solution to convert much of its domestic long-haul trucking to train lines, using regional hubs to improve supply chain performance and further reduce carbon emissions. The programme delivered consolidations as well as value-added services, including sorting, scanning, repackaging, GPS track and trace, and recyclable container management. 

"Kuehne+Nagel has always been a supply chain partner that we can rely on, to help us improve our supply chain performance whilst also achieving our environmental goals,” said Mr. Jiang Hui and Mr. Takuji Kitamura, Joint General Manager of Wuhan Dong Hon, the logistics affiliate of Dongfong Honda Automotive. 

After six months of shifting to the road-to-rail model, new supply chain reliability and efficiencies are expected to eradicate 16,000 tonnes of carbon emissions annually. The carbon savings represent an enormous 70% reduction in total. 

"Automotive is one of the most important sectors in contract logistics, particularly in China, the world’s largest automotive market,” added Gianfranco Sgro, member of the Management Board of Kuehne + Nagel International AG, responsible for Contract Logistics. “I am glad that Kuehne+Nagel and Honda share a common vision of service, innovation and sustainability.”

Kuehne+Nagel’s Net Zero Carbon programme 

Kuehne+Nagel announced its Net Zero Carbon programme in 2019 with a dual purpose to reduce CO2 output in its own logistics operations, as well as partnering with organisations to minimise their own impact on the planet. Kuehne+Nagel reached carbon neutrality globally in 2020 throughout its own, direct emissions, and is now focused on developing its capabilities to serve partners. 

Dr. Detlef Trefzger, Chief Executive Officer of Kuehne+Nagel International AG, said the programme is “a package of measures to fight CO2 emissions and provide sustainable and innovative supply chain solutions – hand in hand with our suppliers and customers”. 

As part of the initiative, Kuehne+Nagel established its own nature projects in Myanmar and New Zealand, and invested in ‘nature-based’ carbon dioxide compensation projects to strip harmful emissions from the environment. It is committed to being CO2 neutral for shipments in its network of transport suppliers by 2030. 

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