Periodic Reporting for period 2 - SENSE (Accelerating the Path Towards Physical Internet) Reporting period: 2019-04-01 to 2020-09-30 Summary of the context and overall objectives of the project “If we want to meet EU societal challenges on decarbonisation in an affordable way and strengthen competitiveness of European industry at the same time, we need a transformational change in freight transport and logistics to make a better use of assets, infrastructure, vehicles and resources”The deployment of greener and cleaner freight vehicles, trains, barges, ships, and airplanes as well as low emission energy solutions is forecasted to be too slow to deliver on the European Commission’s climate change targets. In parallel to the development of lower and zero tailpipe emission vehicles and low emission energy, it is critical to leverage opportunities for increased logistics efficiency. We envision large gains and benefits to all stakeholders by doing more with less in the freight and transport industry. The existing idle capacity of assets in all modes of transport and storage could be better utilised, and flows could be managed in a more consolidated way using and combining transport modes and other logistics assets smartly. Open and interconnected logistics services and networks (building the Physical Internet - PI) will maximise the capacity utilisation meeting current and future demands. Value creation through efficiency should be used to speed up the transition to greener and cleaner assets, instead of price reductions and margin erosion resulting from the use of current assets. There are large opportunities for efficiency gains in freight transport and logistics through better use of assets, such as trucks, railways, warehouses and barges and reducing fragmentation, which stifles innovation. a) We know that 24% of goods vehicle kms in the EU are running empty and when carrying a load, vehicles are typically only 57% loaded as a percentage of maximum gross weight. The total cost burden this inefficiency generates is estimated as €160 billion and 1.3% of EU27 CO2 footprint. b) Transport infrastructure is poorly utilised, especially in the rail sector. While the intensity of use of road infrastructure was 25.3 Million-Ton Kilometre per Network Kilometre, rail was 1.7 in 2009. One source of solutions to these challenges is the Physical Internet. Moving to “Physical Internet Model” could: shift 50% of goods transport from road to rail, cut costs by 32%, reduce greenhouse gas emissions by 60%. SENSE Strategic Objective is to accelerate the path towards the Physical Internet, so advanced pilot implementations of the Physical Internet concept are well functioning and extended in industry practice by 2030, and hence contributing to a 30 % reduction in congestion, emissions and energy consumption. Work performed from the beginning of the project to the end of the period covered by the report and main results achieved so far A summary of the work carried out within this reporting period pursuing the objectives of the project are:O1. Develop the vision and a detailed roadmap towards the Physical Internet until 2030. The detailed roadmap to the Physical Internet has been finalized and has reached wide consensus and support across freight transport and logistics stakeholdersO2. Monitor and boost Physical Internet development. The shortlists of most relevant projects (23) and companies (44) has been further assessed and their potential contribution to the implementation of the Physical Internet has been reported. The Knowledge Platform has been launched gathering 720+ experts, 33 R&I projects, 30 companies and 18 funding opportunities with an activie participation on users. A methodology for evaluating and selecting the initiatives collected has been developed and further tested. O3. Increase support and build consensus on the benefits of Physical Internet realization and engage public bodies, research and industry stakeholders. A simple analyse by PGBS is showing that PI could have a crucial role towards decarbonization and meeting COP 21 Paris agreements. In fact, Physical Internet is now a core strategy to achieve the main end: A logistic industry enabling a sustainable human ecosystem on Earth. The Roadmap to the Physical Internet includes recommendations that will drive its development and guide the activities of companies, R&I organizations and governments. SENSE is supporting the creation of a strong Physical Internet community around ALICE in which all involved stakeholders, willing to support and invest on Physical Internet realization, can meet and develop the roadmap implementation (ALICE has already 140+ members). Moreover, SENSE is boosting the International Physical Internet Conference (IPIC) (www.pi.events) to which 60+ contributions have been received in IPIC 2019 call for contributions edition and gathered the participation of 250+ daily participants for 3 days. Progress beyond the state of the art and expected potential impact (including the socio-economic impact and the wider societal implications of the project so far) SENSE major Outcomes are as follows:1.- Achieving wide industry and public bodies consensus and support on Physical Internet (PI) vision and roadmap:a) SENSE has translated the PI academic vision into an industry actionable roadmap including the Vision, Areas of development, Generations & Topics b) supporting PI related R&I programmes and projects are supported through Horizon 2020, Horizon Europe and R&I programmes in Austria, Belgium and The Netherlands. c) An executive version of the roadmap has been produced and edited along with 2 videos explaining the concept and roadmap (4500+ views and 200+ hours of broadcasting).2.- Develop and implement a strong methodology to monitor, assess and review Physical Internet implementation status including industry initiatives, Projects and Programs:a) The developed methodology is aligned with the roadmap areas of development, generation and main topics. b) SENSE has built the reference Physical Internet Knowledge Platform gathering an important part of the whole PI community. The Knowledge Platform was launched in IPIC 2019 (www.pi.events)3.- Better alignment on regional, member states and EU Programs supporting Physical Internet:a) SENSE partners: DINALOG, VIL and VNL have set the basis and ALICE Mirror Group is leveraged to gather wider support.4.- Reinforced International Physical Internet Community. a) SENSE supported and boosted IPIC 2019 in London a major event for coordination of research activities around Physical Internet. This activity has been a lever for the rest of the project to strengthen the PI community, engage them with the development of the roadmap and the Knowledge Platform. Freight Transport and Logistics Decarbonization Solutions Scenarios for freight transport and logistics decarbonization. Potential contribution of PI Roadmap to Physical Internet Matrix Renewed ALICE Roadmap. PI as center piece towards freight transport and logistics decarbonization ALICE Zero Emissions Roadmap SENSE project structure and expected outcomes Physical Internet Picture Zero Emissions Roadmap Cover Page Roadmap to Physical Interne Cover Page
