DVF — 2023-05-10
Members Corner
High site costs in Germany, rising energy costs, an import turnover tax regulation that ties up capital and a shortage of skilled workers are exacerbating the international competitiveness of the logistics sector. "Logistics companies are positioning themselves in this challenging environment, but they also need sensible countermeasures from European and German policymakers to smooth the waters. Regulation must become a breakwater here," says Dr Jörg Mosolf, Chairman of the Board of MOSOLF SE & Co. KG and DVF board member of the German Transport Forum at the transport logistics trade fair.
International pressure on the industry is growing, Dr Mosolf continued. For example, the USA is also specifically promoting green drives, storage technologies, vehicles or fuels for its transport companies with the Inflation Reduction Act. Corresponding answers were lacking at the European level.
Dr Mosolf therefore called for government regulation to be geared to four areas of action: "First, a lack of personnel must not become a brake on growth. We expect the government to reduce barriers massively, cut red tape and facilitate the immigration of skilled workers. Second, with a view to climate protection, the state must promote investments in green technologies among companies, not only in electrification, but also through simple application and approval procedures. Third, CO2 prices must develop transparently and consistently. There must not be a double burden as with tolls and fuels. In addition, we need market authorisation for HVO100 and sustainable fuels for shipping and aviation. And fourth, we need to define the geopolitical framework clearly and to ensure competitive neutrality for the industry. The war in Ukraine has shown that companies can implement sanction mechanisms swiftly if they are internationally coordinated."
Sustainability as a guiding principle for entrepreneurial action
The experts on the panel agreed that sustainability and climate neutrality have become significant competitive features in the logistics industry.
"Companies that do not make sustainability an integral part of their business risk losing their licence to operate sooner or later," says Uwe Brinks, CEO of DHL Freight and DVF board member. "It is essential to seize all available opportunities in the logistics industry to that end. In addition to the potential offered by digitalisation or the shift to rail, it is particularly vital to make road transport sustainable." Mr Brinks stressed that “strong cooperation by all market participants was indispensable" in order to develop the necessary drive technologies as well as the associated framework conditions such as the provision of infrastructure and facilities.”
The industry's efforts to meet the climate targets would be flanked actively by the German government, explained Johannes Wieczorek, Deputy Head of the Department of Policy Affairs, the Bundesminiserium für Digitales und Verkehr (BMDV) [Federal Ministry of Transport and Digital Infrastructure]: "According to the climate protection programme, about one third of the mileage in heavy road freight transport should be electric by 2030. The BMDV has developed a roadmap for implementing the targets with the overall concept for climate-friendly commercial vehicles. It comprises three core measures: promoting the purchase of climate-friendly heavy-duty vehicles, controlling the development of infrastructure and a CO2-based heavy-duty vehicle toll." A very good funding climate reigns in Germany. A third funding programme will be launched, from which a market for climate-friendly trucks is expected to develop in the long term.
Dr Sigrid Evelyn Nikutta, member of the Board of Directors of Deutsche Bahn AG responsible for freight transport and Chairman of the Board of DB Cargo AG, underlined the efficacy of a support scheme: "The stronger support for single-wagon transport promised by the Federal Government is the right measure at the right time, because the German economy needs this form of rail freight transport more than ever. Demand is high and continues to rise. Single-wagon transport alone saves around two million tonnes of CO2 annually and replaces over six million truck journeys already today."
Transformation is in full swing
Investment is also needed in transport infrastructure, according to industry representatives. "What we need now first and foremost is speed in the construction and expansion of the necessary infrastructure and facilities," Dr Nikutta explained. Because in order to achieve the energy transition and climate neutrality, "we have a real window of opportunity, as proven also by the modernisation package adopted by the coalition."
From the perspective of a young start-up company, the time for pilot projects is over. Robert Ziegler, General Manager of Europe Einride: "The transformation is in full swing and procrastinators will miss the train." The EU, and Germany in particular, have set strong targets and have accompanied them with appropriate measures that will undoubtedly drive a transformation of the transport sector. "Shippers must now show courage and implement the existing potential of renewables more consistently, faster and more extensively."
Fair competition depends on fair regulation
Another important factor is ensuring a level playing field in the international logistics business. "Climate protection and global competition do not have to be mutually exclusive with airfreight as long as comparable framework conditions apply," said Dietmar Focke, Member of the Board of Directors, COO CHRO, Lufthansa Cargo AG. However, Mr Focke criticised the recent agreement on the market ramp-up of Sustainable Aviation Fuel (SAF) by European legislators. "Unfortunately, the opportunity was missed to introduce at the same time a mechanism that avoids disadvantaging European airlines and air transport hubs given the massive additional costs of SAF. Unlike non-EU airlines, our Lufthansa Cargo flights to China, for example, fall completely under the regime. Thus, emissions are not prevented, but merely shifted. There are proposals from aviation on how to contain this carbon leakage effect in a meaningful way in the future."
DB Cargo boss Nikutta believes that politics has the chance to shape the current transformation in such a way that distortions of competition in global trade are prevented - for example with electricity price caps for particularly energy-intensive industries and with tax cuts for biofuels such as HVO. "At the same time, the reform of the European CO2 emissions trading system continues to set consistently incentives for the reduction of emissions and far-reaching modernisation."