smart mobility management 7 - dossier car sharing
DESCRIPTION
Dossier Car Sharing Mobility Management From Travel to Mobility Sustainable Air Travel Case Studies: Delhaize, Euler Hermes, ArcadisTRANSCRIPT
I DOSSIER Car Sharing in Europe
I Case Studies Euler Hermes
Arcadis Delhaize
I Strategy From Travel Management to
Mobility Management
International Integrated Corporate Mobility Solutions
#7
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smart mobility management - n°7 I 3
Steven SChoeFS
THE SHArinG prinCiplE
In Europe, a new movement called the ‘sharing economy’ is
embedded in the philosophy that sharing is as efficient as own-
ing. The idea of using a vehicle only when needed and pay-
ing only when being driven is becoming increasingly attrac-
tive. This is particularly true in the P2P environment where
the recent successes of car sharing initiatives across Europe, such
as Autolib’, DB Flinkster, Greenwheels, Cambio or CityCarClub, are
quite remarkable.
But what is happening in the B2B-segment? Suppliers are certainly
willing and starting to propose interesting corporate mobility ser-
vices. But the current offerings do not yet seem attractive enough
to convince business clients to throw away ‘old habits’ and make a
‘strong move’ to corporate car sharing.
To make the change happen, more is needed from suppliers and
customers than just change management. Corporate car sharing can
only be successful if:
1. Corporate users feel a similar degree of comfort as when driving
their company car. Technology performance in terms of informa-
tion and payment systems will be decisive.
2. Suppliers do not consider the expansion of alternative mobility
modes as a threat to their classic core business activities, but
consider car sharing as a unique new opportunity.
3. Users think beyond the nominal price element and corporate
clients think beyond the pure cost cutting goal.
4. Governments propose real incentives favoring the wider integra-
tion of new smart mobility modes such as bike sharing, public
transportation, car pooling and car sharing.
With this issue of Smart Mobility Mana-
gement we hope to stimulate the fur-
ther development of B2B car sharing
and invite you to keep abreast of the
latest car sharing and mobility news on
www.smart-mobilitymanagement.com.
Athlon Mobility Consultancy is part of De Lage Landen International B.V.
The mobility of your business drivers is often a major cost item. And on top of that, there is all the time wasted queuing in traffi c. A smarter implementation of your mobility policy can be of particular advantage in situations like this where you are looking for tangible cost-cutting measures. For example, you will see immediate economic benefi ts if your employees share a vehicle for journeys slightly more often. But it might be even more cost-effi cient to let them work together occasionally at a fl exible workspace close to home. Here at Athlon Mobility Consultancy, our approach is to take a critical look at your entire mobility policy. Based on that, we advise you on a sustainable, cost-saving and practical comprehensive solution. Interested to see how objective advice can help your organisation get ahead? Then go to www.athlonmobilityconsultancy.com.
Athlon Mobility Consultancy, Re-think your connection
Travelling together moreoften saves more.
smart mobility management - n°7 I 5
COntEnt
StRatEgy
24
CaSE StuDIES
30 Arcadis Mobility theory put to
practice
32 Delhaize Three-pronged mobility
attack
34 Euler Hermes Root and branch
change
30
InDuStRy
37 Two-wheeled mobility
The Segway is taking Lille city by storm
38 Rail Productive Mobility
The train takes you there
40 Air travel Not just green, but
greener
42 Air travel Making air travel
greener while keeping it safe
40
6 Market European Car Sharing
Boom Continues
12 Offer Only with enough time,
money and resources
18 Technology Will car sharing make us go electric?
19 Taxation Taxes are no car sharing
stimulator
20 News The latest news on the world of car sharing
DOSSIER CaRE SHaRIng
6
ISSUE N°8 SMART MOBILITY MANAGEMENT:The development of Telematics and other new mobility supports
Reproduction rights (texts, advertisements, pictures) reserved for all countries. Received documents will not be returned. By submitting them, the author implicitly authorizes their publication.
Thao Vandepoel INTERNAL SUPPORT ([email protected])
Filip Van Mullem MARKETING & DEvELOPMENT ([email protected])
CONTRIBUTERS: Tim harrup, Frank Jacobs, Dirk Steyvers, Philippe Martin, Jonathan Green (3SIXTY), Bart Vanham, Martyn Briggs (Frost & Sullivan)
MANAGING PARTNER: Thierry Degives
Caroline Thonnon CONTENT & BUSINESS DEvELOPMENT ([email protected])
Steven Schoefs ChIEF EDITOR ([email protected])
David Baudeweyns SALES & BUSINESS DEvELOPMENT ([email protected])
Romina De Gregorio INTERNAL SALES ([email protected])
Kathleen hubert OPERATIONS & COMMUNICATION ([email protected])
EDITOR:
Nexus Communication SA, Parc Artisanal 11-13, 4671 Barchon (Belgium) Phone: +32 4 387 87 94 Fax: +32 4 387 90 63 URL: www.nexuscommunication.be
SMART MOBILITY MANAGEMENT
www.smart-mobilitymanagement.com [email protected]
22 European Commission
SUMP or Sustainable Urban Mobilty Plans
24 Mobility Management
The exercise of measuring value
26 Mobility Management From a travel programme to mobility
management
28 B50 Platform Working and travelling smart in the Netherlands
29 News The discover the latest market and industry news
smart mobility management - n°7 I 6
DOSSIER Car Sharing
The European market for Car Sharing services continues to grow at an unprec-edented rate; between 2008 and 2011 saw almost a 60 per cent increase in sub-scribers from 500,000 to more than 800,000 members of either a “Traditional” or “Peer to Peer (P2P)” Car Sharing service.
According to Frost & Sullivan analysis,
this trend is set to continue, with a fore-
cast 15 million traditional Car Sharing
members and another 750,000 P2P Car
Sharing members by 2020, representing
a 40% compound annual growth rate
(CAGR) for traditional and 20% CAGR
for P2P Car Sharing. This is a trend that
hasn’t gone unnoticed by vehicle manu-
facturers (OEMs) and indeed several
other organisations, and is leading to
convergence of the market and business
models, posing several opportunities
and challenges to businesses ahead.
Mega Trends Influencing the Market for
Car Sharing
Whilst Car Sharing as a concept has
existed in the market for many years,
there are several mega trends that
are combining to change the market
dynamics, and foster such a vast growth
environment, as represented in figure 1.
Continued urbanisation and creation
of Mega Cities provides the necessary
population density for Car Sharing
to become sustainable. More recent
advances in technology that allow users
to locate, book, and access the vehicles,
increasingly on smart phones, is one of
the key facilitators of recent Car Sharing
growth.
Of course, government policy and leg-
islation has also played a key role in the
development of Car Sharing as a con-
cept, in the provision of subsidised/free
on street parking in some London Bor-
oughs, or direct subsidies in countries
like France. Also, continued investment
and promotion of sustainable and inte-
grated/multi modal transport fits well
with the Car Sharing business model,
firstly because each Car Sharing vehicle
results in on average 12-14 private vehi-
cles being removed from the congested
roads (Source: Frost & Sullivan analysis),
European Car Sharing Boom Continues
fig.1: MEGA TRENDS IMPACTING ThE GROWTh OF CAR ShARING IN EUROPE
URBANISATION& MEGA CITIES
INCREASEDCOST OFVEHICLE
OWNERSHIP
TECHNOLOGYDEVELOPMENTS
GOVERNMENTPOLICY &
INCENTIVES
“VALUE FOR MANY”
SOCIAL PREFERENCES
INTEGRATEDMOBILITY
Source: Frost and Sullivan analysis.
smart mobility management - n°7 I 7
and secondly because Car Sharing as an economical option
can act as a source of first and last mile connectivity in areas
where setting up of expensive public transport infrastructure is
not feasible.
The cost of owning a private vehicle has increased significantly
in recent years; for example in the UK, all motoring costs dou-
bled between 1997 and 2010, outstripping inflation consider-
ably – the retail prices index increase over the same period was
40%. Coupled with challenging economic conditions in Europe,
this is undoubtedly making people consider whether vehicle
ownership is necessary, particularly in the face of improving
alternatives such as Car Sharing.
Collaborative consumption
Another interesting trend that is influencing the demand for
Car Sharing is that of collaborative consumption, also referred
to as “value for many”, or “the shared economy”, where gener-
ally there is a trend towards maximising assets, from shopping
services like Groupon, accommodation services like AirBnB, or
specifically in transportation the temporary rental of vehicles
or parking spaces. All of which involve the sweating of assets
and pooling of consumers to create new business models.
however, what we find most interesting in much of the
ongoing mega trends research that we’re undertaking, is the
changing social preferences in relation to mobility. There is an
argument that younger drivers no longer consider owning a
car a necessity in terms of status, individualism and freedom.
Some people attribute this back to the cost of ownership issue,
but others realise that the connected era and changing social
interaction, via social media and online gaming for example,
in many cases replaces the need to travel at all. One challenge
related to this, which is equally a challenge for Car Shar-
ing organisations also, is the changing rate of driving license
uptake altogether in these younger drivers; the rate of 17-20
year olds obtaining full driving licenses in the UK decreased
from 41% in 2000 to 35% by 2010, and more alarmingly from
75% to 63% of 21-29 year olds over the same period.
The most prominent of these factors affecting the growth of
Car Sharing services specifically is up for debate, but these
changing preferences amongst younger drivers that are lead-
ing to a new age of mobility services. The more that people
begin to almost consider cars as “white goods”, expecting
mobility on demand irrespective of brand, and become dis-
enchanted with the traditional view of the car as a reflection
of status, could be the main catalyst for such forecast rapid
growth of Car Sharing in Europe.
Emerging Business Models and Convergence
Although many consider Car Sharing as a commercial concept
to still be in its relative infancy, these changing and in some
cases conflicting trends have led to a number of alternative
business models and convergence with other parts of the
automotive industry. Figure 2 shows the current breadth of the
Car Sharing business models.
What started with “traditional personal Car Sharing opera-
tors”, or a situation where a third party rents out their vehicles
to a group of paying members (and covering insurance and
fuel costs), has rapidly diverged to also include traditional
corporate Car Sharing and an entirely new paradigm of P2P
Car Sharing. Traditional corporate Car Sharing is seen by many
operators as a lucrative opportunity to reduce costs to busi-
nesses whilst providing high quality vehicles to employees,
and can be used as part of a “mobility budget” or “mobility
allowances”; an increasing trend whereby employees can rent
a series of vehicles at differing rates to an agreed monthly/
term limit. The benefits to the employer are the reduced costs
enjoyed by pooling vehicles (rather than providing a vehicle
for each employee); the employee can enjoy a higher stand-
ard of vehicle and often a number of models to choose from,
and the vehicle provider reduces their financial risk by in most
cases receiving a set leasing value per vehicle irrespective
of the vehicles utilisation, and receives a higher value for the
vehicle to pay for the pre installed Car Sharing technology.
Whilst traditional corporate Car Sharing currently accounts for
25% of total traditional Car Sharing members, Frost & Sullivan
Car Sharing
Traditional
For-Profit Non-Profit Co-operative
P2P
For-Profit Non-Profit
Personal Corporate EV Non-EV One-way Round-Trip
fig.2: ExPANDING CAR ShARING BUSINESS MODELS
smart mobility management - n°7 I 8
DOSSIER Car Sharing
forecasts that this is expected to grow
to 37% of total traditional Car Sharing
members by 2020.
Secondly, the emergence of P2P Car
Sharing services has further diversi-
fied the Car Sharing concept, with P2P
operators finding customers willing to
rent vehicles, and leveraging the same
location/access technologies and insur-
ance services as traditional Car Sharing
operators, but using privately owned
vehicles. In this case, anyone that owns
a car can advertise their vehicle for
rent as part of the P2P service, with the
revenues from rentals split between the
vehicle owners and P2P operators. This
has a separate element of challenges
to the mass adoption, with the main
being acceptance of the owners to third
parties using their vehicles. however,
the growth of this concept has been
considerable, with a fourfold increase in
members from 2010-2011, and a forecast
21% CAGR in members (from 130k to
750k) between 2011-2020 (Source:
Frost & Sullivan analysis), with particular
adoption in France.
The aforementioned mega trends and
growth rates in the Car Sharing industry
have not gone unnoticed by other seg-
ments of the automotive industry. As
figure 3 shows, in fact, already there are
a number of points of convergence in
the Car Sharing industry, in particular
between the Car Sharing organisations
themselves and vehicle manufactur-
ers (OEMs), leasing companies, and
transportation providers. This provides
a unique level of convergence, and
allows many operators to potentially
be considered as “mobility integrators”
by leveraging both private and public
transportation as a complementary
offering, rather than competing. What I
also find particularly interesting are the
competing interests within this converg-
ing landscape.
OEMs and lessors
The OEMs reportedly see Car Sharing
as an opportunity to penetrate new
markets and brand loyalty, especially
amongst younger drivers. Traditionally
younger drivers would start their driv-
ing days with older and lower quality
vehicles, set against very high insurance
premiums. Premium manufacturers like
Daimler (through Car2Go) and BMW
(through DriveNow) understand that
providing younger drivers with their
entry level models could in fact lock in
brand loyalty from a young age, so that
when these drivers are in the position to
buy a vehicle outright, there is a higher
chance that it will be with the brand/
vehicle they use for Car Sharing.
Similarly, on the corporate side, pre-
mium manufacturers enjoy a higher level
of customer retention (83% compared
to 75% in a recent Frost & Sullivan
survey), and sales of optional extras, in
their corporate leasing markets com-
pared to private outright purchase mar-
kets. All of these conditions is leading
to more OEMs and leasing companies
entering the car sharing (traditional and
corporate) market.
Transport operators
Lastly are the transport operators/
authorities themselves. An interesting
trend, particularly in France and Ger-
many (with veolia and Deutsche Bahn
respectively), has been the emergence
of Car Sharing schemes integrated as
part of a cities multi modal transport
offering. This is undoubtedly the future
(in my opinion) of a sustainable urban
transport network, with companies
offering both private and personal
mobility that gives the consumer a
choice depending on their preferences,
but most importantly, integrated as part
of a structured fare system that can be
benchmarked against other city zonal
fare schemes.
MobilityGreenwheelsStadtmobil
CambioAutolbZipcar
Avencar
ALDLeasePlanING Lease
Arval
VEHICLEMANUFACTURERS
(OEMs)
TRANSPORTOPERATORS
Cologne public TransportHelsinki public TransportSwiss National Railway
Amsterdam City PTBrussels STIB
BMWDaimler
VWRenault
LEASINGCOMPANIES DEDICATED
CSOs
Point of convergence
fig.3: CONvERGENCE WITh OThER MARKET SEGMENTS
Source: Frost and Sullivan analysis.
smart mobility management - n°7 I 9
As well as cross industry convergence, there is also a number
of partnerships and M&A activity changing the Car Sharing
industry. In particular, Zipcar’s continued European expansion
(integrating Austria’s Denzeldrive, Spain’s Avancar, and the
UK’s Streetcar in the last 3 years) has allowed an increased
market share and reach. Similarly, OEM partnerships, such as
Daimler’s Car2Go with Europcar, and BMW with Sixt, have
allowed instant access to the market; indeed Car2Go, Drive-
Now and vW’s Quicar account for over 30% of members in
Germany despite relatively recent incorporation of DriveNow
and Quicar.
In future, it is anticipated that continued growth and short
term returns in the case of P2P Car Sharing, will attract further
players/industry segments to the market, in particular private
equity and investment funds; good early examples of this are
easyCar and Buy2letcars in the UK.
European Market Comparisons
Currently, the largest markets for car sharing services in
Europe are the UK, Germany, and Switzerland, with almost
77% of the 2011 members. By 2020, the market will be domi-
nated by the UK, Germany, and France, although with a lower
60% of the total European market. Figure 4 identifies the key
market sizes and growth trends to 2020.
Future Outlook, Limitations, and Conclusions
Whilst it is clear the growth opportunities for Car Sharing
services in Europe are unprecedented and attracting numerous
investments, there are a number of challenges to be consid-
ered that could preclude such forecast growth in the industry.
In the short term at least, this could be a generational aspect;
many of the “generation x” and older drivers still consider car
ownership to be a right, with no willingness to share, especially
amongst more affluent cities. A separate issue is the popula-
tion density within cities; any car sharing service is dependent
on a vehicle’s utilisation rate to define profitability, and a more
concentrated location and higher rates of members is required
to make the solution viable, potentially excluding most rural
areas from such services.
In addition, government support, either through direct grants/
subsidies, or indirect policy leverage such as free parking or
waiving of city fees (congestion charging, electric vehicle
charging, etc) can influence the margins of viability within
a Car Sharing scheme, and if removed or altered could see
reduced offering. It is however noted how most city govern-
ments appreciate the benefits of Car Sharing, and have inde-
pendent organisations such as Carplus in the UK, or the pan
European Momo initiative continue to highlight this and lobby
for additional policy intervention in relation to Car Sharing.
To conclude, Frost & Sullivan’s recent research study highlights
a significant growth opportunity for Car Sharing services in
Europe, influenced by considerable mega trends and market/
economic headwinds, facilitated by changing technology and
consumer preferences. This will see a growth from 0.7 million
to 15 million members in Europe from 2011-20, and from 0.02
million to 0.2 million vehicles over the same period (both
traditional).
80%
70%
60%
50%
40%
30%
20%
10%
0%
0 1.000 2.000 3.000 4.000 5.000 6.000 7.000 8.000
SpainFrance
UK
GermanyNetherlands
Switzerland
Austria
VEHICLES 2011
Sweden
Italy
Belgium
fig.4: CURRENT EUROPEAN CAR ShARING vOLUMES & GROWTh FORECASTS
Source: Frost and Sullivan analysis.
smart mobility management - n°7 I 10
Converging market trends, expanding business models and “the shared economy” result in growing Car Sharing
UKIn the UK, Zipcar are the clear market leader with nearly 45-50% of total traditional Car Sharing members. At present, London is the single core market for Car Sharing, with more than 83% of members being based there. Whilst this demon-strates the current appeal of Car Sharing in Lon-don, there is significant growth forecast in other major cities like Birmingham, Bristol, and Man-chester. With over 210,000 Car Sharing members, the UK represents 30% of the total European Car Sharing market in 2011. Whilst this is set to grow to nearly 2.4 million members by 2020, the pro-portion to the total European market will reduce to 16 per cent as other countries start Car Sharing adoption.
REST OF EUROPEWith continued growth in other countries like Italy, Austria, Bel-gium, holland and Spain, the CAGR for traditional and corpo-rate Car Sharing membership to 2020 is forecast to be 40%, and 21% for P2P Car Sharing services over the same period.
DOSSIER Car Sharing
GERMANYIn Germany, there are over 130 Car Sharing operators at pre-sent, although the major provid-ers include BMW, Daimler, vW, DB Flinkster, and Cambio. Nearly 33 per cent of the European market (members), Germany is the largest car sharing market with 240,000 members, set to increase to 3.4 mil-lion by 2020.
FRANCEWhilst France has just 50,000 members in 2011, significant growth led by new operators and increased government incentives/subsidies will see the market grow to a forecast 2.9 million members by 2020, with investment from large scale operators like Avis, hertz and Autolib influencing demand but particular growth estimated in P2P schemes such as Buzzcar, voiturelib and alike.
ABouT The AuThoRMartyn Briggs is the Programme Manager for Mobility Research, in the Automotive and Transportation practice at Frost & Sullivan, a Global Research and Consulting company. Martyn is currently managing strategic mobility assignments, helping clients to identify growth potential through leveraging technology and new business models. Contact [email protected] or linked in
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smart mobility management - n°7 I 12
Only with enough time, money and resources
DOSSIER Car Sharing
As mobility management has morphed from theoretical concept to accepted reality across the fleet industry, it has created some interesting side-effects. One of which is the blurring between the industry’s supply segments. And nowhere more so than in the relatively new business of car sharing.
There used to be a time when a manufacturer (OEM)
would sell a car to a leasing company; that leasing
company would then lease that car to a rental
company; and this rental company would then,
finally, rent the car to the actual end user - some-
one who used the car for a relatively short term. But today,
each of these supply segments is talking directly to the end
user - as well as carrying on their original business. The picture
is complicated further by the emergence of new companies
specialising in the relatively new business of car sharing.
What are the visions and strategies of the companies dealing
with this brave new world? That depends on who you talk
to: the lease and rent companies, the manufacturers, and the
specialists.
Cities are asking the million-dollar question: How do we keep everybody moving?
smart mobility management - n°7 I 13
1. Lease and rental companies
Looking at mobility comprehensively, Alphabet finds its
business is no longer just about leasing cars or managing
fleets - it’s about providing the corporate sector with mobility
solutions that are both economically and ecologically sound -
like corporate car sharing.
AlphaCity, a solution that’s both innovative and flexible, is
therefore seen as crucial to Alphabet’s identity as a business
mobility provider. The company keeps building new mobility
solutions, aiming to be the market trendsetter. As the company
itself likes to repeat, integrating different modes of transport
via innovative mobility solutions is ‘self-evident at Alphabet’.
For ALD Automotive, it’s the shifting marketplace itself that
requires a re-statement of emphasis: “We aim to add to our
product range the innovative solutions that may become the
core business in a few years’ time, while building a different
relationship with our corporate clients”. On the supplier
side, ALD prefers companies (‘pure’ car-sharers and others)
with state-of-the-art technology so it can minimise time to
market and maximise the product’s offering. As for customers,
ALD Automotive places great emphasis on the number of
registered users, and even more so on the cars’ rotation rate.
Considering the low volumes at present (not to mention the
large upfront investment), ALD clearly is in it for the long haul.
Optimisation & Simplicity
Athlon Car Lease has a shocking statistic: 90% of business
cars in its Dutch home market spend their time in office
parking lots instead of on the road. That is a lot of untapped
potential, and a great opportunity to increase the efficiency of
the corporate fleet. Car sharing is the solution to the problem,
providing added value also in corporate mobility’s social and
environmental dimensions. Everybody wins: the employer, the
employee, and the environment. The bigger picture, according
to Athlon, is that car use is gaining importance over car
ownership. Responding to and reinforcing the trend, Athlon
matches vehicle overcapacity with the demand for cheaper,
more flexible rental solutions. The business model includes a
one-off fee for a license that provides access to a car sharing
platform (white-label, so it can be customised to any brand), as
well as a commission for any car share transactioned through
the platform. “Setting up a full-blown, professional and highly
scalable car sharing platform, and managing it, require vast
reserves of time, money and other resources”, Athlon Car Lease
warns. “We expect our car sharing venture to become profitable
in 2013, when it has reached a certain scale.”
As one of the world’s largest and best-known short term rental
companies in the world, hertz’s business has always been close
to ‘car sharing’ anyway. hertz On Demand, its global car sharing
club, consists of over 800 vehicles, 180.000 members and
500 locations worldwide - including universities and corporate
offices. Such a big network is managed best by keeping it as
simple as possible - from application through reservation to
actual driving and returning. But is the approach also profitable?
hertz provides this cryptic answer: “Profitability is a large
concept, and there will be some business segments that are
more profitable than others.”
smart mobility management - n°7 I 14
DOSSIER Car Sharing
2. Car manufacturers
With its car2go service operating in North America and Europe,
Daimler is one of the manufacturers most active in car sharing.
The company confirms that car sharing and bike-sharing have
risen remarkably in the world’s cities. With car2go, Daimler aims
to refine these concepts, making individual mobility easier and
more flexible.
New business opportunities
The idea for car2go came from Daimler’s Business Innovation
Department, a unit hunting for future business opportunities. It
concluded that as urban agglomerations will continue to grow
in population and traffic density, the million-dollar questions are:
how do we keep everybody moving? What about sustainability?
And how to save space for urban quality of life? Car2go could
become the large-scale, profitable answer to those questions,
as the preliminary results seem to confirm Daimler’s projections.
But again, success - or more precisely, future success - does not
come cheap: “Car2go needs upfront investments to develop
business and validate concepts. But because Daimler sees huge
potential in car2go, which it sees leading the race towards sus-
tainable mobility, it remains strongly committed to the invest-
ment.”
Peugeot too has studied the changing market closely, and
it sees opportunities developing over the next 5 years for
carpools: “There is real demand from our customers, and the
formula is consistent with our brand and strategy.” This autumn,
Peugeot will conduct internal trials for different parts of its
programme, including a mobility audit for all its sites, self-
service 2-wheel mobility and an electric vehicle pool, along
with a sharing programme for existing company cars. The trials
are meant to identify opportunities for cost reduction and fleet
down-sizing, to observe staff reactions in order to provide
accurate services and improve well-being, among other goals.
“We’ll test our solutions on ourselves before we try them out
on our customers. While the experiments cost money, we still
expect the systems to be profitable within 3 years.”
Behavioural changes
volkswagen has been keeping a close eye on new mobility
concepts for some time, and has distilled its observations into
its own car sharing scheme, Quicar. vW has noticed important
changes in vehicle usage, especially with the younger, more
urban crowd. Some people don’t want their own car in the city
- others simply can’t afford one. But neither group wants to
give up its individual mobility. This is exactly the kind of market
Quicar is designed to tap - and to study: volkswagen has been
surprised to learn that not just young people and students use
Quicar, but also pensioners. But Quicar’s business model is
not just to attract new target groups, eventually it intends to
operate as a self-standing profitable business.
Eco-friendly
Renault operates a scheme built around its two-seater, all-elec-
tric city car, the Twizy. The manufacturer is preparing a full-scale
test of ‘Twizy Way by Renault’ , its innovative sustainable mobil-
ity service accessible to all. The service is intended to reinforce
Renault’s status as an innovative, eco-friendly manufacturer, and
more to the point, that Twizy is a particularly well-suited tool for
car sharing…
In recent years, there’s been a remarkable change in vehicle usage across Europe
Setting up a professional and highly scalable car sharing platform, and managing it, require vast reserves of time, money and other resources.
smart mobility management - n°7 I 15
IN ThEIR OWN WORDS FROM LINKEDINBernard Dehaye (Belfius)“Belfius Bank has been using Cambio cars as pool cars since 2010. We installed car sharing stations with 9 vehicles at our buildings in Brussels. We halved our fleet of owned ser-vice vehicles from 40 to 20. The big advantage is that when we do not use car sharing vehicles, off-peak, for example, they cost us nothing...It is excellent for the company image, as it reduces the influence on parking.”
Jon West (HRS Hotel Reservation Service) “I think it’s a great idea. however London is just not set up with office parking and NCP or local parking is so expen-sive for full day parking, the car share would need to be full each day to make it worthwhile.”
Manish Garg (Frost & Sullivan)“Yes, corporate car sharing is an interesting mobility solu-tion. It avoids an employee from using his/her vehicle for company related works….it helps the company to cut down on the cost incurred in hiring a cab. The company car also helps the employees to use the same vehicle, at a cost, after office hours and also over weekends. This cost helps the company to repay any such cost to the leasing company.”
Emmanuelle Katz (Carbox)“Yes, at Carbox we are keen to use our own car sharing system for the needs of our 15 employees. Cars are mainly used for professional purposes but all of us also enjoy the possibility to get a car for personal uses when it is needed…. good for employees’ motivation and costless compared to a traditional corporate fleet.”
Ireneusz Tyminski (Aon) “Interesting subject, but I have a few questions. how about cost efficiency? Some use terms like ‘costless’ but to what do you compare? Is it cheaper (…) than a taxi or a regular rent a car?...And do you only use it for occasional trips, as I cannot imagine that the benefit cars for key employees are replaced by a ‘shared one’.”
3. The specialists
What about the specialists, those companies that are all about
car sharing?
Taxistop has been ‘promoting and facilitating collaborative con-
sumption since 1975’, and was the force driving the profession-
alisation of car sharing, launching schemes in Brussels, Liège,
Namur, Ghent, Antwerp and other cities.
Taxistop does more than offer professional car sharing. It also
takes part in a private initiative, Autopia. Its mission is to help
private individuals develop their own peer-to-peer car-shares,
offering insurance and web support, among other things. There
are no fixed fees or agreements. All depends on the car’s owner
and those who want to use it. Autopia merely helps negotiate
the initial agreements, in line with each group’s specific needs.
With highly visible stations in Brussels, Cambio is another car-
share company. It operates on a per-kilometre and per-hour
basis, with insurance and fuel included. The service is available
24/7, and no direct is needed to pick up a car. The service now
also operates in Ireland and Germany. While Cambio is a for-
profit (and even profitable) company, both Taxistop and Autopia
are not-for-profit organisations, with Autopia receiving subsidies
for its services.
Spirit of collaboration
Meanwhile in Switzerland, Mobility International claims that its
success is founded on its spirit of collaboration - by and for the
collective: “It was set up as a cooperative, serving the transport
needs of individuals while preserving the environment of the
wider collective”. Mobility International is owned and supervised
by its 46,000 members, and has a total of 102,000 customers,
and is still expanding its clientele. The long-term success of the
company is linked to the economic, social and ecological value
its adds to the community.
The cooperative business model allows for sustainable growth,
as revenue has to be reinvested into the business itself.
Member shares and private loans form the basis for Mobility
International’s continued growth, which gets by without external
investments.
Tim harrup
IS CAR ShARING AN INTERESTING MOBILITY SOLUTION FOR CORPORATES?
Results of the Smart Mobility Management Poll – August 2012
50%
6%12%
31%
No, car sharing is not cost-efficient enough
No, car sharing is to complex to organize
Yes, my company is thinking about
installing a car sharing scheme
Yes, my company is already using car sharing
• Ju
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*Fuel consumption urban/extra-urban/combined: 4.3–4.2/4.3–4.2/4.3–4.2 l/100 km, combined CO emissions: 112–109 g/km.Figures do not relate to the specific emissions or fuel consumption of any individual vehicle, do not form part of any offer and are intended solely to aid comparison between different types of vehicle.
From 109 g/km CO²* – the most
efficient E-Class of all time.The E 300 BlueTEC HYBRID.
At 4.2 litres of diesel per 100 kilometres, the new hybrid offensive from Mercedes-Benz – the E 300 BlueTEC HYBRID – is setting the benchmark when it comes to fuel consumption in the luxury business class vehicle segment. The modular hybrid concept with lithium-ion battery sets new record values in terms of efficiency with economical and comfort-enhancing innovations like the ECO start/stop function. Furthermore, it wins people over with its impressive driving experience and exemplary fuel consumption figures. The new efficiency record holder is also available as an estate. Find out more at www.mercedes-benz.com/fleet
420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1 29.08.12 12:0729.08.12 12:0729.08.12 12:0729.08.12 12:0729.08.12 12:0729.08.12 12:0729.08.12 12:0729.08.12 12:0729.08.12 12:0729.08.12 12:0729.08.12 12:0729.08.12 12:0729.08.12 12:0729.08.12 12:07
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*Fuel consumption urban/extra-urban/combined: 4.3–4.2/4.3–4.2/4.3–4.2 l/100 km, combined CO emissions: 112–109 g/km.Figures do not relate to the specific emissions or fuel consumption of any individual vehicle, do not form part of any offer and are intended solely to aid comparison between different types of vehicle.
From 109 g/km CO²* – the most
efficient E-Class of all time.The E 300 BlueTEC HYBRID.
At 4.2 litres of diesel per 100 kilometres, the new hybrid offensive from Mercedes-Benz – the E 300 BlueTEC HYBRID – is setting the benchmark when it comes to fuel consumption in the luxury business class vehicle segment. The modular hybrid concept with lithium-ion battery sets new record values in terms of efficiency with economical and comfort-enhancing innovations like the ECO start/stop function. Furthermore, it wins people over with its impressive driving experience and exemplary fuel consumption figures. The new efficiency record holder is also available as an estate. Find out more at www.mercedes-benz.com/fleet
420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1420x297E_KL_LifeCycle_Flotte_Klebe.indd 1 29.08.12 12:0729.08.12 12:0729.08.12 12:0729.08.12 12:0729.08.12 12:0729.08.12 12:0729.08.12 12:0729.08.12 12:0729.08.12 12:0729.08.12 12:0729.08.12 12:0729.08.12 12:0729.08.12 12:0729.08.12 12:07
smart mobility management - n°7 I 18
Will car sharing make us go electric?
Who can blame fleet managers from doubting the potential of electric vehicles? But their short range and high TCO are less of a problem in a formula that may help popularise EVs: car sharing.
Alot of major players seem
to think so, at least. In
one form or another, they
are experimenting with
schemes that turn Evs’
perceived weaknesses on its head.
True, with a range limited to 150 km and
a recharge lasting several hours, Evs are
not the ideal tool for an active company
fleet. But then there’s car sharing, a
formula with generally much shorter
trips.
‘Soft benefits’
For ALD Automotive, integrating
Evs makes economic sense: “In the
corporate environment, Evs are
generally considered to have two major
weaknesses - a range that is too short,
and a Total Cost of Ownership that is too
high. But car sharing, which uses vehicles
for relatively short journeys before
returning them to a designated parking
area with a charging station, overcomes
the range issue. And a high rotation at
least alleviates the higher upfront cost.”
But there are also ‘soft benefits’ to
using Evs: “We educate people in a new
technology, and project a positive image,
both inside and outside the company.”
Alphabet is also juggling Evs’ ‘hard’
and ‘soft’ benefits, aiming to reconcile
economic benefits with a (more) positive
image for the technology: “We consider
Evs to be the ideal solution for urban
mobility needs, and we will integrate
them into our AlphaCity scheme - at
some point…” Urban mobility indeed is
key to the future of Evs, as is recognised
by manufacturers such as Renault, which
promotes its electric Twizy as “a vehicle
particularly suited to the new urban
mobility, with easy handling and minimum
dimensions.”
Intermodal transport
For few are bold enough to think that
electric vehicles are the future of mobility.
Rather, Evs are but one of many tech-
nologies that will enable mobility in the
future. The trick is finding out what elec-
tric mobility’s part will be in that future.
Taxistop is trying to find out, among other
ways via its Olympus project: this will see
the introduction of 8 Evs in 3 or 4 Belgian
cities, where Taxistop runs its Cambio car
sharing service. “The idea is to get a clear
perspective on the potential of Evs within
the car sharing concept and as part of an
intermodal transport chain, in combina-
tion with public transport.” The experi-
ment seeks answers to some very practi-
cal questions, especially regarding battery
management, reservation management,
and how to train car-sharers in using
Evs. And Taxistop is confident that those
answers will be positive: “At the end of the
project, we want to introduce more Evs
into our car sharing fleet, maybe up to
one in five cars. This will reduce CO2 emis-
sions, and enable more offers combining
public transport and Ev-sharing.”
Convenient and simple
Some might consider that a policy led by
devout wishes rather than by cold, hard
facts. Not in the least the Swiss operator
Mobility International, which has a 25-year
track record and 22 Evs in its fleet. “We
brought in Evs not because we think
that car sharing schemes are an ideal
platform to test new technologies. As
the provider of car sharing formulas, we
believe that the choice of vehicles should
follow from the principle that they must
be as convenient and simple as possible.
On top of that, we are also committed to
using low-emission vehicles. But the lack
of an appropriate infrastructure - quick
and plentiful charging points - prevents
us from introducing Evs on a large scale.”
volkswagen, on the other hand, does
believe car sharing is an ideal platform to
introduce new technologies - and puts
this belief into practice with its own car
sharing scheme, Quicar. “Electric versions
of the Golf, and our new small Ev called
up! will be launched in 2013. We think they
will be very suitable for our car sharing
fleet. So. as soon as we will offer these as
standard models, we’ll integrate them step
by step into Quicar.” For hertz, it’s not just
Evs, but car sharing itself that is a ‘new
technology’: “In some countries, car shar-
ing is still an ‘emerging market’; this fact
will certainly help us introduce new car
categories.” The people at Peugeot agree:
“Car sharing certainly provides good lev-
erage to sell more Evs, but also to intro-
duce new technology, based on on-board
telematics and electronic devices.”
Longer term
So what’s the long-term prognosis for
electric mobility, and indeed for
car sharing itself? At Athlon Mobility
Consultancy, they’re convinced their car
sharing business platform is future-proof
- both in terms of meeting future require-
ments of customers and introducing
vehicles with new technology. As a sign
of times to come, the platform will be
completely Ev-compatible. Whatever their
take on electric mobility, the major players
seem to agree that car sharing will play a
substantial part in bringing the technology
to a wider fleet audience. Even though it’s
well known that the vast majority of car
journeys is shorter than 40 km, it may take
a scheme like car sharing to convince most
drivers that the so-called ‘limited range’ of
Evs is not a problem!
Tim harrup
DOSSIER Car Sharing
Renault sees urban mobility as key to the future of EVs
like its own Twizy.
smart mobility management - n°7 I 19
Taxes do influence consumer behaviour, as witnessed
by the success of CO2-friendly cars due to tax incen-
tives. however, when it comes to car sharing or pool
cars, taxes are still complex, not transparent and
hence no stimulator for car sharing initiatives.
Car sharing of the ‘private car’
When participating in a car sharing program to book, pay and
use cars for private purposes, no tax deductions are involved.
When we use the privately paid, shared car for commuting,
a lump sum deduction, e.g. 0.15 Euros in Belgium, is usually
allowed from personal taxable income, in most cases when not
opting for a forfeit as a tax deductible cost.
When using the car for professional purposes, e.g. to visit
clients, the actual cost is (partly) tax deductible. Proving
and administering this is facilitated by the car sharing bills or
invoices received.
Needless to say that in practice, car sharing will be most popu-
lar with those people who do not use the car on a regular basis.
Therefore, the above tax deductions may not be more benefi-
cial than the forfeit tax deduction systems most countries have
in place.
Car sharing of the ‘company car’
Clearly, car sharing is still in its early days but becoming
increasingly an agenda item for many fleet managers. Pool cars
are taxed as any other company car. The private use of a pool
car will give rise to a benefit in kind, unless it is very occasional
private use (e.g. 500 kilometers in The Netherlands, exceptional
use in Belgium). Since most countries apply a percentage of
the purchase price as the basis for the benefit in kind regard-
less of the kilometers driven with the car, using a pool car for
(some) private purposes does not seem favourable compared
to a ‘normal’ individual company car. Using the pool car only
for professional purposes, which in most countries does not
include commuter traffic between home and office, will not
result in a benefit in kind. But the proving this might be burden-
some.
Taxes will in general not be a stimulator for employees who
have company cars to change to a shared pool car system. Cer-
tainly when the pool car is combined with other mobility means
where the taxation of the private use of these other mobility
means may result in additional benefit in kind taxes.
Lessons to learn are that existing taxation regulations are not
capable (yet) of neutrally taxing the use of multiple means of
mobility for private purposes nor stimulating employees or
employers to move into these systems. When other motivators
suffice to implement such a car pooling/sharing system, it is
advisable to understand the current boundaries of the current
tax regulations in order to prevent unpleasant surprises in any
tax bills. hopefully to be continued with adapted regulations.
Bart Vanham
Car Taxation Expert
taxes are no car sharing stimulator
The challenging economic environ-ment, an increased need for flexible mobility solutions and the decrease of the car as ‘status symbol’ are no doubt positive influences for the increasing popularity of car sharing. Private initiatives have shown their success, and the pooling of company cars is on the up.
The existing taxation schemes are not capable yet of neutrally taxing the use of multiple means of mobility nor stimulating employees or employers to move into new mobility systems.
smart mobility management - n°7 I 20
DOSSIER Car Sharing
Car2go comes to Miami The car sharing scheme car2go has arrived in Miami. As in other cities, the scheme features smartfortwo cars, 240 of which will be available for public use in Florida’s largest city. One of the features of car2go is that cars can be used for as long or short a time as necessary, and that cars can be left at any legal parking spot. Use is charged by the minute. Art Noriega, CEO of the Miami parking Authority, commented: “Car2go will provide our customers with the flexibility to use another form of transport on an as-needed basis, thus expanding personal mobility options”. Cars can be located by smartphone, booked by phone or simply ‘found’ in the street.
Multi-mobility in Hamburg In hamburg, Europcar, the car sharing scheme car2go, and the local rail/metro company hamburg hochbahn will undertake a 24-month trial of a new multimodal mobility concept. The goal is to link comprehensively the transport offerings of the three providers, and appeal to both private and corporate users. In the concept, selected local rail stops will serve as a mobility ser-vice point, enabling passengers to switch between train, metro, bus, rental car, car-share, and even bikes. The slogan for the concept will be: “The right offer at the right moment in the right place, all in the same place.”
Daimler takes stake in carpooling.com Car- and ride-sharing pioneers Daimler and carpooling.com are
joining forces to develop and expand carpooling.com’s Europe-
wide service. Daimler takes a minority stake in its partner,
leaving the bulk of company in the hands of its founders and
venture capitalists Earlybird. Carpooling.com currently has
4 million registered users in Europe, with 1 million using the
system to get rides. Daimler’s involvement will enable both
companies to integrate their mobility solutions. Daimler, which
is behind car2go, this year also invested in MyTaxi and trialled a
system called car2gether in two German cities.
Mobility suppliers building an innovative multi-modal mobility concept.
Miami pushing personal mobility with car2go scheme.
For Daimler, ridesharing is intelligent networked mobility.
D’Ieteren launches ‘Keyzee’ car-pooling systemD’Ieteren’s new mobility initiative Keyzee is centred on the concept of ‘collaborative consumption’: cars will be used by more than one person, one family, or one group of employ-ees. This implies obvious logistical challenges, that Keyzee resolves via smartphones. Booking, unlocking and starting the car can all be done over the phone. Potential users who opt for Keyzee as their car-pool management system can have the entire virtual kit installed in 15 min-utes. Keyzee is one example of a shift in fleet management from TCO (Total Cost of Ownership) to TCM (Total Cost of Mobility).
Keyzee, a virtual key on your smart phone is also a tool to help manage the fleet.
smart mobility management - n°7 I 21
Drivenow partners Berlin public transport company DriveNow partners Berlin public transport company Ber-lin public transport company BvG has partnered with car sharing scheme DriveNow (a BMW subsidiary) to offer car sharing to Berlin residents with subscriptions to BvG, thus providing a further alternative to the use of private cars in the city. The free subscription was made available to all of the 250,000 registered BvG users, with the first 500 receiving 90 free car sharing minutes and the remainder 60 minutes. The system is easy to use by smartphone app or from a home computer, and BvG Director henrik Falk refers to ‘one-stop shopping’ for various types of mobility.
Karlsruhe tops German car sharing listThe German car-sharing association ‘Bundesverband CarShar-ing’ (BCS) has taken the opportunity of the European Mobility Week to release the list of the top ten German cities in terms of adoption of the concept. BCS analysed cities with over 200,000 inhabitants on the basis of ‘car sharing cars per 1,000 head of population’, and found the following: Karlsruhe is the German car sharing capital, followed by Düsseldorf, Munich and Stuttgart. German capital Berlin only manages fifth place, even though it has the highest number of users in absolute numerical terms. The association believes that the ‘time when a car acted as a status symbol is definitely over’. It also points out that each car sharing car removes between four and eight private cars from the roads, and helps alleviate parking problems in cit-ies. The first German car sharing scheme began in 1988, a year after the inauguration of the concept in Switzerland (Mobility International). Some 109 of the 140 known German car-sharing schemes are members of BCS.
Car sharing for car makers?
Every car shared means 10 to 14 cars are taken off the road. The US Department of Energy recorded a drop in car ownership by 4 million in 2009, the first significant decline since records began in 1960. “We hope that if you know you have access to a car, you will round down the number of cars you own”, says Shelby Clark, founder of RelayRides, the most extensive peer-to-peer car sharing network in the US. That may seem at odds with what car manufacturers want, but General Motors is team-ing up with RelayRides to allow GM drivers to rent out their cars via the network. GM is not alone: Daimler, Ford, BMW, Toyota and Renault all have or are developing their own relationships with car sharing services.
Urban car sharing fully in line with electric vehicle development.
Zipcar acquires CarSharing.at in Austria By acquiring Denzel Mobility CarSharing, Austria’s leading car sharing service operating under the name CarSharing.at, Zip-car continues expanding its global car sharing network deeper into Europe. Last February, it acquired Catalunya Carsharing SA (operating as Avancar). More recently, it integrated Streetcar’s UK operations into Zipcar. Says recently appointed president of Zipcar Europe, Frerk-Male Feller: “Our technology, expertise and network can help scale CarSharing.at in Austria, and thus help our plan to grow into a leading car sharing network across Europe.”
Zipcar has global appetite.
smart mobility management - n°7 I 22
StRatEgy European Commission
SuMP or Sustainable urban Mobility Plans
Promoting Sustainable Urban Mobility Plans in New Member
States is also very much a priority. Our task is to develop a
guidance document for urban transport planners, detailing
how to develop Sustainable Urban Mobility Plans and including
minimum criteria to be fulfilled. We have also developed a
state of the art report together with other partners, and we
are carrying out awareness raising events and technical
training.”
Where do you operate?
Bührmann & Wefeing: “We operate all over Europe, around 29
countries are covered in the project. We have therefore been
able to ensure that people all over Europe have been trained in
how to set up plans. Training and awareness raising activities
are still being carried out.”
What is the potential impact of SUMP on business?
Bührmann & Wefeing: “Sustainable Urban Mobility Planning is
not the same as mobility management in the way companies
look at this subject now. We are not at a level of individual
companies, but an over-arching integrated urban approach.
This will usually be drawn up by a public authority and includes
participatory elements, a pledge to sustainability, integration
of different policy areas for an entire conurbation, clear vision,
objectives and measurable targets as well as a review of trans-
port costs and benefits.
The SUMP (Sustainable Urban Mobil-ity Plans) project of the European Commission is set to define how Euro-pean cities will move forward within this domain. Part way through its course, two of its authors – Sebas-tian Bührmann and Frank Wefering of Rupprecht Consult, mandated with the project, explain the thinking behind SUMP and gave us some details.
Sebastian Bührmann: “We have been able to ensure that people all over Europe have been trained in how to set up plans.”
Frank Wefering: “We are not at a level of individual companies, but an over-arching integrated urban approach.”S
ustainable Urban Mobility Plans as strategies for
better urban mobility and quality of life are cur-
rently promoted as an idea and concept at Euro-
pean Union level. SUMP is not like a conventional
European project where you deliver the final result
at the end of the project. It is much more an on-going process
within the European Policy framework. It promotes the con-
cept of Sustainable Urban Mobility Plans for the Commission
and is funded by the Intelligent Energy Europe programme.
What did the Commission ask you to do and what are the first
objectives?
Bührmann & Wefeing: “The European Commission sees
Sustainable Urban Mobility Plans as playing a major role in
solving mobility problems in European cities. The Commission
could go down the route of making such plans mandatory,
via a directive, but at the moment they are just looking at
this possibility. In various countries – France and the UK
for example, these kind of plans are mandatory by law. We
have found that where these exist within some sort of legal
framework, it really helps and fosters a culture of Sustainable
Urban Mobility Planning. The Commission is also considering
linking regional development and cohesion funds to cities
and regions that have submitted a current independently
validated Urban Mobility Performance and Sustainability Audit
certificate.
Our project is scheduled to run from 2010 to 2013 and is part
of the Eltisplus project, which also deals with the largest
European information portal of urban mobility (www.eltis.org).
smart mobility management - n°7 I 23
SUMP is very important for businesses
because they need an environment and
a quality of life in which they can oper-
ate efficiently and prosper. Compa-
nies which have good plans as part of
sustainable mobility policies also benefit
in terms of the health of their person-
nel. Furthermore, we also see that cities
which have SUMPs in operation are
quite successful in attracting service
industries in particular.”
Can you give some examples?
Bührmann & Wefeing: “In Cologne, we
see companies becoming very involved
in planning urban mobility. There is a
new section of tram-line which was built
to go directly to a new business area.
Ikea was one of the main sponsors in
making this happen. Everyone benefits –
the clients, the city, Ikea itself…
The proliferation of public bike sharing
systems in so many cities, sponsored
by private companies, is another obvi-
ous example of this. These examples
contribute to the positive image of the
businesses involved. Investment often
comes from a mixture of public and
private sources, therefore.
We spoke about the possibility of this
domain becoming mandatory, but many
cities are working on a voluntary basis
and having success. Ghent in Belgium
is a good example. They are working
hard on sustainable mobility which has
transformed the image of Ghent as a
high quality of life city in which to live.
The German city of Freiburg is now
quoted as an eco-city. Budapest has
transformed its inner city into a more
attractive place for living, working and
for business. Our own belief is that
incentives to establish SUMPs may be
able to achieve a lot, including in places
without mandatory regulations. It will
of course take time for all this to hap-
pen.”
Is there any impact on European
funding?
Bührmann & Wefeing: “Some fund-
ing could be conditional on certified
SUMP plans. Cohesion and structural
funds involve large sums of money, and
the Commission White Paper suggests
considering linking these funds to the
existence of Sustainable Urban Mobility
Plans.
This would be a big driver of course,
although it is only at discussion stage at
the moment. What has to be borne in
mind though, is that not all cities have
Sustainable Urban Mobility Plans in place,
and some of them would need support
to develop their first plan. Cities need
equal conditions to access funds that are
linked to the existence of a SUMP.”
Tim harrup & Filip Van Mullem
SUMP – PLANNING FOR PEOPLE
The report drawn up by Rupprecht Consult is currently 120 pages long, and impos-sible to summarise here. But a few key phrases can help to illustrate what this far reaching document – entitled ‘Developing and Implementing a Sustainable Urban Mobility Plan’ and sub-titled ‘Planning for People’ – is trying to achieve.
A DEFINITION
A Sustainable Urban Mobility Plan is a strategic plan designed to satisfy the mobil-ity needs of people and businesses in cities and their surroundings for a better quality of life. It builds on existing planning practices and takes due consideration of integration, participation, and evaluation principles.
DEFINITION OF A SUSTAINABLE TRANSPORT SYSTEM
A sustainable transport system meets society’s economic, social and environmen-tal needs whilst minimising its undesirable impacts on the economy, society and the environment.
DEvELOPING AND IMPLEMENTING A SUSTAINABLE URBAN MOBILITY PLAN
The SUMP method comprises the following tasks:1. Status analysis and baseline scenario;2. Definition of a vision, objectives and targets;3. Selection of policies and measures;4. Assignment of responsibilities and resources;5. Arrangements for monitoring and evaluation.
“Businesses need an environment and a quality of life in which they can operate efficiently and prosper.”
Bührmann & Wefeing, SUmP
ThE SUMP GUIDELINES DRAFT, WhICh IS vERY ADvANCED AND AvAILABLE AS WORKING DOCUMENT, WILL BE FINALISED IN MAY 2013.
Details of this can be found on www.mobilityplans.eu.
smart mobility management - n°7 I 24
StRatEgy Mobility Management
Measuring Value
In this article Jonathan Green examines the differences
between mobility and travel management, and explores
whether Travel Managers need to broaden their horizons,
start thinking strategically about how value is created
and re-invent themselves as the Mobility Managers of the
future.
Understanding mobility management
A mobility management strategy is strategic approach to
value creation. Mobility Managers operate like management
consultants and collaborate with colleagues to understand the
outcomes that the business is seeking to achieve. They then
advise how travel, technology and workplace solutions can
then be configured to deliver these outcomes and improve
performance.
Is it time to say bon voyage to travel management?
There is a split emerging amongst professionals in the travel
sector. On one side are the traditionalists who believe that
value is created through the management of travel products
and services. This group measure value by; negotiating with
suppliers to secure the best price; implementing travel policies
to achieve compliance; and optimising processes to improve
user experience.
On the other side, fewer in number but becoming increasingly
vocal, are Mobility Managers. These pioneers believe that travel
management is in urgent need of an injection of creativity.
Mobility Managers believe that travel, technology and work-
space solutions are inter-connected and that value is compro-
mised if they are not managed together.
Understanding, creating and measuring value
A Travel Manager operates in a confined space that limits their
ability to create of value. The opportunity to create value only
arises once a decision has been made to travel. Up until this
point the Travel Manager has no influence.
Mobility Managers in contrast are engaged in the design of
workplace solutions from the perspective of improving busi-
ness performance. This creates a space for value creation that
is significantly larger.
Creating the environment for change
The creation of a model that evidences the value of mobil-
ity management does not need to be complex. The first step
in any change management project is to create a space for a
discussion.
To facilitate a discussion the model of value creation used by
travel management professionals can be compared against
the principles of mobility management. This approach will
highlight the differences between the two and, in turn, enable
decision makers to appraise the potential for value that each
approach creates.
As the capability, availability and acceptance of technology in the workplace gathers pace pioneering corporations are exploring how mobility management can be used to improve business performance.
Mobility Managers believe that travel, technology and workspace solutions are inter-connected and that value is compromised if they are not managed together.
smart mobility management - n°7 I 25
Mobility Managers focus on outcomes
By reviewing processes from the perspective of outcomes and
collaborating with stakeholders Mobility Managers are able to
advise how travel, technology and workspace solutions can be
configured to improve business performance.
Travel Managers do not focus on outcomes. By demonstrating
the strategic approach of mobility management and contrast-
ing this with the operational focus of travel management, deci-
sion makers are presented with a high level overview of the
opportunities that exist for value creation.
Mobility Managers are innovators
Technology is changing how corporations operate. Innovation
is disrupting business models and creating new opportunities
for value creation. A Mobility Manager recognises that travel,
technology and workplace solutions are inter-connected and
have the potential to change how businesses and consumers
operate in the future.
A Travel Manager’s vision is blinkered and only extends to
innovation in the travel sector. In addition, Travel Managers
are unsighted of how change outside of the travel arena could
influence business systems and processes in the future.
Mobility managers take a holistic approach to value creation
Mobility Managers focuses on the costs incurred of delivering
an outcome from the beginning to the end. A Travel Manger
focuses solely on the impacts associated with travel, without
consideration for costs incurred pre or post travel.
Mobility managers compare and contrast the financial costs
associated with different modes of travel and technology,
along with the opportunities for designing new workspace
solutions and re-engineering business systems and processes
to improve business performance.
A Travel Manager concentrates on travel costs, the savings that
can be achieved by changing the mode of travel or supplier,
and how administrative costs associated with travel can be
optimised. By operating in this narrow sphere of influence a
Travel Managers ability to appraise the value of alternatives to
travel at a strategic and operational level is severely compro-
mised.
This narrow scope of measuring value by Travel Managers
operate is compounded when opportunity costs are con-
sidered. Mobility managers take a holistic view to the costs
incurred in delivering a business strategy and improving per-
formance. They appreciate that there are non-financial costs,
like employee productivity and health and wellbeing, which
need to be accounted for along with social and environmental
factors that could impact the success and reputation of the
corporation.
Travel Managers with their narrow remit are frequently
unsighted of strategic considerations. Even if they are aware
they have little ability to influence.
Mobility Managers have a remit to implement strategic
change
The space that Mobility Managers occupy is one of strategic
business improvement. As technology evolves, travel and tech-
nology converges and corporations see increasingly levels of
value in a mobility strategy, the value that travel management
presents becomes increasingly questionable.
If today’s Travel Managers are to add value in an increasingly
tech savvy world where mobile communications are re-
inventing the workplace, they will need to start the process of
re-inventing themselves as the Mobility Managers of the future.
Jonathan Green, Partner 3SIXTY
By reviewing processes from the perspective of outcomes and collaborating with stakeholders Mobility Managers are able to advise how travel, technology and workspace solutions can be configured to improve business performance.
smart mobility management - n°7 I 26
StRatEgy Mobility Management
Moving from a travel Programme to Mobility Management
Pioneering corporations are
beginning to manage busi-
ness travel and video solu-
tions under a single strategy
to improve business perfor-
mance. In this article Jonathan Green
explores why travel and video solutions
are coming together and discusses how
the barriers to integration are being
pulled down.
Has the time come to talk as well as
travel?
In business effective communication
is the centre stone of successful
relationships. For Mobility Managers the
integration of video alongside travel
is essential if a mobility management
strategy is to be successful.
Mobility Managers understand that
travel and video solutions are simply
enablers that allow people to talk.
Given this understanding Mobility
Managers are able to delve deeper
than their business travel counterparts
and ask; (a) how can video solutions
be designed to complement travel
programmes? (b) how can video based
solutions replace travel? And critically;
(b) how can video solutions be used to
re-engineer systems and process and
improve business performance?
Breaking down the barriers
Meeting in person is essential and video
solutions will not make business travel
programmes redundant. The compli-
mentary nature of the two solutions is
the space that Mobility Managers are
seeking to exploit.
There are three headline reasons why
the integration of video and travel solu-
tions has proved challenging. Firstly,
ownership of travel and video solutions
has been fragmented. Secondly, the
supply chain has been unable to present
video and travel content holistically and
thirdly, a cultural shift in attitudes is
needed if the capability of video is to be
fully explored.
Ownership
A Travel Managers approach to creating
value is very narrow. This is because a
travel programme focuses on the con-
sequence of a decision to travel and not
the reasons for travel. Similarly teams
responsible for video solutions measure
value by providing video technology
and maintaining it.
A Mobility Manager operates in a differ-
ent realm. They explore, in collaboration
with business partners, how travel and
video solutions can improve business
performance. This approach means that
a Mobility Manager is able to create and
appraise value from the perspective of
achieving outcomes.
Showing the way
Participants in the 1 in 5 Challenge, a
WWF-UK scheme to reduce business
flights, are providing an early evidence
base of the value of video solutions.
The challenge members’, including Cap
Gemini, BSKYB and Balfour Beatty, have
decreased flights by 19% and expendi-
ture by 17% over a 2 year period by
promoting video solutions.
The integration of travel and video based solutions
Pioneering corporations are beginning to manage business travel and video solutions under a single strategy to improve business performance. In this article Jonathan Green explores why travel and video solutions are coming together and discusses how the barriers to integration are being pulled down.
Following the launch of the world’s first global reservation systems for video the landscape is slowly changing.
smart mobility management - n°7 I 27
David Nassbaum, Chief Executive of
WWF-UK, wrote in the 2nd One in Five
report, “In our vision for the future,
companies can make the most of expert
project teams based around the world
but they won’t have to board a plane to
do so. The 1 in 5 Challenge is all about
helping business and government to
make this transition.”
Mobility Managers are spearheading
this transition. By focusing on outcomes
they are challenging the status quo,
questioning the role of business travel
in organisations and designing a new
approach to value creation.
Innovation in the supply chain
Until recently it has not been possible
to use the same technology to access
travel and video content together. As
a consequence it has not been possi-
ble for users to access, review or book
travel and video content seamlessly via
integrated online booking solutions.
Identifying video solutions, compar-
ing costs and booking video has been
frustrating experience for proponents of
mobility management.
Following the launch of the world’s first
global reservation systems for video
the landscape is slowly changing. Sabre
Travel Network has recently announced
the launch of its virtual meeting platform
and claims its solution will be avail-
able to millions of business travellers
and more than 220,000 travel agents
worldwide. Greg Webb of Sabre said,
“One of the biggest challenges […] faced
is the inability to search, book and con-
nect video conferencing systems. Sabre
virtual Meetings solves that and makes it
easy to set up internal video conferenc-
ing meetings and connect private-to-
public or public-to-public rooms.”
As video and travel content comes
together booking a video will soon be
as easy as booking an airline ticket. This
will allow users to make comparisons
between travel and video and, as a
result, videos value will become increas-
ingly visible.
Travel Management Company’s (TMCs)
and hoteliers have been forging part-
nerships with video providers, though
uptake – to date - has been slow. video
presents a complex challenge for TMCs
as it cannibalises their core offering of
travel products and services. Therefore,
if a TMC’s is to actively promote video
alongside travel solutions a new reward
model is required.
Culture for change
For video based solutions to be main-
streamed a cultural shift is required.
Business people will need to be edu-
cated on the appropriateness of travel
over video and vice versa, the capability
of video will need to be demonstrated
and the value it creates evidenced.
As digital natives enter the workforce
video solutions will become increas-
ingly accepted and its value will, in turn,
become easier to evidence.
The Value of Change
Companies are already making the shift.
Business Travel News named Ikea’s
Meeting and Travel Manager Torbjörn
Erling as the 2011 Multinational Travel
Manager of the Year for a transforma-
tion project called “Meet the IKEA way”.
With a slogan of “Meet more, travel less”
the project brought together travel,
meetings and technology to change the
way managers and employees thought
about achieving business outcomes.
The approach employed by IKEA will
be familiar to Mobility Managers. The
results - financial saving, productivity
benefits and reduced environmental
impacts – will also come as no surprise.
As the experiences of pioneers like IKEA
become increasingly visible other cor-
porations will follow and we will begin
to see the integration of video and
travel solutions materialising at pace.
Jonathan Green, Partner 3SIXTY
Scan this QR code to watch WWF’s David Nussbaum and Capgemini’s Christine hodgson introduce the One in Five Challenge.
smart mobility management - n°7 I 28
StRatEgy B50 platform
Working & travelling smart in the netherlands
Fifty CEOs are currently involved in the “Smart Work Smart Travel”(*) platform in The Netherlands. The main objective of what is called the B50 Group is to create a mass interest of employers and employees for the innovative smart work and travel approach.
The concept proposes employers and employees to
first choose not to travel to work one or more days
per week. Or if traveling to work is mandatory, that
they will not opt for the car in first instance. And
if the car is the only solution left, then it should be
used outside of rush hours. The employers forming the B50
Group consider that a smarter way of working and traveling
not only contributes to a reduction of travel distances and a
better accessibility at local and regional level, but also ulti-
mately creates superior country competitiveness as a knowl-
edge economy, improving the investment climate and leading
to increased employment.
Focus
This approach works, says Annelies hermens, B50-Chair-
man and hR, CSR & Sustainability Lead at consulting giant
Capgemini. “The dynamics should really come from the
employers and are not only a fight against traffic jams. Mind
you, she says brightly, the initiative involves much more than
just mobility as it concerns sustainability, an attractive work-
place and a way to deal with the new generations.” To achieve
the planned mass movement acceleration, the focus of the
B50 Group is put on four topics:
> ICT-Workplace: technology and housing allow to flexibly
work wherever the employee wants;
> hR-Culture: the “work and travel smart” initiative is an inte-
gral part of the labor conditions;
> Mobility: a flexible range of mobility related services is
available, motivating the employees to change their travel
behavior and make smarter choices;
> Communication: only professional mass communication will
convince people to adopt the “work and travel smart” initia-
tive (portal, ambassadors, media campaigns…)
Status
A large number of employers, currently involving 800,000
employees, are already linked to “work and travel smart” initia-
tives. These initiatives include the use of mobility budgets, an
increased use of the bicycle to go to work (currently 37,500
people go to work by bike at least 1 day per week), or working
on the go, aimed at encouraging the use of workplaces other
than those available at the office or at home by sharing for
example the workplaces between B50 members. The target of
the B50 Group is to reach a million employees embracing the
“work and travel smart” approach by end 2012 whereas the
greater ambition is to initiate a mass acceleration of the move-
ment, making it irreversible and leading to 2 million converted
employees by the end of 2015.
Public-private partnership
The Dutch government is an important pillar of the platform. In
close cooperation, the stakeholders (employers, regions, gov-
ernment, and labor organizations) now work closely together
in order to achieve the structural changes. The Ministry of
Infrastructure and Environment supports the B50 objective by
injecting € 10 million in the platform for the 2011-2012 period
and linking the investment to the public program called “Better
Utilization”(**) as a mutual reinforcement. Involving 8 regions,
the Minister will further inject over € 1.1 billion in order to
optimize the existing infrastructure, reduce the major conges-
tion bottlenecks and encourage people to travel outside peak
hours. The package of measures is intended to ultimately
reduce the traffic congestion by 20%.
Filip Van Mullem
B50 GROUP COMPANIES: ABN Amro, Accenture, Achmea, Alliander, Alstom, ANWB, Arcadis, Berenschot, BMC Groep, Boer & Croon, Capgemini, Cofely, Conclusion, Connexxion, Dhv, E-office, Europ Assistance, IBM, Imtech/ Peek Traffic, ING, KLM, KPN, Microsoft, Ministerie van Binnenlandse Zaken, NS, Nuon, NxP, PostNL, Rabobank, RDW, Siemens, SNS Reaal, Sogeti, Strukton Civiel, Strukton Rail, T-Mobile, TNO, Twynstra Gudde, UMC Utrecht, Universiteit Utrecht, Univé-UvIT, UWv, veolia Transport Nederland, vodafone.
(*) Slim Werken Slim Reizen(**) Beter Benutten
In the Netherlands a large number of employers, currently involving 800,000 employees, are already linked to “work
and travel smart” initiatives.
smart mobility management - n°7 I 29
Bike sharing scheme in lille gets online app Since it was launched in Lille (France) a year ago, the public bicycle sharing scheme has proved to be very successful: more than 4,000 bikes are now in use on the city’s roads. Available for short (by the hour) or long (a year) rental, the inhabitants of the northern French town have quickly adapted to this ecological and urban mode of transport. By 2014 there will be more than 10,000 bicycles available to the public. But what was missing was the possibility of renting by smartphone. Transpole, the public transport and v’Lille operator in the Lille metropolitan, area, has thus set up an application for mobile telephones, which has been in operation since April. With a practical drop-down menu, this app enables the situation concerning the bicycle fleet to be seen in real time. Currently developed for the Apple iPhone, the app has also been embedded into the Android store. And it clearly responds to a need, having been down-loaded 11,000 times during the May-June start-up period.
Carlson Wagonlit travel calls for better ancilliary cost monitoringCarlson Wagonlit Travel has published a report (Mastering the Maze) in which it points out two domains for potential cost sav-ings by corporate travel buyers with respect to air travel. These are in the areas of airline fuel surcharges – which are not gener-ally questioned – and of the ‘out of pocket expenses’ run up by executives when flying on company business, such as extra bag-gage costs and in-flight meals (where these have to be paid for). The problem appears to be that companies do not closely moni-tor these costs, having placed most of the emphasis on ensuring the best deal on the cost of tickets themselves. Negotiating on fuel surcharges and changing traveller behaviour could lead to cost savings, the report believes.
Fuel costs and out of pocket expenses can be optimized according to a report form Carlson Wagonlit Travels.
new york bike hire scheme on the way
The New York bicycle hire scheme Citi Bike is now scheduled to be launched in March 2013, the initial date having been set at July 2012. There will be around 10,000 bikes available for rent from some six hundred of stations located around the city. Users can pick up the bikes at one station and return them to another. The New York scheme is to some degree modelled on the successful velib’ and Barclays Cycle hire schemes already in operation in Paris and London respectively.
Waymate simplifies travel comparisonsAn on-line travel platform under the name of ‘Waymate’ is proposing a simpler service for travellers and travel man-agers. Based in Berlin, Waymate was founded two years ago. It emphasises the fact that by using its platform, it is no longer necessary to continually move from one web-site to another in order to compare flight availability and prices, or trains, or find the best route by car. Waymate brings the entire process together into what it describes as ‘one easy, convenient and transparent experience’. Booking flights and other transport journeys is also integrated into the platform, once again enabling the user to remain on the same site. Waymate was the winner of the first Smart Mobility Challenge 2012 held by the European Commission.
StRatEgy news
More news onwww.smart-mobilitymanagement.com
Citi Bike, the New York bicycle hire scheme will be launched in March 2013.
smart mobility management - n°7 I 30
Mobility theory put to practice
CaSE StuDIES Arcadis
When you read the 54 do’s and don’ts of
Arcadis on the new way of working, you
realise that these people have sustainabil-
ity in their soul. After all, the eventual pur-
pose of this list is to find a new and more
efficient way of balancing time, mobility and means resulting
in a economically en ecologically more acceptable footprint of
both the company and the individual employees.
The ultimate goal of this new way of working as Arcadis
promotes it, is a result-driven management that is based on
mutual understanding and tangible results. Of course this
often requires a complete turnaround of the way of thinking
throughout the complete organisation, from management to
every employee involved, but the resulting benefits are not to
be neglected. Their new way of working therefore focuses on
people, processes and organisation. Changing is not a goal
in itself and not everybody is supposed to agree, but Arcadis
is convinced that the necessary changes can be reasonably
understood and accepted by all parties involved. Listing all
of these 54 do’s and don’ts plus their potential would lead us
to far, better have a look at how Arcadis puts the theory into
practice.
A step by step approach
First of all Arcadis introduced an evaluation system based
on results whereby not the presence of an employee is to be
taken into account but the output of each one of them. This
change is as much a challenge for managers who have to
understand how vital it is that their employees need to know
exactly what is expected of them, as it is for the employees
themselves who are responsible for the organisation of their
proper part of the job. They are basically free to work where
and when they want just as long as their part of the job gets
done the way it should be.
Even though Arcadis is a widespread multinational with branches in 13 countries, it is not unthinkable you will never have heard of them. But their ideas and daily realisations are familiar to all of us since their field of experience stretches from environment over water to buildings and… mobility. And they put their money where their mouth is.
Adapting the lay-out of the offices in function of the tasks that need to be performed can generate savings up to 30% in workfloor surface.
smart mobility management - n°7 I 31
Secondly Arcadis invested considerably in a powerful IT-
section able so support working from different sources and
in different places. The desired mobility inevitably requires
that every employee can be reached when needed (no more
fix phones, only mobiles) and that he or she is fully equipped
to work on the agreed results from the office as well as from
home. home-working and teleconferencing are indeed as
much a part of the new working process as the next meeting
in the office.
Concerning those offices… the fact that not all employees turn
up at the office every single day at the same time means that
the offices themselves need to be reorganised as to offer a
maximum of flexibility all of the time. The pay-off of such a
reorganisation is that less office surface is needed. Arranging
the lay-out of a building and its offices in function of the tasks
that need to be performed generally translate into a saving of
20 to 30 percent in surface!
Down-down
Last but not least, Arcadis demanded from its managers to
act as ambassadors of the new working concept. Arcadis
very much believes in a top-down approach meaning that the
willingness to convert and the change itself has to come from
the management team. Their belief in the reorganisation is not
just essential, it is the very start of such a long-term project. In
practice this meant the managers had to give up their proper
office space, had to start focusing on a different way of evalu-
ating, be result-driven and make sure the whole process would
be accepted throughout their team. This meant all manag-
ers needed to be enthusiastic about the concept and know it
inside out in order to be able to explain and counsel their part
of the organisation during the implementation and in order to
be able to evaluate that same part after implementing the new
way of working. On top of that they had to guarantee that all
employees found an acceptable balance between private and
professional time, and that a close follow-up of all new agree-
ments was observed.
Of course Arcadis didn’t introduce all these changes at once.
Some of their proper list of do’s and don’ts simply do not
apply to their own company and that is exactly how this new
way of working guideline should be interpreted. It is not a holy
grail kind of bible you need to follow meticulously, but merely
a foretaste of how our modern times can lead to a progressive
way of working.
Dirk Steyvers
ESSENT CASE STUDY IN FIGURESSince the introduction of the new way of working by Arcadis energy-supplier Essent realised:
> 15% increase in productivity
> 20% decrease in sick leave
> 9% increase in employee satisfaction (balance private-professional)
> 30% decrease in driven miles and emitted CO2
> 30% decrease in office volume (share rate of 0,6 fte/workplace)
>Arcadis introduced an efficient evaluation system based on results whereby not the
presence of the employee is taken into account but the output of each one of them.
smart mobility management - n°7 I 32
CaSE StuDIES Delhaize
Delhaize Three-pronged mobility attack
Supermarket chains, of which Delhaize is one of the
largest in its home country of Belgium, are differ-
ent from most other types of business, inasmuch
as they have millions of customers who actually
visit their premises – which is not the case for other
mass market suppliers such as telephone operators… So how
does Delhaize make its mobility plan work in these conditions?
What are the main elements of your mobility policy?
Davy Decock: We have a mobility strategy and a mobility
action plan 2012-2015 with different focus areas. We focus on
customers, on staff, and on freight transport. These are three
domains and we have initiatives in all of them. Sustainability is
a pillar of Delhaize’s strategy.
Let’s start with freight, as you obviously have substantial
deliveries to make to the stores.
Davy Decock: We are investing in the PIEK project, which
means we are investing in silent deliveries. We have a greater
spread of our goods and lower emissions, quieter vehicles
and better traffic safety. We are especially focusing on noise
emissions, to generate less nuisance for local inhabitants. We
are therefore investing in our local store infrastructure and in
our transport vehicles and transpallets. We are working with
compressed natural gas (CNG)-trailers and we are putting a lot
of effort into driver behaviour . Another factor we are taking
into account and trying to solve is traffic congestion. So we are
spreading our deliveries in terms of timing, not just hitting the
morning rush hour for example. By definition a lot of our stores
are in densely populated areas with a lot of traffic. Avoiding
having two goods vehicles arriving at the same time is a prior-
ity because it generates nuisance for our neighbours. We are
using the new type of double-deck trailer for more efficient
deliveries. Another very important aspect is safety in our store
car parks, especially when trucks need to manoeuvre in these.
Whenever I go to a store I observe the behaviour of everyone
using the car park to see if any modifications need to be made.
The priority actions therefore involve infrastructure, transport
vehicles, transpallets and driver behaviour.
Are your warehouses and suppliers involved in this?
Davy Decock: Yes, we have two main warehousing centres
for Belgium, in Zellik and Ninove, and we have, for example, a
project to diminish the number of empty trips by trucks. So
when a truck has delivered to a store, it can then go to a sup-
plier’s premises, pick up more goods, and deliver these to the
warehouse. We believe that over the past two years we have
avoided around 5 million kilometres of travel through better
logistics and backhauling, with all the benefits in terms of fuel
costs and emissions.
Electric cars are making an appearance in the company fleet.
As a major supermarket chain, Delhaize has three distinct areas on which to concentrate its mobility plan. Davy Decock, Mobility Coordinator for Delhaize, explains how this works, and how even the company’s customers are part of the plan.
smart mobility management - n°7 I 33
Davy Decock with a Delhaize bike – offered to any employee who wishes to come to work on two wheels.
Let’s talk about your staff.
Davy Decock: We have a lot of measures in place to reduce
the environmental impact of staff travel, and one of the main
elements is free public transport. Everyone who works for Del-
haize in Belgium is able to benefit from free public transport.
We have a national policy for this. Where company cars are
concerned, more polluting vehicles are being phased out and
we have started to introduce 4 electric vehicles to use as pool
cars – amongst others. There are 2 Opel Ampera’s in the car
park. If someone comes by public transport and then needs to
go somewhere for work, he can use one of these.
Do you have satellite offices?
Davy Decock: Yes, and we have a very good policy on local
recruitment. The best way to avoid traffic is to have the place
of work and the home close together. This is also why we
introduced a bike project. Any member of staff who wants to
decrease their environmental footprint and who can respect
the conditions of the bike charter and move around sustain-
ably can have a free Delhaize bike. We are also improving
cyclists’ facilities with more bike parking for example. The take-
up has been very good – we tested the scheme in the Ninove
centre and from an original 5% of people coming to work by
bike, we now have 13%. Because of this success we have now
launched the project nationally
Can company cars and free public transport be taken
together?
Davy Decock: We started by offering the free transport just to
people without a company car, but now those with a company
car can also take advantage, by opting for a less expensive
car. It is also possible to downgrade the car and take a salary
increase.
This is a move towards a mobility budget then.
Davy Decock: Yes, in fact, it is. We are moving in this direction,
and expect to announce some more initiatives in this domain
soon. There are certain test projects going on. Further inves-
tigation into the combining of company cars and free public
transport and how this can work, is part of it. We will see how
we can best apply any sort of mobility budget, and as always
we test it first and get people’s reactions before applying it –
not the other way around!
You obviously have more customers than staff, and you said
they are being involved too. How?
Davy Decock: Well for example we are working with some
NGO’s such as Fietsersbond & GRACQ. We are undertaking
some studies with them, and the first concrete result will be
in September, when we launch a bike bag for shoppers. This
will be distributed in store and be a bag which shoppers can
use on their own bikes – alongside the rear wheels in tradi-
tional manner – to take their shopping home. It is designed to
be very quick and easy to fit onto and take off the bike. This
will make it easier for shoppers to do their shopping by bike.
There will also be more bicycle parking in stores. Our surveys
and trials in three stores show that this scheme is very well
received by the public and so we are going to roll it out into
other stores.
Tim harrup
“Over the past two years we have avoided around 5 million kilometres of travel.”
Davy Decock, Delhaize BelgiUm
ABOUT DELhAIZEA familiar sight in Belgium, where Delhaize was founded in 1883, the country now only provides around a quarter of the companies revenues. The majority (68%) of the twenty billion Euros or so revenues come from the United States, and Delhaize obtains the rest of its turnover in nine other countries. Worldwide employment is around 138,000. The sustainable development policy of the company extends to its food ranges, with ‘bio’ products to be found in every type of food on sale. Since 2007, all of the electricity used by Delhaize comes from renewable sources.
smart mobility management - n°7 I 34
CaSE StuDIES Euler Hermes
Euler Hermes root and branch change
Euler hermes recently moved
three hundred metres from
its previous offices in the
Brussels European district,
to begin an entirely new
chapter in its existence. The workspace
is quite unlike anything seen before
– open, bright spaces with innovative
seating concepts, no visible cupboards,
no closed in offices… Each of the seven
departments works around a ‘hub’, there
are informal meeting spaces, a network
café. Subtle, changing colours enhance
the principally white décor. To prepare
its personnel for what is a root and
branch change in company working cul-
ture – especially for an eighty-year-old
organisation – Euler hermes undertook
a period of ‘psychological training’
during the works. The personnel were
invited to come and see the work in
progress, a large screen in the existing
offices showed the work being carried
out, and a copy of one of the new hubs
was built in the old offices to familiarise
staff with what they were moving into.
Total investment
A clean desk policy now operates, with
each employee having a small ‘toolbox’
to store their personal effects at the end
of the day. The ‘New Way of Working’
has now convinced the personnel, who
were naturally wary at he outset. And
the company invested itself totally in
this radical and fundamental change
in thinking. This even began with the
selection of a partner to design and
build the new offices. having first
looked at some of the traditional interior
designers, Euler hermes decided that
radical ends require radical means. And
so the commission was awarded to a
very small Brussels bureau ‘RoseStudio’.
“They fully understood what we were
looking for and invested themselves
100% in the project – night and day
sometimes”, explained Facility Manager
Stéphane vanbever.
There is an elevated wave design in
the central areas, with people sitting
below. Flex-desk use has been insti-
gated where appropriate the personnel
just logs in to the fixed phone wherever
Euler Hermes, a credit insurer with offices across the world, has become the latest company to embrace the ‘New Way of Work’ in its Belgian office. When opting for a radical change in culture, Euler Hermes set itself (and its architects) a number of criteria: transparency, synergy, flexibility were three key words.
Stéphane Vanbever, Facility Manager at Euler Hermes, says that the New Way of Working is related to a better state of mind within the company.
© M
arie
Bo
urg
on
jon
The wave effect in the Belgian office of Euler Hermes is clean to see and gives a dynamic touch to the workfloor.
smart mobility management - n°7 I 35
they happen to sit. Computers are not
individually assigned and there will be a
move towards laptops. Pictogrammes,
rather than traditional signs, are used
to show the various different office
and relaxation areas. There is more use
made of video-conferencing and confer-
ence calls. And for meetings requiring
a large number of people all in one
room together, there is an astonishing,
custom-made, eight metre long white
table in the (glass partitioned of course)
‘board room’.
Mobility move is crucial
Mobility was indeed a major criterion:
there is a metro station right outside
the front door, and around 50% of the
personnel come to work by public trans-
port. There is a move towards a mobility
budget rather than simply a company car.
The ‘New Way of Working’ has been
entirely embraced by Euler hermes,
and includes ecological concepts. For
example, there is a shift towards paper-
less working, with a radical reduction in
the number of printers to be found in
the offices. The figures here are excep-
tional. Within six weeks of moving in to
the new offices, the number of sheets
printed each day had reduced from
around 2,000 to 700.
Stéphane vanbever sums up the effect
of the ‘New Way of Working’ six months
into the project:
How has mobility evolved since the
beginning ?
Stéphane Vanbever: “Well on top of
what we have done here in Brussels we
have established eight hubs in Ghent,
which will enable several company
employees to work out of Ghent. This
means that some of our employees who
live in the Ghent area can now work
from there rather than having to travel
to Brussels as they do now. So in terms
of mobility, this quite simply means that
there will be less travel taking place.
This move also benefits our custom-
ers, as the majority of them are in fact
located in the Flemish region. For the
employees concerned, there is also an
advantage in terms of the work-life bal-
ance.”
How has this ‘New Way of Working’
impacted on your clients?
“I have spoken to many of our employ-
ees who have direct contact with clients
– sales and underwriting staff for exam-
ple. They feel that communication takes
place more quickly than it did before,
and this is related to a better state of
mind within the company, more focused
on the customer.”
How has your own daily working life
changed?
“It is very interesting because when you
decide to make a move and a change
like ours, you set out a lot of things on
paper which are basically concepts.
One of the concepts is that there will
be more flexible cooperation between
all the people. We were able to see that
really did happen, from the first day, and
we already saw a lot of informal meet-
ings taking place. The level of communi-
cation between colleagues has definitely
increased. We certainly make use of the
network coffee facility. We use these
new facilities all the time. This has been
like fresh air going through the organi-
sation. Our previous building somehow
formed part of the DNA of our organi-
sation as it had been our headquarters
for so long. So there was some degree
of sadness at leaving it, but the bubble
of oxygen the new building brought
was felt immediately. It has increased
the energy in our organisation and our
contact with customers. I think that
in six months in the new building we
have seen more customers than in two
years in the old one! We are proud to
invite customers into our new building.
Openness, communication, these are
corporate words, but you can really feel
them here in the building.”
Tim harrup
“A copy of one of the new hubs was built in the old offices.”StéPhane vanBever, eUler hermeS
ABOUT EULER hERMESEuler hermes a credit insurer with 54 branches across the world. Part of the Allianz group, its prime task is therefore to assist in the com-mercial development of companies by ensuring that these companies select solvent clients with the ability to pay. It also helps in debt collec-tion where necessary. The company turns over around 2 billion Euros and employs 6,000 persons worldwide.
A WORD FROM ROSESTUDIOStéphane Vanbever, euler hermes: “For a space to communicate, there has to be a strong idea running through all levels of that space. In this way, it expresses the values of the company. We therefore created a dynamic motive which is used in the partitioning, on the floor, in the furnishing and in the signposting. Apart from the large meeting rooms, the space is open and transparent with meeting areas called ‘hubs’. These were designed in the form of a wave on which everyone can surf, meet and inter-relate or withdraw. Conviviality between colleagues therefore reappears. The graphic chart was also used to bring vitality to the various depart-ments: red, blue, green and orange.”
business travel & meetingsleading buyer-led
Europe’s
network
St Mary’s Court The Broadway Amersham Buckinghamshire HP7 0UT United Kingdom [email protected] +44(0)1494 618497
GBTA is your premier destination for every resource you need to succeed in today’s ever-changing business travel environment
What can you expect as a GBTA Europe member?
Access to the comprehensive online resource library, containing industry research and resources
Free registration to GBTA webinars
Member rates for education programmes and events and opportunities to apply for GBTA Academy scholarships
Information and resources from GBTA’s ICARUS project, the respected Corporate Sustainability/Corporate Social Responsibility programme
Locally powered events and membership, alongside access to global resources and connections
Enhanced online collaboration and information sharing
Introduction to a vast global network of industry professionals
For more information visit www.gbta.org/europe
Whether you’re just beginning your professional journey or are well-established in the industry, the GBTA Academy offers education programmes to advance your personal and
professional growth. There are classes offered for all levels so you can choose courses based on your current level of experience and knowledge.
GBTA Academy: business travel management education for every experience level
For more information visit www.gbta.org/academy
GBTA Europe Partners:
smart mobility management - n°7 I 37
business travel & meetingsleading buyer-led
Europe’s
network
St Mary’s Court The Broadway Amersham Buckinghamshire HP7 0UT United Kingdom [email protected] +44(0)1494 618497
GBTA is your premier destination for every resource you need to succeed in today’s ever-changing business travel environment
What can you expect as a GBTA Europe member?
Access to the comprehensive online resource library, containing industry research and resources
Free registration to GBTA webinars
Member rates for education programmes and events and opportunities to apply for GBTA Academy scholarships
Information and resources from GBTA’s ICARUS project, the respected Corporate Sustainability/Corporate Social Responsibility programme
Locally powered events and membership, alongside access to global resources and connections
Enhanced online collaboration and information sharing
Introduction to a vast global network of industry professionals
For more information visit www.gbta.org/europe
Whether you’re just beginning your professional journey or are well-established in the industry, the GBTA Academy offers education programmes to advance your personal and
professional growth. There are classes offered for all levels so you can choose courses based on your current level of experience and knowledge.
GBTA Academy: business travel management education for every experience level
For more information visit www.gbta.org/academy
GBTA Europe Partners:
InDuStRy Two-wheeled mobility
It’s now been 10 years since the
Segway corporation in New hamp-
shire produced the revolutionary
two-wheeler that took the streets
of the great American cities by
storm. Today, via franchise holder Mobil-
board, the Segway is present in 15 Euro-
pean countries. In France alone, there
are 40 branches. An earlier attempt at
introducing the Segway in Lille via the
public transport system Transpole failed.
But a Mobilboard branch, established
in the city in 2011, has proved more
successful. “We started out with 12
Segways, and we’ve recently upped the
number to 20, as we couldn’t keep up
with demand”, says Michel Krysiecki,
the local Mobilboard manager. The
Lille branch is developing three activi-
ties: leisure, corporate incentives, and
event communication. “For leisure, we
primarily work with groups for whom
we develop package deals, especially
for our Belgian customers: we rent out
Segways to groups from 10 to 15 people,
for a duration of 3 to 4 hours, with an
instructor of ours to supervise, and a
pub meal in the middle of the excur-
sion.” The initiation is easy: 15 minutes’
instruction suffices to teach novices
how to drive, stop and turn. Even if the
Segway is considered an extension of
‘pedestrian’ traffic, it can still reach up
to 20 km/h, and helmets are manda-
tory. “For groups on urban excursion, we
limit the speed to 6 km/h. This allows us
to welcome any type of customer. Last
week we had an 81-year-old man take
his first Segway ride!”
Business seminars and banners
To attract customers from the UK,
Belgium, the Netherlands - and of
course France itself - Mobilboard has
developed game rallies, including a
‘road book’, to allow them to discover
Lille. “This formula is taking off very fast,
thanks to our website (www.mobilboard.
com) and our presence on Facebook”,
says Michel Krysiecki.
Corporate incentives are another
concept under development. Staff
meetings and business seminars could
benefit from a two-hour group excur-
sion by Segway. “This formula already
represents 40% of our turnover”, says
Krysiecki. And the event business is also
booming: “We can arrive at an event
with 15 Segways, carrying banners - that
makes for a very spectacular, modern
and trendy entrance. If so desired, we
can also customise the Segway’s body
and the wheels.” Obviously this novel
mode of urban transport is not free. It
will set you back €45 for two hours,
and €55 per person for a group, which
includes a guide, a road book, etc.
So why is the Segway proving to be
such a success?
“Well, because it’s an eco-friendly, com-
pletely silent mode of transport (which
recharges just like any laptop); because
it’s very pedestrian-friendly, in training
and in practice; because it represents
smart travel, allowing to target distant
urban destinations without getting
tired; and let’s not forget it’s great fun.
After a few minutes of trepidation, our
customers love their Segway, the feeling
of riding on a magic carpet to their des-
tinations. Once you’ve tried the Segway,
you’ll love it.”
Philippe Martin
the Segway is taking lille city by storm
It started in the US, of course, but the Segway phenomenon has now reached Europe, spreading through France, Belgium, the Netherlands and other countries. The Segway is more than simply a means of urban transport; it’s a clever, playful and eco-friendly tool recreation and com-munications tool. Its debut in the northern French city of Lille is show-ing a lot of promise.
A common scene in Lille today: tourist groups are crisscrossing the city on Segway.
smart mobility management - n°7 I 38
InDuStRy rail
Productive Mobility The train takes you there The growth of high-speed rail networks like Euro-star and Thalys, and the increasingly cumbersome security checks at air-ports, are drawing more and more passengers from plane to train. A compre-hensive study by EPSA confirms rail’s competitive advantage for trips inside Europe.
EPSA is an independent research company special-
ising in ‘non-production’ purchases and expenses
- notably business trips. Its study was commis-
sioned by Thalys International. But the Brussels-
based rail company wasn’t really taking a great
risk: its network smoothly and swiftly connects Paris, Brussels,
Amsterdam and Cologne. No, the study’s real value lies in the
fact that it moves beyond merely accounting for travel cost
and travel time. It quantifies a more fluid concept: the produc-
tivity of the business traveller.
First, let’s talk money. The results are clear: Thalys wins, hands
down. Between economy class on airplanes and 2nd class via
Thalys, EPSA calculates a cost differential of about 68%. This
is taking into account the fact that people will sooner take a
taxi to the airport and public transport to the train station, as it
is usually located in the centre of a city. But more surprisingly,
the difference still represents an average cost reduction of 53%
for rail if we compare with Thalys Comfort 1, a formula that
includes meals, free wifi and the option to reserve a private rail
car.
The opportunity to work on board, with access to free wifi, is one of the major arguments for Thalys’ productive mobility.
smart mobility management - n°7 I 39
Travel time advantage
And the airplane option doesn’t even have a travel time
advantage. It’s true that on routes between Paris and Amster-
dam and Paris and Cologne, the airplane remains faster (even
including travel to and from airports, and pre and post board-
ing time) - but not by much. In other Thalys routes, it’s a draw
between train and plane. On the Brussels-Paris route, the train
even is faster.
The study gets very interesting where it goes into the details
of so-called ‘productive mobility’. For a business traveller, the
trip between, say, Paris and Amsterdam represents a total
investment of €476, compared to €710 by plane. Taking into
account the aspects ‘cost’ and ‘time’, as specified above, the
trip by Thalys is a third cheaper than the same one via plane.
But the study also attempts to quantify the potential for pro-
ductivity offered by the different types of transport. On this
point, the travel managers surveyed for this study are virtually
unanimous: 90% consider productivity on rail to be excellent,
but only 6% would say the same for productivity on planes.
Even better: 68% of the managers surveyed believe that a
businessperson can do professional work on the train for more
than half the travel time. Only 4% thought the same about
airplanes. Plenty of objective criteria support this discrepancy
- for starters: the ease of access to a power outlet.
Better productivity on short trips
If we then factor in that, with respect to CO2 emissions, the
train crushes the competition of plane and car, it doesn’t take
a genius to realise rail’s enormous lead over the competition.
This is confirmed by Paul Tilstone, European Managing Director
of the Global Business Travel Association (GBTA): “Obviously,
companies find it very important to calculate the ‘total cost
of trip’, factoring in the ticket price, the ecological footprint,
and the total travel time when picking the type of travel. The
choice may depend on the distance to airport terminals or
train stations, the time of year, and the type of traveller. At
present, we don’t yet have a system to quantify these costs
reliably for each and every trip. But at GBTA, we do support
complete intermodality, and gladly acknowledge that the
train provides an excellent option for productivity on short
trips.”
OUTLETS AND ADDED-vALUE TASKS> The survey’s most original aspect is its evaluation of
business traveller productivity. Not only 72 companies, but also hundreds of travellers were surveyed. As mentioned, 90% of managers consider rail’s productivity potential to be very good, versus only 6% for air travel.
> In order of importance, managers and travellers alike rate as their top travel criteria: proximity of power outlets, internet connection, silence, the ability to make phone calls. Following these: proximity to point of departure (whether airport or train station), presence of work stations, quality of waiting area.
> The study goes further, quantitatively and qualitatively. Almost all business travellers work at least some of the time on Thalys, one out of two works at least half of the travel time: current tasks, making calls, sending and receiving emails, and most of all, ‘value-added tasks’ (49% ‘often’, 36% ‘occasionally’) and preparing meetings (87% in total)!
> This degree of productive mobility is revolutionary - and obviously linked to new technology: 40% use smartphones on the train, 45% do paperwork, and 88% use their computer or tablet.
> In conclusion, even if cost remains the number one criterium for managers to choose the mode of transport (53%), productivity already represents 13%. There’s no doubt that for travel managers, this percentage - and the appeal of the train - is set to increase.
Bart vanham, a specialist in mobility taxation, concurs: “It’s
clear that on routes inside Europe, trains provide better pro-
ductivity than planes.”
Does this mean Thalys can rest on its laurels? No, says Franck
Gervais, Thalys International’s CEO: “We will continue to opti-
mise our lead, and improve travellers’ preference for Thalys
because it is faster, more efficient, better value for money,
and more productive. But this study should also motivate us
to work more on intermodality, to re-think our habits in order
to construct a European-wide transportation ecosystem that
business and individuals need.”
Philippe Martin
The ThAlYS/ePSA STuDYis available in full on www.thalys.com
smart mobility management - n°7 I 40
Can air travel ever be green? New evidence from the major players in the airplane industry indicates that it can continue to reduce CO
2 emissions, thus
becoming if not green, then at least greener than before.
not just green, but greener
©A
irbu
s
Two mechanisms are at work
here: the airline industry’s
technological side, repre-
sented by the manufactur-
ers of airplanes and their
engines, and its operational side, i.e. the
airlines and the organisations that con-
trol their movements - for Europe, this
is Eurocontrol in Brussels (see separate
article). Manufacturing builds equip-
ment that produces as little emissions
as is technologically possible; opera-
tions works to keep actual emissions as
close to that technological minimum as
possible.
Airbus
Manufacturing’s two giants, Airbus and
Boeing, both work hard to produce
‘greener’ airplanes. Airbus wants to
improve fuel efficiency by 1,5% every
year to 2020; cap net carbon emissions
from 2020 onwards; and reduce them
by 2050 to 25% of 2005 levels. Over
90% of Airbus Research & Technol-
ogy’s budget goes towards eco-friendly
measures, such as developing new
aircraft technologies, improving modern
Air Traffic Management (coupling the
increase in traffic with a decrease of
its ecological impact), and implement-
ing alternative-fuel value chains. The
European consortium is also committed
to Flightpath 2050, which targets a 75%
reduction in emissions of CO2, 90% of
nitrogen oxide (NOx) and 65% of noise
by 2050.
The culmination of all that research is
the Airbus A350xWB, an airplane that
consumes 25% less fuel than current
aircraft. Designed to be eco-efficient
from gate to gate, it will be the leading
environmental performer in the long-
range market. It operates with a com-
fortable margin from the norms set by
current CAEP6 regulations: 99% below
its hydrocarbons (hC) limit, 86% below
its carbon monoxyde (CO) limit, 60%
below its smoke limit, and 35% below
its nitrogen oxide (NOx) limit. And it’s
quiet too!
AIRBUS WANTS FIRST ChOICE OF BIOFUELS For Airbus, alternative fuels have been shown to work, and the air travel industry should get first choice, as it has no other viable options beyond fossil fuels. But the company does not approve of ‘first-generation’ biofuels, from materials like palm oil, which can be used as food. Airbus now wants to speed up commercial use of jet-grade biofuels to meet its carbon targets (see above).
InDuStRy Air Travel
smart mobility management - n°7 I 41
Boeing
On the American side of the Atlantic,
Boeing is also keen on ‘green’, using
advanced materials, more fuel-effi-
cient engines, new wing designs and
improved aerodynamics for an eco-
friendlier performance. For its part, the
Boeing 747-8 reduces noise by 30%, and
provides double-digit improvements in
fuel economy and carbon emissions as
compared to previous 747s. The Inter-
PUTTING IT INTO PRACTICEIn October, Airbus and Air France completed what has been dubbed “the world’s greenest commercial flight ever”. The Airbus A321 flight from Toulouse to Paris put into practice elements in the Airbus road map, such as alternative fuel, optimised air traffic management, and ‘green navigation’. The result: a 50% drop in CO
2 emissions.
Lufthansa carried out a biofuel experiment with an A321 on the hamburg to Frankfurt route. For six months, one of the plane’s two engines was fuelled by the maximum allowed proportion (50%) of biosynthetic kerosene. A Frankfurt to Washington flight with 40 tonnes of biokerosene was also completed successfully. These experiments avoided the emission of 38 tonnes of CO
2 .
BOEING’S ShRINKING CARBON FOOTPRINT Boeing’s carbon footprint increased in 2011, but only due to increased aircraft production - the overall footprint has been decreasing since 2007. Since then, Boeing’s absolute CO
2 emissions have decreased
by 3% (7% on a revenue-adjusted basis). Also, the company’s energy use has gone down by 1% (4%), hazardous-waste generation has decreased by 17% (19%), and water intake by 9% (12%).
continental version carries more people
further, on less fuel, noise and pollu-
tion. The Freighter version brings those
improvements to the cargo industry.
Thanks to its composite fuselage and
wings, the 787 Dreamliner achieves
a 20% increase in fuel efficiency over
airplanes of similar size. It is also much
more environmentally progressive
throughout its product life-cycle, as
fewer hazardous materials are used to
produce it. The Dreamliner is a lso qui-
eter than any previous plane of its size.
The 737 MAx was officially launched in
2011, promising airlines a 13% reduction
in fuel consumption (and a comparable
reduction in CO2 emissions) over today’s
most fuel-efficient single-aisle airplane,
the Next-Generation 737. The improve-
ment is down to design updates, which
also include the latest noise-reduction
technology.
Engines
Both the Boeing 787 Dreamliner and
the Airbus A350xWB are fitted with
Rolls-Royce engines. So, what are they
doing to make air travel greener? For
the Airbus plane, Rolls-Royce devel-
oped the Trent xWB engine, using 3D
aerodynamics, low-emissions combus-
tion and weight-saving technology to
reduce fuel consumption. The result
is the most efficient large civil aero-
space engine ever produced, with a 16%
improvement in fuel efficiency over the
first Trent engine. For the Dreamliner,
Rolls-Royce also used 3D aerodynamics,
making the fan blades, compressor and
turbine aerofoils more efficient and less
noisy. The resulting Trent 1000 engine is
12% more efficient than the Trent 800,
first used in 1996. All these percentages
really add up, says Ric Parker, Research
& Technology Director at Rolls-Royce: “If
we could replace a previous generation
of planes overnight, for example the 767
with the 787, we could save over $1,5
billion in fuel costs and 5 million tonnes
of CO2 every year.”
Tim harrup & Filip Van Mullem
“If we could replace a previous generation of planes overnight, for example the 767 with the 787, we could save over $1,5 billion in fuel costs and 5 million tonnes of CO
2 every year.”
ric Parker, rollS-royce
An Airbus A350XWB under construction in the company’s Toulouse plant.
smart mobility management - n°7 I 42
InDuStRy Air Travel
Eurocontrol tis the
European network
manager for air traffic
control. We work with
national governments,
airports and navigation service provid-
ers to plan flights within this Europe-
wide network. In doing so, we’re already
implementing ‘green’ measures”, says
mister Watt.
Continuous descent
“Another successful measure is
continuous descent: the idea is for a
plane to come out of cruise flight at a
point called ‘top of descent’, and then
simply glide down to land, with its
engines throttled back to 30% power.
This isn’t as easy as it sounds.
With a majority of the 28.000 daily
flights in Europe centred on the
core cities of London, Frankfurt,
Paris, Amsterdam, Milan and Zurich,
descending planes often have to go
into level flight for safety reasons. This
involves firing the engines, causing
more noise and costing more fuel.
Still, we have over 80 airports offering
continuous descent at least some of the
day. This has proved so successful that
our target of 100 airports offering the
option by 2013 has been upgraded to
200 by 2014”.
Safety remains air traffic control’s number one job, but it can also help cut CO2 emissions, thus making air travel greener.
Andrew Watt, Head of Environment at Eurocontrol, explains how it’s done.
Eurocontrol making air travel greener while keeping it safe
Emissions trading
Eurocontrol also fulfils a crucial role for
the coming cap-and-trade emissions
trading scheme for the aviation
industry: “A similar system, with the
auctioning and trading of emissions
rights, is already in place for heavy
industry. In 2013, cap-and-trade for
airlines will kick off, based on this year’s
data, as provided by Eurocontrol. We
monitor and calculate the emissions
of the airlines operating in Europe
and provide this information to the
European governments. Our cross-
border approach is essential: an airline
may be registered in one particular
state, but operate a large part of its flig-
hts between other states. Without our
input, it would be very difficult for the
host state to establish its exact level of
CO2 emissions.”
Filip Van Mullem
“We transfer delays to the ground - where the engines remain switched off, as opposed to delays in the air, where the engines are on full blast!”
anDre Watt, eUrocontrol
Andrew Watt underlines the ‘greening’ effect of Eurocontrol’s measures.
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