Shanghai Daily News

The challenges facing logistics companies are immense. One of the most urgent tasks is the growing end-of-life issues for various technology products that must be disposed of in an environmentally-friendly method.

During the recent CeMAT ASIA exhibition that was held last week at Pudong's Shanghai New International Expo Center, a growing number of exhibitors displayed "green logistics" concepts in their products.

In all, about 300 companies from 25 countries and regions took part in this event where the latest technologies and innovations in logistics were exhibited.

According to Chen Qunmin, an official with the Development and Research Center of Shanghai, the state government is raising the standards of environmental protection for industrial products, including industrial vehicles, while narrowing the gap between domestic environmental standards and international standards.

"The country's 11th Five-Year Plan places more emphasis on the policy that industrial vehicle manufacturers are required to save energy and protect the environment. Meanwhile, we encourage global manufacturers to take advantage of sector traits to focus on research and development efforts on mixed-energy vehicles, electric vehicles and gas-substitute vehicles," said Chen. "This is a social responsibility of every company."

With its inclusion into the 11th Five-Year Plan, the logistics industry has become a key issue and growth point within China's economy. Analysts are forecasting annual growth of around 20 percent in the years ahead and a total turnout of 1.2 trillion yuan (US$150 billion) by the year 2010.

A number of companies are exploring how to continuously improve logistics and transport operations for economic benefit while ensuring an environmental balance.

Green ideas can be found in the latest products of Japan-based Toyota Forklift and Italy-based OM Forklift. At the CeMat Asia show, forklifts that kept wasted gas to a minimum level and non-emission electronic models were among products prominently displayed.

OM is one company embracing the "green moving" concept and it endeavors to produce low-pollution, low-emission and low-noise forklifts and trucks, according to Giovanni Ambrogio who oversees its China operation.

"Freight carriers strive to provide higher levels of transportation service with lower costs. However, the economic and environmental viability of cities are negatively affected by the present organization of urban goods distribution," he said.

"How to merge two competitive goals harmoniously and to create efficient and environmentally friendly urban logistics systems is what we are thinking about."

For electric trucks, some of the big brands among special vehicle manufacturers have launched energy-saving components.

The latest digital control system features CANBUS technology which uses reduced voltage output cables to cut radiation.

Another trend in the logistics industry is leasing.

"It is a time for assessment and a time for recognition in that customers are expecting a lot more in the way of physical services. They want an on-the-ground presence, " said Simone Rizzo, OM marketing manager.

In Western countries, leasing is comparatively mature. About 60 percent of industries such as construction machinery, airplane and shipping, medical equipment, telecom and communications, among others, is done through leasing.

"Leasing is a customer-oriented action that caters to the need of those considered purchasing forklifts as a big investment. It is a more flexible way and with reasonable cost," Rizzo said.

"The leasing market in special vehicles is quite mature in Western countries and has just started in China. I believe China is a market with big potential and a promising future."