Logistics company, Kuehne + Nagel, has announced a road-to-rail program with automobile manufacturer, Honda.
The program increasingly relies on train transport on longhaul routes, coupled with the use of regional hubs for improved supply chain performance and reduced carbon emissions.
Kuehne + Nagel first announced its Net Zero Carbon program in 2019, aiming to address CO2 reduction in transport and logistics services. Since 2020, the company has been CO2 neutral worldwide for all own, direct emissions. Kuehne + Nagel further offers solutions to support customers in reducing their carbon footprint.
Through KN Sincero, a joint venture dedicated to supply chain services for the automotive industry, Kuehne + Nagel has been developing a strong footprint in China. In light of challenges around inbound-to-manufacturing transportation, KN Sincero developed an integrated solution for Honda to convert domestic long-haul trucking to rail, offering consolidations and value-added services including sorting, scanning, repackaging, GPS track & trace, as well as recyclable container management.
After six months, the supply chain reliability and efficiency improved significantly. With this road-to-rail model, approximately 16,000 fewer tonnes of CO2 will be emitted on a yearly base, a reduction of 70 per cent compared to the trucking model.
Jiang Hui and Takuji Kitamura, Joint General Managers of Wuhan Dong Hon, the logistics affiliate of Dongfong Honda Automotive said: “Kuehne + Nagel has always been a supply chain partner that we can rely on, to help us improve our supply chain performance whilst also achieving our environmental goals.”
“Automotive is one of the most important sectors in Contract Logistics, particularly in China, the world’s largest automotive market,” said Gianfranco Sgro, member of the Management Board of Kuehne + Nagel International AG, responsible for Contract Logistics. “I am glad that Kuehne + Nagel and Honda share a common vision of service, innovation and sustainability.”