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Dimension |
Objective |
Description |
Evaluation/Self-Assessment Questions |
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Economic (E) |
E.1. Trade Competitiveness |
Lack of adequate, quality and sufficient freight transport infrastructure and services that connect producers to consumers, suppliers to users, importers to exporters, local to regional and international markets undermines trade competitiveness. Due to globalisation, freight transport goes through several layers of production in several countries, with components and assembled goods crossing continents before they reach their destination. Loss in trade competitiveness is reflected by uncompetitive landing/final prices of goods delivered. Uncompetitive trade and prices result among other from the following factors: inadequate regulatory framework, low productivity, limited penetration of ICT, limited security, rising energy cost, significant time delays and uncertainty in the transportation of traded goods. Elements influencing the ability of freight transport to promote trade competitiveness include: state of transport infrastructure, services (warehouse facilities, specialized storage facilities, etc.), efficient customs and administrative procedures, regional transportation policy harmonization and implementation; ports efficiency and productivity, etc. Good measurement indicators are the Logistics performance index of the World Bank (LPI), time for border clearance and release (Doing Business WB), Enable Trade Index (ETI), World Economic Forum (WEF) quality and quantity of infrastructure indices, % of GDP used for transport infrastructure investment by mode, and transport costs (United Nations Conference on Trade and Development (UNCTAD) and Organisation for Economic Co-operation and Development(OCED)). |
Was there an improvement/deterioration/no change in the:
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Economic (E) |
E.2. Transport Costs |
Transport costs are important in their relation to trade-offs, especially in relation to production and distribution costs. High transport costs result from a combination of factors and are often associated with inefficiency in the freight transport sector. For freight transport operators, transport costs include capital expenditure (e.g. ships, equipment, port facilities) as well as variable operating cost such as fuel cost, driver expenses, taxes etc. For governments, transport costs are not only important for trade competitiveness but also as public policy tools that could be relied upon to induce modal shifts. For shippers, transport costs are an important decision-making parameter and they use it for logistics decision making trade-offs. Measurement indicators for freight transport costs are US$/tonne-kilometer (tkm) for different modes, US$ per container/twenty-foot equivalent unit (teu), US$/tonne/unit., level of competition in the transport carrying industry, number of service providers (i.e. a market structure that avoids monopolistic or oligopolistic structures), number of transhipment versus direct transport (e.g. for maritime transport), and economies of scale (unit costs e.g. US$/tonne, US$/teu). |
Was there an improvement/deterioration/no change in the:
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Economic (E) |
E.3. Energy Efficiency/Energy/Fuel Use |
By reducing energy required directly for the movement of freight, can result in significant economic benefits as fuel costs are often more than 40% of freight transport costs across different modes. For instance, the six main aspects of energy efficiency in road freight transport are fuel efficiency of new vehicles, truck technology retrofits, vehicle purchasing decision, vehicle maintenance, vehicle operation & fleet management, loading patterns, aerodynamic characteristics, and driving patterns. According to the International Energy Agency, for the global transport emissions to peak by 2030, a 30% reduction in average vehicle fuel consumption per truck will be required (relative to current emissions). Good potential indicators of fuel efficiency are fuel consumed/tkm or fuel consumed per mode-km (vehicle kilometre travel). |
Was there an improvement/deterioration/no change in the:
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Economic (E) |
E.4. Quality and Reliability |
Measuring service quality and freight travel time can prove useful in enhancing the competitiveness of freight transport operators. These two factors are often used to differentiate a company’s product offerings from those of competitors. Shippers, for example, make transport decisions based on multiple freight transport service attributes such as the freight rate, transit time, reliability, and availability of service. Causes of unreliability may include temporary loss of road, air, or water access due to disruptions, poor road/rail/waterways/port infrastructure, and vehicles/ships condition causing mechanical failures. Additionally, unreliability can be caused by road or rail congestion causing variability in travel times, particularly during incident situations. These parameters are not only relevant from the operator’s perspective, but also from a modal perspective as poor service, long transit time, and low punctuality level can reduce demand and influence modal shift. Indicators for measuring quality and reliability include travel time/delays, delivery on time (%) & delivery in agreed condition (%), number or % of losses, damaged cargo, ability to track and trace cargo while on a journey, transparency, and ease of communication between shipper and carrier (trust and long-term collaboration/relationships). |
Was there an improvement/deterioration/no change in the:
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Economic (E) |
E.5. Infrastructure Investment and Fiscal Burden |
Underdeveloped transport infrastructure and networks can lead to high transport costs for moving commodities to market as well as bringing in farm inputs, reducing producers’/farmer’s competitiveness. Therefore, improving transport infrastructure is of critical importance for a sustainable freight transportation system. Investment refers to freight transport infrastructure construction, operation, and maintenance. This increase in global freight transport demand will require scaling-up current levels of investments in transport to respond to the growing needs in infrastructure and services. Investment is required to enhance transport systems and logistics, extend transport networks, build missing links and connectivity, remove bottlenecks, upgrade existing infrastructures, and develop new structures. Public finance has traditionally played a key role in developing transport infrastructure given quasi-public good nature, providing high economic and social benefits. Nevertheless, government freight financing is not enough to meet the required scale of investment and may come at a cost to the economy. This aspect considers the different sources of finance used to finance the transport sector along with long-term implications of investment, cost effectiveness of investment, private sector involvement, and government incentives to promote new and innovative sources and mechanisms of finance including through public-private partnerships (PPPs) (subsidies, guarantees etc.). Possible indicators are % of GDP used for transport infrastructure investment by mode, toll revenue, % of national/public budget dedicated to investment in freight transport infrastructure and services, amount/share of subsidies to the sector/projects, applications of guarantee in support of the sector, and suspension of application of levies/taxes. |
Was there an improvement/deterioration/no change in the:
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Economic (E) |
E.6. Freight Transport Productivity |
Productivity is the ratio of outputs (such as tkm or vehicle-km) to inputs (such as fuel, vehicles or labour). It measures ‘transformational efficiency’ as it measures the efficiency with which a resource is converted into an activity. Improvement in freight transport productivity results in reduced transport costs and thereby directly contributes to increased economic growth. Freight transport productivity also benefits passenger transport movement as it reduces the number of vehicles on road and rail networks, thereby reducing accident exposure risk for other road users, and reducing externalities. Possible indicators include tkm/miles per truck/vehicle/ship per annum, tkm/fuel or vehicle kilometre travel/driver man-hour etc. crane productivity in ports, ship productivity, berthing times, dwell times, and turnaround time. |
Was there an improvement/deterioration/no change in the:
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Economic (E) |
E.7. Sustainable Production and Consumption |
Freight transport is heavily influenced by the nature of countries' economic structures (i.e., what and how different commodities are produced, where they are produced and consumed, etc.). Freight policies that influence production, distribution, and consumption patterns to shift towards less distance intensive transportation and less emission intensive production processes could result in socially beneficial, economically viable, and environmentally friendly transport over the whole product life cycle. Relevant Possible indicators include freight transport intensity, which is defined as the measure of the amount of transport activity (measured in tkm) in an economy to the output (measured in GDP) of that economy, freight tkm/capita, waste, modal share, modal shift, etc.
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Was there an improvement/deterioration/no change in the:
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Economic (E) |
E.8. Resilience and Operational Continuity |
There are various types of disruption- disruption in supply, disruption in transportation, disruption at facilities, freight breaches, disruption in communications, and disruption in demand. In this evaluation, the focus is on disruption of freight transport. In the freight transport and logistics sector, sourcing from distant low-cost locations and eliminating excess capacity to make the logistics and manufacturing “lean” can make logistics more cost efficient in the short term. However, such actions also make logistics more vulnerable to disruptions – i.e. high lead times – and thus could influence quality and reliability of travel. These disruptions could be due to natural disasters, terrorist attacks, congestion at ports, airports, and intermodal facilities, accidents, lack of capacity in the transportation network to accommodate surges in demand etc. Relevant indicators include delays, delivery on time (%), days of closures (e.g. of port operations), diversion of cargo via alternative routes due to disruptions, changes in market shares due to diversion of business, transport costs, number of manufacturers switching suppliers, due to suppliers located in regions accessible through vulnerable routes, insurance costs (vehicles, hulls, cargo) etc. |
Was there an improvement/deterioration/no change in the:
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Economic (E) |
E.9. Connectivity and Market Access |
Good transport services and transport connectivity can improve economic opportunities including in rural and remote areas, and can also encourage diversification to more profitable livelihoods, broadening the range of economic activities in a country/region. A reduction of marginalisation and remoteness could be beneficial for landlocked developing countries and Small Island Developing States. Improved connectivity or reduced marginalisation can result in improved market access by moving from the periphery to the centre through better and more frequent transport/shipping connections. Relevant indictors include the number of services per country/per route/per port/per station, frequency of service (per week/month), size of service providers (e.g. large ships versus smaller ships), number of transhipments/transfers/stops, number and quality of hinterland connections, interoperability of transport systems, the availability of multimodal options, UNCTAD liner shipping connectivity, World Bank rural access Index, etc. |
Was there an improvement/deterioration/no change in the:
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Social (S) |
S.1. Safety |
Transport safety in all transport modes is key. 1.2 million people die each year on the world’s roads, making road traffic injuries a leading cause of death globally. Most of these deaths are in low- and middle-income countries where rapid economic growth has been accompanied by increased motorization and road traffic injuries. Freight transport is a significant contributor to road accidents. Furthermore, freight transport stakeholders share responsibility for the health and safety of those involved in the sector, especially those working in freight handling and movement of hazardous/dangerous goods. Efforts need to be taken to ensure that manual handling risks are eliminated, or if this is not possible, minimised. A possible indicator is accident fatalities per million mode kilometre travel. |
Was there an improvement/deterioration/no change in the:
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Social (S) |
S.2. Security |
Freight transport network nodes are considered vulnerable points in the transportation network where heightened security is essential. This creates delays and inefficiency for freight transport, which creates congestion, which can lead to increased cost. Additionally, there is a growing threat of cargo theft due to organized gang activities as commodity value density is increasing. Lack of security is also a threat for the life of people e.g., labour /crew on board ships when dealing with maritime piracy. Possible indicators include theft quotas, cargo insurance rates, Commercial vehicle safety violations, piracy activity at sea, security breach incidents, expenditure on security/prevention, ransom values, life losses/injuries, etc. |
Was there an improvement/deterioration/no change in the:
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Social (S) |
S.3. Employment |
Employment created through transport can help reduce poverty, enhance the standards of living, allow population and communities to enjoy a variety of services including education, health, travel, etc. Transport enables access to various services and facilities, and can improve livelihood prospects. Transport also directly benefits many people through employment in the sector. Relevant indicators include reduction in poverty rate, access to education, health, opportunities for growth and personal development, higher disposable income, expenditures on basic and luxury goods in the transport sector and overall employment level, employment, and reduced migration. |
Was there an improvement/deterioration/no change in the:
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Social (S) |
S.4. Labour Conditions |
Truck drivers face long working hours, weekend working, and several health and safety hazards associated with driving long distances. This includes risks relating to posture, musculoskeletal disorders, high stress levels, and HIV/AIDS transmission. The road freight transport sector is highly fragmented with most owner-driver trucks. Fragmented industry acts as a catalyst in increasing inefficiency in the freight sector, including poor working conditions due to low profit margins. Many studies have established that the transport sector is among the sectors where work is the hardest and labour conditions are among the poorest, while attractiveness of employment is very low. The situation is similar in other sub-sectors of freight transport, including for labour employed as crew on ships – whether such ships are trading internationally or domestically. Elements for consideration include driving time, labour hours, used leave time, ability to connect with family and friends, pay and social benefits/packages, health conditions and access to medical services, discrimination (including based on gender or colour/origin), access to education, and career development opportunities. |
Was there an improvement/deterioration/no change in the:
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Social (S) |
S.5. Affordability |
Freight affordability refers to the financial ability of shippers, SMEs transport and the public to access adequate freight transport services without compromising their ability to purchase other basic goods and services. Freight rates/transport costs (US$/tkm) are good indicators for freight transport affordability. Freight transport affordability can be enhanced not only by improving the efficiency of travel, but also by reducing the amount of freight travel required to access destinations by improved infrastructure. Addressing factors that drive up inefficiencies and increase costs can help reduce the overall freight transport costs, which in turn improves affordability. Assessing transport needs and allowing for effective interventions for different social groups small and medium enterprises (SME’s) including poor and most vulnerable groups (e.g. gender) can improve affordability. |
Was there an improvement/deterioration/no change in the:
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Social (S) |
S.6. Aesthetic Impacts |
Freight transport infrastructure creates a high proliferation of signage and hoardings which can be not aesthetic in the local landscape, affecting user perception and evaluation of public space. Visual pollution could be regulated by means of juridical and spatial planning. |
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Social (S) |
S.7. Cultural Preservation |
The high intensity of freight traffic through land that accommodates historic buildings, sacred land areas, neighbourhood parks, older neighbourhoods, and towns could result in conflicts and issues. Among these are noise and air pollution, vibration, as well as increased danger to pedestrian safety. By promoting sustainable methods of freight transport operations that are sensitive to cultural and community resources, these predicaments can be can be avoided. |
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Social (S) |
S.8. Health |
Communities living next to freight nodes and corridors like freeways, ports, railway lines, designated truck routes and inter-modal centres bear the brunt of air pollution, noise, road accidents and other negative impacts of freight transport. These externalities induce and exacerbate health problems such as stress, sleep disturbances, cardio-vascular disease, and hearing loss. Diesel flumes have been identified as carcinogenic, and air pollution increases the risk of cardiopulmonary disease, stroke and lung cancer – some of the most common causes of premature death. Traffic-related air pollution is also associated with asthma onset in children and impaired lung function, as well as increased infant mortality. The improvements in ambient air quality brought about by freight transport emission reduction strategies can lower rates of fatal heart disease, lung cancer, and other respiratory diseases, reduce hospitalizations for heart attacks and emergency room visits for asthma attacks, increase productivity by avoiding days of school or work lost due to illness, and improve children’s overall health. Relevant indicators include the number of fatalities, Particulate Matter emissions, nitrogen oxides (NOx) emissions, Black Carbon emissions, sulphur oxides (SOx) emissions, increase in air pollution costs, the number or proportion of vehicles powered by alternative fuels, deployment of clean air technology such as scrubbers, exposure to traffic noise, exceedances of air quality objectives due to traffic, and cost of medical treatment, and medical insurance costs attributable to freight transport. |
1. Was there an improvement/deterioration/no change in the:
2. Does the existing freight transport policy framework address the health problems resulting from freight transport activity?
3. If so, have relevant policies/strategies/measures/instruments been effective in reducing the impact of freight transport on health? |
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Social (S) |
S.9. Noise and Vibration |
Freight movement and operations are a major cause of noise pollution. People living near ports, consolidation centers, and other freight generating land uses can be impacted by noise pollution and vibration due to high density of freight movement. Noise is not only unpleasant, but also contributes to health problems such as stress, sleep disturbances, cardio-vascular disease, reduced productivity and hearing loss. Relevant indicators include incidents/cases of health problems caused by freight transport related noises, loss of economic value/depreciation of residential/touristic assets locate close to noisy areas such as ports, moves away from noise polluted area, total vehicle kilometres performed by the heavy trucks, overloaded trucks (%) etc. Additional possible indicators include noise levels, truck driving, and share of corridor length above 50-55dB(A). |
Was there an improvement/deterioration/no change in the:
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Environmental (G) |
G.1. Air Pollution |
Freight transport infrastructure sites are hotspots for air pollution. Freight transport activity contributes a significant share of the emissions of air pollutants such as Particulate Matter (PM10), SOx, Particulate Matter (PM2.5) and NOx. Long-term exposure to air pollutants can cause Acid rain precipitation, which damages trees and causes soil and water bodies to acidify, making the water unsuitable for some fish and other wildlife. It also speeds up the decay of buildings, statues, and sculptures (social impact). Eutrophication can cause fish kills and loss of plant and animal diversity. Other impacts are haze, ozone depletion as well as damages to wildlife, crop and forests.Possible indicators include Particulate Matter emissions, NOx emissions, Black Carbon emissions, SOx emissions, air pollution costs, etc. |
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Environmental (G) |
G.2. GHG Emissions |
Freight transport contributes to about 7% of total global greenhouse gas (GHG) emissions. Global emissions from trade-related freight transport are estimated to be around 2 billion tonnes and could rise to 8 billion tonnes by 2050 under the baseline scenario. The share of freight transport emissions is expected to grow from current 40% to 60% of transport GHG emissions in 2050. Relevant indicators include GHG/CO2 (carbon dioxide) emissions, gCO2/tkm, carbon intensity of fuel used, emissions that add to climate change, e.g. black carbon. |
1. Was there an improvement/deterioration/no change in the:
2. Is relevant data on the GHG/CO2 emissions in freight transport available and accessible? |
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Environmental (G) |
G.3. Water Pollution |
Freight transport has both direct and indirect impacts on water quality. For example, routine discharge of ballast water from marine vessels can cause oil pollution at sea. Oil and chemical spills, dredging of ports could result in high pollution. Further, road accidents and vehicle breakdowns can result in oil and other hazardous chemicals mixing with ground water. Relevant indicators include the number of incidents of pollution from oil or other materials, including chemicals and hazardous substances, from all modes. |
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Environmental (G) |
G.4. Resource Depletion |
This objective considers resource efficiency in accommodating freight transport. Resources consumed for facilitating freight transport include energy resources (comprising fossil fuels), use of land for building infrastructure, use of water resources, material procurement etc. Resource depletion could be reduced by encouraging the use of the most resource-efficient products and services, minimizing the use of water resources, maximizing reuse and recycling of wastewater, the use of renewable energy sources and the improvement of energy efficiency, and land use etc. Possible indicators include the shares of alternative fuel vehicles (by type) as percentage of the vehicle fleet, megajoules/tkm, megajoules per vehicle kilometre, etc. |
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Environmental (G) |
G.5. Land Use and Habitat Fragmentation |
Freight transport infrastructure and movement are major causes of habitat fragmentation, the disruption of wildlife habitats, and their division into smaller areas. Freight transport infrastructure creates accessibility barriers separating functional areas within a habitat. Habitat fragmentation can be considered using length and width of freight transport infrastructure and of the habitats through which they pass. In land use planning, zoning can be used to guide the development of industrial land uses. This includes new freight warehouses or intermodal facilities near major highway access points to reduce truck travel, locating land use generating large volumes of freight away from sensitive land uses, and adopting context sensitive designs of freight transport infrastructure. Indicators such as buffer zone, percent of major generators with appropriate roadway access to major highways etc. |
Was there an improvement/deterioration/no change in the:
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Environmental (G) |
G.6. Waste |
Waste is not only a by-product of the production and consumption process but is also a contributor to economic activity through the recovery of energy and resources from waste. For example, disposal of plastics at sea is a significant source of environmental harm. Regulating the discharge of garbage from ships, minimizing construction and operational waste, and considering life-cycle analyses to inform sensitive and/or complex investment decisions could lead to better waste management. Further, by implementing environmentally friendly disposal and by recycling, better efficiency could be achieved. Freight transport needs to consider avoiding, reducing, reusing, and recycling. Relevant indicators include freight transport fly-tipping incidents, share of construction and operational waste diverted from landfill, waste management practices, waste dumping reported incidents, costs for removal of dumped waste, and estimated economic losses (e. g. from tourism) due to dumped waste. |
Was there an improvement/deterioration/no change in the:
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Environmental (G) |
G.7. Biodiversity and Ecosystems |
Sustainable Development Goal 15 of the 2030 Agenda for Sustainable Development aims to “protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss”. Freight transport has a major impact on biodiversity. The need for construction materials and fuels for the development of freight transport infrastructure and facilitating freight movement has led to deforestation and land use changes. Many freight transport corridors reduce wetland areas and water plant species. Ships and pipeline oil spills also have obvious impacts on ecosystems and wildlife, including under water noise caused by ships engines. Relevant indicators include incidents/cases/proportion of/extent of biodiversity lows, wetland areas, water plant species, wildlife and ecosystems losses and damages, and disturbance of wildlife at sea due to noise caused by ships. |
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Environmental (G) |
G.8. Soil Quality |
Freight transport infrastructure development and movement has significant impact on soil erosion, soil contamination, loss of fertile land etc. Soil contamination can occur with the use of toxic materials as well as by spills from the freight transport industry. Constructing new freight transport facilities may require a conversion of land use from open space reserve or greenspace to concrete facilities resulting in soil erosion and poor absorption of rainwater, resulting in flooding etc. Relevant indicators include incidents/cases/proportion of/extent of soil erosion, soil contamination, loss of fertile land, poor absorption of rainwater resulting in flooding etc. |
Was there an improvement/deterioration/no change in the:
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Environmental (G) |
G.9. Climate Resilience |
Increased extreme weather events such as hurricanes, snow storms, floods, etc. will increase disruptions and damage freight transport infrastructure. Road pavements and bridges are especially vulnerable to temperature extremes and flooding. Seaports and other coastal transport infrastructure such as airports in SIDS are particularly vulnerable to sea level rises and storm surges. These problems are most intense in developing countries in Asia, Africa and Latin America. It is important to assess the vulnerability of freight transport infrastructure and services to climate change factors, determine impacts, devise adaptation strategies and response measures, quantify the costs of climate change in freight transport infrastructure, and consider economic benefits of climate adaptation in the decision making. Relevant indicators include climate change related incidents affecting freight transport (floods, droughts, sea level rise, precipitation, winds, etc.), the impacts and their type, damages and costs, disruptions and closures, trade diversion via different routes, insurance costs, etc. |
Was there an improvement/deterioration/no change in the:
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United Nations
Sustainable Freight Transport
Sustainable Freight Transport