Towards Sustainable Freight Energy Management - Development of a Strategic Decision Support Tool

Abstract

Freight transportation, in its current shape and form, is on a highly unsustainable trajectory. Global demand for freight is ever increasing, while this demand is predominantly serviced by inefficient, fossil fuel dependent transportation options. The management of energy use in freight transportation has been identified as a significant opportunity to improve the sustainability of the freight sector. Given the vast amount of energy mitigation measures and policies to choose from to attempt this, decision-makers need support and guidance in terms of selecting which policies to adopt – they are faced with a complex and demanding problem. These complexities result, in part, from the vast range, scope and extent of measures to be considered by decision-makers. The tool developed needs to encompass a suitable methodology for comparing proverbial apples to oranges in a fair and unbiased manner, despite the development of one consistent assessment metric that can accommodate this level of diversity being problematic. Further to this, decision-makers need insight into the extent of implementation that is required for each measure. Because the level of implementation of each measure is variable and the extent to which each adopted measure will be implemented in the network needs to be specified, the number of potential measure implementation combinations that decision-makers need to consider is infinite, adding further complexity to the problem. Freight energy management measures cannot, and should not, be evaluated in isolation. The knock-on effects of measure adoption on the performance of other measures need to be considered. Measures are not all independent and decision-makers need to take these dependencies and their ramifications into account. In addition, there is dimensionality to be accounted for in terms of each measure, because one measure can be applied in a variable manner across different components of the freight network. A unique and independent decision needs to be made on the application of a measure for each of these network components (for example for each mode). Decisions on freight transportation impact all three traditional pillars of sustainability: social, environmental and economic. Measure impacts, thus, need to be assessed over multiple criteria. Decisions will affect a variety of stakeholders and outcomes must be acceptable to a range of interested parties. Sustainability criteria are often in conflict with one another, implying that there are trade-offs to be negotiated by the decision-makers. Decision-makers, thus, need to propose system alterations, or a portfolio of system alterations, that achieve improvements in some sustainability respects, whilst maintaining a balance between all other sustainability aspects. Moreover, the magnitude of impacts (be it positive or negative) of a measure on the sustainability criteria is variable, adding additional dimensionality to the problem. The aim of the research presented in this dissertation was to develop a decision support tool which addresses the complexities involved in the formulation of freight transport energy management strategies on behalf of the decision-makers, facilitating the development of holistic, sustainable and comprehensive freight management policy by government level decision-makers. The Freight Transport Energy Management Tool (FTEMT) was developed in response to this research objective, using a standardised operations research approach as a roadmap for its development. Following a standardised operations research approach to model development provides a structure where stakeholder participation can be encouraged at all the key stages in the decision-making process; it offers a logical basis for proposing solutions and for assessing any proposed suggestions by others; it ensures that the appraisal of alternative solutions is conducted in a logical, consistent and comprehensive manner against the full set of objectives; and it provides a means for assessing whether the implemented instruments have performed as predicted, enabling the improvement of the model being developed. The FTEMT can be classified as a simulation optimisation model, which is a combination between multi-objective optimisation and simulation. The simulation component provides a suitably accurate representation of the freight system and affords the ability to approximate the effect that measure implementation will have on the sustainability objectives, whilst the optimisation component provides the ability to effectively explore the decision space and reduces the number of alternative options (and, therefore, the complexity) that decision-makers need to consider. It is this simulation optimisation backbone of the FTEMT that enables the tool to address all the complexities surrounding the problem, enabling the decision support produced by the FTEMT to provide the information necessary for decision-makers to steer the freight transport sector towards true sustainability. Although this problem originates from the domain of sustainable transportation planning, the combination of operations research and transport modelling knowledge applied proved essential in developing a decision support tool that is able to generate adequate decision support on the problem. To demonstrate the use and usefulness of the decision support system developed, a fictitious case study version of the FTEMT was modelled and is discussed throughout this dissertation. Results from the case study implementation were used to verify and validate the tool, to demonstrate the decision support generated and to illustrate how this decision support can be interpreted and incorporated into a decision-making process. Outputs from the case study FTEMT proved the tool to be operationally valid, as it successfully achieved its stated objectives (the FTEMT unearths a Pareto set of solutions close to the true efficient frontier through the exploration of different energy management measure combinations). Explained in short, the value of using the FTEMT to generate decision support is that it explores the decision space and reduces the number of decision alternatives that decision-makers need to consider to a manageable number of solutions, all of which represent harmonic measure combinations geared toward optimal performance in terms of the entire spectrum of the problem objectives. These solutions are developed taking all the complexity issues surrounding the problem into account. Decision-makers can, thus, have confidence that the acceptance of any one of the solutions proposed by the FTEMT will be a responsible and sound decision. As an additional benefit, preferences and strategic priorities of the decision-makers can be factored in when selecting a preferred decision alternative for implementation. Decision-makers must debate the trade-offs between solutions and need to determine what they are willing to sacrifice to realise what gain, but they are afforded the opportunity to select solutions that show the greatest alignment with their official mandates. The structure of the FTEMT developed and described in this dissertation presents a practical methodology for producing decision support on the development of sound freight energy management policy. This work serves as a basis to stimulate further scholarship and expands upon the collective knowledge on the topic, by proposing an approach that is able to address the full scale of complexities involved in the production of such decision support

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