European Green Deal and Fit for 55 – what is the best strategy to maximize modal switch in transport – Dow

 Overview

Company Description

www.dow.com; Our company | Dow Corporate

Dow is a global material science company. We want to become the most innovative, customer-centric, inclusive and sustainable materials science company in the world. With 2020 Net sales of $39 billion (with roughly 1/3 from EMEAI), 35700 employees and 106 manufacturing sites it is a truly global company. The Terneuzen site is the 2nd largest site of Dow globally with about 3600 employees. Next to manufacturing, Dow’s entire supply chain in Europe is managed from Terneuzen with about 800 employees working within Integrated Supply Chain in an international team with 50+ nationalities.

Project Description

Europe Green Deal and “Fit for 55” program has a large component related to transportation and mobility which creates 25% of the carbon emissions in EU. For freight transport, modal switch is an important first step to meet the goals outlined by the program. The European Commission proposes to use taxation to drive this modal switch.

Dow is already uses intermodal transport for 20% of its shipments, mainly for longer distance and is looking for options to increase this percentage of intermodal transport in its transport mix. Taxation of road transport makes modal switch more competitive on shorter distances, however increased demand for intermodal transport will likely also increase intermodal transport pricing, or potentially could reduce cost per shipment due to more efficient use of capacity. 

Goals of the Project

The project should provide insight on the impact of different modal switch strategies such as being a ‘first mover’, ‘laggard’ or a combination of the two in terms of financial, emission and service (time/speed) impact. 

Deliverables

• Scenarios for cost development for both road and intermodal transport for short/medium/long term distance given the expected measures from the ‘Fit for 55’ program combined with other market dynamics.

• Market analysis to compare adoption level of intermodal transport, average distance and identified challenges by mode of transport or industry shipper belongs to.

• Recommendations for a strategy to implement further modal switch, considering impact to cost, emissions, and service(time/speed) for customer

Essential Student Knowledge

• Cost modelling
• Ability to think strategic within different (logistics) scenario’s
• Understanding of logistics & supply chain
• Passion for Sustainability and knowledge on CO2 emissions

Unique Opportunity

Dow is offering you a great inclusive international learning environment where you will be collaborating with a team of Dow experts in Supply Chain and Procurement. You will have the opportunity to work with external logistics partners and participating in sustainability conferences and meetings.

More information: escf@tue.nl