Reducing CO2 IN AGGREGATE TRUCKING: A Natural Outcome of an efficient Supply Chain

For the past 16 years, I’ve been in the construction materials industry, witnessing a significant shift towards more sustainable  solutions, such as recycled content usage, and exploration of alternative energy sources. A lot of those “greener solutions” have viable long-term prospects to reduce CO2 emissions or increased re-use of waste products (eg. Carbon Capture, Low-carbon  Fuels) but those solutions often require massive capital investment, with low-returns.  

The challenge is that most of the current technological advancements in sustainability often come with steep upfront costs, making  them capital intensive for producers while exceeding what consumers are typically willing to pay. Yet, despite these short-term market inefficiencies, it’s crucial to continue  pushing forward on this transformative path.  But there’s one aspect of our supply chain, where lowering CO2 impact, can be just a coincidental byproduct of good business.  That is Aggregate Logistics.     
 

In the Greater Toronto & Hamilton Area (GTHA), over 99% of “last-mile delivery” of stone, sand, and gravel relies on road transportation by trucks.  Annually, the region consumes more than 2 million truckloads of aggregate (+75 million tonnes) and with close-to-market aggregate reserves dwindling, aggregate is being trucked from greater distances.  It is estimated that more than 125 million litres of diesel fuel are consumed annually to move aggregate from source to end-user, potentially resulting in more than 300,000 tonnes of greenhouse gas emissions. On average, each truck completes 5 trips per day, carrying  32 tonnes/load.  Most trucks only carry a full load on one leg of their journey, leading to approximately 50% of their kilometres driven with an empty load. 

Lowering GHG emissions in aggregate road transport can be achieved in tandem with overall transportation cost reduction. And it isn’t through electrification, alternative fuels etc….rather through low capital-intensive measures, that if executed would potentially lower the cost/tonne to the end-user as well.  

1. Increase Loaded Kilometers → every 2% increase in loaded kilometres results in a 1% reduction in GHG emissions.
   1. Consumers → stage aggregate materials and circular materials (excess soil, recycled rubble.)
   2. Suppliers → incorporate circular materials into quarry operations
   3. Legislators → prioritize locating circular materials receptors close to pits and quarries. 
2. Increase Average PayLoad → Higher payload = reduced fuel consumption per tonne transported.
   1. Consumers → reimagine job sites to accommodate truck types with higher payload capacities. 
   2. Suppliers → promote the use of trucks that can carry larger, compliant payloads. 
   3. Legislators → implement Digital Standardization of vehicle payload measurements.  
3. Emplore Off-Peak Delivery → Lower Traffic, Higher Efficiency, Less Idling
   1. Consumers → reimagine stockpiling plans, and hours of acceptance. 
   2. Suppliers → share, and promote synergies of off-peak service. 
   3. Legislators → Support traffic-reducing policies (eg. 407 subsidies for commercial vehicles)
4. Utilize Close-to-Market Reserves → Less KMs to Consumer = Less GHG Per Tonne
   1. Consumers → Promote the use of recycled aggregates and reserves located closer to the market. 
   2. Legislators → Support policies that promote the use of recycled aggregates and close-to-market reserves. 

Aligning the aggregate supply network with excess soil receiving sites and optimizing how we manage project stockpiles offers significant benefits, especially in Ontario’s construction sector. Efficiently managing these resources can reduce transportation costs, minimize environmental impacts, and enhance project timelines by creating a more streamlined, circular supply chain. By integrating excess soil and aggregate logistics, construction sites can reuse excavated material, reducing waste and carbon emissions associated with hauling.

However, regulatory hurdles, including strict environmental and zoning laws, can present challenges to this alignment. Coordinating between various stakeholders, ensuring compliance with soil reuse regulations, and navigating permitting processes add new layers of complexity, limiting the ease of achieving these synergies.

For stakeholders, efficient logistics delivers value beyond cost savings. It means ensuring reliable, timely deliveries, reducing project delays, and fostering stronger partnerships through dependable service. At Lafarge, efficiency isn’t just about optimizing operations; it is about driving sustainable practices that create value across the supply chain. By enhancing road logistics, we strike a balance - providing the construction industry with needed materials at the right time and place, while reducing the overall environmental footprint. This approach not only benefits the construction industry but also contributes to a more sustainable future for all.