On the day of his keynote speech at Megatrends Europe 2014, Kristian Hedberg – like all his European Commission colleagues – learned of the new proposed structure of the Juncker Commission.
The most important news for the automotive sector was the proposed appointment of Slovakia’s Maros Sefcovic as the Commissioner for Transport and Space.
It’s important to understand the politics of the proposed Commission roles. The word ‘proposed’ is crucial here. Even Jean-Claude Juncker’s position is not yet confirmed – as President-elect, he awaits the approval of the European Parliament, as do each of the proposed Commissioners and this Commission’s unusual additional tier of Vice Presidents.
The era that began on 1 January 2014 is a fascinating one for trucking in Europe: at great technological and financial expense, the industry has successfully delivered Euro VI, yet the Commission has made it clear that the industry should not sit back – Euro VI was by no means the end of regulation. Those in the industry may wince at this, but the Commission presents data to show that regulation is working.
It’s thus a vital time to reflect on the role that policy makers can contribute to the future of mobility.
Europe has a strong portfolio of truck manufacturers which compete globally, if not produce globally; yet for those OEMs to succeed and continue to grow, they need to seek growth outside Europe. And that’s where they come up against competition from other types of truck manufacturers selling other types of trucks, to other types of customers – buyers who want lower cost trucks from lower cost brands, which they see as more suited to their market and their needs.
Regulation in Europe, and threats from new players in other markets, provide plenty of issues on a daily basis for Kristian Hedberg – Head of Unit, Land Transport, DG for Mobility and Transport at the European Commission.
The political guidelines laid out by President Elect Juncker in July included a very strong emphasis on areas such as competitiveness, internal market, energy efficiency and security, and climate change. “These are all issues that come together in the area of road freight,” said Hedberg in his Megatrends keynote. Juncker also asserted the importance of maintaining a high-performance, strong industrial base – and to do that, he said, Europe needs a world-leading, efficient and competitive logistics system.
“Because road haulage carries more weight, volume and value of goods than any other mode of transport, it is vital for the sake of the broader economy that we optimise the efficiency of the road haulage market,” he told delegates.
In terms of environmental sustainability, if we wish to make the transport system as a whole greener, it’s important to make commercial road vehicles and operations greener. Hedberg acknowledged improvements in existing diesel engines, the benefits of eco-driving, and the general improvements in air pollution.
And non-engine related developments on truck shapes and design can also improve efficiency, he said. Last year, the Commission proposed changing legislation on weights and dimensions for heavy goods vehicles with the view to enabling European truck manufacturers to design new more aerodynamic truck cabs, he said. “And we believe that changes in the design of the cabs, and also retrofitting trailers with aerodynamic flaps, can produce saving of up to 5 or 7%.”
Following on from that point, Hedberg addressed the widely debated concept of longer trucks: “The question is, is it worth making incremental improvements on vehicle design when bigger savings or efficiencies could be achieved overnight by authorising greater loading capacity for trucks? At this stage, the only honest response is that the political economy of the EU does not for the moment provide for the generalisation of higher loading capacities. Therefore, if we are serious about improving road haulage efficiency, the answer can only be a resounding yes – it is worth making those incremental changes.”
Despite the apparent benefits of longer trucks under the European Modular System (EMS), Hedberg underlined the difficulty of the Commission’s position where it clashes with national jurisdiction, despite fuel consumption savings said to reach beyond 20%. Such vehicles are being trialled in various European member states, but at the same time, the Commission has underlined that it remains agnostic on truck lengths – the decision rests at national level.
On alternative fuels, Hedberg acknowledged Europe’s position lagging far behind China in terms of natural gas vehicle sales – thousands of units in Europe compared to tens of thousands in China.
Thus, European regulators need to not only ensure that Europe develops and exports innovative technologies, but also that it applies them throughout its own market. To facilitate this, Hedberg set out various types of activities where the Commission can get involved in spurring innovation. These included setting long-term goals, removing regulatory obstacles to innovation, and addressing the wording of the Vienna Road Traffic Convention, which currently requires a vehicle to have a driver able to take control of the vehicle. Without compromising road safety, it’s important for the Commission to avoid stifling innovation, acknowledged Hedberg.
It’s also important to get away from transport mode-specific silos, he cautioned. Fleets do not care how products travel from A to B. Indeed, every mile that freight does not need to travel is an efficiency gain. Fleets would happily use intermodal transport – but there too, barriers exist. Hedberg said he understands the need for “joined-up thinking” when it comes to considering road haulage as one of a variety of means of freight transportation. Facilitate intermodal transport and freight movement, he said, and that which does not need to travel by road can be carried by water or rail, freeing up vital road capacity.
One of the subjects that arose several times during the commercial vehicle day at Megatrends Europe was the issue of harmonisation. The European Union is negotiating with various regions on free trade agreements, and with the US on TTIP. How does Hedberg see the position of the European truck industry within such negotiations, particularly when issues like emissions harmonisation are being discussed?
For harmonisation, said Hedberg, the work that remains is formidable, with starting points which are so wide apart that a number of elementary conceptual issues need to be addressed. “Therefore, I think that although this may be in the interest of many, I am not in a position to suggest that one should be very optimistic of quick progress for those standards to be defined worldwide. Conditions across the continent vary to such a degree that it would be a major undertaking toward work towards that.”
As to the question of what might follow Euro VI, and when, Hedberg conceded that firstly this is outside his remit, but that secondly, he and all other Commissioners find themselves in a difficult position as the Commission undergoes its restructure, and thus are very guarded in providing any insight into forthcoming policy until the political orientation of the new Commission has been defined. “I hate to disappoint you,” said Hedberg, “as I know this would have been something very interesting to take away from today’s discussion.”
Martin Kahl
