Kuehne+Nagel has announced a road-to-rail programme with Japanese automobile manufacturer, Honda.

In a statement, it said the programme will increasingly rely on train transport on long haul routes, coupled with the use of regional hubs for improved supply chain performance and reduced carbon emissions.

Kuehne+Nagel said it first announced its Net Zero Carbon programme in 2019, aiming to address CO2 reduction in transport and logistics services. Since 2020, the company has been CO2 neutral worldwide for all own, direct emissions.

Meanwhile, through KN Sincero — a joint venture dedicated to supply chain services for the automotive industry — Kuehne+Nagel said it has been developing a strong footprint in China.

"In light of challenges around inbound-to-manufacturing transportation, KN Sincero developed an integrated solution for Honda to convert domestic long-haul trucking to rail, offering consolidations and value-added services including sorting, scanning, repackaging, GPS track & trace, as well as recyclable container management," it said.

70% CO2 reduction for Honda Automotive in China

After six months, the supply chain reliability and efficiency improved significantly, the logistics company said with this road-to-rail model, approximately 16,000 fewer tonnes of CO2 will be emitted on a yearly base, a reduction of 70% compared to the trucking model.

"Kuehne+Nagel has always been a supply chain partner that we can rely on, to help us improve our supply chain performance whilst also achieving our environmental goals," said Jiang Hui and Mr. Takuji Kitamura, Joint General Manager of Wuhan Dong Hon, the logistics affiliate of Dongfong Honda Automotive.

Gianfranco Sgro, member of the Management Board of Kuehne + Nagel International AG, responsible for Contract Logistics noted that automotive is one of the most important sectors in Contract Logistics, particularly in China, the world’s largest automotive market.