Green financing can be described as the practice of channelling financial resources( investments, loans, insurance) towards environmentally friendly projects and initiatives to support the transition to a low-carbon, resource-efficient economy. In the context of logistics, green financing is integrated into master planning to fund the design, development, and implementation of sustainable logistics infrastructure and practices.
Supply Chain
The Role Of Green Financing In Logistics Master Planning
By Michael Nzule
Logistics master planning is usually undertaken at macro level by governments. Logistics master planning is part of long term strategic planning for countries to deliver logistics infrastructure that will deliver efficiency, spur economic growth and deliver global competitiveness. It covers intentional strategic goals, analysis of supply chains, design of improved infrastructure, leveraging technology for efficient processes and defining policies to guide investment and regulation. The goal is to have resilient, effective and integrated logistics systems for the economy. The infrastructure supporting logistics requires heavy capital. This includes ports( sea, air and dry ports), logistics hubs, transportation and all enabling connectivity.
The typical components of logistics master planning include setting strategic goals, infrastructure design and development, in-depth supply chain analysis, integrating technology, policy and regulation and finally consideration for logistics resilience and sustainability.
In setting the country strategic goals, countries define specific objectives for the logistics sector. These range from creating new infrastructure, improving existing infrastructure to enhance economic productivity and competitiveness to raising regional or global rating as a logistics hub.
Infrastructure design and development addresses the choice of which infrastructure to build to align with the chosen strategic goals. This also looks at the preferred locations. The key infrastructure includes logistics centres, ports, and intermodal transport networks to handle freight efficiently.
Green financing can be described as the practice of channelling financial resources( investments, loans, insurance) towards environmentally friendly projects and initiatives to support the transition to a low-carbon, resource-efficient economy. In the context of logistics, green financing is integrated into master planning to fund the design, development, and implementation of sustainable logistics infrastructure and practices.
The next critical cog in logistics master planning is conducting comprehensive analysis of the current supply chain. This analysis sets out current capabilities and competitiveness of the country supply chain. This leads to the identification of weaknesses and opportunities for improvement. The analysis includes review of regional industrial developments and installations, location of urban centres and transport networks.
The logistics master plans must include technology and digitalisation. Technology helps streamline operations through interfaces necessary for data exchange and information sharing. This also covers track and tracing of cargo and monitoring essential cargo parameters, like temperature, destination, ownership or state of customs clearance. Integrated electronic platforms support faster custom processes and document verification. Technology enables government to optimise revenues from all related import or export processes and link this to international trade goals.
Master planning leans a lot to policy and regulation. Government policies guide investment, promote efficiency and greatly impacts safety and reliability of supply chains. Policies that are increasingly becoming the cornerstone of master planning include“ polluters pay” and developing green logistics investments.
Logistics networks do not work in isolation. It is therefore imperative that in designing the master plans, consideration must be put in place for integration to drive efficiencies across regional borders. Master plans include integrated systems
86 MAL69 / 25 ISSUE