City logistics 2 modeling and planning initiatives

Using Cost–Benefit Analysis to Evaluate City Logistics Initiatives: An Application to Freight Consolidation in Small- and Mid-Sized Urban Areas.. Chapters covering new areas of city log

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Series Editor Jean-Paul Bourrières

City Logistics 2

Modeling and Planning Initiatives

Edited by

Eiichi Taniguchi Russell G Thompson

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First published 2018 in Great Britain and the United States by ISTE Ltd and John Wiley & Sons, Inc

Apart from any fair dealing for the purposes of research or private study, or criticism or review, as permitted under the Copyright, Designs and Patents Act 1988, this publication may only be reproduced, stored or transmitted, in any form or by any means, with the prior permission in writing of the publishers,

or in the case of reprographic reproduction in accordance with the terms and licenses issued by the CLA Enquiries concerning reproduction outside these terms should be sent to the publishers at the undermentioned address:

27-37 St George’s Road 111 River Street

Library of Congress Control Number: 2018936342

British Library Cataloguing-in-Publication Data

A CIP record for this book is available from the British Library

ISBN 978-1-78630-206-9

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Contents

Preface xv

Chapter 1 Urban Logistics Spaces: What Models, What Uses and What Role for Public Authorities? 1

Danièle P ATIER and Florence T OILIER 1.1 Introduction 1

1.2 Literature review 2

1.3 ULS typology 4

1.3.1 The Urban Logistics Zone (ULZ) or freight village 4

1.3.2 The Urban Distribution Center (UDC) 6

1.3.3 Vehicle Reception Points (VRP) 9

1.3.4 Goods Reception Points (GRP) 12

1.3.5 The Urban Logistics Box (ULB) 13

1.3.6 Mobile Urban Logistics Spaces (mULS) 15

1.4 Recommendations 18

1.5 Conclusion 19

1.6 Bibliography 20

Chapter 2 Dynamic Management of Urban Last-Mile Deliveries 23

Tomislav L ETNIK , Matej M ENCINGER and Stane B OZICNIK 2.1 Introduction 23

2.2 Review of urban freight loading bay problems and solutions 25

2.3 Information system for dynamic management of urban last-mile deliveries 26

2.4 Algorithm for dynamic management of urban freight deliveries 29

2.5 Application of the model to a real case 32

2.6 Conclusions 33

2.7 Bibliography 34

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Chapter 3 Stakeholders’ Roles for Business

Modeling in a City Logistics Ecosystem:

Towards a Conceptual Model 39

Giovanni Z ENEZINI , J.H.R VAN D UIN , Lorant T AVASSZY and Alberto D E M ARCO 3.1 Introduction 39

3.2 Research background 41

3.2.1 Business model concept 41

3.2.2 Business ecosystem 42

3.2.3 Role-based networks and ecosystems 43

3.3 The CL business model framework: roles, business entities and value exchanges 43

3.4 City logistics concepts and role assignment 48

3.4.1 Parcel lockers installation: MyPUP 48

3.4.2 Urban consolidation centers 51

3.4.3 Business model implications 54

3.5 Conclusions 55

3.6 Bibliography 56

Chapter 4 Establishing a Robust Urban Logistics Network at FEMSA through Stochastic Multi-Echelon Location Routing 59

André S NOECK , Matthias W INKENBACH and Esteban E M ASCARINO 4.1 Introduction 59

4.2 Strategic distribution network design 62

4.2.1 Distribution network 63

4.2.2 Network cost 63

4.2.3 Distribution cost 64

4.2.4 Optimization model 65

4.3 Solution scheme 67

4.3.1 Scenario generation and selection 67

4.3.2 Design generation 68

4.3.3 Design evaluation 68

4.4 Case study 68

4.4.1 Data and parameters 69

4.4.2 Analysis results 70

4.5 Results 71

4.5.1 Design generation 71

4.5.2 Design evaluation 72

4.5.3 Sensitivity to cost of lost sales 73

4.6 Conclusion 75

4.7 Bibliography 75

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Chapter 5 An Evaluation Model of Operational and

Cost Impacts of Off-Hours Deliveries in the

City of São Paulo, Brazil 79

Cláudio B C UNHA and Hugo T.Y Y OSHIZAKI 5.1 Introduction 79

5.3 Proposed approach 84

5.4 Scenario generation 87

5.5 Results 90

5.6 Concluding remarks 94

5.7 Bibliography 94

Chapter 6 Application of the Bi-Level Location-Routing Problem for Post-Disaster Waste Collection 97

Cheng C HENG , Russell G T HOMPSON , Alysson M C OSTA and Xiang H UANG 6.1 Introduction 97

6.2 Model formulation 99

6.3 Solution algorithm 104

6.3.1 Genetic Algorithms 104

6.3.2 Greedy Algorithm 105

6.3.3 Simulated Annealing 106

6.4 Case study 106

6.4.1 Case study area 106

6.5 Result analysis 109

6.5.1 Models comparison 109

6.5.2 Sensitivity analysis 111

6.6 Conclusion 113

6.7 Bibliography 114

Chapter 7 Next-Generation Commodity Flow Survey: A Pilot in Singapore 117

Lynette C HEAH , Fang Z HAO , Monique S TINSON , Fangping L U , Jing D ING -M ASTERA , Vittorio M ARZANO , and Moshe B EN -A KIVA 7.1 Introduction 117

7.2 Integrated commodity flow survey 119

7.2.1 Overview 119

7.3 Key survey features 121

7.3.1 Sampling related supply network entities 121

7.3.2 Multiple survey instruments leveraging sensing technologies 121

7.3.3 A unified web-based survey platform 122

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7.4 Pilot survey implementation 123

7.4.1 Sample design and recruitment 124

7.4.2 Shipment and vehicle tracking methods 125

7.4.3 Pilot survey experience and lessons learnt 126

7.4.4 Preliminary data analysis 127

7.5 Conclusion 129

7.6 Acknowledgements 129

Chapter 8 City Logistics and Clustering: Impacts of Using HDI and Taxes 131

Rodrigo Barros C ASTRO , Daniel M ERCH N , Orlando Fontes L IMA J R and Matthias W INKENBACH 8.1 Introduction 131

8.2 Methodology 133

8.2.1 Principal component analysis 135

8.2.2 K-means clustering 135

8.3 Results 135

8.4 Conclusion 140

Chapter 9 Developing a Multi-Dimensional Poly-Parametric Typology for City Logistics 143

Paulus A DITJANDRA and Thomas Z UNDER 9.1 Introduction 143

9.3 Methodology 145

9.4 Evaluation and analysis 146

9.4.1 Inventory of all EU projects 146

9.4.2 Inventory of typologies 147

9.4.3 Land use typologies 148

9.4.4 Measure typologies 149

9.4.5 Urban freight markets 151

9.4.6 Traffic flow typology 152

9.4.7 Impacts 153

9.4.8 Gaps 153

9.5 Validation and enhancement of the inventory 154

9.6 Proposed typology 155

9.6.1 Approach 155

9.6.2 Dimension: Why? 157

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9.6.3 Dimension: Where? 157

9.6.4 Dimension: Who? 158

9.6.5 Dimension: What? 158

9.6.6 Dimension: How? 159

9.7 Reflections 159

9.8 Conclusion 160

Chapter 10 Multi-agent Simulation with Reinforcement Learning for Evaluating a Combination of City Logistics Policy Measures 165

Eiichi T ANIGUCHI , Ali Gul Q URESHI and Kyosuke K ONDA 10.1 Introduction 165

10.3 Models 166

10.4 Case studies in Osaka and Motomachi 168

10.4.1 Settings 168

10.4.2 Results 170

10.5 Conclusion 175

Chapter 11 Decision Support System for an Urban Distribution Center Using Agent-based Modeling: A Case Study of Yogyakarta Special Region Province, Indonesia 179

Bertha Maya S OPHA , Anna Maria Sri A SIH , Hanif Arkan N URDIANSYAH and Rahma M AULIDA 11.1 Introduction 179

11.2 Theoretical background 182

11.2.1 Urban distribution center 182

11.2.2 Decision support system of city logistics 183

11.3 The proposed decision support system 184

11.3.1 System characterization 184

11.3.2 The logical architecture 185

11.3.3 Agent-based modeling (ABM) 187

11.3.4 Model verification and validation 190

11.4 Example of application: the case of Yogyakarta Special Region 191

11.5 Conclusion 192

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Chapter 12 Evaluating the Relocation of an

Urban Container Terminal 197

Johan W J OUBERT 12.1 Introduction 197

12.2 Methodology 199

12.2.1 MATSim 199

12.2.2 Initial demand 200

12.2.3 Alternative scenarios 201

12.3 Results 201

12.3.1 Directly affected vehicles 202

12.3.2 Extended effects 205

12.4 Conclusion 208

Chapter 13 Multi-Agent Simulation Using Adaptive Dynamic Programing for Evaluating Urban Consolidation Centers 211

Nailah F IRDAUSIYAH , Eiichi T ANIGUCHI and Ali Gul Q URESHI 13.1 Introduction 211

13.2.1 Evaluation models for city logistics measures 212

13.2.2 ADP for evaluating city logistics measures 213

13.3 Models 214

13.3.1 Freight carrier’s MAS-ADP model 215

13.3.2 Freight carrier’s MAS Q-learning model 217

13.3.3 Vehicle routing problem with soft time windows (VRPSSTW) 218

13.4 Case study 220

13.5 Results and discussions 221

13.5.1 Case 0 (base case) 222

13.5.2 Case 1 223

13.6 Conclusion and future work 226

Chapter 14 Use Patterns and Preferences for Charging Infrastructure for Battery Electric Vehicles in Commercial Fleets in the Hamburg Metropolitan Region 229

Christian B LUSCH , Heike F LÄMIG and Sören Christian T RÜMPER 14.1 Introduction 229

14.2 State of the art/context of study 230

14.3 Research goal and approach 231

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14.4 Method of data collection 232

14.5 Results and discussion 232

14.6 Conclusions 237

Chapter 15 The Potential of Light Electric Vehicles for Specific Freight Flows: Insights from the Netherlands 241

Susanne B ALM , Ewoud M OOLENBURGH , Nilesh A NAND and Walther P LOOS VAN A MSTEL 15.1 Introduction 241

15.2 Definition of LEFV 243

15.3 State of the art 244

15.5 Potential of LEFV for different freight flows 247

15.5.1 Selection of freight flows 247

15.5.2 Description of freight flows 248

15.5.3 Receivers’ perspective 253

15.6 Multi-criteria evaluation 253

15.6.1 Setup 253

15.6.2 Outcome 254

15.7 Discussion 256

15.8 Conclusion 257

Chapter 16 Use of CNG for Urban Freight Transport: Comparisons Between France and Brazil 261

Leise Kelli DE O LIVEIRA and Diana D IZIAIN 16.1 Introduction 261

16.2 Brief literature review 263

16.4 Brazilian case 264

16.5 French case 265

16.6 Comparison of Brazilian and French experience 267

16.7 Conclusion 268

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Chapter 17 Using Cost–Benefit Analysis to Evaluate

City Logistics Initiatives: An Application to Freight

Consolidation in Small- and Mid-Sized Urban Areas 271

Johan H OLMGREN 17.1 Introduction 271

17.2 Characteristics of city logistics and some terminology 273

17.2.1 Efficiency in city logistics 274

17.2.2 Evaluation methods 275

17.3 Potential costs and benefits of implementing urban consolidation centers 279

17.4 Coordinated freight distribution in Linköping 280

17.5 Evaluating urban freight initiatives by cost–benefit analysis 281

17.6 The problem of cost allocation 286

17.7 Conclusion 286

Chapter 18 Assumptions of Social Cost–Benefit Analysis for Implementing Urban Freight Transport Measures 291

Izabela K OTOWSKA , Stanisław I WAN , Kinga K IJEWSKA and Mariusz J EDLIŃSKI 18.1 Introduction 291

18.2 The assumptions for utilization of SCBA in city logistics 295

18.2.1 External air pollution cost 296

18.2.2 Marginal climate change costs 299

18.2.3 Marginal accident costs 301

18.2.4 Congestion costs 302

18.2.5 Marginal external noise costs 304

18.2.6 Employment growth and development of local economy 305

18.2.7 Final calculations 308

Chapter 19 Barriers to the Adoption of an Urban Logistics Collaboration Process: A Case Study of the Saint-Etienne Urban Consolidation Centre 313

Kanyarat N IMTRAKOOL , Jesus G ONZALEZ -F ELIU and Claire C APO 19.1 Introduction 313

19.2 Background and theoretical framework 315

19.2.1 The stakeholders in an urban logistics collaboration project 315

19.2.2 Urban Consolidation Centre (UCC) as an organizational innovation 316

19.2.3 Barriers in urban logistics projects 318

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19.3 Research methodology 320

19.3.1 The research approach 320

19.3.2 Qualitative study: selection of respondents 320

19.3.3 Quantitative analysis: purpose and CBA methodology 321

19.4 Results 322

19.4.1 The UCC of Saint-Etienne: background and objectives 322

19.4.2 Operation aspects 323

19.4.3 The conditions of economic viability of Saint-Etienne’s UCC 324

19.4.4 Barriers identified by stakeholders 326

Chapter 20 Logistics Sprawl Assessment Applied to Locational Planning: A Case Study in Palmas (Brazil) 333

Lilian dos Santos Fontes Pereira B RACARENSE , Thiago Alvares A SSIS , Leise Kelli DE O LIVEIRA and Renata Lúcia Magalhães DE O LIVEIRA 20.1 Introduction 333

20.2 Logistics sprawl and the importance of logistics facilities’ location 334

20.4 Area of study 339

20.4.1 Logistics sprawl assessment and scenario comparison 342

20.5 Conclusion 347

Chapter 21 Are Cities’ Delivery Spaces in the Right Places? Mapping Truck Load/Unload Locations 351

Anne G OODCHILD , Barb I VANOV , Ed M C C ORMACK , Anne M OUDON , Jason S CULLY , José Machado L EON and Gabriela G IRON V ALDERRAMA 21.1 Introduction 351

21.2 Moving more goods, more quickly 352

21.3 Establishment of a well-defined partnership 353

21.4 The Final 50 Feet project 354

21.5 Getting granular 356

21.6 Mapping the city’s freight delivery infrastructure 358

21.6.1 Step 1: collect existent data 358

21.6.2 Step 2: develop survey to collect freight bay and loading dock data 358

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21.6.3 Preliminary site visits 359

21.6.4 Initial survey form and the pilot survey 360

21.6.5 Step 3: implement the survey 363

21.7 Research results 366

21.8 Conclusion 368

List of Authors 369

Index 375

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on the environment and safety However, new modeling, evaluation and planning techniques are required to conduct in-depth investigations before city logistics schemes can be effectively deployed

This book includes recent developments in the modeling, evaluation and planning of city logistics schemes Since city logistics schemes have already been implemented in several cities, a review of the performance of these schemes is presented and discussed The book also presents a description of emerging techniques for increasing practical applications of city logistics models and reducing social and environmental impacts of urban freight transport Several chapters describe the application of ICT (Information and Communication Technology) and ITS (Intelligent Transport Systems) which play a vital role in collecting data and providing a platform for managing urban freight transport New dimensions of freight transport platforms using the IoT (Internet of Things) or Physical Internet are also discussed A number of chapters in this book focus on public–private

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partnerships among stakeholders, which are important for promoting city logistics Economic analyses using cost–benefit analyses relating to urban distribution in an e-commerce environment are discussed Case studies that address frameworks for managing urban freight transport including legal, organizational and financial aspects are presented Decision support systems are also important tools for making appropriate decisions based on correct data and scientific analyses Chapters covering new areas of city logistics such as crowd logistics, zero emission urban delivery, co-modality and the use of electric vehicles and bicycles are included New algorithms and applications of models to practical problems using vehicle routing and scheduling, location routing and multi-agent models are highlighted

We believe that this book covers a wide range of important developments in city logistics throughout the world It will help researchers, students and administrators

to understand the current status of urban freight transport issues, models, evaluation methods and planning approaches We hope that the ideas and perspectives contained in this book will encourage researchers and practitioners to create more efficient and environmentally friendly logistics systems for sustainable cities

We would like to express our heartiest appreciation to all of the authors of the papers submitted to the conference for their contributions and to the members of organizing committee for their help in organizing the conference Special thanks go

to all of the reviewers of the papers submitted to the conference A total of 61 papers were accepted for publication after peer review to make up the chapters in the three volumes of this book

Professor Eiichi TANIGUCHIAssociate Professor Russell G THOMPSON

March 2018

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1

Urban Logistics Spaces: What Models, What Uses and What

Despite the failure of initial attempts and still uncertain economic profitability, UCCs are continuing to develop in France and elsewhere in Europe In this chapter, we show that there is

no single solution but rather a whole range of urban logistics spaces between which local authorities must decide on the basis of the objectives assigned to these facilities To do this, we propose the criteria to be taken into account and the institutional and regulatory measures that appear best adapted We analyze the examples which we consider the most innovative, efficient and in tune with the changes occurring in lifestyles

1.1 Introduction

The most widespread solutions for reducing the impact of goods delivery vehicles in cities (environmental, noise and safety) affect several domains The most common are the land available for logistics activities, the pooling consolidation of flows, the implementation of restrictive regulations, the use of less pollutant vehicles better adapted for urban use, road sharing through time and by type of use, and performing studies to obtain better knowledge of flows and to design tools to evaluate measures [OEC 03, BES 07]

Among these solutions, the Urban Logistics Space (ULS), “a facility intended to optimize the delivery of goods in cities, on the functional and environmental levels,

by setting up break-in-bulk points” [BOU 06], appears very interesting It can be

broken down into six categories: the Urban Logistics Zone (ULZ), the Urban

Chapter written by Danièle P ATIER and Florence T OILIER

City Logistics 2: Modeling and Planning Initiatives, First Edition.

Edited by Eiichi Taniguchi and Russell G Thompson.

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Distribution Center (UDC), the Vehicle Reception Point (VRP), the Goods Reception Point (GRP), the Urban Logistics Box (ULB) and the “mobile” Urban Logistics Space (mULS) Each of these types of facility mirrors issues based on land (surface areas dedicated to logistics) and constitutes a place for pooling (equipment, m² and transport capacities) Some ULSs allow for better distribution of flows over the day by dissociating the delivery by the transporter from the collection by the client, and privilege the use of “clean” vehicles for last-mile deliveries ULSs thus allow optimizing urban goods deliveries and pickups through better filling of vehicles, more efficient round organization, fewer conflicts linked to infrastructure use regarding goods vehicle traffic and parking

Thus, it is clear why urban logistics spaces have given rise to a multitude of studies and experiments, especially in the form taken by the “urban distribution center (UDC)” In order to avoid any misunderstanding, we underline here that according to the typology formulated by Boudouin, these UDCs also encompass

“urban consolidation centers (UCC)” The aim of both the UDC and the UCC is to consolidate flows destined for the city In the UDC, this is done by pooling several actors, often with the involvement of the public authorities In the case of UCCs, they are specific to an economic sector or to a zone of the city Despite the large number of experiments, few have latched on to a working economic model, as most have been abandoned or subsist only thanks to public subsidies Nonetheless, these failures do not appear to discourage initiatives and ULS projects continue to emerge The objective of this paper is to classify the different types of ULS and, for each of the six categories identified, specify their scope of application, the elements regarding implementation and/or operating costs, and detail the appropriate accompanying measures needed to favor their success Examples of successes and failures are presented to highlight the key factors underlying the former and the reasons for the latter

1.2 Literature review

The literature on ULSs can be divided into two categories The most widely known is naturally that which focuses on the experiments carried out It would be futile to try to provide a full panorama, thus emphasis will be placed on syntheses performed in the framework of projects aimed at proposing recommendations regarding good practice The other category concerns theoretical documents, presenting models of logistics centers [BRO 05]

Between these two focal points, the French approach of categorizing ULSs, performed in the framework of the National Urban Goods Program (Ministry of Transport and the Agency for the Environment), is particularly singular Indeed, it is both a conceptual and pragmatic perception that identifies models of facilities while

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providing an approach that uses a number of indicators to allow local actors to select those best adapted to the objectives desired In addition, this classification of ULSs

is based on taking into account the spatial dimension of the facility By not setting a threshold on the surface area, the area of impact or the volume of goods handled, or applying rules regarding the institutional structure of these spaces, it is possible to group a whole array of facilities under the single denomination of ULS along with their respective scopes of application and between which urban actors can arbitrate

to build their logistic framework We obtain a typology of ULSs in five categories, now increased to six to integrate mobile ULSs [BOU 06, BOU 17], as a function of the objectives desired, the modifications introduced in the supply chain, the level of public involvement required to favor their implementation and their range of action

Figure 1.1 The typology of ULSs [BOU 06] For a color

version of this figure, see www.iste.co.uk/taniguchi/cities2.zip

The literature has mainly focused on the concepts of UDC and UCC among the types of logistics spaces in this inventory The generic term of ULS has essentially remained specific to France apart from a few exceptions (e.g [DEO 14]) As for other variations of the ULS, concepts of freight villages have been observed in different countries, although they do not necessarily cover an essentially urban dimension For the most part, the latter signifies areas enabling the intermodal transfer of goods at the national and international levels However, the term “vehicle reception point” is used in several articles such as [VAN 14, BRI 12] Likewise for the concept of “goods reception point” [JAN 13]

In Europe, the first experiments conducted to set up ULSs emerged in the United Kingdom in the 1970s They involved the construction of Urban Consolidation Centers (UCC) by transporters, since the concept of ULS was deemed too expensive and likely to increase the volume of traffic linked to the use of large fleets of small vehicles to make last-mile deliveries [OEC 03] Elsewhere in Europe, projects in this

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area were mainly carried out starting from the second half of the 1990s, mainly in the form of UDCs About 150 were initiated, although few are still operating [SUG 11] Mention can be made of the city of Padua whose Cityporto concept was adopted by other Italian cities: Modena, 2007, Como, 2009, Aosta, 2011 and Brescia, 2012 [LEO 15] The United Kingdom, a pioneer regarding UCCs, also focused on their most efficient models: Heathrow, Bristol and London

In this brief panorama, France was no exception to the ebullience stimulated by the concept of UDC and more generally ULS Since the 1990s, 44 ULSs (excluding Goods Reception Points) have been identified However, the evaluation of these realizations is harsh: seven projects have been abandoned and 10 have closed Only

17 are still in service Nonetheless, the concept continues to attract attention since eight are currently in the project phase [SER 15]

pertinence in order to finally choose the suitable site

According to the size of the city, the needs identified and the objectives pursued, the installation may require integration in a logistics master plan and a full overhaul

of the regulations relating to transport and town planning Marked differences can also exist regarding the size of the tools considered, the financial implications of the actors involved and the regulatory measures taken to facilitate their operation

1.3.1 The Urban Logistics Zone (ULZ) or freight village

1.3.1.1 The concept

The freight village ensures the transit of goods between the city and interurban areas, and it provides the interface between modes of transport: railway/river/ maritime/road According to case they can be: enterprise zones comprising buildings

or land made available for this purpose, agri-food markets, often freight terminals on railway or river port sites, that provide interfaces between urban and interurban areas,

or logistic hotels, buildings with several floors accommodating simultaneously to reduce land costs, production and service activities and sometimes dwellings

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The localization must be chosen as close as possible to the barycenter of activities generating flows of deliveries and pickups intended for dense areas

The role of the local authority is to preserve zones capable of accommodating these activities, and to ensure that the price asked is not dissuasive It may pay for or subsidize equipping the land, and maintaining the quality of the site and the safety of access to it

1.3.1.2 The challenge

Our analysis focuses on the case of agri-food markets which, year after year, are excluded from the borders of cities and relocated several tens of kilometers away on sites most often without rail or river links This displacement of logistical activities

is the result of land pressure, which incites to free the space for large urban development projects This situation prevents the consolidation of upstream flows and increases the length of downstream trips made by all the clients that come daily

to obtain their supplies from the agri-food market

1.3.1.3 Case study: Montpellier agri-food market

Contrary to what has occurred in several French cities, Montpellier, a city in the south of France, decided to keep its agri-food market in the city by integrating it in

an urban logistics master plan implemented at the scale of the greater city area The agri-food market is located on a 10 ha site and accommodates 40,000 m² of buildings, 220 companies, offset storage and producers It delivers goods to the entire region The City of Montpellier wanted to keep this facility as it is an instrument for developing the municipal area and an actor in local urban logistics

It reduces urban sprawl and land consumption, and it is a key element in local development Its inclusion in the planning documents (master plan and Urban Mobility Plan) gave it a new status and new functions leading to the creation of new jobs:

– UDC (pooling of distribution for certain sectors) and the use of clean vehicles Offset storage warehouses for retailers and SMEs in the city center;

– rental, maintenance and charging of clean utility vehicles for last-mile deliveries;

– service functions linked to urban distribution: training, business “nursery” premises, etc Installation of selective sorting: recycling or urban waste plus waste removal;

– development of agro-food stuff processing activities;

– supply of services for wholesalers, transporters and express delivery services

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To strengthen the role of this agri-food market, the city has also implemented regulations to prohibit the most polluting transport vehicles from delivering to the city center

NOTE.– The keys to success:

The influence of the local authority in ensuring the success of the project is obvious and goes beyond expectations: synergy has been generated and there is strong demand from innovative companies to set up on the site

1.3.2 The Urban Distribution Center (UDC)

The transit of goods via a grouping platform before delivery or after picking up

is attractive and has long been considered as a means of rationalizing the urban supply chain However, the additional cost linked to transit via this facility is often the cause for the failures observed, as the UDC is unable to generate a sufficiently large clientele to obtain the financial resources required for its survival This is why, prior to setting up a UDC, it is vital to perform a diagnostic to evaluate the volumes that can be generated (not all types of products are eligible for transit via a UDC), the place of installation best adapted and specific local characteristics

The objectives are variable:

– preservation of historic centers: clean vehicles and regulations aimed at encouraging or imposing transit via a UDC (Vicenza);

– dedicated to a sector of activity, such as the UDCs of Heathrow (UK) and Hammarby (Sweden);

– dedicated to pooling supplies to shopping centers (e.g UDC of Bristol)

UDCs are adapted to areas for which supplying services is difficult (generally city centers, circumscribed according to the density of shops and the level of attendance) They are not intended for full batches, already bulked shipments, or certain categories of product (e.g perishables, especially luxury products) However, some UDCs attempt to widen the list of receivable flows to improve their profitability Thus, the UDC of Padua has experimented since 2016 with the delivery

of fresh products and express deliveries [DOT 16], and the UDC of Cordeliers in Lyon receives both luxury products and perishable fresh foods

They must be installed close to the city center, in accessible places, and with low rental costs, e.g in multi-storey car parks

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Starting up a pooled UDC in a city of more than 100,000 inhabitants generally requires action from the public authorities, since the service providers, which compete with each other, rarely take the initiative to join together and exploit such a facility This involvement by the public authority is all the more logical, as setting

up a UDC generally requires restrictive measures aimed at encouraging its use

1.3.2.2 Case study 1: UDC of Cordeliers (Lyon)

Covering a surface area of 300 m², this UDC is part of a space covering 1,200 m² dedicated to services linked to mobility (meeting place for car sharers and a station

of self-service vehicles) on the ground floor of a public car park belonging to the City of Lyon and managed by Lyon Parc Auto (LPA) It is located on the strip of land between the two rivers running through Lyon and forming the city center, a district with a dense shopping area where space is rare and expensive

Taking advantage of the reorganization of the car park in 2011, the city of Lyon launched the UDC project: LPA fitted the UDC and equipped it with a charging station for electric vehicles and then offered it for hire at a “logistic price” “Deret Transporteur”, specialized in transporting luxury goods and which had been using electric trucks to serve Lyon city center since 2009, won the call for offers aimed at finding a tenant for the UDC It set up in the premises to deliver to Lyon and the shopping centers of the greater Lyon area However, its activity only uses the surface area of the UDC between 3 a.m and 1 p.m., five to six days a week, hence the idea of pooling with Ooshop, a logistics provider for e-commerce in food goods LPA reorganized the space to allow the storage of refrigerated and frozen products, and Ooshop now uses the UDC for home deliveries in the city center between 8 a.m and 10 p.m

At the request of LPA the two tenants “pool upstream flows”, a challenge for products with different added values, packaging and logistical organization On leaving their platform located 23 km from Lyon, the Deret vehicles serve the Ooshop platform to retrieve products (excluding fresh and frozen products)

The result of this pooling is that the UDC is used from Monday to Saturday, its organization is optimized and its profitability is higher In addition, the use of electric vehicles has led to Deret saving 14 tons of CO2/year, while the negative externalities and local pollutants have been divided by more than 50 As for Ooshop,

it has saved 20% on the time it takes to serve its clients from the city center due to easier parking for electric vehicles (which are smaller than traditional ones) The saving on fuel is 9% These savings must be compared to the cost of bulk breaking

of 23% and the fixed cost of occupying the UDC Thus, political will is necessary to allow the occupation of the site at low cost

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The UDC of Cordeliers shows an example of a “risky” experiment: pooling very different sectors regarding both their organizations and their respective clienteles The success is due to the following combination of factors:

– a PPP with strong commitment from the public authorities (new regulations on the integration of logistic activities in car parks, restrictive measures relating to the circulation of pollutant vehicles) and a long-term strategy to duplicate this type of UDC to other sites;

– a supple and adjustable project in search of permanent improvement;

– good knowledge of urban logistics by the actors involved;

– a genuine business plan;

– an in-depth diagnostic upstream, with real-time monitoring; and

– car park management by a semi-public company that allows for action on costs that would be impossible to achieve with a private company

1.3.2.3 Case study 2: CityLogistics (Lyon)

The originality of the CityLogistics UDC installed in the suburbs of Lyon (France) stems from two reasons: it was conceived as a network of ULSs (one UDC and several GRP) which mesh the region, and it is financed wholly by private funds

It was in operation for nearly two years, but had to close down at the end of 2016, due to poor profitability and a stock burglary that had driven clients away Despite the fact that it failed, this model is interesting in several ways

This UDC, very close to the urban ring road and the highways of Lyon, started operating at the beginning of 2015 Its objective was to serve two Goods Reception Points (one located in the historic center of Lyon and the other in the business district) intended to distribute and temporarily store parcels (for up to a week) The goods pooled in the UDC were then loaded in “clean” trucks (bioNGVs) to be delivered to customers, either directly, or via one of the GRP The project also planned to make deliveries to local ULBs

The fleet of vehicles was composed of units of different sizes, making it possible

to choose the vehicle best adapted to the quantities of goods to be transported and the regulations allowing access to the area to be delivered The CityLogistics model aimed to incorporate a river distribution service to serve districts located between the rivers Rhône and Saône and thus eliminate heavy vehicles from the city (optimization of urban deliveries in an approach to promote sustainable development) There was also a plan to set up a reverse logistics service for returned goods and waste collection aimed at the customers of the UDC

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The service which started with a clientele of three delivery services (50 rounds a week) quickly grew in size: 10 large operators and smaller transporters (a hundred rounds a week) The clientele was satisfied with the service provided (reliable information on the position of their deliveries, space saved on their bays, return management, etc.)

Despite its good performance, the company went bankrupt since the CityLogistics project had been conceived with the assumption that a restricted traffic area would be applied to the city center, which would have attracted to the UDC a large clientele of transporters and shippers unable to convert their fleets in order to

be entitled to enter the city The implementation of this restricted access area never took place and the company’s financial burdens (the withdrawal of a partner) led it

to raise its prices which drove away its clientele

NOTE.– The reasons for failure:

– a partner which withdrew its funds when the company had not yet settled for a business model;

– bad anticipation of regulation measures’ timing;

– the service was too new to cultivate real customer loyalty and the burglary scared potential users of the service;

– a clientele highly sensitive to prices; and

– the additional cost linked to bulk breaking overshadowed the system’s ecological performance

1.3.3 Vehicle Reception Points (VRP)

to travel the final distance In certain cases, the services of an assistant are used The latter is responsible for helping the deliverer over the last few meters or for watching over the vehicles This space can be used by residents for parking outside the times specified for delivery vehicles;

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– the road time-sharing space is a new type of VRP that facilitates a better organization of roads with large numbers of shops and where double parking is frequent due to the lack of available delivery spaces According to the time of day, the road is dedicated either to the circulation of all vehicles or to the parking of delivery vehicles, whatever their size or mode of management, for a period generally limited to 30 minutes No handling equipment or assistant is available Barcelona was the first European city to implement this concept and an increasing number of cities are implementing it in view of ensuring that the road is shared between all its users without the need to make major investments

Vehicle reception points are subject to time-sharing occupy a whole segment of road and can receive several types of trucks simultaneously Suitable dimensions for

a Proximity Logistics Space depend on the number of operations generated by the surrounding businesses and the configuration of the city However, it is necessary to provide for angle parking (simplified maneuvers) for five to six utility vehicles from

7 to 10 meters long It is also necessary to provide premises (or a vehicle) intended

to store handling equipment and receive the delivery assistant

The role of the local authority consists of offering a space for accommodating these VRP and installing clear signaling indicating who can use the space and under what conditions It must also change the regulations accordingly and can grant advantages to the users of the equipment The financial involvement in this type of facility for the local authority is therefore low (simple road surface marking and upright signs) except in the case of a Proximity Logistics Space for which a delivery assistant has been hired and for which technical premises are available This may require a significant cost, although the gains expected in terms of improved service are considerable

1.3.3.2 Case study: multi-use road (Barcelona)

To reduce the effects of higher traffic levels in the commercial center of Barcelona, the municipality introduced a new mode of road management Five multifunctional lanes were created and signaled with variable message signs These lanes are used from 8 a.m to 10 a.m and 5 p.m to 9 p.m for general traffic and buses, from 10 a.m to 5 p.m for deliveries and from 9 p.m to 8 a.m for residential parking

This multi-function lane system is intended to reduce illegal and double parking, reduce the time spent searching for a parking space and optimize road space use It has been designed by associating all the actors in urban goods delivery

(municipality, transport operators, town planners, retailers and their representatives)

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Quantification of goods movements performed by the City of Barcelona revealed the need for a large number of delivery areas The multi-function lane provides a solution to the problem of parking, but it requires major investment: €0.5 million per lane to which must be added the cost of control by the police

Variable Message Signs provide information to users regarding their rights of passage in real time (driving, parking and deliveries/pickups) When the lane is dedicated to parking or deliveries/pickups, a message signals which users are concerned

Stronger police control has been introduced to ensure that the residents who have parked their vehicles for the night have removed them in the morning so as not to impede the road traffic (especially bus traffic)

The implementation of these lanes has proven efficient for improving traffic Travel time has been cut by 12 to 15% and the system has been deployed progressively for new lanes

A street during a loading time window Regulation

Figure 1.2 Barcelona multi-use roads

– the role of the municipality was essential (studies, investment, regulation and control);

– the police unit assigned to controlling adherence to the lane-sharing rules was strengthened; and

– a sufficiently large road network allows the introduction of this system without disturbing the rest of the traffic

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1.3.4 Goods Reception Points (GRP)

A GRP is an establishment used as a local relay The transporter no longer goes

to the client (or the client to the supplier) but to this establishment (with long opening times) where the packages are left during its rounds

Besides relay points for e-commerce, a GRP can also be an establishment that offers a parcel reception service to its employees This service can also include concierge services that provide a wide array of conveniences (for example, dropping off laundry bags) Finally, a GRP also includes drive-through pickup services where clients recover their products without entering the store

This facility avoids the problem of a failed delivery made to an absent client It can also be used as an offset storage point to eliminate storage space in stores and free them for selling goods or providing rest spaces

Access to a GRP must be easy for both transporters and clients In particular, it must be part of their clientele’s program of activities One of the keys for their success is that they must form a network in the region

1.3.4.2 Case study: Oxipio, a deported reserve

Given that approximately 30% of the surface of a store and of the working time

of the staff is used for purposes of storage and stock management, in 2011 the company, Oxipio, developed a new concept of distant storage

This service aims at allowing the storekeepers to enlarge their sales area and to re-assign their employees to sales and advice tasks thanks to the use of a storage platform located near the city center Two complementary services are provided by Oxipio:

– A service of deported reserves dedicated to the city center storekeepers:

- stocks are managed by the storekeepers through an Internet service (the Cloud) which allows them to place orders with suppliers, to plan returns, to ask for a delivery in the store or for the customer;

- a 700 m² storage capacity close to the city center (less than 20-minutes bike ride from the trading center);

- employees dedicated to the customer storekeepers who receive, check and store the goods, then prepare the orders and deliver them on request; and

- a tailor-made approach for the customer storekeepers which also includes advice in organizational optimization

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– good analysis of shopkeepers needs in city centers;

– investment of the “Caisse des Dépôts”, motivated by the “smart urban logistics solutions” dimension of the project, contributing to faster energetic and digital transitions; and

– support of local authorities and a public investor which saw in this concept a tool adapted for a sustainable city in economic, social and environmental terms

1.3.5 The Urban Logistics Box (ULB)

These “boxes” can be cubicles or containers that have been fitted and brought to

a site where parcels can be deposited and then recovered after entering a previously assigned code (Homeport) or they can take the form of automatic systems that

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manage communication and item recovery directly (e-box and cityssimo) The ULB allows dissociating the delivery and the reception by the final recipient by doing away with the time constraints specific to Goods Reception Points They are located

in places of transit (railway stations, subway stations, shopping centers and underground car parks) to capture users within a range of 400 m (up to 20,000 people)

1.3.5.2 Case study: electronic concierge service of Sceaux

(Sceaux-Shopping.com)

This is a new ULB concept, installed in Sceaux in the Paris suburbs, in 2013 The aim is to bolster local retailers threatened with disappearance due to the development of e-commerce and thus preserve the town’s economic dynamism Another aim is to help local retailers to changeover to digital technology

This project is being carried out by the town of Sceaux, the representatives of the retailers and artisans (Chamber of Commerce and Industry and a local association) with recourse to a service provider to transport parcels, namely the Post Office during the initial phase, and now BlueDistrib

The town ensures the promotion of the project (preliminary surveys, communication and rental of deposit boxes) Representatives of the retailers and artisans operate the system (development and maintenance of the site, management

of receipts and redistribution to the retailers) The service provider delivers to a deposit point installed at the entrance of the train station used by 600 commuters a day The ULB now has 16 lockers All types of products can be deposited, including packaged fresh products in refrigerated containers

The 270 retailers, artisans and services of Sceaux can join Sceaux-Shopping by signing an e-commerce quality and sustainable development charter Initially free, the association now invoices the retailers and artisans €100 a year to cover the management costs of the site and receipt collection, and the assistance provided to them (a part-time post)

The current service provider, BlueDistrib, is a subsidiary of the Bolloré Group which also manages the self-service car-share system, Autolib, and the self-service commercial vehicle system, Utilib The structure housing the deposit point is also equipped with Autolib reservation terminals The retailer can choose between depositing the parcel in the deposit point or offering to deliver to the client’s home,

a service carried out by the personnel responsible for supplying the stations with self-service commercial vehicles

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The deposit points made available to Sceaux-Shopping by BlueDistrib are pooled with the other clients of the Bolloré Group (the web merchant Cdiscount) When a parcel is deposited in the deposit point, a text message is sent to the client with a code that allows them to withdraw the parcel within a period of 3 days

Although it took a long time to get the project going and ensure that the retailers became sufficiently competent (2 years), it has met with unarguable success (an increase in the number of members, loyal clients, the unexpected result of orders to

be dispatched abroad) The withdrawal of the original service provider (La Poste) and its replacement by BlueDistrib led to a change in the deposit system and organization, making it necessary to review the PPP

The Sceaux-Shopping experiment satisfies both the economic profitability and the public concern:

– maintaining the number of shops in the town and the attractiveness of the latter confronted by competition from Paris and e-commerce was a genuine collective challenge;

– the Logistic box fulfills a threefold function: territorial, economic and social development (shops are encouraged to stay and thus also the population and jobs) It becomes a kind of public service;

– the actors no longer measure its profitability only in financial terms;

– concretizing this concept revealed a strong political commitment which, given the issues, requires other measures (not only financial, but also training, information) to ensure it lasts through time; and

– the ULB manager is responsible for ensuring its financial profitability That is why pooling a commercial mobility service (Utilib) with that of urban logistics appears to be the key for success It is also an example of optimizing electric vehicles for hire by using them for last-mile deliveries

1.3.6 Mobile Urban Logistics Spaces (mULS)

The cost of land in dense urban areas often limits the potential for installing ULSs, which is why projects for mobile logistics centers have emerged

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The principle is to prepare rounds in the vehicle that transports goods and not in

a costly logistics center The vehicle can be a wagon (CarGoTram) or boat AFE) that becomes a mobile ULS carrying transport resources that will be used for last-mile deliveries

(VCV-This organization requires bulking the flows upstream for pooled collection by a single operator, organizing rounds during the circuit and carrying out rounds from each point reached The gains expected include time-saving and environmental effects linked to both logistics reorganization and the use of sustainable modes of goods transport

1.3.6.2 Case study: “Vert Chez Vous au Fil de l’Eau” (VCV-AFE)

In 2011, Vert Chez Vous proposed an innovative concept: urban deliveries

by barge intended for local shops in the districts of Paris through which the Seine and canals flow The goods are loaded at the same time as electric powered three-wheeled bikes used for last-mile deliveries and deliverers that prepare their rounds during the journey from one port to another Thus, the barge is a floating logistics space that replaces the traditional urban logistics space, which is so difficult

to find at a logistics price in dense urban areas In addition to this financial aspect, the ambitious objectives were:

– zero CO2 emissions for the distribution of goods weighing less than 30 kg (parcel delivery) in the city, transferred from road to river and electric vehicles for last-mile deliveries;

– obtain productivity at least equivalent to that obtained by a classical organization with delivery by road transport from point of origin to destination while remaining economically competitive, so the project can be deployed in other regions; and

– set up a frequency (passage of shuttles at fixed times for delivering and picking

up goods in the city based on the model of passenger transport) and measure the impact

The project has mobilized a large number of partners in different areas of competence (including prototype barges, on-board technologies, and materials and data transmission)

Distribution is ensured through three links and three different modes of transport: – Pre-carriage: Vert Chez Vous collects the packages from different transporters using electric vehicles and consolidates them on its platform The packages are loaded onto electric trucks with volumes of 20 m3 and unloaded onto the barge moored at Issy-les-Moulineaux

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– The approach and order preparation: the barge sails down the Seine and reaches the first port During the journey, the deliverers organize their rounds and place the packages in the containers of electric bicycles

– Last-mile deliveries: on reaching each port, the loaded three-wheeled vehicles are transferred to the wharf at the same time as the deliverers The round starts and ends at the following port after having served one or two districts

NOTE.– Interest in the trial:

The experiment lasted one year and broke down prejudices regarding river transport: a mode dedicated to heavy items, bulk products, and low added value, over-long distances from one point to another In this case, VCV-AFE targeted parcel delivery providers that transport products with high added value intended for shops in the city center, packaged in parcels to be distributed to a large number of recipients The project proved the feasibility of preparing rounds on a waterway The clients appreciated the frequency of the shuttles

The environmental balance when comparing organizations before and after the experiment [LET 15] revealed that road occupancy time was only a quarter of that of traditional delivery services: 84 hours PCU versus 20 hours PCU The distances traveled were significantly lower (from 682 to 194 km traveled by vans) The transferred freight amounted to 3–4 tons a day, corresponding to 500 parcels and

390 recipients delivered, which is lower than what is usually loaded in a barge because a large part of the surface is dedicated to the preparation of the tours and to the electric tricycles on the boat Although the initial project included the fabrication

of a hybrid prototype able to load up to 1,500 parcels (8–12 tons of goods), the experiment was performed with an old, traditional barge The energy balance was bad: strong fuel consumption, due to the use of this standard barge Thus, the consumption of diesel fuel by the barge was higher than that consumed by van transport and the project was abandoned Nevertheless, even with the hybrid prototype, the lack of charging points on the quays implies the continuous functioning of the diesel engine for equipment and for life on board, which led to a negative energy balance

This trial brought to light the conditions for ensuring a greater efficiency and profitability Extending the experiment to include the hybrid barge and investments

to equip the loading/unloading points with charging stations would require the undertaking of both public authorities and clients ready to commit themselves over a sufficiently long period to amortize such an investment

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Figure 1.3 Operation pattern

1.4 Recommendations

Given the wide range of models falling within its scope, the ULS must be designed according to the urban context in which it must function, thereby requiring

a global analysis of:

– the sector: the origin of the products, logistic organizations, the actors affected, the relevant perimeter for the final delivery service;

– its efficiency in comparison to existing logistics organizations (depending on the localization of the platforms situated upstream and the costs and volumes affected);

– the capacity to take into account current and planned modifications of the urban fabric in order to prepare for future flows; and

– the commitment to satisfy objectives for reducing environmental nuisances Thus, there is no “turnkey” model for a ULS The choice of the best adapted type of facility relies on the diagnostic made of the existing situation and on proposing the principles of actions linked to the objectives targeted by public and/or private decision-makers

At this stage, it is also advisable to envisage procedures for monitoring and evaluating ULSs The indicators chosen could include those used to establish the

diagnostic to allow ex-ante/ex-post comparisons Regular monitoring of these

indicators will make it possible, if necessary, to adjust the principles underlying the ULS so that it satisfies the objective set more efficiently

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It should be noted that these indicators include taking into account the ULS’s indirect advantages: improved traffic conditions, reduction of nuisances and better image of the city [PAT 10], all of which are elements difficult to monetize, whereas the additional cost linked to bulk breaking can be identified immediately by the ULS’s users (€1 per parcel and from €6 to €8 for a pallet) This leads to the question

of distributing the costs linked to transiting via a ULS As a whole, companies are against making any financial contribution: retailers and other customers can see no reason to pay insofar as their delivery conditions are satisfactory – even if they are aware of the associated problems Service providers emphasize the productivity of their organization to minimize the advantage gained by concentrating deliveries into

a single point and underlining the loss of direct commercial links with their clients Facilitating the success of a ULS therefore requires the provision of services paid for by its clients (offset storage, the collection and recycling of packaging are often proposed) and privileging flows that transit via this facility (in terms of traffic times, use of lanes reserved for public transport, etc.) This may also require tougher conditions for gaining access to the zone concerned by the ULS in such a way as to make bulk breaking more financially advantageous than direct delivery The role of the local authority is therefore decisive for orienting behaviors towards more virtuous practices Whatever the case, these measures must be chosen with perspicacity so as:

– not to penalize goods for which no advantage is gained by transit via a ULS (drinks, bulk deliveries to minimarkets, supermarkets, etc.);

– not to add to service costs in order to avoid penalizing shops in the city center vis-à-vis shops on the outskirts; and

– not to impose counterproductive practices that could cause conflicts between actors

1.5 Conclusion

The response to the challenges of sustainable urban logistics requires the development of practices based on sharing: sharing spaces, premises, uses, infrastructures, transport capacities, etc Urban Logistics Spaces provide interesting solutions to this end

The role of the local authority is vital for encouraging pooling First, from the standpoint of exemplarity: it is advisable to subject flows linked to public services to the same rules as those applicable to the flows of the private sector Second, from the standpoint of stability: the policies implemented must be upheld in the long term

to provide private actors with good visibility so they can invest without fear Finally, from the standpoint of stimulus: public action has to facilitate private initiatives, by

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bringing together the different actors involved, by preserving land for logistics and

by introducing adapted regulations

This role of the local authority can in certain cases include reimbursable subsidies However, the latter should be limited in time Experience has shown that private initiatives are the most efficient and, therefore, should be promoted

The term “Urban Logistics Space” covers a wide variety of facilities, each of which has its use and scope of application in order to address pollution and congestion caused by urban goods movements The UDC is not the only model, as it has been attempted in many European countries, with no success The ULS-based approach widens the scope, and it is up to each city to select the best adapted to its context and the objectives pursued As case studies have shown, each ULS corresponds to a specific need, is flexible, and is scalable In a given territory, it is likely that this model will be an assembly of several types of ULS, organized in network to optimize urban goods deliveries by taking into account the strategies specific to the different districts of the city (see CityLogistics, MODUM project)

1.6 Bibliography

[BES 07] B ESTUFS , Good Practice Guide on Urban Freight Transport, Bestufs, 2007

[BOU 06] B OUDOUIN D., Urban Logistics Spaces, Methodological Guide, La Documentation

Française, Paris, 2006

[BOU 17] B OUDOUIN D., P ATIER D., T OILIER F et al., Urban Logistics Spaces,

Methodological Guide, La Documentation Française, Paris, 2017

[BRI 12] B RISTOW A.L., Z ANNI A.M., “An economic perspective: the cost effectiveness of carbon reduction measures in transport”, in R YLEY T., C HAPMAN L.(eds), Transport and

climate change, 2012

[BRO 05] B ROWNE M., S WEET M., W OODBURN A et al., Urban Freight Consolidation

Centres – Final Report Project Report, Transport Studies Group, University of Westminster, 2005

[DEO 14] D E O LIVEIRA L.K., P INTO E., D E O LIVEIRA B.R et al., “Simulation of an Urban Logistic Space for the Distribution of Goods in Belo Horizonte, Brazil”, Procedia –

Social and Behavioral Sciences, vol 125, pp 496–505, 2014

[DOT 16] D OTTER F., Z UNDER A (eds), SMARTSET – Experiences of a European project for cleaner, safer and more efficient freight transport, Report, 2016

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[JAN 13] J ANJEVIC M., K AMINSKY P., B ALLÉ N DIAYE A., “Downscaling the consolidation of

goods – state of the art and transferability of micro-consolidation initiatives”, European

Transport / Trasporti Europei, Issue 54, no 4, 2013

[LEO 15] L EONARDI J., D ABLANC L., VAN E GMOND P et al., “Feasibility Study of a Network

of Consolidation Centres in Luxembourg”, International City Logistics Conference,

Tenerife, Spain, 17–19 June 2015

[LET 15] LET, Evaluation de l’impact socio-économique de l’expérimentation VCV-AFE, Study, 2015

[OEC 03]OECD, Delivering the Goods: 21 st Century Challenges to Urban Goods Transport,

OECD, Paris, 2003

[PAT 10] P ATIER D., B ROWNE M., “A methodology for the evaluation of urban logistics

innovations”, Procedia – Social and Behavioral Science, vol 2, no 3, pp 6229–6241,

[VAN 14] V AN D UIN J.H.R., M UÑUZURI J., “Urban Distribution Centers”, in T ANIGUCHI E.,

T HOMPSON R.G (eds), City Logistics Mapping the Future, CRC Press, Boca Raton, 2014

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2

Dynamic Management of Urban Last-Mile Deliveries

The advent of information and communication technologies (ICT) is bringing new dimensions (challenges and opportunities) to city logistics policies and practices Smartphones represent the integration of several advanced technologies and are becoming a very powerful tool, which

is already available, but has not yet been sufficiently exploited for city logistics The aim of this article is to present the idea of an innovative (smartphone-based) information system for efficient management of loading bays for urban last-mile deliveries The architecture and functionality of the system and an algorithm for dynamic management of urban freight deliveries are presented We conclude the article with the implementation of the model to a real case of a historical city center, and indicate some average potential savings in travel time and distances

of delivery vehicles

2.1 Introduction

Increasing demand from customers and constant growth of urban areas are changing conditions for urban freight deliveries Consequently, freight vehicles are facing new and dynamically changing conditions related to the accessibility of customers in city centers [BJE 14] Problems are especially evident in cities dominated by their historical centers, which are characterized by narrow streets and

a lack of space specifically devoted to logistic activities [DAB 07]

Recent empirical studies [SCH 06, FIG 10, DAB 11] estimated that urban freight vehicles account for 6 to 18% of the total number of vehicles in cities, 10 to 15%

of vehicle kilometers, and about 20% of energy use and CO2 emissions Freight vehicles contribute significantly to urban traffic congestion They cause a reduction

Chapter written by Tomislav L ETNIK , Matej M ENCINGER and Stane B OZICNIK

City Logistics 2: Modeling and Planning Initiatives, First Edition.

Edited by Eiichi Taniguchi and Russell G Thompson.

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of available road capacity and contribute to urban traffic pollution [RUS 12] In Europe, commercial vehicle movements are deemed to be the cause of over 20% of urban traffic congestion [TOZ 13] In addition, more than 20% of distribution vehicles drive empty and the average load factor is only about 30–40 % [DOM 12, BOZ 14]

To solve these problems, many policy measures have been suggested, studied

and implemented Stathopoulos et al [STA 12] classified the policies, proposed to

mitigate urban freight transport problems, into six broad groups: market-based measures, regulatory measures, land-use planning, infrastructural measures,

management measures and measures related to new technologies Feng Shi et al

[SHI 14] provided another classification of countermeasures, implemented to cope with serious recurrent traffic congestion problems, including congestion charges, parking charges, public transit priority systems, vehicle quota systems and travel credit systems A comprehensive overview of efficient and sustainable strategies for

last-mile deliveries have also been given by Browne et al [BRO 07] and Giuliano

et al [GIU 13] The following strategies have been identified: labeling or other

certification schemes, traffic and parking regulations, land-use planning and zoning, city logistics and consolidation schemes, off-hours deliveries and intelligent transport systems Urban freight policy issues have also been addressed by Nuzzolo

and Comi [NUZ 14], Benjelloun et al [BEN 10] and Browne et al [BRO 12]

Among all the measures mentioned, city access restrictions are predominantly used to limit traffic congestion in city centers and part or the entire city center is often categorized as a pedestrian zone Although very often implemented, this measure represents one of the most controversial tools The desirable effect of achieving a more pedestrian-friendly city is opposed to the danger of diminishing the accessibility of persons and goods to the city center, with its subsequent degradation [MUÑ 05] In practice, we often face the problem of rigid and inflexible traffic control schemes implemented in the (old) city centers of European cities

Following the suggestion of Cherrett et al [CHE 12], load consolidation should

be encouraged to bring in goods over the last mile in shared vehicles Where this is not possible, loading bay monitoring and control, and preferred lorry routes (route optimization) can help manage the movement of vehicles in and out of dense urban areas in the most sustainable way This chapter therefore specifically addresses the possibilities of better utilization of delivery vehicles and logistics infrastructure in urban environments and provides an overview of existing attempts for better management and reservation of loading bays

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2.2 Review of urban freight loading bay problems and solutions

Loading bays are defined as areas within the urban environment where the delivery vehicle can stop to perform freight loading and/or unloading operations, without disrupting traffic flows [ALH 14a] Urban areas are very often confronted with scattered loading bays, leading to many urban freight transport problems Loading bays are often occupied, sometimes by other delivery vehicles, but in most cases illegally from individual users [BRO 12, MUÑ 17] Delivery vehicles finding loading bays occupied are forced to double park (in European cities, we note

70 to 80% of double-parked deliveries) or obliged to keep circulating around the city

to find the next best free loading bay [ALH 14b, PAT 14, GAR 16] This is time-consuming and contributes significantly to the reduction of available road capacity and urban traffic congestion [SIL 15, RUS 12]

Initiatives referring to loading and unloading operations are generally categorized as infrastructure (physical) measures [JAN 13] Many authors on the other side do agree that soft measures like management, reservation and enforcement of loading bays play an even more important role [ALH 14a, GIU 13]

To achieve efficient urban loading/unloading operation, we, therefore, first need to provide an adequate number of loading bays, properly located and sized to the expected freight vehicle’s needs [ALH 14b] and second, we need to provide an efficient management of loading bays and better enforcement of parking regulations for non-freight or illegally parked vehicles [ALH 14a]

Delivery area management approaches have been extensively studied by Patier

et al [PAT 14] highlighting the importance of providing the most appropriate

information system (or device) in the field to inform all users of the situation (occupancy) of each loading bay Solutions range from economic (cheap) with no physical signs (information provided only through mobile devices) to specially dedicated to the field with sign boards located near loading bays They suggested the final decision must be evaluated from both the usability and cost points of view McLeod and Cherrett [MCL 11] investigated the impact of advanced booking under different scenarios based on the punctuality of deliveries and service visits using a comprehensive database of vehicle arrival patterns Although the results are very much dependent on the size (i.e how many vehicles can be accommodated), location of loading bays, alternative freight unloading points and the system rules (restrictions), advanced booking is very sensitive to early or late arrivals In this case, the capacity of the system drops considerably Based on this, they suggest opting for more dynamic loading bay reservation systems

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Different loading bay management solutions have recently been tested in European cities Lyon was involved in an experiment called, “loading bay of the future” that allowed operators to reserve the space 24 hours in advance This, in turn, led to more efficient trips and routes in the city and resulted in a 40% reduction

in double parking for deliveries, less congestion and pollution in the city center, optimized trips and an improved image for the city [BRO 12] Vienna has experimented with the project “i-Ladezone” which aims to address intelligent monitoring of loading bays in an urban environment The project developed different management methods for efficient and effective monitoring of the occupancy of loading bays by loading vehicles and private cars, and trying to keep loading bays at maximum availability to reduce impacts on traffic caused by the loading activities [CHL 15] Lisbon, within the framework of the Straightsol project, tested two technological-based schemes, adopting parking meters for loading/unloading operations and loop vehicle detection sensors installed on the ground of loading bays They are expecting to reduce the number of parking infractions, reduce the average duration of freight operations, and increase transport operators’ and shopkeepers’ satisfaction [CHE 12]

All the above-mentioned examples note the need for further research and testing towards dynamic loading bay management, reservation and implementation of remote monitoring technology for loading bay control Dynamic management and reservation (advanced booking) of loading bays has been first studied by Letnik

et al [LET 15] and then followed by Comi et al [COM 17]

2.3 Information system for dynamic management of urban last-mile deliveries

The advent of information and communication technologies (ICT) is bringing

new dimensions to city logistics policies and practices Taniguchi et al [TAN 16]

presented opportunities and challenges of ICT and advanced modeling techniques for improving city logistics processes With the deployment of ICT, we can easily and cost-efficiently collect “big data” of pickup–delivery truck movements or goods

in urban areas and take that potential for developing more advanced urban freight management systems

Especially as mobile phones are becoming an increasingly powerful tool, which

is already available, but not sufficiently exploited for city logistics Work by Lin

et al [LIN 13] is one of the rare examples that collected historical data of freight

vehicle movements and used mobile phones for real-time navigation of freight vehicles in urban areas The concept was successful in reducing the travel times on congested urban road networks As presented, existing applications are mainly dedicated solely to specific operations, like data gathering, vehicle routing optimization,

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