impacts of urban congestion in supply chains
TRANSCRIPT
www.TransformingTransportation.org
Impacts of Urban Congestion in Supply Chains
Pablo Guerrero, Senior Transport Specialist, IDB
Presented at Transforming Transportation 2017
Pablo Guerrero
Senior Transport Specialist
INTER-AMERICAN DEVELOPMENT BANKImpacts of Urban Congestion in Supply Chains
Transforming Transportation 2017
January 13, 2017
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Mo
tori
zati
on
. M
illio
n v
eh
Population. Million inhab
BR
MX
AR
CO
PE
CH
Relevance of cities:
Concentration and
urbanization
+60% of GDP
+80% population
Why congestion is important for supply chains?
• Urban mobility is complex and is in high demand
• Large population to be served
• Excessive motorization, emissions, and fuel consumption
• Lack of freeways and low road capacity
• Large concentration of urban population in LAC
• Urban planning: “still a pending task”
Because it increases logistics costs in cities…
Why congestion is important for supply chains?
• Urban mobility is complex and is in high demand
• Large population to be served
• Excessive motorization, emissions, and fuel consumption
• Lack of freeways and low road capacity
• Large concentration of urban population in LAC
• Urban planning: “still a pending task”
Because it increases logistics costs in cities…
However, cities are key to any country logistics performance…
Why congestion is important for supply chains?
• Urban mobility is complex and is in high demand
• Large population to be served
• Excessive motorization, emissions and fuel consumption
• Lack of freeways and low road capacity
• Large concentration of urban population in LAC
• Urban planning: “still a pending task”
• Consumption centers
• Logistic nodes
• Industrial clusters
• Value-added and services
Because it increases logistics costs in cities…
However, cities are key to any country logistics performance…
Economic development:
Productivity & urban
mobility
Methodology congestion costs:
Design
Methodology implementation:
Local university
Implementing universities during pre-pilot face in
Barranquilla, Sao Paulo, and Santiago
Implementation Committee:
Coordination and decision
makingExample for Bogota DC, Colombia
Strategic alliance
Economic development:
Productivity & urban
mobility
Methodology congestion costs:
Design
Methodology implementation:
Local university
Implementing universities during pre-pilot face in
Barranquilla, Sao Paulo, and Santiago
Implementation Committee:
Coordination and decision
makingExample for Bogota DC, Colombia
Reliability and
comparability
Grounded on
stakeholders’
needs and
collaboration
Ensures
continuity, data
anonymity, and
further analysis
Strategic alliance
• Low cost
• Allows for continued data collection (every week or month) and trend analysis
• First and Last mile assessment
• Comparative analysis of logistics and transport nodes
• Access roads or urban corridors
Methodology highlights
Methodology highlights
• Low cost
• Allows for continued data collection (every week or month) and trend analysis
• First and Last mile assessment
• Comparative analysis of logistics and transport nodes
• Access roads or urban corridors
• Low cost
• Allows for continued data collection (every week or month) and trend analysis
• First and Last mile assessment
• Comparative analysis of logistics and transport nodes
• Access roads or urban corridors
• Retail based (receivers and suppliers)
• “Basic goods” retail price as proxy of cost of living
• Own and hired fleets plus aleatory location
Methodology highlights
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Tim
e (
Ho
urs
)
Distance (km)
Stops (break?, lunch?,
congestion?, delivery?,
receiver delays?)
Speed: about 20 kph
Speed:
about 2 kph
• Travel Congestion Index:
o TCI = (Actual delivery cost) / (Delivery costs in free flow)
Impact On supply chains
• Buffer Time Index (BTI):
o Buffer Time Index: the amount of extra "buffer" time needed to be on-time 95 percent of the time
o Economic value of the BTI
Reliability
• Intrinsic VOT of cargo (I-VOT):
o I-VOT = (Opportunity cost of capital)* (Average cargo value)*(Average Delays)
Impact In the recipients
Results {methodology metrics}