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Minutes
Project BESTFACT – Best Practice Factory for Freight Transport
WORKSHOP “Growth of Small Scale Solutions in Urban Freight, Green Logistics and e-Freight”
Date 29 & 30 January 2014
Venue Brussels Info Place (BIP), Rue Royale 2-4, 1000 Brussels, Belgium
Compiled by Jacques Leonardi, UoW
Philipp Lenz, PTV
Konstantina Laparidou, Panteia
Marian Lodewijckx, Andrea Grisilla, Peter Wolters, EIA
Date of
publication 13 February 2014
Participants
from the
BESTFACT
project
Marcel Huschebeck (PTV)
Philipp Lenz (PTV)
Antti Permala (VTT)
Jenni Eckhardt (VTT)
Peter Wolters (EIA)
Andrea Grisilla (EIA)
Marian Lodewijckx (EIA)
Martin Ruesch (RAPP)
Gabriela Barrera (POLIS)
Algirdas Sakalys (VGTU)
Juergen Schrampf (Econsult)
Ronald Jorna (Mobycon)
Michael Browne (UoW)
Jacques Leonardi (UoW)
Christophe Rizet (IFSTTAR)
Carlo Vaghi (Gruppo CLAS)
Thomas Zunder (UNEW)
Maciej Tumasz (UNEW)
Jan Tore Pedersen (MARLO)
Arnaud Burgess (Panteia)
Nathaly Dasburg-Tromp (Panteia)
Konstantina Laparidou (Panteia)
Patricia Bellver (ITENE)
Dolores Herrero (ITENE)
Participants In total 110 registrations from industry, carriers, manufacturers , local authorities,
European Commission, consultants and academics
AGENDA with links to all presentations
Day 1: 29st January 2014
Side-event: “Urban Freight in the 1st Horizon 2020 call + Q&A” Henriette van Eijl, DG MOVE (EC) – Download
1st session: Success stories, business experience and growth prospects
Welcome address Michael Browne (Uni Westminster) “BESTFACT The Best practice Initiative in freight logistics” Marcel Huschebeck (PTV Group) – Download “EC Initiative on sustainable logistics” Fleur Breuillin (DG MOVE, EC):– Download
“GnewtCargo: Success, experience and growth prospects in London” Matthew Linnecar and Nicholas Spencer (Gnewtcargo) – Download
“Delivery by e-cargo-bike in Groningen-Assen and in the Pro-e-Bike project” Ronald Jorna (Mobycon) and Iduna Jongsma (Groningen-Assen) – Download
“The Green Link in Paris: Business case and growth” Michael Darchambeau (The Green Link) – Download
“Txita San Sebastian Cargo Bike: Success story and growth” Harri Zuazo (TXITA) – Download
“Cargo cycles trials and initiatives in Berlin, experiences and growth potential”
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Day 1: 29st January 2014
Johannes Gruber (DLR Berlin) – Download
“Merci in Centro Como & Brescia Ecologistics: Successful Best Practice transfers from Cityporto Padova” Carlo Vaghi (Gruppo Clas) – Download
2nd session: Success stories in public sector planning and policy, enabling good future growth conditions for Best Practices
“Success stories of small and clean vehicle use in Gothenburg” Christoffer Widegren (Sendsmart Gothenburg) – Download
“Brussels Region Freight Plan” Christophe de Voghel (Brussels Region) – Download
“Copenhagen City Logistics: Lessons learnt on small and clean vehicles” Tanja Ballhorn Provstgaard (City of Copenhagen) – Download
Day 2: 30 January 2014
Session 3: Information management, IT requirements and vehicle solutions
Session 4: Use of clean vehicles for interurban freight transport
Apps &Co: Concepts and solutions for optimizing urban delivery for small scale fleets Marcel Huschebeck (PTV Group) Download
e-Mobility programme for goods transportation in Denmark Michael Stie Laugesen - Association of Danish Transport and Logistics Centres
How to combine green urban freight with increasing e-commerce driven demand for specific delivery options Michael Darchambeau (The Green Link) Download
Electromobility for interurban delivery – the need for holistic business model Peter Badík (GreenWay) Download
The SMILE approach and tools to city logistics Alberto Preti (ITL) Download
Patrik Akerman (Siemens): eHighway – connecting cities with electric heavy-duty road freight
MixMoveMatch – advanced distribution management Jan Tore Pedersen (MARLO) Download
Bio fuels in a real life transport and logistics application – The B&Q experience James Westcott (Gasrec) Download
Emakers as network for last mile delivery companies Gonzalo Fornies (Emakers) Download
Session 5: Small vehicles, information management, clients perceptions,
issues and solutions for last mile deliveries
“Volvo and Renault clean vehicles and IT solutions supporting a more efficient urban
freight”
Denis Caux (Volvo Group) – Download
“Iveco vehicles and IT solutions for clean deliveries in city logistics”
Eugenio Morello (IVECO) – Download
“Electric vehicle use in the logistics chain”
Philippe Lebeau (VUB) – Download
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Minutes from 29 January
Side-event: “Urban Freight in the 1st Horizon 2020 call + Q&A”
Presentation of Henriette van Eijl (in following “van Eijl”), European Commission (EC) on
Horizon 2020 (H2020), many calls are available.
5: Urban Mobility, 3 topics, up to 10 projects
6: Logistics
7: Intelligent Transportation Systems (ITS)
Green vehicles call
Small and Medium Sized Enterprises (SME): Small business fast track for 35 m€, from 0.5 to
2.5 m€ each
Smartcities call focuses on energy, transport and ICT (Information and Communication
Technologies)
Focus of the call is on impacts and on excellence
Vocabulary: should = you have to; would = it would be nice to have
Deadline for 2 stages, first stage on 18 March: proposal length is 15 pages; 2nd stage on 28
August: 50 pages proposals
There is a frontloaded budget in 2014 for the call, less will be available in 2015, and even
less later.
For the first stage 2 evaluation criteria: excellence and impact. Look for impact text of White
Paper 2011, Proposal need to have only 15 pages. Evaluation will include at least 5 experts
to look onto each proposal, with an objective to select 30-40 proposals to have passed the
first stage of Topic 5.1, 5.2 and 5.3. Then it is foreseen to select about 10 projects after
stage 2, 28 August. Responses from EC and contracts are expected before spring 2015.
Questions and Answers: Akerman: Innovative technology in infrastructure and new vehicles:
where to position the project?Van Eijl: both calls. But I would put the focus on one topic
(mixture)
Problem of difficulty in impact assessment in research projects? Van Eijl: There is a need to
think where to pitch your idea, and to focus on deployment.
Union: One key problem is how to have market players and users included together in
projects? Van Eijl: it is encouraged from European Commission to have a wide range of
participants around society challenges
Are there alternatives to Research&Development in EU? Van Eijl: yes, not all member states
agree and benefit from them, national programs, structural funds, also help from banking,
e.g. European Development Bank.
Global impacts and link with Transportation Research Board in the US (TRB)? Van Eijl:
mention how you are involved with a country. The countries of impact needs to be
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mentioned individually in the proposal. But mostly the impact that will be judged will be the
European impact. No finance for BRICS partners (Brazil Russia India China SouthAfrica).
Organisation named as partners needs to enter their European Personal Identity Codes
(PIC) and registration numbers? Van Eijl: In principle yes but this will be checked.
Consensus of evaluation? Van Eijl: Phone conferences, 5 evaluators for each proposal,
consensus meetings will be held with all reviewers.
Complementarity of 5.2 and 6.1? Van Eijl: Both calls are aimed at the logistics community
High range of subjects, should we include all or focus on few? Van Eijl: yes we reduced the
number of pages and compacted the H2020 programme, but we kept the high range of
possible subjects. Not all topics have to be addressed in a single proposal. Make clear how
the impacts will be is more important than to tick all the boxes. If you reduce the number of
subjects the impacts on each one will be higher.
Wider scale and time horizon of impacts? Van Eijl: Some of the impacts extend to 2030. It is
good to refer to potential numbers in reduction of energy, following the targets of the White
Paper on impacts.
How to includes wider effects such as effects on urban mobility and China? Van Eijl:
Cooperation with non-European countries could be a higher marked impact.
Widening the network of stakeholders, how can regions and countries contribute? Van Eijl:
EC is at many conferences and inviting people. Cities need help from EC, 5% of structure
funds need to be spent in cities.
Number of partners? No ideal number, except the need of being above a limit of 3 partners
in 3 countries.
Picture 1: Presentation of Henriette van Eijl, EC, and discussion with Marcel Huschebeck
(PTV) and Gabriela Barrera (POLIS)
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1st session: Success stories, business experience and growth prospects
Workshop moderation Michael Browne (Browne)
Bestfact is about sharing knowledge
Overview on BESTFACT of Marcel Huschebeck, PTV: Many Best Practice solutions have
demonstrated positive impacts, are transferable, and available online at www.bestfact.net
Picture 2: Presentation of BESTFACT by Marcel Huschebeck, with Michael Browne (UoW)
Overview on EC policies from Fleur Breuillin: Many activities of the EC are fostering
sustainable solutions and BESTFACT is a part of it.
Picture 3: Presentation of Fleur Breuillin, DG MOVE, on sustainable freight policies
Presentation of Matthew Linnecar (Linnecar) on Gnewt Cargo electric deliveries and growth
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Growing business in London, almost no competitors
Crucial is to win the trust of the industry
Currently working with every new client on how to consolidate their flow as a key for
demonstrating their benefits.
Margins are more important than volume.
Question on electric vehicles: limited range, charging station problem? trip planning?
Linnecar: difficult, constant challenge: never know what happens
Johannes Gruber: are there competitors? Linnecar: no direct competitors, funding and
finance is difficult to come by.
Christophe de Vogel: Consolidation centres are a challenge, because nobody wants them.
Linnecar: It’s difficult because often large clients don’t want to consolidate.
Jose Mina, consultant: who is more interested in e-bikes? large or small companies?
Linnecar: Hybrid fleets are simpler to manage.
Presentation of Ronald Jorna and Iduna Jongsma (Jongsma) on eCargobikes
Biggest difficulty for uptake of eCargobikes is for Small and Medium sized Enterprises, when
they have only one car or van. Changing one diesel van to one bike is not an option.
Very well balanced overview slide of Ronald Jorna on Strengths and Weaknesses of the
eCargobike solution
The switch is easier for businesses in own account with a bigger fleet.
Presentation of Michael Darchambeau (Darchambeau) on The Green Link operations
Operating manual for customer is available.
Without offering the standard quality, there is no customer interest.
Pilot in Paris needs to be finished successfully before the business can be extended to other
cities.
Many contracts with many customers, but security problems in Paris needs to be tackled and
solved first, then solutions can be proposed to smaller cities. Market questions are what are
the best vehicles today? And who have enough volume in 10 cities?
Policy framework conditions are good, with an agreement to reduce emissions.
Cooperation and talks with other companies are good.
Ecommerce growth is linked with successful delivery.
We need to build our own Cargobike vehicle solution.
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Additional services have a growth potential: Services to cities, Collection Services; Local
companies.
NTNU Workshop on Urban Freight in Oslo, September 2014: www.ntnu.edu/ifreight/
Picture: Presentation of The Green Link by Michael Darchambeau
Presentation of Harri Zuazo from Txita on San Sebastian electric freight vehicles
Decision to purchase the bikes from Lovelo, the French manufacturer of Cargobikes.
The company started operations in 2007 and was more or less obliged to diversify the offer
of services, as the margins of the delivery business are very low in Spain.
Diversity of services is positive, but last mile logistics is remaining core business.
Future plans are to participate in more international projects such as Lamilo.
Presentation of Johannes Gruber (Gruber), Deutsche Luft- und Raumfahrt (DLR), on
messenger deliveries with cargobikes in Germany
Browne: Is the system of employment of drivers as subcontractors accepted? Gruber: yes,
widely used in Germany logistics
In this system, separate messengers are individually contracted by Logistics Service
Providers and carriers.
Future task: Join together many solutions in logistics: cars, cycles, cargobikes
Sascha Thomas: Was it hard to get data in your survey? Gruber: Trip diaries were received
from project partners.
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Presentation of Carlo Vaghi (Vaghi) on Cityporto Urban Consolidation Centre (UCC) in
Padova
To tender for a Consolidation Centre manager is very bad, because it leads to a lack of trust
in the manager. So how to select a business neutral manager that will be accepted by the
customer is a crucial question.
What are the clients of the Padova UCC? 60 regular clients, among which the main logistics
businesses, such as the large parcel service provider GLS. But the clients of the other UCCs
of Brescia and Como, which were developed as replications of the business model of
Cityporto Padova, have different companies as clients and users.
An important success factor for UCCs is to have joint ventures with cities. How to build this
contract is presented in the slide on Framework Agreement.
Another crucial point is the ownership and the structure of partnership (governance) of the
business model.
Trust in the manager of Padova is a major element of success.
Birgit Hendriks: Did you manage to contact shippers in 3 cities? Vaghi: yes, 50 international
customers, but not the same shippers in each city.
Presentation of Christoffer Widegren (Widegren) on Gothenburg citylogistics initiatives
Mix of initiatives is important as no single activity can really make a difference.
Public support is given by Gothenburg and Sendsmart project, but mostly the activities of
consolidation, electric freight and waste logistics are based on privately run businesses
managing consolidation centre and clean vehicle use.
How was the scheme promoted? Widegren: There are good public reactions to vehicles, and
newspapers wrote positively about us, but the City is not doing an active marketing
promotion of the citylogistics initiatives.
Presentation of Christophe de Voghel (de Voghel) on Brussels Plan for Goods Traffic
We have to face many challenges, and a major one is the poor image of freight in Brussels.
Complexity of urban freight is already big, but in Brussels it’s even bigger.
Another challenge is how to consolidate at the infrastructure level.
There is an on-going debate on road pricing for Lorries in the 3 regions of Brussels.
It is now planned that a lorry charge will be put in place, probably for the access to the city
centre of Brussels.
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Presentation of Tanja Ballhorn (TB) on Copenhagen Citylogistik scheme
There is an increase in cycling but a security problem with trucks in Copenhagen. The
security risks for cyclist getting involved in accidents with trucks was giving the legitimation
for becoming active in freight policy in Copenhagen.
Previous Urban Consolidation Centre trials did not work, so the Municipality set up a
business plan.
We went to Netherlands to look at Binnenstadservice.
We also were in search of a good manager like Birgit Hendriks or Harri Zuazo as we’ve seen
today.
Success criteria for the Copenhagen Citylogistik scheme are bind together with the funding
and the profitability after 1.5 years.
Start is slow with 2 electric vans, with customers consisting.
Drivers are building up trust to the shop owners, mainly upmarket stores in the centre.
Consolidation centre of Citilogistik Copenhagen is located in the suburbs.
150 shops should be included in this business.
For return logistics, the shop is responsible, not the city, as return collection is privatised in
Copenhagen.
Maciej Tumasz: What is the critical mass, what are the calculation? how far off? Ballhorn:
different pricing models are available, flat rate, monthly rate, and rate per package, 150
shops should be involved within a period of 1.5 years. After this, it will be checked if it is
worth continuing.
Can the scheme be extended? Ballhorn: the Consolidation starts with a framework and the
system can be extended afterwards, e.g. working with pharmacies.
Picture: Round Table talks with Maria Lindholm (Gothenburg Sendsmart)
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Session 2: Podium discussion on public support of small scale solutions
Birgit Hendriks (Hendriks), Binnenstadservice: Freight passion struck me today. Ecommerce
and potential consequences in growth of traffic seems to be awaiting a response that is
missing a bit. Long term strategies are also important. Use the participants to create an
H2020 proposal. A network is already created. Need to talk about collection as well.
Gabriela Barrera (Barrera), POLIS: Huge motivation on doing something on urban freight is
given in many cities. POLIS have an active role in knowledge and cooperation. Dialog
between cities and businesses, and between cities, is to be taken into account. Cities are
aware of their role as partners in making small scale solutions attractive. POLIS role is also
to spread the news on common things and thus help transferring solutions.
Maria Lindholm (Lindholm), Gothenburg: Establish and follow up on partnership has a really
good impact and help share knowledge on urban freight solutions. Having a long term
strategy helps.
Browne: Much less discussion on regulation and more on the business. More ban or more
promotion?
de Voghel: Logistics sector is not ready for regulation in Brussels, so regulation changes
were not included in the new Brussels Region Freight plan
Ballhorn: Denmark keeps regulation on national level. At the city level we cannot have
partnership and regulation.
Darchambeau: 80% of French businesses have less than 5 employees so we need to
address this market and explain how to change to electric deliveries
Browne: What are the opportunities to grow bigger?
Hendriks: We are building a new system on city logistics. Local carriers, couriers companies,
logistics service providers and networkers are suspects of the old system. Binnenstadservice
represents a new system of neutral city hubs, but we are not carriers ourselves.
Darchambeau: but we might be losing jobs by switching from one system to another
Jongsma: Growing ecommerce has to be mitigated otherwise this will be leading to growing
logistics traffic
Vaghi: Unloading regulation is needed for a successful UCC, but this increases the costs of
deliveries thus making the system more expensive
Browne: How to engage with bigger organisations? What about strategic changes for the
future of cities?
Lindholm: It’s good to involve bigger companies into the networking at the municipality level.
We can listen to their difficulties and perspectives on restrictions. Larger companies like
regulation.
de Voghel: Bigger companies are in favour of restrictions but smaller business will suffer.
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Ballhorn: We speak more about benefits than bans, so we speak about special benefits of
using electric vehicles
Jongsma: How do we deal with the big trends such as eCommerce growth and return
logistics?
Hendriks: Volumes are going down for retailers in many cities, and up for end-consumers.
We (and many others) work on this with a new service. For example pick-up purchases at
stores. Reverse logistics is becoming more important, with growing volumes to take back.
Barrera: ecommerce isn't discussed in a sufficient way.
Browne: Communication as key issue:
Barrera: Important for Polis is to communicate to a broader public about the roles, who has
which role? Also our role is to convince cities to talk about freight.
Lindholm: Showing what is going on in freight to a broader audience, and why are we doing
it? For example to lower emission and obtain less traffic.
de Voghel: Communicate with transporter, but only if he has a solution. With general public,
the communication is very difficult. Offices in Brussels are not aware about freight, even if
they receive 30-40 deliveries a day.
Hendriks: Biggest investment (note: when setting up an Urban Freight Consolidation scheme
in a new city (Leonardi)) is to talk to people to create awareness. Change behaviour is
needed to solve the problems.
Ballhorn: Objective is to get rid of the danger of large vehicles in the city. This will be a trend
and support will be needed.
Browne: As a conclusion, trust is very important. When we are making trials, the risk of
failures has to be accepted.
Bestfact Workshop Day 2: notes 30 Jan 2014
Session 3: Information management, IT requirements and vehicle solutions
Presentation of Marcel Huschebeck (Huschebeck): Answering the question how
electromobility is functioning with information support for a fleet at a distribution centre?
Mr. Huchebeck’s presentation focused on the concept of emobility, the Citylog App for Last
Mile Delivery and the development of eFleets navigation support for e-delivery, with range
prediction. He concluded the presentation by stating that the integration of e-vehicles is a
complicated process, in which the use of apps can be a less costly and easier alternative to
mobile telematics applications.
Electric vehicles are difficult to predict on their range, depending on dynamic parameters.
Planning of dynamic parameters is the next step of development, including information on
tour and delivery status, as well as battery range.
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Apps and cloud based solutions offer future cooperation developments in cities.
Browne: how secure is this technology?
Huschebeck: it’s not secure, data protection is not given, so we don’t have these technology
under control
Browne: Liability is an issue for example if I am stuck in the middle of Torino?
Huschebeck: we want to be better, reliable and predictable. But with Temperatures of minus
20, the system and the algorithm might not indicate the right range.
Browne: Driver’s behaviour is significant for the estimate of the range?
Huschebeck: Yes. The vehicle information systems are inter-connected so the battery
information is also available outside to the driver and to the other telematics components.
But it is quite difficult to obtain the information on the driver’s behaviour. Therefore the
decision has been made to not include this factor in the calculations. So the question for
further developments are: do we wait for this information to be more accurate or do we
model the vehicle profile? We have a learning system that can be individually adapted.
Presentation of Michael Darchambeau (Darchambeau), The Green Link: Control and
intelligence are crucial in urban freight and last mile logistics.
Mr. Darchambeau built his presentation on the notion that intelligence is important for city
freight. He developed the Green Link concept, an information system for e-delivery. Mr.
Darchambeau concluded by stating that the leap from small to bigger scale projects is
possible by the use of e-technology.
Key is having information technology available for optimising the activities and the rounds
before receiving the parcels
First we are receiving the morning files, then organising the rounds, and then we know how
many messengers are to be sent out on the day.
I need 47 stops per round to be profitable for the price I set to my customers, so I need to
know and obtain this information as soon as possible.
Smartphone is not used for the dedicated logistics application of The Green Link. The
calculations of the rounds are made in advance so the drivers don’t spend time to sort out
their parcels and their rounds. This was leading to a gain in productivity.
After the investment in new IT, the rate of failed home deliveries went down to 2-3% of
delivery failures.
99.5% confidence that deliveries are made on time.
The app is adapted to the information needs of the customers.
We use PDA devices that include a scanner, and the signature is made by the receiver on
the scan and also on paper.
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It is possible to combine all information at low cost into one scanner.
Alert can be sent to customer in case of problem, in order to avoid failed delivery.
For insurance it is necessary to prove where the parcel was lost or delivered or returned.
Technology use for touring is PTV optimise.
Dashboard is available for performance control on the day to day business for each round.
System indicates the number of parcels per delivery per customer. Delivery time control is
also offered.
We can offer one consolidated stop with 20 parcels for an administration for 30 euro (note:
instead of a higher rate if each parcel would be delivered individually).
Jongsma: 2 hours before delivery the address can be changed, but only within the same
area? Darchambeau: The customer receives a message about the exact time of the delivery
when the vehicle is loading and has the option, at that moment, to change the address of
delivery for a small fee. A small number of customers use that service to rearrange the
delivery location in the morning. If the new address falls outside the foreseen delivery area,
we ask for additional time.
Jongsma: Distribute advertising that is not asked for is not allowed in the Netherlands.
Darchambeau: Making use of paid advertisement is very important for the profitability of the
entire service. However, the importance goes out to the message that is being
communicated. We consider advertising as additional, not core business.
Browne: Customer’s country law is an important issue to consider when governing e-
commerce and e-cargo services, there tends to be a lack of clarity about this at the moment.
Lieven Deketele, Procter&Gamble: How you talk to city authorities? are they helping you
with issues? Darchambeau: Green Link cooperates with the city authorities. The
organisation checks what can be delivered within the framework of international agreements
and EU-programmes, and communicates on this matter with the city authorities.
Furthermore, there is a Common Agreement between the city of Paris and a number of
companies; at first the city promotes the project, and later on it is letting the company do its
business. We are talking with 5 different cities. We organise workshops in Lamilo for cities.
We work with cities to see what we can deliver for them. Paris organise a workshop to make
a new project happen, with Carrefour, and the City of Paris is a promoter and a facilitator.
We would like to sign an agreement with each city, to enable The Green Link to work in
many other cities.
Presentation of Alberto Preti (Preti), Institute for Transport and Logistics, on the tools
developed in the SMILE project. Objective is to show the public role to support the uptake of
citylogistics solutions by business.
Mr. Preti’s presentation concentrated on the ongoing EU-funded SMILE project, which is
focusing on port cities in Europe’s Mediterranean area. The SMILE project delivers on four
domains: ICT, electric mobility, waste logistics and green labeling. Mr. Preti concluded his
presentation with some hints for discussion: Is the public role limited to ruling/governance or
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is financing also included? What are the limits of public manoeuvre in times of economic
crisis? How to simplify business activation and ruling?
SMILE = SMart green Innovative urban Logistics for Energy efficient mediterranean cities, a
project supported by the EC MED Programme.
One of the ongoing developments is to use a system of vehicle green labelling and link it to
access restriction to Low Traffic Zones in Emilia Romagna.
Consultation with multiple stakeholders in urban freight and logistics have led to a
coordination and harmonisation of the access rules in many medium sized cities of Emilia
Romagna.
SMILE also develops a new model of freight demand according to different sectors and
businesses, facilitating planning and logistics decision making.
Public role for ruling and financial support is fundamental in urban freight.
Strong limits of public intervention in the crisis, especially on financial help.
Browne: how do you communicate with the own account sector? Preti: they are
underrepresented in projects, sometimes included through shops association. The channel
for addressing them is not effective enough. Policies for outsourcing are often in place, so
the SMEs can be included as subcontractors. It could be useful to adopt some policies for
outsourcing. This demands management in some ways. The margins of subcontractors are
not so high than for own account.
Leonardi: Discussion about pricing would help, so companies could become more innovative
if the prices for different quality of service would be more widely accepted. Is the cost of
parcels and pricing beyond limit of the public discussion? Preti: Public financing to city
logistics remains a question; there are different ideas between the different stakeholders
about whether public governance should intervene in pricing.
Picture: Presentation of Alberto Preti on policy support tools for urban freight innovations
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Presentation of Jan Tore Pedersen (Pedersen): Can we make a handling system that does
not interfere with the processes at terminals?
In his presentation, Mr. Pedersen explained the MixMoveMatch distribution management
system; a response to the problem of inefficiencies in transport, such as nearly empty trucks.
Mix stands for the variety of suppliers, Move refers to the cargo movement to and from the
urban distribution hub, and Match relates to the combining of the cargo that leaves the urban
distribution hub to a similar destination. Mr. Pedersen concluded by stating that
MixMoveMatch contributes to cost reductions, carbon footprint reductions and an increased
supply chain visibility and control.
Consolidation, in order to become more efficient, needs to be occurring as close to the
factories as possible and as close as possible to the end delivery area. This is what the
system is helping to create.
MixMoveMatch system starting costs are very low.
As a benefit, 5 mio tkm were saved per year by 3M.
Gonzalo Fornies (Fornies); are you sending parcels interurban?
Pedersen: No, but DHL is using our system to increase the load factor of their trucks. DHL
can then choose to make use of the service. MixMoveMatch is simply a control service with
the aim to do the loading and the unloading with the highest efficiency possible. The users of
the MixMoveMatch service are thus the logistic providers.
The system makes sure that the trucks are fully loaded.
The information of MixMoveMatch can be used to reduce empty runs in cities.
Browne: the question that can be solved here is how to find the space.
Hendriks: Happy to see that there is a proof that extra handling does reduce overall costs of
the chain.
Is your solution better for consolidating parcels long haul or also for city distribution?
Pedersen: The problem is the same, and consolidation works for both.
The urban distribution hub can also be used as a consolidation centre for the goods/waste
that leaves the urban centre (in the reverse direction).
The system has potential as well in the sector of e-commerce. It could for example calculate
the best way to sort cargo inside a van to have a smooth stops operation; importance of
loading the cargo in the reverse way of the delivering.
Presentation from Gonzalo Fornies (Fornies), Emakers: Clean eCommerce Delivery and
information technology (IT) solution.
Fornies presented the courier network for e-commerce delivery: Emakers. The company
offers its services in last mile delivery, making use of three delivery options and pre-alerts.
Mr. Fornies concluded with an overview of the help that is needed in order to make the
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Emakers project profitable; he stressed that even though solutions should come from the
private sector, the public sector should not be afraid to regulate and to help create a
cargobikes market.
The solution of Emakers is consisting in the physical delivery with clean vehicles managed
together with the information infrastructure to deal with online commerce activities.
Fornies: The e-commerce market revolves around the customers and the last mile delivery
companies. The technology created by Emakers could be used by last mile services.
Sasha Thommes: What is your IT solution exactly? How do you integrate your IT into other
solutions that are existing at your clients?
Fornies: We are creating our own network for eCommerce delivery in cities, with a separate
webservice for deliveries. We provide the last mile delivery company. We manage the
delivery and interact with end-customers for the final distribution to them.
Thommes: You would have to follow deliveries through partners IT? Fornies: we ask
partners to use our solution
Thommes: How to develop such a system? Fornies: we provide clients with a system
solution that includes transport and IT.
Browne: Big organisations and small ones are very different, what are the challenges of a
small organisation to work with other small companies?
Fornies: It’s hard to know other companies in other cities. Hard to make sure that your
interests are common and aligned.
Browne: So there remain only some information gaps.
Johannes Gruber: There is a huge potential for this solution. The willingness of customers
rises very fast. How do you deal with peaks? Do you have growth problems?
Fornies: Sleeping few hours. Volume multiplied by 14 in 2013. We are in talks with further 7
cities. The main growth problem with electric Cargobikes is the financing. We have to use
electric vans that are less profitable. We trust our local partner and they are doing an
excellent job.
Thommes: Do you have financing difficulties?
Fornies: Going to an investor and telling him that 400,000 Euro of your money is going to
investment in clean vehicles, this is not working. One of the big problems for start-ups is the
lack of support from the banking sector. Banks do not want to sign guaranty for 50 cargo-
cycles. So we receive no warranty from banks and would need the EC or any other help to
provide this guarantee.
Browne: It is an interesting question to consider why it is so difficult to finance this sector.
The problem is not in raising capital, but in going to an investor, the cargobikes business has
not proven to be very popular. There are some questions around the viability of the product.
This is something to be done and thought about.
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Session 4: Use of clean vehicles for interurban freight transport
Welcome by Maciej Tumacz stressing the importance of intermodal solutions and services
as well as the need for alternative fuels in the transport sector.
The moderator Maciej Tumasz was considering important for this workshop to give a wider
perspective by taking into consideration mobility and logistics in the spaces surrounding the
urban centres.
Presentation of Michael Stie Laugesen (Laugesen) - Association of Danish Transport and
Logistics Centres, on the e-Mobility programme for goods transportation in Denmark
The association is a no-profit institution in Alborg that makes research and tests. Their
objective is to represent the Danish consolidation centres and fulfil the goals of the white
Paper in urban spaces. According to Laugesen, as far as electric vehicles' fleets are
concerned, the big companies actually prefer their own charging spots instead of common
spaces organised by external entities. At the time being the association of Danish Transport
and Logistic Centres is involved in the NSR project which aims to analyse cases of use of
electric vehicles in cities for freight transportation. Items taken into account are: size and
loading of batteries; lack of repair shops; costs of ownership (still too high); necessity of
market subsidies.
Based on the targets of the project, 40% of the CO2 reduction needs to be achieved, also
covered by CO2 logistics in cities.
The presentation was an introduction to the e-Mobility NSR 3-year project and the potential
for EVs for goods transportation as last mile operations.
The NSR project has studied 58 cases of EVs for freight distribution using 35 different
vehicles documenting several benefits from the combination of urban distribution centres
esp. in emissions and noise. These solutions could further be combined with night
distribution due to the low-noise EVs. The project also suggested that the use of EVs in city
logistics could bring few challenges such as the range covered and speed depending on
weather conditions, the lack of repair shops, the high total cost of ownership, the
requirement of public subsidies etc. Laugesen pointed out that, next to the subsidies, the use
of EVs could be accelerated by setting scenarios, such as using the bus lanes, for benefits.
The project has also developed an online crowdsourcing platform to share experiences and
expertise as well as to promote dialogue and synergies.
During the Q&A session, there were more electric vehicle (EV) practices pointed out
operating heavier trucks for distances up to 140 km and that the main benefit of using EVs
was the PM reduction. Moreover, the effects of legislation were stressed at national and
local level. Finally, the participants highlighted the sources of CO2 emissions (also for
electric transportation) which could be defined as other than the engine e.g. from tyres.
- Is there any piece of regulation missing for a better use and implementation of EV in cities?
Laugesen: As far as Europe is concerned the regulation on EV in the major cities is well
established.
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- Which are the limits in terms of kilometres for the use of EV in cities according to your
experience? Laugesen: 120-160 km represent the ideal condition but a realistic estimate is
about 80-100 km, which is absolutely fine.
- Are EV considered totally 0 emission? Laugesen: Yes, although it is clear that the mere
production of electricity for the local grid comes from combustion of polluting elements.
Presentation of Peter Badik, Greenway
Peter Badik started saying that technology for EV is already available at a reasonable price
but the problem lies in bringing this technology to people without generating risks or
disruptions. Greenway is an electric-vehicle leasing solution aiming at maximising the
utilization of Light Goods Vehicles from the user perspective. GreenWay enables its clients
for intensive and convenient use of electric light commercial vehicles by giving full operator
services and providing with a network of swapping stations. Greenway creates the whole
environment and business plan. Greenway bases its concept in three major elements: the
economics, the infrastructure and the technological risk of EVs for logistics. The practice
prioritizing these three elements gives long term rentals for EVs with a mile subscription
covering all costs for installation, vehicle etc. except from the driver costs. The subscribing
company pays a monthly fee that allows them to get a fleet of vehicles (three types). When
the subscribing company exceeds the threshold of available kilometres a cheap rate is
established per km. Based on the repeated travel patterns of the clients, Greenway places
infrastructure charging points in specific spots and also swapping solutions, which takes 7
minutes to operate, thus allowing the vehicles to travel up to 400 km per day. Moreover, the
company provides online support to the users. Greenway takes care of building all the
necessary infrastructures and of giving the correct training to the sub scribing company. It is
important to state that they do not have the ambition to change the entire fleet of the
subscribers. After six months of operation for Med-art (pharmaceutical company), Greenway
had a very positive feedback. In practical terms, the solution has decreased the Total Costs
of Ownership by 9.8%.
According to studies each morning a single fleet is making 200 km for a reduction of 76% in
CO2 emissions.
During the Q&A session, it was indicated that there are more opportunities as long as
Greenway is able to demonstrate the savings potential. Another point was the learning curve
of the customers and the usability of the tool. Range and weather conditions were pointed
out as a possible limitation. However, due to its infrastructure support and the heat battery
pack, Greenway overcomes these problems. The infrastructural costs are covered by the
lump sum of the rent to the customer.
- Is there any public support for learning and training? Badik: No. Important to say that the
customers should fit in the right profile.
- Do you publish your data? Badik: Yes general data are published.
- Are there any traffic congestion issues? Badik: At the time being none of them have been
experienced.
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- Is there any plant for optimisation? Badik: An optimisation plan is currently based on
creating a network of customers all around Slovakia.
Presentation of Patrik Akerman, Siemens, on the e-Highway project
E-Highway is an EV truck container improving fuel economy of HDV and decreasing
emissions. Mr. Akerman started stating that the biggest share in potential fuel saving could
come from reducing the long haul freight traffic. Apparently all the foreseen measures for the
decarbonisation of road freight are not enough to meet the goal set by policy. Based on a
projection, CO2 emissions from road transport are expected to increase and e-Highway
could contribute significantly to decrease the expected impact. The presentation pointed out
two main technologies for decoupling from conventional fuels the use of external power
supply and on-board storage. Both solutions have their pros and cons. E-Highway comes
between these solution as a conductive and hybrid vehicle. Siemens has taken into
consideration different alternative concepts for sustainable freight transport and a overhead
contact line system appears to have advantages in functionality, cost and safety. The so-
called eHighway system would put together the benefits of hybrid technologies as well as
full-electric technologies. At the time being the possible application fields are shuttle
transport, electrified mine transport and electrified long-haul traffic. Interest has been shown
form market players in Sweden and by the Los Angeles Port. E-Highway truck scans for
possible docking and connects to the electric power line. When braking, it produces
electricity either stored to a vehicle on board or transmitted back to the grid. The vehicle can
move with up to 90 km/h and is compatible with different fuel technologies (diesel/ gas /
etc.). Other benefits mentioned during the presentation were the mature technology, the
easiness to install, no restriction with other vehicles and no weather problems. In the long-
run, the project is expected to be used also for long-haul traffic.
During the Q&A session, there was a question about calculating the energy consumption.
This is calculated on board. Another remark was on the innovative aspect of the practice;
this was mainly the innovative use of a mature technology. When it comes to real condition,
the question was whether the truck could work with normal traffic. The tests with the
pantograph already indicated the functionality in real conditions. It was stressed that the
vehicle could be combined with platooning measures (note Leonardi: Platooning is a concept
of grouping of vehicles linked electronically together in order to reduce the distance between
them, increase average speed and road space vehicle capacity per hour, and avoid
congestion).
- Is there a system for the payment of electricity consumption from the grid? Akerman: Yes,
a specific system is installed on-board of every truck.
- Is possible to keep a speed of 90km/h in the normal traffic? Akerman: Absolutely possible.
- Which are the actual costs? Akerman: Costs of building the infrastructure are between 1
and 2.3 bn € per km with a payback of 7-10 years.
- Which are the main benefits in terms of capacity? Akerman: Main benefits come mainly
from the possibility of lowering costs and the possibility of increasing the transport during the
night shifts.
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Presentation of James Westcott, GasRec, on biofuel use in logistics
In his presentation, Mr. Westcott presented GASREC which is the leading supplier of bio-
LNG in Europe. It has a vertically integrated business model that goes from supply security,
to trading, distribution, sales and marketing. The Albury bio-methane liquefaction plant
started its operations in 2008 and is now capable of fuelling 1500 HGVs. Actually the market
growth is beginning to show signs of transition from a trial phase to a more established
expansion of existing fleets. The objective of GASREC in 2014 are about: strengthening the
supply chain by investing in additional LBM and LNG production; offering a range of
refueling stations; securing TEN-T locations; gaining subsidy equivalence for bio-methane to
transport; helping stakeholders and governments meet their carbon target and improve the
air quality. In order to control as much as possible from the process, GasRec applies a
vertical integrated supply chain including, Bio gas production (expected to increase), long-
term contracts for supply (trading), distribution aspects, sales and marketing.
During the presentation, the challenges of LNG market uptake were pointed out: the need for
flexibility for using infrastructure (different types of infrastructure from manual to fully
automatic handling), the need for training, the short customer contracts require also the
infrastructure to move, the refueling time and the investment.
The presentation had four main points for the LNG rollout: the vehicle performance, the price
risk (for the company not the customers), the CO2 savings (compared to diesel: bio-LNG
20%, LNG 10%) and the payback (depending on fuel prices).
Based on the demand projections, there should be by 2025 more than 35,000 truck vehicles
running on LNG in UK (now 600-700).
From the policy perspective, the challenge is that LNG is not prioritized (LNG not yet
subsidized).
- Is there any idea of bringing bio-fueling to sea transportation? Westcott: The idea of using
this fuel for maritime transport was considered, however the low production is still a problem
for its implementation. So maritime is not considered at the time being since the availability
of LNG is limited so you need to consider where you want to concentrate your activity
- Is the temperature at which LNG is kept an issue? Westcott: No. GASREC has not
experience any specific issue in extreme weather conditions
- How about Nox and Sox? Westcott: The production of these elements is absolutely
negligible.
Another question was about the technical feature of LNG loss during transport. The
response was that there is no loss during transportation.
Session 5: Small vehicles, information management, client’s perceptions,
issues and solutions for last mile deliveries
Presentation Denis Caux (Caux), Volvo: Objective is to answer the questions of what do we
want for tomorrow in electric freight? Where do we want to go with different energy choices?
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Mr. Caux of Volvo Group explained the multidimensional approach of the Volvo Group,
stressing its development in clean vehicles, communication and IT systems and the
importance of applications when generating traffic and the question of noise. Mr. Caux
concluded by presenting the target of Volvo Group; the global system level, with the capacity
to build overall business models.
The governance and the capacity of the refusal truck market with parallel hybrid 18t/26t is
very interesting.
Full electric trucks are already running on the streets. Small company with electric trucks:
Greenway in Paris, max city electric.
In Lyon, a full electric trial is ongoing with Carrefour, in Switzerland a full electric trial was
started with Nestle.
We have offers and we have experimentations.
Market for full electric and hybrid electric heavy trucks is very much driven by bus
applications.
Capacity to see the payback and the advantage are very low in the truck market compared
to the bus market.
Information systems are developed, which includes some truck specific mapping features
including weight limits.
We have many parties, and what is the market? For now this is not a real market for electric
trucks. Will the cities implement the same solution?
Regulations are now made more in the spirit of promoting something than to ban other
things.
No ban on thermal, but promotion and privilege of clean vehicles.
Some of the fleet have 100 vehicles, but the business case is difficult to built.
Cooperative projects have little business model solutions.
The global system that would include all the actors relevant in the decision to set up a city
logistics system based on electric trucks, would need to integrate multiple values. How to
calculate the value of all the global system level changes?
Leonardi: We don’t have the tools and method to calculate the added value of such a global
system that would include and make the benefits visible for all actors.
Browne: Can we take leaders in some domains and put their solutions into place in other
markets?
Caux: This is a question of organisation and image. More money is to be made in some
business than others, for example in supermarkets.
- Relating to the restrictions of tons; should we change the regulation allowing for only 3.5
tons? Caux: Due to legislation, only 3.5 tons has been considered. In France, however, 4.5
tons is possible.
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Browne: There are a lot of nuances in this discussion.
- The difficulty consists of how to calculate the real value of the complete supply chain and,
subsequently, how to adapt a business model to this.
- A difference in the willingness to conduct debate can be observed. There is a need for
some sectors to get more involved, for example the waste sector. At the moment, the first
market debating is the passenger transport market. The market of distribution is technically a
more difficult one, for example the issue of noise. Furthermore, when dealing with
companies, image counts a lot.
Presentation and discussion of Eugenio Morello (Morello), IVECO: Vehicle concept for
citylogistics of the future is a hybrid, dual energy vehicle, with a battery range of about 40
km.
Mr. Morello of IVECO launched his presentation by reminding the audience a number of
megatrends, of which mobility and sustainability is one among others. He continued by
explaining the IVECO mobility vision of dual energy, modularity & flexibility and IT Solutions.
Massa concluded by presenting the Pie Verde project; a research project aiming at real life
full solutions for vehicles of the future.
Browne: Load factor discussion and handling that could increase the load factor. Is the new
fuel a reason to change the design of the vehicles for cities?
Morello: Concept is developed to take into account the specific needs of drivers of electric
vehicle.
Browne: Are people giving you enough feedback?
Morello: We have 2 logistics operators, TNT and Unilever that are involved in development
and demonstration activities. It is important to demonstrate the vehicles in the normal
working activity and not in special testing sites, in order to receive the correct feedback.
Browne: It is important not to forget the importance of the context, as showed by Mr. Morello
when highlighting the megatrends.
Morello: When considering a vehicle, a number of criteria are important: the load factor of
the vehicle, its handling and engine. Furthermore, it is interesting to reflect on whether we
consider the vehicle as a whole or by its parts.
Presentation of Philippe Lebeau (Lebeau), VUB: Urban transport market is very competitive
and costs of purchase of electric freight vehicles are a very relevant barrier for a further
growth and uptake.
Mr. Lebeau analysed the use of electric vehicles in the logistic chain. He started his
presentation by focussing on the three dimensions that have to be taken into consideration
when analysing means of traffic: local pollution, noise emissions and greenhouse gases.
Although those three dimensions can be reduced by the use of electric vehicles, the main
barriers in opting for an electric vehicle remain the purchase price, the lifetime of the battery
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and the fuel prices. Mr. Lebeau concluded his presentation by stating that the e-vehicle is
not competitive with the diesel version, at least not in the heavy sectors.
Morello: To facilitate the market uptake, it would help to be considering Total Costs of
Ownership (TCO) but also environmental impacts, and to calculate the benefits per tkm
instead of km only.
Browne: Assumptions are important. Fuel prices might change.
A lot of small businesses cannot guarantee technical service, they pop up, but their service
remains unknown and there is the question of which network to maintain.
Fornies: What happens if I buy a vehicle in Sevilla and it breaks? Assistance?
Caux: We are far from having a network. Small owners are very innovative. We are not yet
at the level of a market.
Darchambeau: We are using 2 Goupil. Complains about reliability. Chronopost resold all its
fleet of Goupil. Disadvantage of 4-wheels vehicles and vans is that there is no access to bus
lane, and that there is a need to improve reliability. Other applications might be better than 4-
wheel electric vans for deliveries. There are a number of risks with e-vehicles: the risk to
break down, the risk for shutdown in the middle of the traffic, and also a number of tricky
risks for delivery companies. E-vehicles today do not have advantages compared to diesel
cars.
Lebeau: Important criteria when selecting the right type of vehicle are the good choice of
manufacturer and of the services included, besides selling the vehicle. Some customers are
very happy with the Goupil.
Barrera: Different cities are discussing the uptake of such vehicles. Many say they don’t
want these small vehicles. Some application can be promising in specific segments.
Panel discussion 2: Vehicle and e-Freight Solutions in Sustainable Logistics
(moderated by Michael Browne)
- Alberto Preti (ITL) provides us with two suggestions when considering city logistics. First of
all, further investigation and initiatives needed a simplification of rules. Secondly, the role of
public authorities should be further analysed; how far can this role go? Mr. Preti stressed the
importance of city logistics when adding that a great number of cargo trips are local trips
(under 50 km).
- Marcel Huschebeck (PTV) stressed the importance of cooperation models and framework
models. He proposed to further enhance this important instrument. Furthermore, it would be
helpful to understand who is responsible for logistics in which city, to enhance further
cooperation. Mr. Huschebeck stressed the need for more transparency and the importance
of structuring urban distribution centres in order to obtain more structure in urban areas.
-Jan Tore Pedersen (MARLO) elaborated on the notion of collaboration. Further
collaboration should be initiated from within the industry. The notion also includes
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collaboration between small & big companies. Furthermore, we should accept that the
mental state is changing and accept the differences.
The question remains: where can we make a difference and who can make one?
Mr. de Voghel: The further and enhanced cooperation in the logistics sector should go
beyond this sector, because other sectors have the same problems. Service providers such
as telephone companies, press delivery companies and postal services already have a
network established, but are currently looking for other things to do, why not involve them?
The momentum is there, also for other actors, not only for cargo-bikes.
Mr. Fornies: What about concrete responses to a small scale business in order to expand on
a bigger scale? We talk a lot about big words such as ‘collaboration’, but what about
financing, warranty issues etc.? Mr. Pedersen added that maybe small businesses should
look more for analogies, where did the same kind of problems occur and by which solutions
were those problems overcome.
How to scale up things? Should the initiative be taken by one of the big sector players, or
can we expand small scale solutions to a bigger scale?
-Our role is not being neutral; it is about seeing an opportunity. But let’s not forget that there
are also other games in town, such as ecological and social impact, the image of companies.
-We have seen some good examples of cooperation during the conference, for example the
“Charter for Good Practices” in the City of Paris’ freight policy (as developed by Mr.
Darchambeau of Green Link)
Several conclusions were formulated by moderator Michael Browne:
1. During the conference, we recognized that things do change, albeit gradually.
2. We should think about where in the supply chain more efficiency can be gained;
where do we find efficiencies already, and where do inefficiencies occur?
3. We found out that the trickiest bit of the whole discussion relates to the
organisational context and the implementation.
4. We shouldn’t forget the issue of money and investment in the whole story. There
are different ways to look at this, but don’t forget the importance of networks.
5. Last but not least, one of the most important issues is the issue of trust; in
people, in figures and in networks.