URBAN FREIGHT CONSOLIDATION CENTRES –TRENDS, CHALLENGES, SOLUTIONS

Milena Janjevic, QalincaLabs, Université Libre de BruxellesEuropean Cycle Logistics Conference, San Sebastian, 15th October 2015

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Urban freight transport is essential for the city’s economy and liveability but is also a source of important externalities….

PEOPLE(Social Sustainability)

PROFIT(Economic Sustainability)

PLANET(Environmental Sustainability)

• Safety• Noise (add 5dB to the passenger traffic)

• Congestion contribution (double parking)

• Congestion contribution (10-­15% of travelled miles)

• Critical to support consuming market: last mile accounts for 40% of the total transportation costs

• 1/3 of transport Nox emissions• ½ of particulate matter emissions from transport

• 21% of CO2 emissions

Sources: Janjevic, Lebeau, 2013. Strategy for the implementation of sustainable logistic concepts for the Brussels Capital Region ( No. Activityreport of 18 month of research). ULB, VUB, Innoviris, Brussels.

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Illustration: the urban link accounts for 1% of distance and 25% of logistical costs

1 -­ Champs de coton2 -­ Stockage de la matière première3 -­ Filature et tissage4 -­ Confection et lavage5 -­ Entreposage6 -­ Port d’expédition7 -­ Port de transbordement8 -­ Port de réception9 -­ Plateforme logistique10 -­ Distributeurs,détaillants, clients

Example: textile industry supply chain China-­Europe

Source: CERTU, 2013. Transport de marchandises en ville  : quels enjeux pour les collectivités  ?

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Urban consolidation centres aim in rationalizing the last mile deliveries and decreasing the total vehicles*km relevant to urban freight transport

Transport flows before and afterthe implementation of the UCC

Source: Bruxelles Mobilité, 2012, ADEME, 2010

Number of deliveries and trips for Brussels

45%

10%

10%

10%

45%

80%

0%10%20%30%40%50%60%70%80%90%100%

Deliveries Trips

Occasional

Branches procurementConsolidation

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Urban consolidation centres are also an opportunity to adopt the vehicles used for the last leg of distribution to the urban environment

ELCIDIS, La Rochelle Binnestadservice, Nijmengen

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There is a large number of implementation cases of urban consolidation centres (mostly in Europe)

0

5

10

15

20

25

30

35

40

45

1970-­1975 1976-­1990 1991-­1995 1996-­2000 2001-­2005 2006-­2010

Start date of the UCCs

Source: Allen, J., Browne, M., Woodburn, A., Leonardi, J., 2012. The Role of UrbanConsolidation Centres in Sustainable Freight Transport. Transport Reviews 32, 473–490. doi:10.1080/01441647.2012.688074

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There are many variations of the UCC concepts… (1/2)

Examples: Construction material UCCs in Heathrow and Stockholm

Construction project UCCs

Examples: La Rochelle, Nijmegen, Bristol

UCCs serving a town/city

Examples: Meadowhall (Yorkshire), Heathrow retail UCC

UCCs on single site

Source: Allen, J., Browne, M., Woodburn, A., Leonardi, J., 2012. The Role of UrbanConsolidation Centres in Sustainable Freight Transport. Transport Reviews 32, 473–490. doi:10.1080/01441647.2012.688074

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There are many variations of the UCC concepts… (2/2)

UCC Surface of the UCC (m2)

Micro-­Consolidation centre London 160

Motomachi UCC, Yokohama 330

Ecologis Brescia 400

Broadmead UCC, Bristom 465

The Green Link 750

La Rochelle UCC 800

Lucca 810

City Depot Brussels 1000

Padova UCC 1000

Monaco 1300

Leiden 1500

Beaugrenelle urban Logistics Space 2900

Source: own elaboration based on litterature review

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However, despite the significant interest from both the public and the private sector, their long-­term viability is difficult to reach

Source: Lebeau et. al, 2015, Investigating support for UrbanConsolidation Center in Brussels

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Challenge 1: Commercial feasibility (i.e. sufficient market for UCC)

Example: urban consolidation centre in Leiden Some figures

• Leiden: 117 000 inhabitants

• UCC surface: 1300 m2

• Expected impact: a daily reduction of the number of commercial vehicles from 24,000 to 5,000 (-­80% !)

• Break-­even: 600 shipments/day

• Maximum throughput reached: 90 shipments/day

Source: BESTUFS

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Challenge 2: Additional cost of transhipment

Source – urban distribution service PriceUCC1* • 2,5-­5 euros/parcel

• 10-­20 euros/palletBoudouin, 2006 • 3 euros/parcel

UCC La Rochelle • 3,80 euros/parcel

UCC Monaco • 4,90 euros/100kg

La Petite Reine • 2,50-­5 euros/delivery

Source: Ownelaboration based on litterature review;; Browne, M., Woodburn, A., Allen, J., 2007. Evaluating the potential for urban consolidation centres.

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Challenge 3: Allocation of costs and benefits

+/-­ Change in cost of deliveries-­ Loss of customer contact

+/-­ Change in cost of deliveries-­ Monopolistic situation

+ Receiver-­oriented services

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Challenge 4: Lack of stakeholder support (1/2)

Brussels International Logistics Centre: the project…

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Challenge 4: Lack of stakeholder support (2/2)

Brussels International Logistics Centre: the reaction…

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Recently, there has been a regain of interest in the UCC concept and some new concepts have emerged…

Ecologic, Brescia Citydepot, Brussels

Cityporto, Padova Binnenstadservice, Netherlands

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Concept 1: Downscaling the scope of the consolidation

Micro-­consolidation centre, London La Petite Reine, Paris

Source: Browne, M., Allen, J., Leonardi, J., 2011. Evaluating the use of an urban consolidation centre and electric vehicles in central London. IATSS Research 35, 1–6. doi:10.1016/j.iatssr.2011.06.002

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Concept 2: Reducing the necessary infrastructure

Example: Mobile depot by TNT Express in Brussels

Source: STRAIGHTSOL project, 2015

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Concept 3: Receiver-­based consolidation centres

Binnenstadservice, Netherlands Citydepot, Hasselt, Belgium

Some advantages for retailers participating in the UCC scheme

• Remote storage (potential to increase the sales surface in the shop)• Single delivery for several suppliers (reduction of the time necessary to receiver the goods)• Possibility to choose the delivery hours (potential to move them to off-­peak shopping periods)• Public recognition (“green logistics”)• Other services (e.g. home delivery)• Management of the return logistics

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Concept 4: Better supply chain integration

• Labelling, packaging, pre-­retailing, tracking and tracing, quality control, etc.

Value-­added services

• Consolidation of goods• Transhipment towards more adapted vehicles

• Fast turnover of goods in the consolidation centre

Transhipment point

• Remote stock of goods available at request

• Increase in the sales area• Better reactivity of the supply chain

Remote storage

SUPPLY CHAIN INTEGRATION

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Concept 5: Night and off-­hour deliveries to the UCC

• Decreased travel time• Decreased service time

Carriers

Receivers

• Increased reliability of the deliveries• No need to extend the reception hours as in the

case of regular off-­hour deliveries

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Conclusion

Reduction of time per journey

Improved loading factor

Off-­hour deliveries

Improved delivery reliability

Decreased congestion

Improved service quality

Decreased cost of operations

Decreased CO2 and pollutant emissions

Competitive local economy

CITY PERSPECTIVE

SUPPLY CHAINPERSPECTIVE

Value added-­services