Supporting electric freight vehicles in Hamburg

Tessa Taefi, Tobias Held, Jochen Kreutzfeldt

Hamburg | July 2014

Report written within the framework of Activity 7.4 of the Interreg IVB project E-Mobility NSR

Preface

Dear Reader,

Electric vehicles, charged with renewable energy, reduce global and local air pollutant emissions. Fos- tering electro mobility is important to the German federal and local authorities in adhering to the EU climate limit values and goals of the German ’Energiewende’. Urban commercial fleets offer a signifi- cant first market for electric vehicles, as highlighted in the electric mobility pilot regions. Especially in fleets performing road freight transport tasks, electric vehicles are technically suitable, as trips are often recurring and planned ahead. Thus, the scheduling of driving and charging electrical freight vehicles can be well planned.

Also for companies who transport freight in urban areas, electric vehicles offer advantages: they decouple transport costs from any potential fuel price increase and can even result in new business opportunities through future regulatory privileges and the vehicle’s sustainable image. Despite these potentials, only about one out of thousand commercial vehicles had a fully electric power-train in Germany on January 1st 2014, according to KBA statistics. Hybrid vehicles play an even smaller role.

What actions can Hamburgs government take to support electric vehicles especially in urban freight transport? Which of the measures are most effective to increase the share of freight EVs? Is a financial involvement or are personnel resources necessary, and can the measures be integrated into the overall traffic planning? This report will attempt to provide answers to these questions, by combining expert interviews and case studies.

The results are quite interesting since recommended actions go beyond discussing financial subsidies or free parking for EVs. To name a few examples: support structures for electric cargo cycles and appoint- ing companies who offer emission free goods transport for municipal freight requests are beneficial and can be quickly integrated. When looked at over a longer period, electric trucks in city logistic structures are an option to be considered in pilot projects.

The study was carried out on behalf of the EU Interreg IVB North Sea Region project ’North Sea Region Electric Mobility Network’. Colleagues in the other countries of the North Sea region shared their ideas with respective reports for metropolitan regions in their countries. We would especially like to thank Prof. Dr. Christine Lacher for the important inputs she provided in the elaboration of this document.

We hope this report can serve as a source of inspiration and ideas to enhance the promising efforts the city of Hamburg has already undertaken to foster electric mobility and increase the numbers of electric freight vehicles in Hamburgs - as well as in other cities.

July 2014 Hamburg, Germany

Contents List of figures ...... III List of tables ...... IV

Executive Summary 1

1 Objective and structure 3 1.1 Structure and methodology ...... 3 1.2 Definitions ...... 4

2 Analysis of Hamburg’s freight traffic situation 6 2.1 Flourishing Hamburg ...... 6 2.2 A focus on electro mobility ...... 6 2.3 The second most congested city ...... 7 2.4 Up to 36% commercial traffic ...... 8 2.5 Strongest freight traffic growth ...... 8 2.6 Main noise contributor: Road traffic ...... 9 2.7 Exceeding air pollutant limit values ...... 9 2.8 Carbon dioxide emissions ...... 10 2.9 Road safety ...... 11 2.10 Summary ...... 11

3 Required conditions for deploying electric freight vehicles 14 3.1 Profitable strategies ...... 14 3.2 Examples of electric freight vehicles in Hamburg ...... 16 3.3 Electric freight vehicles in Germany and the North Sea region ...... 18 3.4 Interviews with freight transport companies ...... 20 3.4.1 Group 1 - Last mile delivery and transport on-own-account ...... 20 3.4.2 Group 2 - Crafts ...... 23 3.4.3 Group 3 - Waste management ...... 26

4 Actions to support deploying electric freight vehicles 28 4.1 Methodology of rating actions ...... 28 4.2 Non-financial tools: Regulation ...... 30 4.2.1 Free and privileged parking or loading/unloading facilities ...... 30 4.2.2 Entry into pedestrian zones beyond delivery windows ...... 31 4.2.3 Usage of bus lanes ...... 31 4.2.4 Low emission zone ...... 32 4.2.5 Zero emission zone ...... 32 4.2.6 Drivers license ...... 33 4.2.7 Time or spatial limitations for loud heavy vehicles ...... 33 4.3 Financial tools ...... 34 4.3.1 Exemption from vehicle tax ...... 35 4.3.2 Purchase price subsidy ...... 35 4.3.3 Electric freight projects ...... 36 4.3.4 Exemption from city tolls ...... 36 4.4 Raising awareness ...... 37 4.4.1 Electric freight vehicles in municipal fleets and services ...... 37 4.4.2 Green transport label ...... 38 4.4.3 Information campaigns ...... 39 4.5 Infrastructure ...... 39 4.5.1 Quick charging infrastructure on company compounds ...... 39 4.5.2 Electric cargocycles ...... 40 4.5.3 Micro consolidation centers ...... 41

I 4.5.4 Electric vehicles repair and service workshop ...... 42 4.6 Summary of actions to increase the freight electric vehicles share in Hamburg . . . . . 43

5 Rating and suggested actions to increase the share of electric freight vehicles 45 5.1 Recommended actions ...... 46 5.2 Actions to test in pilot projects ...... 49 5.3 Excluded measures ...... 50 5.4 Summary ...... 51

Bibliography 53

A Appendix 57 A.1 Available electric freight vehicles ...... 57 A.2 Amsterdam: Executive summary ...... 60 A.3 Copenhagen: Executive summary ...... 62 List of Figures

1.1 Overview of the research process ...... 3 1.2 Number of commercial and hybrid EVs in Germany ...... 4 1.3 Segments of urban commercial traffic ...... 5

2.1 Hamburg in numbers ...... 6 2.2 Distribution of commercial vehicles per weight class in Hamburg ...... 6 2.3 Percentage of electric vehicles of licensed vehicle stock, Hamburg and Germany 20147 2.4 Exemplary average annual NO2 imssions in 2012 ...... 9 2.5 Average share of NOx emissions by vehicle class in Hamburg ...... 10 2.6 CO2 emissions of Hamburg’s traffic 2010 in Megatons ...... 10

3.1 Identified concepts to improve profitability of freight EVs ...... 14 3.2 Distribution of freight EVs in Hamburg’s companies by end-2013 ...... 16 3.3 Costs per ton payload of diesel, electrical and hybrid waste collection trucks ...... 27

4.1 Comparison of annual mileage to reach profitable operation compared to conventional vehicles ...... 28 4.2 Portfolio of rated actions to increase freight EVs share in Hamburg ...... 44

III List of Tables

2.1 Comparison of the potential of freight EVs with Hamburg’s administrative electro mo- bility focus ...... 12

3.1 Examples of freight electric vehicles in Hamburg, data from Dec. 2013 ...... 17 3.2 Number of freight vehicles identified in freight EV case studies ...... 19 3.3 Profile of interviewed companies in group 1 - ’last mile delivery and transport on-own- account’ ...... 20 3.4 Measures to rank - group 1 ’Last mile delivery and transport on-own-account’ . . . . . 21 3.5 Ranking of preferences, group 1 ’Last Mile Delivery’ ...... 21 3.6 Additional supportive measures desired by electric vehicles users of group 1 ’last mile delivery and transport on-own-account’ ...... 22 3.7 Desired measures to support EVs - group 2 ’Crafts’ ...... 23 3.8 Profile of interviewed companies in group 2 - ’Crafts’ ...... 24 3.9 Measures to rank - group 2 ’Crafts’ ...... 25 3.10 Ranking of preferences, group 2 - ’Crafts’ ...... 25 3.11 Comparison of waste collection trucks ...... 26

4.1 Overview of expert rating of actions ...... 43

5.1 Ranking of recommendations ...... 45 5.2 Overview of ranking of actions ...... 46

A.1 Overview of available small and light electric freight vehicles ...... 57 A.2 Overview of available electric freight vans and trucks ...... 58 A.3 Conversion companies ...... 59

IV Executive Summary

The goal of this report is to summarize and pri- emissions of freight traffic. oritize which actions Hamburgs government could Thirdly, Hamburg is the second most congested take, in order to increase the share of electric city in Germany, and the 9th most congested freight vehicles. This document is a result of the in Europe (TomTom, 2013). While replacing a EU-Interreg Project ”North Sea Region Electric conventional truck by its electrical sibling would Mobility Network” (E-mobility NSR). Two similar not reduce the congestion, new delivery concepts reports have been compiled by project partners for emerging due to the new EV technology possibly the cities of Copenhagen and Amsterdam, see their could have a positive impact. On the one hand, executive summaries in the appendix of this report. small, light EVs such as electric quads, scooters and cargobikes need less space for on the road and Trade, transport, and logistics once layed the foun- for parking. On the other hand, freight EVs are a dation to Hamburgs wealth in medieval times. To- door opener to discuss modern logistics concepts, day, transport continues to be an essential sector such as night time delivery or freight bundling. to the city: due to its favorable geographic posi- tion, Hamburg is the main hub for trade and traffic In order to reduce the negative impact of traffic, in Northern Europe (Löffler and Sye, 2010). Trans- Hamburg is already a strong supporter of elec- port accounts for ten percent of the city’s GDP, tric mobility and has initiated various projects for which is twice the German average (Sye, 2010). private, public and commercial transport. The Ger- Until 2025, freight transport volume will nearly man vehicle statistics testify to the positive impact double, compared to 2004, while the population of these projects on the portion of EVs within the of 1.8 million today might increase by 25% by licensed vehicle stock: Hamburg has twice as many 2030, according to a high forecast by Konstanti- EVs among passenger cars and twice as many nos (2010, p. 8). among light commercial vehicles than the German average (Kraftfahrt-Bundesamt, 2013a). However, These growth projections highlight the importance Hamburgs’ EV projects so far only support elec- to achieve a more efficient and greener freight tric passenger vehicles up to 2.3 tons, although transport in the future, since the negative impacts in Hamburg - similar to other cities in the North of road freight traffic are an issue already today: Sea region - the majority of freight is transported Firstly, road traffic is the main reason why Ham- with two different types of electric vehicles: Either burg exceeds the limit values for the yearly average with small, slow EVs (electric cargo bikes, quads of nitrogen dioxide immission (Böhm and Wahler, or scooters), or with freight EVs between 3 and 2012). Although they only contribute to 6% of 7.45 tons. the licensed vehicle stock in Hamburg (Kraftfahrt- Bundesamt, 2014), freight vehicles over 3.5 tons How can these types of freight EVs be supported by account for 45% of traffics NOx emissions (Böhm Hamburgs government? Possible approaches were and Wahler, 2012). Electric freight vehicles are derived from two sources: Firstly, interviews with free of tailpipe emissions such as carbon dioxide, 23 companies which transport freight in Hamburg nitrogen dioxide and particulate matter. Hence, indicated and rated possible measures. Secondly, raising the share of freight EVs would have a pos- supportive policy measures and profitability strate- itive impact on Hamburgs air quality. gies found in the European North Sea region were Secondly, road traffic is the main source of noise collected and added. For each measure, experts pollution (Ohm et al., 2012), which affects about from Hamburg’s companies, administration and re- a third of Hamburgs population (Umweltbunde- search rated the following four factors: samt, 2013a). Heavy freight EVs are more silent 1. Replacement: rates the effectiveness of a mea- during operation up to a speed of 50 km/h - sure to replace diesel vehicles through EVs; 2. Ef- meaning practically the entire Hamburg city area fort: rates the costs of a measure in terms of (Umweltbundesamt, 2013a, 59). Also smaller de- personnel and financial resources which Hamburgs livery vans and smaller transporters that need to government would be required to invest; 3. Inte- brake and accelerate often in the city would profit gration: rates the feasibility of integrating a mea- from an electric power-train with regards to noise sure into the overall sustainable traffic planning reduction (Umweltbundesamt, 2013a, 59). Thus, a concept; 4. Timeframe: indicates the time needed higher share of freight EVs could reduce the noise until a measure could be implemented.

1 Recommended measures: Measures to test in pilot projects: The report concludes with the recommendation Setting up pilot projects for freight EVs was a fur- to implement supportive measures which recorded ther recommended measure. Pilot projects offer the high scores for the factors ’Replacement’ and ’In- chance to evaluate whether a measure is effective, tegration’. If only limited resources are available, efficient and suitable for Hamburg. Hence, mea- the expected ’Effort’ gives an indication about a sures which achieved a medium score for the fac- possible ranking of these recommended measures. tors ’Replacement’ or ’Integration’ are suggested Short term to be tested in pilot projects. • Keep or even extend the exemption from annual • Allow freight EVs to be used in pedestrian zones vehicle tax. Implemented - Low effort. within the framework of a city logistic approach. • Increase the number of freight EVs in mu- • Testing of consolidation centers or privileged nicipal services by implementing the HmbVgG loading bays as micro consolidation hubs. §3B (9) more consistently. This directive allows • Time or spatial limitations for loud vehicles with emission-free vehicles to be preferred for munic- EV exemptions. ipal transport contracts carried out by external • Encourage a local garage to set up an EV re- transport companies. Low effort. pair and service shop providing fast and reliable • Implement information campaigns on freight service to all freight EVs deployed in Hamburgs EVs, including the possibility to deploy (electric) projects. cargo cycles, scooters or quads. Medium effort. • A purchase price subsidy in freight EV projects, • Offer the regulative advantage of privileged which is not only limited to leasing, but allows parking to EVs, as soon as the vehicles are legally purchasing and which does not cap the annual marked. Medium effort. amount of kilometers. Medium term Excluded measures: • Campaign for drivers license exemptions at the Two possible measures were excluded because of federal assembly: allow the deduction of the bat- the low ratings given to them by the experts. tery weight from EVs gross weight, in order to • A strict (green or blue) low emission zone would allow drivers with a B class license to drive 3.5 reduce the particulate matter emissions, but ton EVs with a payload comparable to conven- would have only a limited impact on the number tional vehicles. Medium effort. of freight EVs. • Campaign for a federal green transport label at • An exemption for freight EVs to utilize bus lanes the German federal parliament to support com- seems especially undesirable in Hamburg. panies in communicating their commitment to reduce emissions by deploying freight EVs to- So far, available reports such as the ’Handlungsleit- wards the customers. Medium effort. faden Elektromobilität in Kommunen’ (Grausam • Support companies in establishing their et al., 2014) summarize measures to support EVs own battery-charging infrastructure on their in general. These measures often cannot be directly premises: Especially with a more expensive quick transferred to the freight transport industry, which charging infrastructure, freight EVs could be operates under different preconditions than passen- deployed on multi-shifts. In this way they could ger transport. Therefore, this report is focusing on reach total costs of ownership similar to, or even measures to increase the share of freight EVs. We below, conventional vehicles. When profitable, hope they will serve as a source of information and more freight EVs would be deployed, leading to inspiration for Hamburg’s policy makers. However, reduced emissions. High effort. measures should be further assessed before being implemented within the framework of traffic and Long term urban planning development. The results of this • Fostering zero emission zones or exemptions report, as well as the methodology to rate the mea- from a city toll. City toll: Medium effort, Low sures can be readily applied to other cities. In this emission zone: High effort. way, this report hopefully can help to increase the • Improve cycle lanes infrastructure to support the numbers of freight EVs and thus reduce emissions usage of fast and heavy electric cargo cycles. from freight transport in our cities. High effort.

2 1 Objective and structure

This report aims at demonstrating the potential for Hamburg, its traffic and emissions are described. electric freight transport in the city of Hamburg. It To expand the background information, govern- summarizes and prioritizes the actions Hamburgs mental plans and programs and their impact on government could take, in order to increase the electric vehicles for urban freight transport pur- share of freight electric vehicles (EVs). The factors poses are described. which have been considered are the time line, re- sources needed, effectiveness to raise EV numbers Chapter 3 derives a list of possible measures to sup- and how well the action could be integrated into port electric freight vehicles in Hamburgs freight an overall traffic planning concept. The actions transport, by discussing the required conditions to are ranked, prioritized and recommended (or not), successfully deploy electric freight vehicles. Cases in order to provide Hamburg’s government with and best practice examples from Hamburg, Ger- more potential tools for further integration. many and the North Sea region are summarized and compared in order to identify the potential The report is one result of researching electric which exists for Hamburg. Moreover, companies of urban freight vehicles in the EU-Interreg Project different freight transporting segments (compare North Sea Region Electric Mobility Network. Two figure 1.3) have been interviewed on their opinion similar reports are currently released for further about potential measures to support EVs in Ham- metropolitan regions, Copenhagen and Amster- burgs freight transport. dam, their executive summaries can be found in the appendix of this report. While the report on Figure 1.1: Overview of the research process hand stands on its own, it has been expanded and enhanced by findings in the other two regions to increase its impact and to serve as inspiration to support electric freight mobility in further Euro- pean cities.

Greening freight transport through electro mobility is one of the many possible measures which in com- bination foster sustainable mobility. Among oth- ers these are: attaining a higher fuel efficiency and thus lower emissions, i.e. through engine downsiz- ing, vehicle lightweighting or increasing the traffic velocity; reducing vehicle movements, i.e. through higher average load factors; utilizing alternative fu- els or engine technologies. Lacher (2013), further- more, highlights that freight traffic is generated by consumer needs. Differentiating between traffic and mobility, and influencing the mobility needs of consumers, i.e. by informing the public on the neg- ative effects of traffic, offers an additional angle to reduce the consequences of freight traffic. Bearing this in mind, the focus of this report is to highlight areas where battery electric vehicles have proved technically and economically viable in transporting urban freight over the past five years in the Euro- pean North Sea region.

1.1 Structure and methodology These possible actions are discussed in chapter 4. In order to generate suggestions for the city of The report is divided into four segments, following Hamburg, four factors were rated for each mea- the research methodology depicted in figure 1.1. sure by up to 23 companies and five experts from In chapter 2 the role of urban freight transport for Hamburg’s government and one in research:

3 • The effectiveness of replacing conventional Government vehicles through EVs and thus reduce As one of Germany’s 16 federal states, Hamburg tailpipe emissions (rated by companies and is member of the German Bundesrat (Assembly of put into a greater perspective by the author- federal states) and contributes to the legislation ing team). and administration of the federal republic of Ger- many. For local administration Hamburg is divided • The costs of the measure for personnel into seven districts with own district authorities. and financial resources in the administration This report addresses the ’government of Ham- (rated by experts from government). burg’ without distinguishing the different levels of • The potential to be integrated in a sustain- political responsibilities. able traffic planning concept (rated by ex- perts from government and research). Commercial traffic This publication references ’commercial traffic’ • The time period needed for their implemen- as road traffic with motorized vehicles for busi- tation (rated by experts from the govern- ness purposes. Commercial traffic encompasses ment). the transport of persons (i.e. a shuttle service on companies premises) or goods (i.e. parcel delivery). In chapter 5, the rated actions are prioritized ac- cording to a ’logic filtering’ method. Highly priori- Among the transport of goods, four segments are tized actions, which are cost-efficient and could be differentiated. This classification is based on Noche well implemented are recommended, lower ranking (2012), and has been enhanced by including mu- actions are suggested to be tested, i.e. in projects, nicipal services, compare figure 1.3. and low ranking actions are abandoned. An overview of currently available freight vehicles Commercial transport: A company ships goods concludes the report as appendix A.1. of a different party between two points. This encompasses mail or parcel delivery, courier services and haulage. 1.2 Definitions Transport-on-own account: Encompasses Electric vehicles transport activities of companies as an aux- In this report, electric vehicles relate to battery iliary activity and part of their value cre- electric vehicles. Hybrids are not included, as hy- ation process. The transport is not for hire brid vehicles play only a minor role among com- or rewarded (OECD, 2002). Typically those mercial vehicles, compare figure 1.2. companies utilize their own drivers and own vehicles, for example a bakery which dis- tributes the bread from a central bakery to Figure 1.2: Number of commercial and hybrid EVs the shops. While the German legal definition in Germany of transport-on-own-account only recognizes vehicles above 3.5t gross weight, this study also includes companies who utilize light commercial vehicles to transport freight on their own account. Services: Include groups which transport goods while providing a service, such as pizza de- liveries, or craftsmen who repair a device and need to transport tools and spare parts. Municipal services: Includes vehicles in munici- Data: Kraftfahrt-Bundesamt (2013a). pal fleets and services. Often specialized ve- hicles are utilized (such as garbage collec- tion trucks), but also regular vehicles are de- ployed for transport tasks (i.e. for the trans- port of books between libraries).

4 Figure 1.3: Segments of urban commercial traffic

5 2 Analysis of Hamburg’s freight traffic situation

2.1 Flourishing Hamburg Figure 2.1: Hamburg in numbers Transport is important for the urban economy . and vitality. This is especially true for Germany’s second largest city, the Free and Hanseatic City of Hamburg. The official name bears testimony to the city’s strong historic background in trade and logistics, which once lay the foundation for Hamburg’s wealth. Today, transport continues to be an essential sector in Hamburg, it accounts for ten percent of the city’s GDP, which is twice the German average of about 5 percent (Sye, 2010).

With the third largest container port in Europe Data: Konstantinos (2010), Statistisches Amt für and thanks to its favorable geographic location, Hamburg und Schleswig-Holstein (2010), Sye (2010), Hamburg is the main hub for trade and traffic in Statistisches Landesamt Baden-Württemberg (2013). Northern Europe (Löffler and Sye, 2010). With the highest GDP per head among the federal states (Statistisches Landesamt Baden-Württemberg, 2.2 A focus on electro mobility 2013) and constantly being rated among the most livable cities of the world, for example in studies of Around 87 percent of the about 850,000 registered Mercer (2012), Hamburg’s population of approxi- vehicles in Hamburg are passenger cars, about 6 mately 1.8 million is projected to increase. Studies percent are light and heavy commercial vehicles. on the projected population increase vary. The Among these, the majority are light commercial Statistisches Amt für Hamburg und Schleswig- vehicles of passenger car size or vans up to 1 ton Holstein (2010) only expects an increase of around payload (Kraftfahrt-Bundesamt, 2014). 100,000 inhabitants between 2010 and 2030, while, as a high estimate, Eurostat, of the European Commission, estimates a 25% increase by 2030 Figure 2.2: Distribution of commercial vehicles per (Konstantinos, 2010, 8). weight class in Hamburg

Similar to other metropolitan areas, Hamburg is already faced with the negative impacts of road traffic already today: congestion, traffic accidents, noise pollution, local air pollutants and greenhouse gases. Enabling and shaping mobility, while limiting its negative impacts on the population and the en- vironment is one of the major tasks growing cities like Hamburg are facing today.

Data: Kraftfahrt-Bundesamt (2014).

Hamburg has a strong focus on electric mobility, which is reflected by the official vehicle statistics. Comparing the share of EVs within the licensed ve- hicle stock with the German average, reveals that in Hamburg there are twice as many electric pas- senger cars and twice as many electric light com- mercial vehicles, compare figure 2.3 (Kraftfahrt- Bundesamt, 2013a). The reason that no electric buses are registered in Hamburg is due to it’s focus

6 on hybrid and hydrogen technology: Hamburg’s 2.3 The second most congested city ambitious alternative buses program is aiming to purchase solely low-emission buses from 2020 on- Statistically, every household in Hamburg has 0.8 wards. cars; the lowest value for a federal state after Berlin (Infas, 2010), which is also a city state. Despite this low number, the dense population of Figure 2.3: Percentage of electric vehicles of li- Hamburg means a high number of vehicles in the censed vehicle stock, Hamburg and Germany 2014 city. 1,126 motorized vehicles per square kilometer were registered in January 2013, a large number compared to the German average of 147 vehicles per square kilometer. Commuters from adjoining federal states add to the vehicles on Hamburg’s roads, as for example more than 2/3rds of 260,000 inbound commuters traveling to work reach Ham- burg by passenger car (Statisches Bundesamt, 2009).

The navigational system producer TomTom ranks Data: Kraftfahrt-Bundesamt (2014). Hamburg the second most congested city in Ger- many behind Stuttgart, and 9th of 59 rated Euro- pean cities. According to TomTom Hamburg has Remarkable about the vehicle population is that a congestion level of 32%. This means in 2012 Hamburg has the youngest fleet of passenger ve- there was an average delay of 31 minutes per hour hicles in Germany, and after Berlin (6.2 years) the driven during the peak period and a total delay of second youngest fleet of commercial vehicles (6.4 78 hours per year for a 30 minute commute. With years on average, the German average is 7.6 years). 36%, the ”congestion level” on non-highways is Since Hamburg is the only major city in Germany higher than the one on highways (27%). Thus the without an environmental zone, the German au- congestion inside the city is a bigger issue com- tomotive club ADAC draws the conclusion that pared to the highways going past Hamburg in the environmental zones do not seem to be a driving East and West (TomTom, 2013). factor for the renewal of the vehicle fleet in a city (ADAC, 2013). In the future, the growing population and demo- graphic change will result in an increasing demand A different explanation can be derived when fur- for transport services. Especially the groups of the ther examining the KBA statistics: in Hamburg, a young and older inhabitants are projected to in- high 18.7 percent of the passenger cars are regis- crease in cities (Altenkirch et al., 2011, pp. 25-44). tered by commercial owners - the German average Young city dwellers who tend to not own a car, is only 10.0 percent. Those commercial users dom- generate commercial traffic through e-commerce, inated the new registrations of passenger cars in leading to increasing home delivery and returns Hamburg (85%) in the past few years, compared (ibidem). Similarly, the older generation will in- to Germany’s average of 60% in 2011. As nearly all creasingly rely on mobility services like meal deliv- electric vehicles sold today are new vehicles, one ery and home care, also adding to the commercial might argue that the commercial fleet in Hamburg traffic. presents a special opportunity to bring the new EV To further develop and manage Hamburg’s traffic, technology onto the streets. However, according the administration has drafted a mobility pro- to Kraftfahrt-Bundesamt (2012), the high share gram ”Mobilitätsprogramm 2013”. The program of commercial owners registrations can mainly be contains a comprehensive overview on the current credited to registrations through car manufactur- traffic situation and projects. It outlines the frame- ers or rental companies like Europe car. work from which a future traffic development plan for Hamburg will be derived (BWVI, 2013).

7 Electro mobility could help reduce congestion and 2.5 Strongest freight traffic growth land use for loading and parking by replacing smaller freight vehicles with electric cargo bicycles, In German cities about 1/3rd of the commer- tricycles and scooters (Leonardi et al., 2012). How- cial traffic volume is generated by freight trans- ever, those advantages are disputed in scientific port (Müller et al., 2006). With an annual in- literature: Melo et al. (2014) argues that a share crease of 3.1 percent, Hamburg’s growth in road higher than 10% of cargo bikes led to a higher freight transport volume stands out among the traffic density and slower average speed, due to federal states; the German average growth is only the slow EVs, in a simulation for the city of Porto 0.85 percent, between 2004 and 2025 Hamburg’s (Portugal). The topic will be discussed further in road freight transport volume will nearly double chapter 4.5.2 on page 40. The cargo bikes are usu- (ITP/BVU, 2007, p. 219). For this reason, freight ally deployed in the inner city area. In Hamburg a traffic is a significant segment within commercial parcel delivery and a courier service are currently traffic where emission savings can be realized. The testing electrical cargo bikes, a second courier ser- following weight classes can be differentiated in vice has tested electrical scooters. Larger electric urban road freight transport: freight vehicles can help reduce congestion indi- rectly, when deployed in concepts like city logistics Heavy trucks above 12 tons or night distribution. While such concepts reduce Many of the heavy commercial vehicles over 12 congestion independently from vehicle technology, tons connect the port with Hamburg’s hinterland: the more silent and low-emission electric vehicles one out of three containers handled in the port technology can be a door opener for the discussion originates or is destined for Hamburg’s metropoli- of such concepts with stakeholders (Menge, 2013). tan area. 80 - 90 %of these containers are trans- ported via truck (Löffler and Sye, 2010). In order to manage the freight traffic in the port, the Ham- 2.4 Up to 36% commercial traffic burg Port Authority has developed a ”Masterplan” for the road traffic in the harbor area. It includes, Commercial traffic encompasses the transport of among other measures, capacity planing and IT freight and the transport of persons. Commercial support. Furthermore, Hamburg is testing an en- vehicles contributes to about 36% of the total traf- ergy efficient EuroCombi (”Lang-LKW”). fic volume in Germany (Wermuth, 2012). Thus, Existing EVs in this weight class are converted commercial traffic is of particular interest when it in pilot projects from diesel vehicles: for example, comes to reducing traffic and its related emissions. in Hamburg battery supplied automated guided Hamburg has recognized the large potential the vehicles (B-AGVs) have been successfully tested. commercial vehicles segment offers for deploying These highly specialized vehicles can carry up to electric vehicles. In 2009 Hamburg became one of 60 ton containers in the port of Hamburg. eight pilot regions for electric mobility in Germany. Beyond the creation of public charging infrastruc- Trucks between 3.5 and 12 tons ture, and supporting of hybrid buses and inter- Trucks up to 12 tons are exempt from the German modal passenger transport, the third focus was highway toll (”Autobahn Maut”). In this weight laid on testing and supporting electric commer- class, some electric vehicles are already available, cial vehicles. At the beginning of 2013, 68 com- see appendix A.1. Distances covered in the city are mercially used battery electric vehicles were reg- often technically suitable to the kilometer range istered in Hamburg. With this number, Hamburg of electric trucks. In Hamburg, the commercial had together with Baden-Würtenberg the highest transport is dominated by haulage and Courier- share of commercial EVs among all federal states , Express-, Parcel (CEP) companies. Half of the (0.14 percent, compared to the German average 2,000 registered haulage companies deploy com- of 0.09 percent), compare figure 2.3 on page 7. A mercial vehicles over 3.5t gross weight (Sye, 2010). new project ”Hamburg - Wirtschaft am Strom” was Parcel delivery is growing at an exceptional rate launched in May 2013. In this project it is planned due to the booming e-commerce segment: the to subsidize up to 740 battery electric passenger amount of parcels sent to private customers (b2c) cars and light commercial vehicles in public and grew by 9.2% in 2012 (Esser and Kurte, 2013, 7). commercial fleets (Senat-Hamburg, 2013, 17).

8 Light commercial vehicles below 3.5 tons level. Bundling these measures, the transporting of Light commercial vehicles are utilized by most of freight with electric vehicles could reduce the noise the 1,700 companies in CEP, which are mainly mi- level in the whole city area. cro enterprises, typically transporting small and ur- gent courier goods (Sye, 2010). Light and medium 2.7 Exceeding air pollutant limit commercial trucks up to 3.5 tons payload had the second highest share of the number of trips in values commercial traffic (25%), after privately owned The city of Hamburg is monitoring the air quality passenger cars (40%) and before passenger cars according to the European air quality guideline and of commercial owners (20%) in Germany in 2010 federal immission limitations. Hamburg exceeded (Hautzinger, 2012, p. 8). The surprising conclusion - like further 56 German regions - the immission of the Kid survey (Wermuth, 2012) was that pri- limit values for air pollutants and applied for a time vately owned cars are an important but neglected extension (which was not granted) (Umweltbunde- factor in commercial traffic. samt, 2011). Especially the Hamburg is exceeding While the main trip purpose for passenger cars of especially the nitrogen dioxide (NO2) limit values. commercial owners was in service (35.5%), more In 2012 in four of Hamburg’s observation stations, than two thirds (68.5%) of the light and medium the values were exceeded significantly. trucks up to 3.5t payload were used for freight transport purposes (Hautzinger, 2012, p.9). The air quality plan identifies road traffic as the main cause for exceeding the limit values, by com- 2.6 Main noise contributor: Road paring different NO2 immission levels, see fig- traffic ure 2.4. The regional background level of 13 µ g/m3 was recorded in Bornhöved, a village of Road traffic is by far the main contributor to noise 3300 inhabitants about 50 kilometers from Ham- emissions in Hamburg. Noise from rail and air burg (Lehmhaus and Mayer, 2013). Hamburg’s city traffic plays a minor role (Ohm et al., 2012). Over background level was measured in a park within the 650,000 inhabitants of Hamburg are affected by center of Hamburg (Sternschanze, 30 µ g/m3). noise over 55 dB (A) (Umweltbundesamt, 2013a). Here, the immission is still below the limit value of 40 µ g/m3, while an observation station two Hamburg has published a noise action plan, the kilometers further at the Max-Brauer-Allee, a busy Lärmaktionsplan (Ohm et al., 2012). The authors road, records an immission value of 65 µ g/m3 describe immediate measures to be taken at the (data from 2012). loudest roads with over 75 db during the day or 65 db at night. Further proposals are targeting roads with over 70 dB during the day or 60 db at night. Figure 2.4: Exemplary average annual NO2 ims- Measures proposed in the Lärmaktionsplan do not sions in 2012 include electric commercial vehicles.

Although electric trucks have an advantage with regards to noise emissions until they reach speeds of 50 km/h - meaning nearly on all inner city roads, larger electric commercial vehicles are not addressed as a possible measure to reduce noise in the Lärmaktionsplan (Umweltbundesamt, 2013b). Also not addressed are smaller transporters who brake and accelerate often in the city and would profit from an electric power-train with regards to Data: Lehmhaus and Mayer (2013); Institut für noise reduction (Umweltbundesamt, 2013a, 59). Hygene und Umwelt (2013). Furthermore, electric bicycles and tricycles poten- tially can replace small cars in postal, courier and food delivery delivery services, reducing the noise Of the road traffic, vehicles over 3.5 tons have a

9 large impact on the air quality: although they con- are considered. In personal transport the projects tributed to less than 8% of the annual mileage in ”e-Quartier” and ”öffentlichen Personennahverkehr Hamburg, they were responsible for nearly 45% of / Intermodalität” are projects to improve the air traffic’s NOx emissions, compare figure 2.5 (Böhm quality. The project "Wirtschaft am Strom" fo- and Wahler, 2012, 39). cuses on commercial and public fleets. It is planned Commercial traffic has a high share of the NOx to subsidize up to a total 740 battery electric pas- emissions: 99% of the trucks over 3.5 tons and senger cars and light commercial vehicles in public 94% of the light trucks below 3.5 tons are utilized and commercial fleets. Furthermore, the Hamburg in commercial traffic (Wermuth, 2012). Apart chamber of crafts started an initiative to support from light trucks, vehicles below 3.5 tons also the ’Luftgütepartnerschaft’ by one thousand elec- include passenger cars. Of these, 18.7 percent trical vehicles for the crafts sector. The latter ini- are registered by commercial owners in Hamburg tiative does not offer monetary subsidies. Also the (Kraftfahrt-Bundesamt, 2013b) who utilize their chamber of commerce has started an initiative on cars in 70 percent of the cases for commercial EVs and which offers rebates due to the bundled transport purposes. ordering.

2.8 Carbon dioxide emissions Figure 2.5: Average share of NOx emissions by ve- hicle class in Hamburg Greenhouse gas emissions from Hamburg’s traf- fic increased by 32% between 2000 and 2010 (Statistikamt-Nord, 2013). In 2010, around one quarter (26 %) of CO2 emis- sions were caused by road traffic in Hamburg (Statistikamt-Nord, 2013, 10). The emissions are mainly produced by passenger cars (2.2 Mt/a), followed by light commercial vehicles (0.45 Mt/a). Emissions from heavy commercial vehicles over 3.5t only accounted for about one tenth of pas- senger car emissions (0.2 Mt/a) (Groscurth et al., 2010).

Figure 2.6: CO2 emissions of Hamburg’s traffic 2010 in Megatons Data: Böhm and Wahler (2012).

In order to improve air quality, many other cities in Germany have introduced environmental zones. In- stead, in Hamburg a voluntary cooperation called the ”Luftgütepartnerschaft” (partnership for air quality) was established between the city and com- panies - represented by the chamber of commerce and chamber of trade. In this initiative the partners strive to support Hamburg’s companies to reduce their traffic related air pollution. Data: Groscurth et al. (2010). Emission efficient or -free vehicles are highlighted in the latest update of the Luftreinhalteplan as one important leverage to decrease traffic related Electric mobility is the motorized mobility form air pollutants. Apart from battery electric vehi- which is least harmful for the climate, when cles, also hydrogen and hydrogen-hybrid vehicles charged using regenerative energy (Groscurth

10 et al., 2010). Germany is aiming to double EU of only 5,6% (Statistisches Amt für Hamburg und CO2 emission reduction goals by reaching 40% Schleswig-Holstein, 2010)). The gross value added reductions until 2020 (BMU-BMWi, 2011). Ham- of Hamburg’s important transport sector is twice burg confirms in its masterplan on climate protec- as high as the German average (Sye, 2010). In fu- tion (Senat-Hamburg, 2013, p.2) that the city will ture, even more goods will be transshipped in the strive to reduce its CO2 emissions according to the port and airport, due to the globalization trend. national targets. In the masterplan, freight traffic More goods will also be distributed within the city is differentiated into traffic generated by the port because of the increasing population and growing and by ’last mile’ urban freight distribution. The e-commerce. As a result, the road freight trans- vision for the latter is that by the year 2050 in- port volume is projected to double between 2004 coming goods will be bundled in distribution areas and 2025, corresponding to an annual increase of and delivered silently during the night. 3.1 percent - the highest value among Germany’s To realize more immediate goals up until 2020, an federal states (ITP/BVU, 2007). action plan is derived. The plan focuses on mea- sures with the highest CO2 decrease at the lowest On the downside, negative effects of road transport costs and the best social compatibility. With re- are already quantifiable already today: gards to commercial traffic, the single measure mentioned is the project ”Hamburg - Wirtschaft • Hamburg is the second most congested city am Strom” (Senat-Hamburg, 2013, 17), also see of Germany and 9th most congested of chapter 2.7. the 59 European cities looked at(TomTom, 2013).

The base assessment (”Basisgutachten”) for the • Greenhouse gas emissions of Hamburg’s traf- masterplan on climate protection for Hamburg fic have increased by 32% between 2000 highlights the deployment of electric vans as a very and 2010; 26% of Hamburg’s CO2 emis- effective measure to decrease traffic related CO2 sions were caused by road traffic in 2010 emissions (Groscurth et al., 2010). As a support- (Statistikamt-Nord, 2013). ive measure it recommends the expansion of the public charging infrastructure, which is more im- • Hamburg has exceeded the NO2 limit val- portant to passenger transport and in services than ues significantly in 2010. Road traffic is the to last mile delivery. main reason for exceeding the nitrogen diox- ide immission limit values in Hamburg, to 2.9 Road safety which commercial diesel vehicles are a ma- jor contributor with over 45%of road traffic The relatively silent electrical vehicles are subject emissions (Böhm and Wahler, 2012). to discussion, as the noiseless electric motor makes • Road traffic is the main contributor to the an approaching electric vehicle harder to recog- high noise level in Hamburg, affecting ap- nize, for example for blind people. A switchable proximately one third of the population with sound was proposed by (Noche, 2012). Another noise over 55 dB(A) (Umweltbundesamt, safety aspect addressed by the media are the bat- 2013a). teries, which have proven hard to extinguish once they have caught fire. Thus electric vehicles are not Electric vehicles charged by renewable energy can commonly mentioned when it comes to increasing help reduce noise-, greenhouse gas- and air pollu- road safety. tant emissions. This is especially true for electric vehicles in urban freight transport, as larger trans- 2.10 Summary port vehicles emit more pollutants than small pas- senger cars per kilometer and have a higher annual Hamburg is a livable, flourishing city with a strong average mileage (Wermuth, 2012). Furthermore background in trade and transport. Its prosperity heavy commercial electric vehicles are quieter un- is reflected in the projected population growth of til a speed of 50 km/h, thus nearly in the entire up to 25% by 2030 (Konstantinos, 2010) (how- city area (Umweltbundesamt, 2013b). Congestion ever, other projections estimate a lower increase can be reduced by electric freight vehicles when

11 deployed in off-hours delivery or city logistic con- electric mobility; Hamburg is one of Germany’s cepts. While this is true for conventional diesel pilot regions for testing of electric vehicles. This vehicles as well, the silent and emission-efficient commitment results in twice as many electric pas- delivery can be a door-opener for off-hours delivery senger cars and twice as many commercial electric and city logistics (Menge, 2013). To further reduce vehicles registered in Hamburg, compared to the congestion, inner city last mile transport of light German average licensed vehicle stock (Kraftfahrt- and low-volume goods can potentially be carried Bundesamt, 2013a). Also, administrative initia- out by electric cargo bikes or scooters. tives and action plans reflect that electric mobility is playing a role in reducing the impact of road Hamburg’s government is a strong supporter of traffic in Hamburg, compare table 2.1.

Issue Potential of freight EVs Administrative EV ini- Focus of EV initia- tiatives tive Carbon dioxide Light commercial vehi- The masterplan on cli- Wirtschaft am cles emit 16%, heavy mate protection names Strom focuses on commercial vehicles 7% the project ’Wirtschaft commercial fleets of Hamburg’s traffic am Strom’ to decrease and subsidizes pas- emissions. commercial vehicles senger cars and vans emissions. below 2.3 tons.

Air pollutants, Vehicles over 3.5 tons The air quality plan Wirtschaft am especially nitro- (which are nearly exclu- refers to the project Strom focuses on gen dioxide sively used for freight "Wirtschaft am Strom". commercial fleets transport) are responsi- and subsidizes pas- ble for 45%, vehicles be- senger cars and vans low 3.5 tons for 47% of below 2.3 tons. Hamburg’s traffic NOx emissions.

Noise Heavy electric trucks are The noise action plan The noise action quieter up to 50 km/h does not mention com- plan relates to in- (nearly the whole city mercial electric vehicles dividual transport area), passenger EVs for potential noise re- with EVs. until 30 km/h. duction.

Congestion Off-hours or night The mobility plan does None time delivery with not foresee EVs as a silent EVs potentially measure to reduce con- could reduce conges- gestion. tion during rush-hour. Land consumption and congestion can be further mindered through eCargobikes or eScooters.

Table 2.1: Comparison of the potential of freight EVs with Hamburg’s administrative electro mobility focus

12 When contrasting the possible emission reduction above offer a high unexploited potential in noise of electric urban freight vehicles with the project and NO2 reductions. Furthermore, utilizing eCar- goals, it becomes obvious that the potential of goBikes to replace small delivery vehicles and with freight EVs beyond passenger size is untapped it reduce emissions and congestion is not yet part in Hamburg as of yet: Hamburg’s large project of municipal projects in Hamburg. ”Wirtschaft am Strom” aims at increasing the numbers of EVs in commercial traffic. Mainly pas- One reason for Hamburg to concentrate on smaller senger size cars are offered. Small vans below 2.3 commercial EVs according to Knahl and Sommer tons (up to 500 / 650 kg payload) are the largest (2013, 22) is that ”vehicles over 3.5 tons are not light commercial vehicles featured in the list of suitable for the substitution with EVs in the nearer subsidized vehicles1. Those vehicles are mainly future”. used for passenger transport or to provide services. The next chapter of this report will highlight strategies to profitably deploy freight EVs in ur- Especially against the backdrop of projected in- ban transport, describe and compare examples of creasing future road freight transport, electric ur- freight transport with EVs in Hamburg, Germany ban freight transport with EVs of 3.5 tons and and the North Sea region.

1http://www.elektromobilitaethamburg.de/wirtschaft-am-strom/modelle/

13 3 Required conditions for deploying electric freight vehicles

The previous chapter has highlighted the potential gain experiences with the new technology and to of freight EVs for the reduction of emissions such find out if and how EVs with their range limitations as NO2 in the city of Hamburg. Electric vehicles could substitute conventional diesel transporters are utilized in first freight transport applications in (Taefi et al., 2013b). Germany and other countries of the North Sea re- Those tests demonstrated that EVs are technically gion. In the project E-mobility NSR 58 cases have suitable for many urban freight transport tasks been collected and described (E-Mobility NSR, (Tenkhoff, 2011). Furthermore, the tested vehicles 2013). Despite their potential, the overall number were often reliable and low maintenance effort was of freight EVs is still low. The most important necessary, after initial technical problems of pro- barrier to deploying EVs in freight transport are totypes were overcome (E-Mobility NSR, 2013). the high costs of the vehicles (ibidem). On the technical downside, after-sales service and repairs were a major issue for companies, as service For this reason HAW Hamburg conducted further structures are not well established yet. This situ- studies on the profitability of freight EVs in Ger- ation was aggravated when several manufacturers many. In seven out of 15 German cases, companies and suppliers of EVs filed for bankruptcy (Taefi claimed that the vehicles could be operated prof- et al., 2014). itable (or when recently started, were expected to reach profitable operation) (Taefi et al., 2013a,b). A direct substitution of conventional commer- cial vehicles with EVs does not fully exploit the In this chapter the concepts how companies in Ger- strengths of EVs, hence often leading to operation many and the North Sea region do reach a prof- that is simply not profitable (Taefi et al., 2013b). itable operation are described. This offers the city One important reason is that the purchase price of of Hamburg a bundle of good practice examples. EVs is two to three times higher, but their opera- Moreover, the findings are enhanced by possible tional costs about 50% lower than diesel vehicles. measures suggested by 23 of Hamburg’s freight In the financially successful cases, concepts to in- transporting companies in interviews, to ensure the crease the turnover generated with the EV were compatibility of the results for Hamburg. pursued, while at the same time, the total costs of ownership (TCO) were reduced, compare figure 3.1 Profitable strategies 3.1. In this way the commercial viability of the commercial electric vehicles was increased. When introducing freight EVs in tests during the last few years, the aim of companies was often to The different approaches are explained in detail at on the next page.

Figure 3.1: Identified concepts to improve profitability of freight EVs

14 Concepts reducing the TCO Germany, as in all other countries of the North Concepts to reduce the total costs of ownership of Sea region EVs are exempt from vehicle tax, which electric freight vehicles aim at reducing the costs equates to a saving of about ¤50 to 100 per year at all life cycle stages: before the investment, dur- for a 3.5 to 7.5 ton vehicle in Germany. ing operation and when scrapping. Finally, by limiting changes of business processes and daily routines, handling errors by the staff 1. Reduction of capital investment were reduced, which resulted in lower mainte- Companies reduced the capital investment for EVs nance costs, compared to before, when routines through various measures. Most importantly, they were adapted. benefited from a purchase price subsidy or subsi- dies in EV projects. In Germany no direct purchase 2. Increase of vehicle range subsidies or tax rebates are offered when buying an Through increasing the daily mileage, companies electric vehicle, like in other countries of the North can profit from the lower operational costs of Sea region. In Amsterdam for instance, heavy the EVs. In order to increase the range, compa- freight EVs are subsidized with up to ¤40,000 nies follow different approaches: the EVs are slow per vehicle. Nevertheless, German companies can or quick charged during breaks or when loading reduce the leasing or purchase costs of EVs when new cargo; for the electric trucks of the company engaging in electric mobility projects, like ’Elmo’ Meyer&Meyer a battery change system is being or ’Wirtschaft am Strom’. As a further measure, developed to deploy electric 7.5 ton vehicles on companies purchased discounted or discontinued multi-shifts; the Cargohopper in the Netherlands EVs or deployed light and slow EVs such as electric is charged through solar panels on the roof of the cargo bikes, scooters or quads instead of passenger vehicle. Other approaches include drivers train- vehicles. Apart from the lower capital investment ing on energy efficiency or the introduction of EV for these vehicles, the requirements for drivers li- specific dispatching and routing information tech- censes are lower. Thus younger or less-qualified nology. drivers are allowed to drive these vehicles, leading to lower costs for drivers. Concepts to increase turnover As a cost reduction measure, customizing electric These concepts aim at increasing the turnover vehicles is especially valuable for companies who generated by the electric freight vehicle. own large fleets of similar vehicles. As an exam- ple, UPS converts used, well-preserved, written off 3. Communication of image 7.5 ton trucks into electric trucks: With this, they Through the sustainable image of EVs new cus- reduce the investment costs drastically, compared tomers can be gained or the relationship to exist- to purchasing new freight EVs. In a further exam- ing customers strengthened. While this is true for ple, DPDHL was involved in the development of nearly all cases, it is especially relevant if a green the Street Scooter, which was specially designed product or service (like energy consulting) is the for electrical urban parcel delivery. The vehicle key area of business. functionality was reduced for purely commercial application, which resulted in a relatively low-cost 4. New business opportunities electric commercial vehicle. In several countries outside of Germany, EVs are In countries of the North Sea region several other granted non-monetary privileges. If EVs benefit financial advantages are offered for electric vehi- from such privileges like unlimited access to spa- cles. For example, in London and Oslo, EVs are tial or time restricted areas, new business oppor- exempted from the city toll and are allowed to tunities can be developed. Examples include night park - in Norway even charge - for free. In the time delivery with EVs or access and delivery in Netherlands, Norway and Denmark drivers license pedestrian areas. Moreover, freight EVs in urban requirements are relaxed, as driving a 7.5 ton transports have an advantage when bus lanes and freight EV is possible with a class B license. This reserved parking lots can be utilized. exemption compensates the disadvantage of hav- ing to employ more expensive drivers with C class Profitability of electric vehicles is the most impor- licenses due to the freight EVs heavy batteries. In tant factor for companies in commercial applica-

15 tions (Fraunhofer IAO, 2011). The above analysis In this segment the majority of the vehicles is shows, that granting subsidies is a possibility, but close to the 3.5 ton limit. The financial subsidy of not the only leverage for policy makers to improve Hamburg’s Modelregion projects and the project the profitability and with it the willingness of com- ’Wirtschaft am Strom’ shows a positive impact on panies to deploy EVs in urban freight transport. the numbers of vans up to 2.3 tons. This vehicle Instead, a range of alternatives are indicated and group has a larger share in Hamburg compared will be discussed in more detail in the following to other regions, see table 3.2. In interviews for chapters. this report, companies highlighted their interest in heaver freight EVs, such as just below 3.5 tons or 3.2 Examples of electric freight ve- above. One company stated they have applied for such a vehicle, but it had not yet been granted hicles in Hamburg inside the project ’Wirtschaft am Strom’. Medium Hamburg is a strong supporter of electric mo- size electric trucks over 3.5 tons are not repre- bility in commercial applications. The project sented in Hamburg. This means utilized freight ’Wirtschaft am Strom’ is specially targeted to- EVs are mainly either very light and small, or vans wards commercial vehicles, contributing to the up to 3.5 tons. strong commercial sector of the Hanseatic city. Currently 290 EVs are counted in commercial applications, a further 60 in the municipal fleet Figure 3.2: Distribution of freight EVs in Ham- (Knahl and Sommer, 2013, p. 28). However, many burg’s companies by end-2013 of those EVs are used for the transport of persons. Examples of freight transport have been identi- fied more seldom. A brief overview of identified cases of freight transport with EVs in commercial or municipal applications can be found in table 3.1 on page 17. The cases described are identified through scanning project reports of Wirtschaft am Strom and articles in the media. Further examples that are not listed in this report might exist.

When analyzing the weight groups of the electric vehicles used for freight transport in Hamburg, it is striking that EVs are mainly clustered in two seg- The project website of ’Wirtschaft am Strom’ fea- ments (data of end-2013): One half of the vehicles tures vehicles available for Hamburg’s companies (48%) are very small and light vehicles, i.e. eCargo within the project. They can be classified into the bikes, eScooters or eQuads (Renault Twizy) and segment of passenger cars and vans below 2.3 tons. one very light and slow eMiniTruck (Aixam Mega This segment is very suitable for fleets in passen- Multitruck). The second half (52%) includes vans ger transport and services. In freight transport also up to 2.3 tons and light trucks up to 3.5 tons. larger or heavier vehicles are desired.

16 Last Mile Delivery

DPDHL utilize three Iveco e-Daily (3.5t) for parcel delivery and two Street Scooter (2t) for combined mail and parcel delivery in Hamburg.

Hermes deploys seven Mercedes Vito E-Cell (3t) in parcel de- livery and transport on-own account in Hamburg.

For courier services, City Express Logistic have exchanged their Chinese EVs by a Citron Berlingo First Electric (1.9t). They also have tested electric scooters in the past.

Kurier AG are utilizing four electric cargo bikes for inner city courier services, within the project ’Ich ersetze ein Auto’ (’I substitute a car’). Transport on-own-account

The Effenberger wholegrain bakery delivers bread from their bakery in central Hamburg to its outlets with four Karabag Ducato-E (3.5t).

Globetrotter utilizes a Mercedes Vito E-Cell (3t) for intra com- pany transports of goods and persons.

The Stadtreinigung Hamburg has five Renault Kangoos Z.E. (2.3t), one Karabag Ducato-E (3.5t) and a Mercedes Vito E- cell (3t) for internal transport of mail and parcels as well as to transport spare parts and carry out repairs. Services

Fast food delivery companies, like Yoko Sushi, Sushi-for- friends, Hello Pizza, Smilies utilize the the Renault Twizy for delivery. Joeys Pizza service deploys electrical scooters.

Wabe e.V. caters lunch for kindergartens and transports the meals with a Renault Kangoo Z.E. (2.3t)

A chimney sweeper is driving a Renault Kangoo Z.E. (2.3t).

At the Helmut Schmidt University the heavy quad ’Aixam Mega’ (0.6t) transports lob and greenery.

Table 3.1: Examples of freight electric vehicles in Hamburg, data from Dec. 2013

17 3.3 Electric freight vehicles in Ger- between 3.5 and 16 tons in parcel delivery, haulage, many and the North Sea region transport-on-own-account and municipal services. In courier services and services, heavy vehicles do To identify further potential for electric urban not play a major role. One reason for the un- freight vehicles, the overview of Hamburg’s freight tapped potential might be the lack of financial EV fleet (HH) of December 2013 is compared with subsidies. The investment for EVs increases be- vehicles identified in two further studies, from Ger- cause the heavier the vehicles become, the larger many (GE) in March 2013 (Taefi et al., 2013b) batteries are needed to ensure the same kilometer and from the North Sea region (NSR), in June range. Still, those heavy vehicles can be become 2012 (E-Mobility NSR, 2013). In those studies profitable even without financial subsidy, when de- examples of urban freight transport with EVs are ployed on multi-shifts (cp. chapter 3.1). A second described. The studies were identified through lit- reason might be that decision makers in companies erature analysis and internet research. Both studies and municipalities are under the impression, that do not claim to account for the entirety of cases no suitable vehicles in this class are available. In in the respective regions, still they give a good appendix A.1 an overview on currently available overview of available projects and utilized vehicles. EVs suitable for urban freight transport tasks is Cases were excluded when the case study descrip- given. tion indicated that the project was discontinued. Table 3.2 on page 19 gives an overview of the Within the segment of the small and slower freight distribution of the vehicle numbers per vehicle size EVs, Hamburg’s companies especially have not yet and by transport type according to chapter 1.2 focused on the potential of electrical cargo bicy- and figure 1.3. Due to the different points in time cles and tricycles, as well as heavy electric quads. of the surveys, the number of vehicles are not di- The Renault Twizy is well represented in fast food rectly comparable - the later a study, the higher delivery, but only one further eQuad model is the overall number of EVs. However, the share of found. The Goupil G3 or Aixam Mega Multitruck the vehicle sizes is an interesting indicator which or even eQuads with trailers, as the Cargohop- gives an indication on the region’s focus regarding per are not utilized. Those vehicles are compara- vehicle weight and transport segment. bly lower priced and utilized throughout the North Sea region in mail/parcel delivery, courier services, Comparing the distribution of vehicles among the haulage, transport on own account and services. segments reveals a similar clustering as could be Reasons for the low numbers in Hamburg could detected in Hamburg: The majority of the freight be various. While in the even colder Scandinavian vehicles were very small, slow and light vehicles - countries many eScooters and eBycicles are de- like eBikes or eTrikes, eScooters or heavy eQuads ployed, drivers in Hamburg might find the traffic, - or vans and trucks. In the latter group, medium weather or bicycle lanes unsuitable. The electrical heavy electric trucks between 3.5 and 7.49 tons quads often have a maximum speed of approxi- dominated in the NSR regions, whereas in Ham- mately 45-60 kilometers per hour. This is suffi- burg no freight EVs above 3.5 tons were identified. cient for the dense traffic of London city center, Instead, due to the subsidy of vans below 2.3 tons a but probably not preferred for the traffic in Ham- tendency to utilize these EVs could be detected in burg. Also, these vehicles are not built by renowned Hamburg. PostNord of Sweden had a large impact manufacturers, which might have a higher impact on the vehicle numbers. PostNord deploys 5.000 on the purchase decision of German companies. A eScooters, eBikes and eMini Trucks. Also the Nor- quad with trailer, such as the Cargohopper, does wegian Posten utilizes 271 small EVs for mail and have a striking advantage when operated in com- parcel distribution. But even if these companies bination with a mini-hub in the inner city and is are taken out, the trend to either utilize very small allowed to enter pedestrian areas to deliver to in- or medium heavy vehicles is still valid. ner city shops. As no such exemptions are available in Hamburg yet, the concept might not be attrac- It can be observed that Hamburg has the po- tive. tential to increase the numbers of medium trucks

18 Total Last Mile On-own-account Service Municipal

HH GE NSR HH GE NSR HH GE NSR HH GE NSR HH GE NSR 2013 2013 2012 (Dec.) (Mar.) (Jun.)

eTruck 12t to <26t 0 0 3 000 000 002001 eTruck 7.5 to <12t 0 3 8 026 011 001000 eTruck 3.5 to <7.5t 0 14 158 0 12 34 0 2 2 0 0 95 0 0 27 eVan 2.3 to <3.5t 16 48 140 6 37 86 10 10 8 0 1 35 0 0 11 19 eVan < 2.3t 10 1 70 3 1 35 5 0 6 2 0 26 0 0 3 eQuad with trailer 0 0 2 002 000 000000 eQuad 10 0 995 0 0 943 0 0 5 9 0 9 1 0 38 eScooter 10 14 1,908 4 8 1,902 0 0 0 6 6 6 0 0 0 eCargoBike 4 0 1,910 4 0 1,904 0 0 0 0 0 6 0 0 0

P vehicles 50 80 5,194 17 60 4,912 15 13 22 17 7 180 1 0 80 % of total 100% 100% 100% 34% 75% 95% 30% 16% 0% 34% 9% 3% 2% 0% 2%

Table 3.2: Number of freight vehicles identified in freight EV case studies 3.4 Interviews with freight transport vehicle mainly used was marked in gray (compare companies table 3.3 and 3.8).

Twenty-three companies in Hamburg have been in- terviewed personally or via telephone about their 3.4.1 Group 1 - Last mile delivery opinion on different measures to support electric and transport on-own-account vehicles for freight transport in their company. All companies were transporting freight with ve- In group one, ten companies active in last mile hicles in Hamburg. The companies were clustered delivery or transport-on-own account were inter- in three groups and interviewed with a focus and viewed - half of them were already EV users. The methodology slightly adjusted to the particular companies usually have larger fleets, the possibility group: In group 1 (’last mile and transport on-own- to charge at the depot and often utilize the freight account’) companies in last mile delivery or trans- vehicles exclusively for commercial purposes. In port on-own-account were summarized; in group half the cases, heavy trucks above 3.5t were part 2 (’crafts’) craftsmen; in group 3 (’waste man- of the fleets. Company 1K had outsourced trans- agement’) only one company, the Stadtreinigung port to a service provider. In case the company Hamburg was interviewed. The company handles already used EVs the person responsible for the the municipal waste removal for Hamburg as a ser- fleet or sustainability manager was approached vice. All companies were asked about background directly; all responded positively to the interview information, such as the area of business, if it request. Fleet managers or sustainability managers would be possible to charge an EV at the depot of logistic companies who potentially could deploy and the size of the company. Regarding size, the EVs were contacted via email, telephone or person- companies in group one and two were categorized ally at trade fairs. Here companies with an interest based on the number of employees according to the in the topic responded positively to the interview EU definitions (disregarding the total assets): Mi- request. Per trade, at least two companies have cro: less than 10; Small: less than 50; Medium: less been interviewed, except in truck rental, were only than 250; Large: over 250 employees. Furthermore one interview could be arranged. the structure of the fleet was recorded, whether EVs are already part of the fleet and the type of

No. Company details Fleet details Business Size Depots # Ve- Two- PKW Small Van Truck Truck EV hicles wheeler van 3.5t 7.5t 12t user? 1A Parcel Large Yes 80.000 x x x x x x Yes 1B Parcel Large Yes 12.000 x x x x x x Yes 1C Courier Small Yes 160 x x x x Yes 1D Courier Small Yes 95 x x x x Yes 1E Retail Large Yes ? x Yes 1F Haulage Large Yes 154 x x No 1G Rental Small Yes 200 x x x No 1I Haulage Large Yes 130 x x No 1J Haulage Micro Yes 2 x No 1K Retail Large Yes 0 Freight transportation outsourced No

Table 3.3: Profile of interviewed companies in group 1 - ’last mile delivery and transport on-own-account’

20 Measure Explanation Monetary measures EV premium A monetary premium when buying the EV. The height was left open. EV tax exemption Waiving of vehicle tax. City toll Installing a city toll and exempting EVs.

Non-monetary measures Pedestrian zone Allow EVs to enter pedestrian zones for freight delivery. Off-hours Restrict conventional transport vehicles and allow only silent transport EVs between 8 p.m. and 6 a.m. Green transport label Grant a ’green transport label’ for companies who utilize low emission vehicles. Parking /Loading Create parking spaces or loading zones for EVs only. Bus lanes Allow EVs to drive in bus and taxi lanes. Information Improved information on freight EVs.

Table 3.4: Measures to rank - group 1 ’Last mile delivery and transport on-own-account’

A set of monetary and non-monetary measures a tax exemption would be annually only around one was presented to group one, see table 3.4. The per mill of the investment costs for the EV. Thus, companies were asked to rate the measures on a with experienced EVs users, the measure dropped scale between 2 and -2. Positive values represent a in popularity. EV users seem to expect that any preference [2: strong preference, 1: weaker prefer- buyers premium would be higher than the savings ence], zero represents a neutral opinion, negative from the tax exemption. values represent a rejection [-1: weak rejection, -2 strong rejection]. The answers were ranked ac- Rank Measure Median Average AD cording the median value in order to reduce the influence of extreme values. In case the median 1 EV premium 2.0 1.8 0.6 was similar, the arithmetic mean value was used 2 EV tax exemption 2.0 1.6 0.7 as the second ranking criteria. The average devi- 3 Pedestrian zone 1.5 0.8 1.5 ation is a measure for the spread of the answers. 4 Bus lanes 1.0 1.0 0.9 An average deviation (AD) of 0 would show that 5 Parking / loading 1.0 0.8 1.3 all participants were of the same opinion, while 6 Off-hours 0.5 0.3 1.5 an average deviation of 2 means the answers were 7 Information 0.0 0.4 1.5 maximally spread across the scale. 8 Green transport 0.0 0.1 1.2 label The high median and low average deviation indi- 9 City toll -1.0 -0.3 1.7 cates a high agreement that monetary subsidies for EVs in form of a buyers premium or vehicle tax reduction are the most preferred measures. Inter- Table 3.5: Ranking of preferences, group 1 ’Last estingly, non-EV users ranked the tax exemption Mile Delivery’ higher (Rank 1) than EV users (Rank 3). This em- phasizes that a tax exemption has a strong sym- Interviewees welcomed any suggested non- bolic meaning to potential EV buyers. In contrast monetary measure; all measures achieved positive to EV users, non-EV users might not have calcu- values in the rating. The right for EVs to enter lated the total costs of ownership of an EV and pedestrian zones was ranked as most important thus not yet determined that the savings through privilege. One reason might be that four out of

21 Count Measure

2 Further subsidy of R&D to improve the price, range, reliability, and load volume of EVs. 2 Finding drivers for E-cargo bikes is problematic - possible measures were not addressed. 1 Finding drivers with class C license (trucks over 3.5t) is problematic - subtract the weight of heavy batteries from the gross vehicle weight, to reduce EVs weight disadvantage. 1 Set up an emission free delivery zone in Hamburg’s city center. 1 Wide and straight bicycle lanes for fast and heavy e-cargo bikes are needed.

Table 3.6: Additional supportive measures desired by electric vehicles users of group 1 ’last mile delivery and transport on-own-account’ the ten interviewees were CEP companies: two night voiced that this at least would make a busi- from parcel delivery and two in courier services. ness case for EVs’. These companies would largely benefit from the measure, thus ranked it highly. Companies who In group 1, non-EV users were asked to rate the did not directly benefit from the measure either measure ”Information”, as the interviewees already strongly rejected the idea or found that it would utilizing EV were experts and ambassadors of the still ”help the case of the EVs”, thus gave a positive topic in public. The non-EV users were discordant, rating, which explains the high variance in average depending on their level of EV knowledge, so that deviation. the measure was rated only slightly positive on average. The EV experts instead were asked what The companies voiced unanimously that conges- administrative measure they would suggest apart tion during rush hours and the lack of parking are from the measures discussed to foster electric ve- their largest problems in Hamburg’s traffic. The hicles in their company. The answers are summed two measures - utilization of bus lanes and exclu- in table 3.6. Two companies desired more techni- sive parking lots for EVs - address these problems cally advanced electric vehicles at a lower price. and were rated of nearly similar importance to sup- Interestingly, both companies were utilizing EVs port freight EVs in the companies. Utilizing bus from the same manufacturer, which are known to lanes was rated slightly more important, but often, be comparably expensive and unreliable. Thus, the interviewees added the comment that this measure desire for a better product is based on negative could only be implemented during the introduction experiences with a single brand in this case. phase of the EVs. They felt that the public trans- The need to adjust the gross vehicle weight by port should not be hindered once large numbers of subtracting the weight of the batteries is a known EVs would be on the streets. Others commented problem, clearly communicated by a large com- that the idea is good in theory, but in practice they pany to the German government. In neighboring would not benefit from the privilege, since no bus countries like the Netherlands, this problem has lanes are available on their routes. Loading bays been recognized, and drivers with a B class license or reserved parking lots for EVs were found to be are allowed to drive up to 7.5t EVs. nearly as important as the utilization of bus lanes, In order to support cargo bikes, the bicycle infras- although opinions were varying stronger on this tructure needs to be adjusted. When no adequate topic. bicycle lane is available, it would be possible to allow E-cargo bikes to drive on bus and taxi lanes, The idea that only silent freight EVs could be or in case where these are not present or available, allowed in Hamburg during the night was rated on the streets. Today fast and heavy E-cargo bikes controversially. Some companies feared that re- legally must drive on obligatory bicycle lanes, even strictions might cause problems for their current if they are small, bumpy and frequented by normal fleet, containing mostly diesel vehicles. Others, (slower) cyclists. who did not yet utilize their vehicles during the

22 At the end of the scale of non-monetary measures, premises. The maximum vehicle size of the com- with an average and median value of or close to pany fleets are 3.5t vans, often smaller vans or pas- zero, a ’green transport label’ for freight transport senger size cars were also part of the fleets. The companies like the ”Umweltkurier” was found to different organizational structure of the craftsmen, be rather irrelevant. It was rated as a ’nice to compared to companies in last mile delivery, lead to have, if it’s there’ but was not regarded as hav- a different set of questions (for example if a switch- ing any great influence on customers and, as a able license plate would be a supportive measure). result, the companies turnovers. One interviewee Enterprises were randomly chosen for interviews expressed the concern that ’too many labels might among the largest trades in Hamburg which were just overexert the customer’. Hence, if a label is to expected to use transport vehicles on a regular ba- create value for companies, it should be ’granted sis. As in group 1, the companies owner or the fleet on federal or even EU level through an author- manager were interviewed. Presumably, only those itative body’, as another interviewee explained, companies agreed to take part in the interviews, and would be best supported by a communication which had an interest in the topic of electric mo- campaign, to create an impact. bility. Thus the results might not be representative for the collectivity of Hamburg’s companies as a Establishing a city toll in Hamburg and exempting whole. EVs was the only measure with a negative rating. As an introduction, the companies were asked un- The measure was rejected due to the impact on prompted what supportive measures they would the costs of operating the existing fleets on the one suggest to increase the numbers of EVs in their hand. On the other hand, the high average devia- company. The results are summarized in table 3.7. tion indicates the conflict potential of the measure. For example, one interviewee judged the measure Count Measure as ’strongly supporting freight EVs in my company’ but added verbally ’but this is definitely not pre- 8 Tax exemptions ferred’. 4 Buyers premium 4 Free parking 4 Exclusive parking 3.4.2 Group 2 - Crafts 4 Enhanced charging infrastructure 3 Usage of bus lane Group 2 bundles twelve companies carrying out a 3 Subsidy of private charging craft, of whom two were already utilizing an EV, station compare table 3.8. The craftsmen are often orga- nized in micro or small enterprises, who sometimes 2 Warranty for batteries utilized the vehicles also privately or did not have the possibility to charge an EV at the company Table 3.7: Desired measures to support EVs - group 2 ’Crafts’

23 Company details Fleet details No. Business Size Depots # Ve- Two- PKW Small Van Truck Truck EV hicles wheeler van 3.5t 7.5t 12t user? 2A Carpenter Micro Yes 3 1 2 No 2B Painter Micro Yes 4 1 1 2 No 2C Tiler Micro Yes 8 2 6 No 2D Electrician Micro Yes 3 1 2 No 2E Carpenter Micro No 2 1 1 No 2F Heating Micro No 3 1 2 No 2G Plumbing Small Yes 24 24 No 2H Chimney Micro No 2 1 1 Yes 2I Media Small Yes 6 1 3 2 No 2J Cleaner Large Yes 120 x x x Yes 2K Painter Micro Yes 1 1 No 2L Cleaner Large Yes 180 x x x No

Table 3.8: Profile of interviewed companies in group 2 - ’Crafts’

Subsequently, a set of monetary and non-monetary sure was included as it is currently offered in Ham- measures was presented to group 2. The intervie- burg in the project ’Wirtschaft am Strom’. Since wees were asked to rank eight measures according this measure is only interesting for companies who their importance to support their decision to de- decide to lease their vehicles and partake in a re- ploy EVs in their companies. The measures were search project, the barriers for this measure are selected based on the proposals of the German assumed to be higher than for example, receiving electric mobility government program. The finan- a buyers premium. Including the measure in the cial benefit of the measures was leveled, for exam- ranking will give an indication of whether the fi- ple the buyers premium was set to ¤500, which is nancial advantage is attractive to the companies comparable to the exemption from vehicle tax over despite the higher barrier, compared to other mea- a few years, or the expected value of free parking. sures. The wording of the measures is explained in An exception was the measure ’50% leasing costs’, table 3.9. which is comparable to a high premium. This mea-

24 Measure Explanation Monetary measures ¤500 premium A monetary premium of ¤500 when buying the EV. Tax Waiving of vehicle tax. License plate License plate of another vehicle can be mounted on EV, thus no additional insurance costs arise for the EV, but no simultaneous usage of both vehicles is possible. Private usage Leveling of disadvantageous private usage of a company EV - subtract the battery price from EV catalog price, to calculate the private EV users 1% tax. 50% leasing Subsidy of 50% of the leasing costs for an EV.

Non-monetary measures Parking lots Exclusive and free parking lots for EVs. Low emission zone A low emission zone (Umweltzone) for vehicles with a green fine particle sticker. Bus lanes Allow EVs to use bus lanes.

Table 3.9: Measures to rank - group 2 ’Crafts’

The interviewees ranked the eight measures ac- Exemption of EVs from vehicle tax is ranked as cording to their importance on supporting the de- the most important measure, before a 50% subsidy cision to deploy EVs in their companies. Thus, the to the leasing costs. Since tax exemptions have a measures with the lowest median values ranked lower financial impact, they either seem to have highest and are the preferred measures. In the case a high symbolic value for the companies, or the of equal median values, the arithmetic average is companies were not aware of the low impact on the taken into account to rank the measure. The aver- total costs of ownership. Another reason for the age deviation between the answers indicates how relatively lower ranking of the subsidy of leasing well the interviewees agree with each other about costs is that not all companies prefer to lease their the rank of this measure. fleets, thus not all companies would benefit from a leasing subsidy. The fact that this measure has Rank Measure Median Average AD the highest average deviation among all measures supports this observation. 1 EV tax exemption 1.5 2.4 2.1 2 50% leasing 2.0 3.4 2.5 The interviewees strongly agreed that free and 3 Parking lots 4.0 3.9 1.6 exclusive parking lots are ranking at the third 4 Private use 4.0 4.9 1.9 place of the desired measures. This coincides with 5 License plate 4.5 4.3 1.9 the voiced problem of finding parking places in 6 Bus lane 4.5 5.1 1.9 Hamburg, earlier in the interviews. Private usage 7 Low emission zone 6.0 5.7 1.8 of companies EVs, changeable license plates and 8 500 premium 7.0 6.3 1.9 usage of bus lanes follow in the ranking. The find- ¤ ing that free and exclusive parking spaces are a measure preferred to the usage of bus lanes is con- Table 3.10: Ranking of preferences, group 2 - sistent with a later question in the interviews: The ’Crafts’ participants were asked to attribute a monetary value to these two measures. On average, compa- nies quantified the privilege to utilize the bus lane

25 with ¤60 per year (Median: ¤0), while privileged tools and spare parts. A larger 3.5t van has been and free parking was quantified with a value of applied for. ¤341 on average (Median: ¤135). This supports the result that the usage of bus lanes does not With an average consumption of 71 liters per hun- have a high value for the companies, but free and dred kilometers and 17,000 kilometers per year, 1 exclusive parking is a desired measure . approximately 32t CO2 are produced per garbage truck and year on average (Dekra, 2014). Further- The interviewees agree that a low emission zone more, due to many starts and stops, the emission would not be a very efficient measure to support reduction potential of NOx and PM is high if EVs freight EVs in their company. The least desired could be used. An interview with the fleet manager measure is a buyers premium of ¤500.The ques- revealed an in-depth knowledge of actual available tion whether a ’green transport label’ would be electric and hybrid vehicles and projects in general desirable to support freight EVs among craftsmen and for waste collection. was discussed separately from the ranking. The majority of the interviewees rated this measure as Despite the high potential for the environment, the a ’nice gimmick’, as a positive side effect. One Stadtreinigung (SRH) does not deploy electrical company, who was also active as energy consul- garbage collectors due to technical and financial tant clearly stated that such a label would have a challenges. As the rough model calculation in fig- clearly positive impact on the business. Hence, the ure 3.3 based on data in table 3.11 shows, the high EVs mean positive public relations for the company hybrid electric waste collection truck Faum Roto- and/or its products, especially when the company press Dualpower would not achieve a positive TCO or product address environmental topics. compared to the existing vehicles of the Stadtreini- gung Hamburg within 6 years. The estimated total 3.4.3 Group 3 - Waste management costs of ownership of the MAN Metropolis, a fully electric garbage collection truck with range exten- The Stadtreinigung Hamburg is one of Europe’s der (REX), comes closest to the existing vehicles. largest communal waste management service sup- However, the MAN is still part of a research project pliers. With a core competence in collecting and which will prove its technical feasibility and costs recycling of waste, the Stadtreinigung describes under working conditions. The Binkey has a smaller themselves in their sustainability report to ”achieve payload than its diesel equivalents (Binkey), thus a significant contribution to climate protection and is more expensive per ton payload and would re- sustainable resource management in Hamburg” quire a revised tour planning. On the other hand, (Stadtreinigung Hamburg, 2013, 2). As an exam- i.e. in the Netherlands, no drivers license is needed ple, the Stadtreinigung Hamburg mentions the to operate the slow Binkey, which again reduces production of renewable energy from waste and the costs for the drivers. the testing of a heavy diesel-hybrid for waste col- lection. However the literature available highlights Criteria SRH MAN Faum Binkey further room for improvement; i.e a reduction of the waste per-head (Zukunftsrat Hamburg, 2013, Investment (T¤) 230 300 310 180 19) would lead to less demand for garbage trans- Payload t 12 10.5 10,5 2 port, through increasing recycling the emissions Gross weight (t) 26 26 26 7.49 from waste burning could be reduced (Dehoust Top Speed (km/h) 85 80 80 40 et al., 2014). Technology Diesel REX Hybrid Electric Energy l/100km 71 25 64 n.a. With regards to battery electric vehicles, 20 small electric vehicles up to 2.3t were acquired, sup- Table 3.11: Comparison of waste collection trucks ported by the pilot region Hamburg and the project Data: Amini (2013). ’Wirtschaft am Strom’. Some of the EVs are used for the internal transport of parcels and mail or

1 The National Platform for Electric Mobility attributes an incentive effect of ¤300 for both measures together per vehicle per year (NPE, 2011, 44)

26 Beyond the listed and discussed trucks in table tric garbage collection trucks: 3.11, further electric garbage trucks exist. For ex- 1. Further research is required to develop a in- ample PVI has sold over one hundred 26-ton elec- novative financial and ecological sound ve- tric garbage collection trucks in France2. The vehi- hicle. All technology should be considered - cles batteries can be quick charged or swapped in electrical, hybrid or gas trucks. order to reach any desired range. PVI claims their vehicles to be extremely silent, so they can even 2. A monetary subsidy would need to offset operate in the night. Other 26 ton vehicles from the higher purchase costs. Depending on the Motiv Power Systems have been put into service truck type even a 50% subsidy might not be in California3. enough. 3. Deploying the vehicles on multi-shifts is not Figure 3.3: Costs per ton payload of diesel, electri- an option, since the emptying of the waste cal and hybrid waste collection trucks bins is louder than the motor. In summary, utilizing electric waste removal trucks holds a high potential for the reduction of CO2 and air pollutants emissions. However, so far available electric garbage collection trucks are either smaller (i.e. Binkey), thus the tour planning would need to be adapted, or still in development (i.e. MAN Metropolis), or more expensive (PVI) than their conventional diesel equivalents. Whether invest- ing financial resources in battery electric garbage trucks has the best cost-effect ratio, or rather re- ducing emissions through other measures i.e. as The following measures were suggested by the highlighted in the introduction of this chapter has Stadtreinigung to support the acquisition of elec- to be evaluated outside of this report.

2http://pvi.nouveauxterritoires.fr/IMG/pdf/chassis-electrique-C-Less_UK_-web.pdf 3http://motivps.com/pressreleases/

27 4 Actions to support deploying electric freight vehicles

Compared to other regions in the North Sea re- and speed. The investment costs for those EVs are gion, within commercial applications Hamburg has relatively low, thus vehicles can be amortized more set its focus successfully on electric passenger size quickly than heavy freight EVs. Thus the costs vehicles and small vans below 2.3 tons. The leasing of investment are a lower barrier for companies. rates for the vehicles in ’Wirtschaft am Strom’ are Supporting these vehicles requires, for example, subsidized, which is reflected in the comparatively raising awareness and infrastructure. high EV registration numbers of according vehicle groups, compare figure 2.3 on page 7. The sup- The second largest segment of freight vehicles in ported vehicles are most suitable for commercial the North Sea region are EVs of 3.5 tons up to passenger transport and many areas in services. 12 tons - with 16, 22 or 26 ton EVs existing as rare exceptions. The investment for the vehicles in- However, for many freight transport applications, creases the heavier the vehicles become. To reduce different vehicle types are utilized throughout the costs, some companies customize EVs specially for North Sea region. These are light and slow two- their fleet, like the Street Scooter or the UPS con- wheelers on the one hand, while medium heavy versions, but developing vehicles is usually not a electric vehicles of 3.49 up to 7.5 tons are utilized task of municipalities. According to the strategies on the other hand.These inhomogeneous vehicles described in chapter 3.1, other possibilities to im- require differentiated supportive measures, as their prove the profitability are through non-financial costs of investment differs. In order to visualize the privileges, financial subsidies, promotion, or logis- cost aspect, figure 4.1 shows an exemplary compar- tic chain optimizations. ison of the annual mileage different vehicle types need to drive before the total costs of ownership of In order to further support the use of electric an EV are equal to a diesel vehicle. The calculation freight vehicles in Hamburg, this chapter dis- is very sensitive to the depreciation period, diesel cusses possible supportive policy actions. These and energy prices 1. were based on actions discussed by the National Platform Electric Mobility (NPE, 2011), sugges- tions from companies during the interviews (com- Figure 4.1: Comparison of annual mileage to reach pare chapter 3.4) and lessons learned within the profitable operation compared to conventional ve- EU project E-mobility NSR (compare chapter 3). hicles 4.1 Methodology of rating actions

Though all possible identified actions would be helpful in order to advance the field of electro mobility in Hamburg’s urban freight traffic, the actions have a different effectiveness with regards to replacing diesel vehicles through EVs. There- fore the rating factor ’Replacement’ was derived based on the expert interviews with the compa- nies. Moreover, the personal and financial effort In the North Sea region the highest numbers of for Hamburg’s government, and the time period freight EVs are found among small EVs carrying needed to implement the measures differ. Finally, light and low volume cargo, like eCargocycles, the feasibility of integrating the measures in an eScooters or heavy electric quads. These vehicles overall sustainable traffic planning needs to be are advantageous not only with regards to emis- considered. The factors ’Effort’, ’Integration’ and sions. Additionally they can reduce congestion and ’Time frame’ were rated based on a rating by five land use for parking thanks to their size and since e-mobility experts from Hamburg’s administration they are often operated in combination with mi- (the BSU, BWVI and the Hamburg Police De- cro consolidation centers. The consolidation can partment) and one scientist from the University partly compensate the vehicles restricted range

1 Assumed were a depreciation period of six years, ¤1.55 per liter for diesel and ¤0.25 per kWh for electric energy with an annual price increase of 10 percent for both as a rough extrapolation of past price increases.

28 of Applied Sciences in Hamburg with expertise in of experts from Hamburgs government and clus- sustainable economics and traffic. tered as follows:

Companies rating: Scale Effort: The average rating of interviewed freight trans- ++ Low personnel and/or porting companies of chapter 3.4 is given using financial effort the following scale: + Moderate personnel and/or financial effort Scale Description: O High personnel and/or ++ Positive financial + Rather positive O Neutral Integration: − Rather negative In the current early phases of integrating EVs in −− Negative the market, it is not only important to push as many EVs onto the roads at the lowest possi- Replacement: ble effort. Becker et al. (2009) suggests that it Based on the companies rating, the expected ef- is equally important to support and develop sus- fectiveness of replacing diesel vehicles with EVs is tainable measures which are feasible in the traffic discussed and estimated. This factor correlates to planning of the whole urban area. Those measures the companies rating, but is enhanced by taking aim at reducing the negative impact of freight traf- into account the amount and type of vehicles po- fic while at the same time ensuring urban freight tentially replaced: mobility, i.e. by means of innovative technology or organizational improvements. Bakker and Trip The more diesel vehicles are replaced, the higher (2013) recently published a similar approach and the impact of an governmental measure on the give an example of a effective and cost-efficient but possible reduction of road freight traffic emissions. undesirable measure with regards to integration ”a We suppose that freight EVs utilized in Hamburg regulation that would only allow EVs to enter a will be charged using renewable energy. This en- city centre”. Hence, the factor ’Integration’ rates sures a reduction of the total emissions in terms the potential of a measure for the integration into of both energy production and consumption, in a feasible and sustainable oriented overall traffic addition to the reduction of tailpipe emissions planning in Hamburg. (Wellbrock, 2011). As discussed in chapter 2, elec- tric freight vehicles can have a major impact on Scale Feasibility to integrate into overall traffic planning: NO2 emissions, which are one of the most crit- ical pollutants in Hamburg today. Furthermore, ++ High electric freight vehicles reduce other emissions like + Medium PM, CO2 and noise. The impact on the emissions O Low reduction in Hamburg depends on the amount and type of vehicles replaced, as well as their average Timeframe: mileage. The timeframe until the action can be imple- mented is classified according to the phases de- Scale Replacement in: fined by the national platform electro mobility: ++ All fleets or large areas + Most fleets or medium areas Time Actions implemented within: O Certain or no fleets or only Within one year Short small areas [Market preparation]. One - three years Medium Effort: [Market run-up, 2015 - 2017]. Rates the level of costs for personnel and financial More than three years Long resources at Hamburg’s government to implement [Early mass market, 2018 - the measure. The rating is based on the judgment 2020].

29 4.2 Non-financial tools: Regulation vehicles are granted exceptions.

The German administration requires regulations Replacement to be neutral with regards to technology. Thus Implementing privileged parking would mainly have regulations cannot directly favor electric vehicles. a positive impact on EV numbers in last mile de- However, for freight transporting companies new livery and services, while loading / unloading areas business opportunities arise when privileges are would have a positive impact on EV numbers in granted for their EVs due to their low noise or last mile delivery. Fleets used for transport on-own- non-existing tailpipe emissions. account often park on company premises, thus are not likely to be replaced due to the discussed mea- An important prerequisite for any regulatory mea- sure (+). sure is a consistent and legally-regulated marking of electric vehicles. This would allow an easy dis- Integration tinction of emission-free and silent vehicles in traf- From an economic perspective, regulation regard- fic. So far electric vehicles cannot be distinguished ing parking is a valid and common tool with which in traffic i.e. by a label or on the license plate. to influence traffic in urban areas (++). Reserving The German Bundesrat (federal assembly) passed loading bays was seen as more critical by the ex- a motion put forward by Hamburg in September perts (+). 2013 to label electric vehicles, but the according law is still under procession. Effort and time frame Once EVs are legally marked, the time to imple- Important examples of regulatory advantages ment parking advantages can be relatively short, throughout the North Sea region are the unlim- requiring relatively low resources from administra- ited right to enter pedestrian zones, zero emission tion side of things (++). In accordance with the zones, or environmental zones (’Umweltzone’). rating that setting up special loading bays would Further non-monetary measures are the usage of be less easy to integrate, the experts rated the ef- bus lanes or privileged parking. Additionally, ex- fort for this action higher (+) and the time frame emptions for drivers with class B license to drive longer (medium). EVs up to 7.5 tons exist. All of these measures have also been named by and discussed with companies Privileged parking in interviews in chapter 3.4. Companies: + 4.2.1 Free and privileged parking or Replacement: + loading/unloading facilities Integration: ++ Effort: ++ Good practice Time frame: Short Parking EVs on designated privileged parking lots, free or reduced parking fees are granted for in- Examples: Oslo, Amsterdam, various stance in Oslo, Amsterdam and cities in the UK cities in UK and Denmark and Denmark. In Germany, Dortmund is currently discussing allowing EVs to load / unload at inner city taxi areas during certain times of the day. Privileged loading Companies rating Companies: + In Hamburg, interviewed craftsmen regarded park- Replacement: + ing exemptions as the most valuable non-financial Integration: + measure; privileged parking or unloading lots were Effort: + also highly welcomed by companies active in last Time frame: Medium mile delivery. The impact on municipal fleets is expected to be rather low, since municipal vehicles Examples: Oslo, Amsterdam, various like the police, garbage collection, construction cities in UK and Denmark

30 4.2.2 Entry into pedestrian zones ernment when it comes to entry regulations in beyond delivery windows passenger zones or providing a space for a con- solidation center. For Hamburg this could be a Good practice viable option, but the safety and convenience of Examples can be found in Nuremberg (Germany), pedestrians needs to be considered (+). Gothenburg (Sweden), Hasselt and further cities in Belgium, Utrecht, Amsterdam and further cities Effort and time frame in the Netherlands. However, in all these cases Experts from Hamburg’s government rated this ac- only certain EVs which are part of the city logis- tion as comparatively effortless (++) and imple- tics concepts are allowed entry outside of delivery mentable within a short time frame. hours. Utilized EVs range from eCargoCycles to small eQuads with trailers up to 12 ton trucks. Ei- Entry into pedestrian areas ther pre-consolidated trailers are parked inside the (combined with city logistics) area of service and hooked to the EVs, or in micro consolidation centers the goods are transshipped Companies: + to the EVs. Often, also reverse logistics - transport Replacement: + of recycling materials on the return tour - are part Integration: + of the logistics concept. Effort: ++ Time frame: Short Companies rating The right to enter pedestrian zones outside of Examples: Nuremberg, Gothenburg, delivery hours was rated as the most influential Hasselt, Amsterdam, regulatory privilege by companies active in last Utrecht mile delivery, especially by CEP companies. How- ever, this opinion was purely referring to a general permission without a requirement for additional 4.2.3 Usage of bus lanes consolidation, like in a city logistic solution. Good practice In Oslo, EVs are allowed to drive on bus lanes. Replacement However, EVs in Norway are mainly passenger ve- Allowing EVs to enter passenger zones is a reg- hicles, due to the tax incentives for the highly ulation mainly supporting the last mile delivery taxed passenger vehicles. segment to increase the use of EVs and reduce emissions (+). Companies rating On average, companies found the usage of bus Integration lanes desirable, but less important than free and Pedestrians might be skeptical about a general privileged parking or loading. There was a com- right for EVs to enter pedestrian areas. From the mon understanding that such a measure should be overall economic perspective a coordinated city lo- limited to the introduction phase of EVs, as larger gistic attempt is a favorable solution. However, in numbers of EVs could congest bus lanes. Central Europe, many city logistic initiatives of the past failed, due to high requirements in terms of Replacement cooperation and increased time and costs for the All freight transporting sectors switching to EVs additional transshipment (Wolpert, 2013). More would benefit from the usage of bus lanes, but expensive electric vehicles with a limited operating bus lanes are available only in certain streets in range add another limiting factor. Hamburg. Hence only vehicles which are deployed The utilization of new electric transport vehicles, in areas with bus lanes might be replaced (+). like eCargocycles and heavy electric quads utilized in the recent examples mentioned above offer a Integration new perspective. Some initiatives report to op- Hamburg is currently implementing an expensive erate profitably under certain circumstances; for ’Bus speed improvement program’ (’Busbeschle- instance with support from the municipal gov- unigungsprogramm’). Experts fear that additional

31 vehicles would reduce the improvements which can Integration be gained by the program. Furthermore, only few Relatively strict and large environmental zones are bus lanes exist in Hamburg, so the proposal is desirable from a sustainable economic perspective. not considered as essential (Bozem et al., 2013, A ’bue’ environmental zone according to the WHO pp.93). A recent study with policy makers from emission standards (Becker et al., 2009, pp. 73), the North Sea region supports this view: the usage would lead to high reduction of air pollutants. of bus lanes was rated the least favorable measure However, to increase the share of freight EVs, fur- (Bakker and Trip, 2013). In the medium term, too ther actions are necessary, as the measure alone many freight EVs could block the bus lanes and would not raise the numbers of freight EVs (+). lead to more congestion. (O) Effort and time frame Effort and time frame Experts expect that setting up an environmental Experts found that the measure could be imple- zone would require a longer time frame and mod- mented in a medium time frame with low admin- erate administrative resources during the decision istrative resources (++). process of location, size and type of the zone (+).

Usage of bus lanes Environmental zone (for freight) Companies: + Companies: + Replacement: + Replacement: O Integration: O Integration: + Effort: ++ Effort: + Time frame: Medium Time frame: Long Example: Oslo Examples: Amsterdam, London

4.2.4 Low emission zone 4.2.5 Zero emission zone Only vehicles emitting less than a certain level of A zero or ultra low emission zone is an area ac- particulate matter are allowed to enter the German cessible for vehicles which emit less than i.e. 50g ’Umweltzonen’ (low emission zones). In contrast CO2 per kilometer. to nearly all major Germany cities, Hamburg has not implemented a low emission zone. Good practice Venice has an example of a zero emission zone: Good practice Within its historical city center goods delivery with In Amsterdam and London, freight vehicles above conventional vehicles are prohibited. Freight is con- 3.5 tons need be Euro 4 compliant to be granted solidated in a logistics center and delivered solely access to the respective low emission zones. by EVs. London is currently discussing changing the existing congestion charging area to an ultra Companies rating low emission zone starting in 2020. Low emission zones for freight were judged by the craftsmen in interviews as the least desirable non- Companies rating financial measure but still effective to some extent. Companies were not asked to rate zero emission zones. One interviewee highlighted unprompted Replacement that a zero emission zone would be a major driver Vehicles compliant to the Euro 4 emission stan- for his company to to use EVs and eCargobikes in dards are allowed to enter low emission zones. his company. Vehicles above the limits would not necessarily be replaced by EVs. Thus, this measure would not Replacement necessarily increase the share of freight EVs (O). A zero emission zone would have a major impact on replacing conventional vehicle with EVs in all

32 freight transporting segments. The effect would Companies rating be limited to vehicles needing to enter the zero- One interviewee has named this regulatory mea- emission zone (++). sure as an important leverage in his company to increase the usage of freight EVs. Since a compen- Integration sation of the current weight disadvantage for EVs An inner city zero emission zone is one instrument would not have a negative impact on other com- to ensure the reduction of emissions in cities. How- panies it is, in fact, considered as rather positive ever, the measure is not popular with the public. for the companies. To gain public acceptance, information campaigns and further support for green transport on national Replacement and municipal levels would be required (+). Only freight transporting companies deploying diesel vehicles close to 3.5 t (if battery weight Effort and time frame is deducted) or up to 7.5 t (if exception would be Setting up a zero emission zone would require ad- granted for B licenses) would benefit and might ministrative resources to be expended in the de- consider replacing their vehicle with an EV (+). cision making process on location and size of the zone and to include all stakeholders (O). Thus, ex- Integration perts expected the planning horizon to be long. On average the experts from administration were positive about the measure, although one com- Zero emission zone mented that an exemption up to 7.5 tons seems to be inappropriate. The scientists added concerns, Companies: + that literature regarding social and legal aspects Replacement: ++ of the suggested measure is lacking so far, but on Integration: + average the rating remained positive (++). Effort: O Time frame: Long Effort and time frame The necessary legal changes would need to be im- Examples: Venice plemented on federal level. Hamburg, as a federal state, could support a corresponding initiative in 4.2.6 Drivers license the Bundesrat (federal assembly), taking low re- sources (++) but an intermediate time frame. Drivers of vehicles over 3.5t need a C class drivers license and a professional drivers training. These Drivers license drivers are far less common and more expensive than drivers with a B class license. Large electric Companies: + vans have heavy batteries and thus can exceed the Replacement: + weight limit of 3.5 tons when their payload is kept Integration: + equal to diesel vans. In this case, more of the higher Effort: ++ qualified, thus more expensive C-class drivers are Time frame: Medium needed. When on the other hand the weight limits are observed, the vehicles payload is reduced. This Examples: Netherlands, UK, Denmark would lead to more tours of EVs compared to con- ventional vehicles, increasing costs. 4.2.7 Time or spatial limitations for Good practice loud heavy vehicles As an example the UK, France, the Netherlands, Electric vehicles are predestined for off-hours or and Denmark have allowed B-class drivers to drive night time delivery, as especially heavy electric EVs up to 7.5 tons in order to compensate for the transport vehicles are more silent up until 50 km/h disadvantage of the battery weight. - which encompasses nearly the whole city area (Umweltbundesamt, 2013b).

33 Good practice Integration Delivering freight with silent vehicles during off- Experience of the practicability of this measure hours delivery can reduce congestion and thus should to be tested and validated in pilot projects. emissions. If silent EVs are allowed to deliver at A first project in Dortmund shows that not only times other vehicles are banned, business models the engine technology, but the whole vehicle body can become more viable. Hamburg has included and loading or unloading process needs to be inte- night delivery as a vision in its masterplan on grated to ensure a silent operation (+). climate protection (Senat-Hamburg, 2013, p.8). In Paris clean delivery vehicles (Euro VI, gas or Effort and time frame electric) are allowed to delivery at anytime, while Experts judged that a regulation of off-hours de- other delivery vehicles have time windows to ob- livery with silent vehicles or other exemptions for serve (Dablanc, 2011). In Dortmund, a company low noise vehicles could be put in place within a active in transport on-own-account is testing off- medium time frame with medium administrative hour delivery. The tests have shown that even effort (+). though the electric motor is more silent, the body of the heavy vehicle needs to be improved as well. The city of Dortmund is currently discussing to Exemptions due to low noise allow the silent truck on one major street which is closed for heavy commercial vehicles due to noise Companies: O protection. Replacement: + Integration: + Companies rating Effort: + Interviewed companies rated the measure as not Time frame: Medium being very effective, since many of them deliver during regular office hours. In order for the measure Examples: Paris to be effective, delivery windows for conventional vehicles would need to become stricter, or noise 4.3 Financial tools sensitive areas would need be limited to low noise heavy traffic in general. Financial subsidies for innovative technology of- ten plays an essential role during the introduction Replacement phase. At the same, time traffic management faces The potential to expand delivery hours in the parcel the challenge to internalize external costs, caused and mail delivery segment are about only two hours by noise, emissions and street wear and tear (Eu- in the morning and evening each (Tenkhoff, 2011, ropean Commission, 2011). Here, EU and federal p. 135). To overcome this drawback, a ’Bentobox’ government are called upon to set the framework was tested in the EU project Citylog to decouple conditions. Financial tools that integrate both delivery from reception times (Citylog, 2014). One stated requirements are most efficient. haulage company in textile logistics considers de- ploying EVs in triple shifts (Taefi et al., 2013b). On municipal level, an example is a city toll which Thus it can be concluded that in last mile delivery exempts desired innovative technologies. Other the capability to switch to off-hours delivery is de- possible measures discussed in this chapter are the pended on the customers preferences. Companies subsidy of the purchase price (in general or in re- transporting freight on-own account and municipal search projects) and the exemption of EVs from fleets are not depended on external customers and vehicle tax. The latter measure is already imple- could integrate off-hours and night time delivery mented at federal level, but needs to be included more easily, as the example of T¤di in Dortmund to complete the overview on possible actions. shows (Taefi et al., 2013b). Enforced by regulation or customer requests, vehicles utilized in off-hours transport would be replaced by silent EVs (+).

34 4.3.1 Exemption from vehicle tax 4.3.2 Purchase price subsidy Good practice Good practice Many countries exempt EVs from taxes. Apart In the Netherlands, EVs receive a 50% subsidy of from Germany, EVs are exempt from road fund li- the difference between investment costs compared cense and vans are exempt from van benefit charge to a conventional vehicle, up to a maximum of for five years in the UK; in the Netherlands EVs ¤40,000. In the UK 20% of purchase price, mean- are exempt from vehicle tax. ing up to £8,000 are subsidized. In Denmark the sales tax of up to ¤7,500 will not be charged until Companies rating 2015. Norway waves the (high) VAT for privately Exempting EVs from vehicle tax is a strong signal owned EVs, which leads to competitive prices for to potential freight vehicle users: In interviews, privately owned EVs. So far in Germany, EVs are non-EV users rated the exemption from vehicle only subsidized as part of projects. tax as the most important financial measure. For EV users, the measure dropped in favor, since the Companies rating companies realized the low financial savings due The twenty-two interviewed companies of differ- to the measure. Even though the tax exemption ent freight transport backgrounds rated monetary is decided on federal level, Hamburg as a federal subsidies of EVs through a buyers premium, re- state can highlight and further support the contin- duced leasing rates or tax incentives as the most uation of the tax exemption. preferred measures to increase the numbers of EVs.

Replacement Replacement The financial impact of waiving the vehicle tax A subsidy of the purchase price would be effec- on the TCO of an EV is rather low. However in- tive in all transport segments, thus the impact on terviews in chapter 3.4 revealed that companies replacing conventional vehicles by EVs and hence found this measure significant. Thus it has to be reductions of emissions would be high (++). assumed that the impact on replacing vehicles with EVs is high throughout all transport sectors (++). Integration Germany has set a focus on supporting R&D Integration projects to stimulate and advance the field of elec- This measure is a common tool to advance emis- tro mobility. From a macro economic view, this sion reduction and vehicle technology and is al- measure is more favorable than general subsidies. ready implemented in Germany at a federal level Bozem et al. (2013) fears that a general financial (++). subsidy could diminish the efforts of vehicle man- ufacturers to further advance EVs (O). Effort and time frame Exemptions from vehicle tax are already granted, Effort and time frame thus experts rated the effort to keep the tax exemp- Experts rated that purchase price subsidy would tion in place as being quite limited for Hamburg’s need a medium time frame. The effort for the gov- government (++). ernment is high due to the financial involvement (O). Exemption form vehicle tax Purchase price subsidy Companies: ++ Replacement: ++ Companies: ++ Integration: ++ Replacement: ++ Effort: ++ Integration: O Time frame: Implemented Effort: O Time frame: Medium Examples: Germany, the Netherlands, UK Examples: Netherlands, UK, Denmark

35 4.3.3 Electric freight projects commercial freight transport, their number is small compared to individual transport and should be in- Good practice creased in order to unlock the potential of EVs in Various German EV pilot projects focus on freight urban delivery (komDrive, 2014). However, experts transport, i.e. ’CO -free delivery’ in Bonn; ’ELMO’ 2 from Hamburg’s government judged the measure in Dortmund, ’komDrive’, ’Nanu’, ’ElektroAES’ to be mediocre, probably since the subsidy of EVs and ’Dislog’ in Berlin, ’E-Lieferung’ in the Allgäu. cannot be kept up for a longer period - after a certain time a self sustaining market must develop In Hamburg, the subsidizing of the leasing price (+). of commercial vehicles is part of the project ’Wirtschaft am Strom’. However, the subsidy is Effort and time frame limited to smaller vehicles which are suitable for Applying and granting pilot projects requires a commercial passenger transport and services. An short time frame according the the experts from extension of the project including larger freight administration. The effort is comparably high due EVs might be beneficial. Furthermore, a subsidy to the financial involvement. One expert com- of leasing contracts instead of a direct buyers pre- mented: ”However, supporting pilot projects is a mium has two potential limitations: first, compa- necessary investment in the future” (O). nies that would potentially deploy EVs but prefer to buy the vehicles, are likely to not participate in the project; furthermore, some companies want Support of freight EV projects to be supplied by their current leasing company. Companies: + For this reason, a subsidy of leasing contracts for Replacement: ++ commercial vehicles in a project in Frankfurt has Integration: + been reverted into a direct purchase price subsidy. Second, a maximum mileage of the EVs ensures Effort: O savings through the low operational costs. If a Time frame: Medium leasing contract caps the monthly mileage, the Examples: Hamburg, Dortmund, most effective cost advantage of EVs is nullified. Bonn, Berlin, Allgäu Especially the more expensive larger freight EVs need to be deployed at high average daily mileages in order to benefit from the low operational costs. 4.3.4 Exemption from city tolls Companies rating Good practice In interviews some companies actively demanded London and Oslo (and other Scandinavian cities) further support for pilot projects for several rea- have introduced a city toll to control the num- sons: to advance the batteries and EV technology, ber of vehicles in the toll-area. All cities exempt achieve a wider model range, as well as to gain electric vehicles from paying the toll. In Norway access to subsidies of the investment costs. this measure has a rather limited influence on the number of freight EVs, since due to the tax reg- Replacement ulations, most electric vehicles are of passenger Only a limited amount of vehicles and compa- car size. In London companies who utilize EVs for nies could be supported in pilot projects. However, freight transport report that through the exemp- those initiatives would serve as a role model, thus tion from city tolls, combined with other financial the measure is rated as desirable (++). benefits, their freight EVs can be often operated cost-neutrally compared to diesel vehicles. Integration R&D projects gather further practical experience Companies rating of technically viable, economically profitable and Companies in Hamburg rejected this monetary environmentally sound cases utilizing EVs in ur- measures as it would increase the costs of their ban freight. This knowledge could expedite the existing diesel fleet. integration of EVs in suitable transport segments. Although several projects are focusing on electric

36 Replacement Exemption form city tolls Hautzinger et al. (2011, p. 229) have conducted a study on a possible city toll in Hamburg. A daily Companies: - city toll of ¤13.60 for trucks has been proposed in Replacement: ++ model ”A” of the study. With the exemption from Integration: + this toll, the electric 3.5 ton truck in comparison Effort: + 4.1 on page 28 would have lower total costs of ownership than a diesel truck, when driving an Time frame: Long annual average of 10,000 kilometers, or 37 kilo- Examples: London, Oslo meters per day. According to Knahl and Sommer (2013) the daily average mileage driven by vehi- cles Hamburg’s companies is between 39 and 74 4.4 Raising awareness km per day. This means a city toll would have a significant effect on the profitability of electric As role models, municipalities facilitate the accep- freight vehicles and could lead to a large increase tance of EVs and enable market maturity of envi- in EV usage in last mile delivery and transport on- ronmentally friendly innovations. In order to com- own-account. Vehicles in municipal services would municate desirable innovative technologies and not be affected, since municipal fleets are usually promote successful examples is an important tool exempted from city toll. For this reason a high accompanying pilot projects. impact on vehicle replacement could be expected, with the exemption of municipal fleets (++). 4.4.1 Electric freight vehicles in mu- nicipal fleets and services Integration In general, a city toll can be integrated optimally Good practice into a sustainable traffic management concept With 60 vehicles, Hamburg had the largest mu- (example London). Currently the acceptance in nicipal fleet of EVs in 2012 in Germany (Lindlahr, Hamburg for a city toll is low (Hautzinger et al., 2012). During the project ’Wirtschaft am Strom’ 2011). Thus, a federal regulative guideline for cities it is planned to increase this number to 120 ve- to implement a city toll would be more favorable hicles. By setting a good example, Hamburg’s than individual decisions and solutions which vary government demonstrates that EVs are desired from one city to the next. If in advance to setting and a technically sound solution in fleets. Ham- up a city toll the general conditions for electro burg’s project head for electric mobility empha- mobility were ameliorated, the willingness to uti- sizes, ”when a new municipal vehicle is acquired lize EVs could improve. Communicating the goal it shall be an ultra low emission vehicle, unless of a ’green and clean city’ to the population is there is a good reason that a conventional vehicle important for broadly conceived support among is required”. So far in Hamburg there has been a population and local economy (+). focus on EVs suitable for passenger transportation. As an example, in reply to an inquiry about the Effort and time frame environmental friendlessness of the federal state Implementing a city toll would be a long term governments fleet, ’vehicles for working’ (’Arbeits- project. Regarding the possible costs, Hautzinger maschinen’) have been excluded; freight transport et al. (2011, 199) assume a high likelihood for a vehicles like vans were not part of the listed vehi- positive overall fiscal effect, if the discussed Model cles (Senat-Hamburg, 2012). However, Hamburg’s ”A” is implemented. Thus the costs for adminis- legislation offers the possibility to demand emis- tration would be low over the long term, while re- sion free vehicles especially for transport services quiring significant effort during the set-up time, to in tenders (Senat Hamburg, 2006, §3B (9)). include all stakeholders (+). Examples of freight EVs in municipal services can be found in Amsterdam or in France, where i.e. electric garbage collection trucks are deployed.

37 Companies rating Freight EVs in municipal fleets or services Among the freight transports in Hamburg only a few examples of freight EVs in the municipal Companies: NA fleet or in municipal services have been found. The Replacement: ++ measure has not been rated by the companies. Integration: ++ Effort: ++ (tender) Replacement + (municipal fleets) The measure only aims at replacing municipal Time frame: Medium freight vehicles with EVs or replacing EVs in cer- tain transport services. Thus, only a minor share Examples: Amsterdam & France of Hamburg’s freight vehicles could be replaced. (e.g. garbage trucks) However, with the municipality being a role model, it can be expected that the measure would then be integrated into other freight transporting seg- ments (++). 4.4.2 Green transport label Good practice Integration Companies that deploy freight EVs often communi- Fostering a low emission municipal fleet (including cated their commitment to reduce emissions. They freight vehicles) can serve as a role model to other often received positive feedback from existing cus- freight transporting companies. The impressive tomers or sometimes even gained new customers measure carried through with Hamburg’s admin- (E-Mobility NSR, 2013). To support companies istrative passenger car fleet could be extended to with their communication, a green transport label freight EVs in municipal fleets and services as well could be established. As an example, Hamburg has as tenders including transport tasks. As a fur- issued the label ”Umweltkurier” to CEP companies ther measure, the legislation §3B (9) of the Senat who use low emission vehicles. Hamburg (2006) could be executed more strictly. The law foresees that when transport services, Companies rating especially of goods, are requested, emission free Many interviewees voiced the opinion that a la- vehicles should be requested. bel would be nice to have, but is not relevant for Examples of municipal freight transport or services the decision to invest in EVs. Some pointed out are the transport of books in between libraries, that too many labels might confuse the customer. currently carried out by a 3.5t van, internal postal Companies mentioned, a label would need public- services (”Hauspost”), when ordering office sup- ity and should best be granted Germany or Europe plies, etc. EVs could furthermore be utilized ser- wide. vicing parks and greens, as well as for garbage removal (++). Replacement Since companies found that a green transport la- Effort and time frame bel would not impact their decision to utilize EVs, A short time frame would be needed to start ex- freight EV usage would not increase solely due to changing existing vehicles with EVs at moderate the availability of a transport label. However, a la- effort (+), or include EVs in new tenders at low bel could showcase an appreciation of their efforts effort (++), according to experts. in transport greening and help in marketing (O).

Integration A label becomes more relevant when granted based on transparent, qualified informa- tion and is accompanied by information campaigns. In order to prevent confusion by too many la- bels, one single federal label would be preferable, i.e. provided by the Federal Environmental Agency. Hamburg’s experts judged that such a label would be a feasible measure (++).

38 Effort for administration and time frame Effort and time frame Campaigning for a Germany wide green transport To include freight EVs in the existing information label at the Bundesrat (federal assembly) would campaigns can be implemented rather quickly with take a medium time frame and bind medium re- a medium amount of effort (+). sources, according to the experts.

Federal green transport label Information campaigns Companies: O Companies: O Replacement: O Replacement: + Integration: ++ Integration: ++ Effort: + Effort: + Time frame: Medium Time frame: Short Examples: Hamburg (”Umweltkurier”) Examples: London, Amsterdam

4.4.3 Information campaigns 4.5 Infrastructure Good practice Electric mobility offers innovation in transport, Cities like Amsterdam and London operate web- which can be enhanced through various infrastruc- sites with lists covering available EVs for commer- ture build up. However, two infrastructure projects cial use and good practice examples. In Hamburg most often discussed - putting public charging in- several institutions are providing information on frastructure in place and enabling bi-directional electric vehicles for commercial use; for instance charging to utilize EV batteries for grid stabiliza- the ’Behörde für Stadtentwicklung und Umwelt’, tion - are more suitable for privately owned EVs. the ’Handelskammer’ and ’Handwerkskammer’. In freight transport, EVs are mainly charged on However, examples are limited to small vans and company depots, thus a public charging infrastruc- do not include eCargobikes, eScooters, eQuads or ture is not essential (Taefi et al., 2014; Tenkhoff, electric trucks. 2011). Freight EVs are mainly slow charged during the night and the large batteries need most of Companies rating the idle time to recharge. During the day, freight In interviews non-EV using companies rated better EVs are deployed for delivery or collection, often information as rather irrelevant. However, the in- without being connected to the grid. Hence the terviewers often found a lack of knowledge in this window for bi-directional charging of freight EVs group. Sometimes advantages of EVs - like the low is rather small. operational costs - or subsidies through research programs were unknown; mentioned disadvantages Freight EVs would require a different type of infras- referred to vehicles with older technology (i.e. lead- tructural support in order to make full use of their gel battery); or interviewees were unaware of the advantages, as discussed in the following sections. existence of freight EVs. 4.5.1 Quick charging infrastructure Replacement Due to the gap of know-how in companies, to pro- on company compounds vide further information on freight EVs can have a The limited public charging infrastructure is high- positive impact on the numbers of EVs (+). lighted as a key obstacle for companies to invest in commercial EVs in the latest report of the project Integration ’Wirtschaft am Strom’ (Knahl and Sommer, 2013). Information and PR are common and important Of Hamburg’s 23 freight transporting companies administrative instruments to raise awareness and interviewed for this report, the vast majority of 20 acceptance for certain measures; they positively in- companies stated that they would have the possi- fluence innovation (++). bility to charge freight EVs at their depots. Only

39 three craftsmen mentioned that they would need Effort and time frame to rely on public charging stations and four actively Implementing this action can be done in a medium suggested to enhance the public charging infras- time frame, but the effort was estimated to be tructure. Other studies also support the finding rather high due to the financial subsidies (O). that freight EVs usually are charged at the com- pany premises (Tenkhoff, 2011; Taefi et al., 2014, In-house charging infrastructure 2013b). Thus, the expansion of public charging infrastructure is not an important requirement for Companies: + freight EVs. Deploying new freight EVs can start Replacement: + immediately. Integration: ++ Effort: O Companies rating Companies unprecedentedly highlighted that a Time frame: Medium supportive measure for them to invest in EVs Examples: None would be administrative support or a subsidy in setting up in-house charging infrastructure. This is especially valid when companies plan to extend the daily range of their EVs through intermedi- 4.5.2 Electric cargocycles ate charging. Deploying EVs on multi-shifts is an Good practice effective method for companies to benefit from Apart from reducing emissions, eCargocyles poten- the EVs low operational costs and to reduce the tially reduce congestion of roads and land use for total costs of ownership relative to a diesel vehi- parking in the inner cities (Leonardi et al., 2012). cle. Besides, companies can benefit from off-hours At the same time, a simulation for the city of Porto delivery since the roads are not congested, thus fur- in Portugal highlights, that a certain (high) share thermore increasing the productivity of the logistic of cargo cycles could also lead to a negative effects chain (Tenkhoff, 2011). A problem one company on average traffic speed and density (Melo et al., experienced when planning to deploy a large fleet 2014). These possible effects have to be taken of EVs is that additionally to the in-house infras- into account, in case the share of cargo bikes is tructure, the cities power grid would need to be raised without adequate infrastructure adoptions. adapted to comply to the large demand of renew- Becker et al. (2009) suggest three strategies: a. able electric energy during charging. Business as Usual Replacing a limited amount of cargo cycles - according to infrastructure limita- Good practice tions - this would lead to only minor emission No example of supporting in-house charging in- reductions; b. Additional actions If further mea- frastructure outside of R&D projects is known to sures such as information, coordination and R&D the authors. projects are carried out, but the infrastructure is not enhanced, only intermediate emission reduc- Replacement tions can be expected; c. Green logistics Additional Supporting the set-up of in-house charging infras- to a. and b., the adaption of infrastructure would tructure would reduce a barrier for companies to lead to a sustainable and cycling friendly city. utilize EV for freight transport purposes, thus in- crease the number of freight EVs used (+). Throughout North Europe eCargocycles are mainly deployed in mail and parcel delivery, courier ser- Integration vices, as well as for transport-on-own account, i.e. The experts in administration were generally in the Netherlands or Copenhagen. Since mid-2012 against purchase price subsidies of EVs (see mea- initiatives are connected in the ”European Cycle sure ’Purchase price subsidy’ above), but the idea Logistics Federation” which is supported by the EU to subsidize charging infrastructure was judged funded project ”CYCLElogistics”. In Dortmund, a positively (++). parcel delivery company uses electric cargo bikes, as do courier companies in various cities in the pilot project ”I substitute a car” (”Ich ersetze ein Auto”).

40 Companies rating friendly and livable city. On the other hand, cargo Actions to support the replacement of small con- cycles compete with other modes of transportation ventional vehicles with eCargobikes for freight de- for space on public roads or sidewalks and Ham- livery have not been rated by the companies. burg is known to be not the most bicycle-friendly The Hamburg based courier company active in the city in Europe. Thus, on average, the experts rated pilot project ”I substitute a car” highlighted three the integration of cargo cycles and improvement main problems and possible actions to support of bicycle infrastructures moderate (+). eCargocycles: Effort and time frame 1. Many bicycle lanes are unsuitable for wide and To allow eCargocycles to utilize the road or in- fast eCargocyles. cluding them in the general promotion of environ- → Improve bike lanes for fast and broad eCargo- mental friendly commercial transport can be imple- cyles in the inner city area, or allow eCargocycles mented fast with moderate effort (+). Improving on the street, bus or taxi lanes even if the use of the bicycle infrastructure would take a long time (unsuitable) bicycle lanes is obligatory. frame and be rather expensive (O). 2. Leasing rates for eCargocyles are high, com- pared to normal bicycles Support eCargocycles → Instead of replacing bicycles, small passenger cars can be replaced, then the eCargobikes are at Companies: NA least cost neutral. Replacement: ++ 3. Companies who want to deploy eCargobikes Integration: + have trouble finding drivers, as i.e. bicycle couriers Effort: ++ (Promotion) enjoy the sportive challenge which is diminished O (Cycle paths) by an electric motor, and passenger car drivers are Time frame: Medium (Promotion) motorists who despise cycling. Long (Cycle paths) → To include the freight dimension of eCargobikes in any municipal cycling promotion and informa- Examples: Netherlands, Copenhagen tion, to motivate potential drivers, that eCargob- ikes are a desired trend and being a EV-driver is being part of an innovative future and thus ’cool’. 4.5.3 Micro consolidation centers Good practice Replacement Success factors for deploying small EVs like electric The Hamburg based courier service company tak- cargo bikes or eQuads for inner-city deliveries are ing part in the pilot project testing eCargocycles subsidized areas for consolidation or the transship- estimates that about 30 percent of their deliveries ment of goods - and access to pedestrian zones. could be carried out with eCargocyles. This is in Examples are Gnewt Cargo in London, the Car- line with the current ’Cyclogistics Baseline Study’, gohopper in Utrecht or pilot projects of TNT in which found that 31 percent of motorized profes- Belgium (E-Mobility NSR, 2013). sional urban goods transport in freight and service could be transferred to (electric) cargo cycles in Companies rating European cities (Reiter and Wrighton, 2013). This This measure has not been rated by companies. is a significant amount (++). Replacement Integration A micro-consolidation hub could reduce a certain Current projects (as described above) demonstrate mileage by combining inbound last mile deliver- the large potential of eCargocycles. Whether the ies and outbound transport of recycling materials. street or bicycle lanes can be utilized has to be de- However, the area covered is relatively small, thus cided based on local conditions. From a scientific the number of vehicles replaced is moderate (+). point of view, eCargocycles can optimally be inte- grated in city logistic approaches and implemented Integration in communication campaigns for a green, cycle- Areas for micro consolidation hubs in inner cities

41 are sparse and valuable to companies. Hence, a Good practice possible explanation for the medium rating (+) In Dortmund, the city’s administration has sup- given by experts is the competition about areas in ported the search for an existing garage which was inner cities. Individual requests for logistic areas interested in enhancing their portfolio and become could be granted under the precondition that low an EV repair shop. The garage offers fast servicing emission vehicles are utilized in last mile deliv- for electric vehicles of all brands deployed in the ery. Integrated city logistics hubs with a neutral project ’Elmo’. third party for last mile delivery require trust and a good coordination in order to become viable. Companies rating Here the government could support and facili- The availability of a repair and service workshop tate the communication among the stakeholders. has not been rated by the companies. The idea When areas for freight bundling are subsidized by evolved when interviewed companies in some cases the government, electric delivery concepts with i.e. voiced concerns about trialling EVs unless devel- eCargobikes can become more viable. oped by renowned manufacturers. Furthermore companies were worried about the battery life- Effort and time frame time, especially when quick charging was planned. Maybe due to the complexity of the action, ex- Quick charging can be a measure to enhance the perts rated that facilitating the communication of daily kilometer range of freight EVs and support a the stakeholders or to provide an area for a micro profitable operation. consolidation hub would need high resources (O). On the other hand they estimated that only a short Replacement time frame would be required. A repair shop as described could be supported together with an information center and reduce Micro consolidation centers the fears of companies to test freight EVs which are not well established yet. Thus it could have Companies: NA a positive impact on a certain number of freight Replacement: + companies and encourage them to use freight EVs, Integration: + especially in the case of companies with smaller Effort: O fleets (+). Time frame: Short Integration Examples: Utrecht, London, Belgium Administration can initiate the uptake of an e- mobility repair and service shop and facilitate 4.5.4 Electric vehicles repair and communication between EV manufacturers, the service workshop repair shop and companies utilizing EVs, experts judged the feasibility of this measure medium (+). Once initial technical challenges were met, EVs proved technically suitable for many freight trans- Effort and time frame port tasks in the North Sea region. However, com- The experts that were asked found that identify- panies utilizing freight EVs still needed to over- ing an existing garage which is interested in train- come difficulties in after sales services. A lack of ing technicians would require a medium time frame spare parts or technicians led to long repair times and effort (+). of EVs (Taefi et al., 2014). An EV repair shop could carry out fast repairs independent of the ve- EV repair and service shop hicle brand; or assist in communicating guarantee claims to the manufacturer. This might be espe- Companies: NA cially useful for smaller or medium size companies, Replacement: + which do not have a dedicated fleet management Integration: + or extensive service contracts. Once suppliers and Effort: + manufacturers have set up stable servicing struc- Time frame: Medium tures, this measure will become less important. Examples: Dortmund

42 4.6 Summary of actions to increase the freight electric vehicles share in Hamburg

The discussed and rated actions are summarized in table 4.1. Additionally, the actions are visualized in figure 4.2 on page 44 for a better overview.

Measure Replacement Integration Effort Time frame

Regulation Privileged parking + ++ + Short Privileged loading + + + Medium Entry in pedestrian zones (with city logistics) + + ++ Short Usage of bus lanes + O ++ Medium Low emission zone (for freight) O + + Long Zero emission zone ++ + O Long Drivers license + ++ ++ Medium Time or spatial limitations for loud vehicles + + + Medium

Financial Purchase price subsidy ++ O O Medium Support of freight EV pilot projects ++ + O Short EV tax exemption ++ ++ ++ Implemented EV exemption from city toll ++ + + Long

Raising awareness Freight EVs in tenders ++ ++ ++ Short Freight EVs in municipal fleet ++ ++ + Short Federal green transport label O ++ + Medium Information campaigns on freight EVs incl. + ++ + Short eCargoCycles

Logistic chain optimization Charging infrastructure on companies compounds + ++ O Medium Cycle lanes infrastructure improvement (cargo cycles) ++ + O Long Micro consolidation centers + + O Short EV repair and service workshop + + + Medium

Table 4.1: Overview of expert rating of actions

43 Figure 4.2: Portfolio of rated actions to increase freight EVs share in Hamburg

44 5 Rating and suggested actions to increase the share of elec- tric freight vehicles

Available reports such as the ’Handlungsleitp- a measure in an overall sustainable traffic faden Elektromobilität in Kommunen’ (Grausam planning. et al., 2014) summarize measures to support EVs in general. These measures often cannot be di- 4. Timeframe: indicates the time needed until rectly transferred to electric freight transport, since a measure could be implemented. this segment operates under different preconditions In this chapter the possible measures are prioritized than individual passenger transport. This report is by applying a scoring system to derive recommen- focusing on measures which the administration can dations in order to increase the share of freight take, in order to increase the share of freight EVs EVs in Hamburg. The factors ’Replacement’ and in Hamburg. ’Integration’ were assigned a value (2 for ++; 1 Possible supportive actions were derived from two for +; and 0 for O) and added. This new value sources: firstly, 23 companies which transport indicates how useful a measure would potentially freight in Hamburg indicated and rated possible be. Afterwards, the actions were recommended or measures in interviews. Secondly, supportive pol- excluded according to the key below and finally icy measures and profitability strategies found in ranked according to the effort required to imple- the European North Sea region were collected and ment the measure. added to the collection of possible measures. For each of the 20 identified measures, experts from Score Level Hamburg’s companies, government and a research institution rated the following four factors: ≥ 3 Recommended 1. Replacement: rates the effectiveness of a 2 Test in Project measure with regards to replacing diesel ve- ≤ 1 Excluded hicles through EVs. Table 5.1: Ranking of recommendations 2. Effort: rates the costs of a measure in terms of personnel and financial resources which Hamburgs government would be required to The resulting recommendations have been grouped invest. into short, medium and long term actions, for a better overview, compare table 5.2 3. Integration: rates the feasibility to integrate

45 Measure Score Effort Level

Implemented actions EV tax exemption 4 ++ Recommended

Short term actions Freight EVs in tenders 4 ++ Recommended Freight EVs in municipal fleet 4 + Recommended

Information campaigns on freight EVs including cargo cycles 3 + Recommended Privileged parking 3 + Recommended Support of freight EV pilot projects 3 O Recommended

Entry in pedestrian zones with city logistics 2 ++ Test in project Micro consolidation centers 2 O Test in project

Medium term actions Drivers license 3 ++ Recommended Federal green transport label 3 + Recommended Charging infrastructure on companies compounds 3 O Recommended

Privileged freight loading bays 2 + Test in project Time or spatial limitations for loud vehicles 2 + Test in project EV repair and service shop 2 + Test in project Purchase price subsidy 2 O Test in project

Usage of bus lanes 1 ++ Excluded

Long term actions EV exemption from city tolls 3 + Recommended Cycle lanes infrastructure improvement for cargo cycles 3 O Recommended Zero emission zone 3 O Recommended

Low emission zone (for freight) 1 + Excluded

Table 5.2: Overview of ranking of actions

5.1 Recommended actions Implemented: Exemption from vehicle tax This report recommends twelve of the twenty col- An exemption of EVs from the annual vehicle tax is lected measures to increase the number of freight already implemented in paragraph 3d of the law on EVs in Hamburg, due to the ratings received by vehicle taxes (’KraftStG’). EVs registered before experts. Some actions are mean higher costs or re- 2016 are exempt from vehicle tax for 10 years, if quire more personnel resources than others. If only registered before 2021 they are exempt for 5 years. limited resources are available, the expected effort Although the financial effects on the total cost of gives an indication about a possible ranking of the ownership are relatively low, the measure is viewed measures. as an positive signal by companies, affirming that

46 EVs are desired. For the planning security of com- ies; lists of available vehicles beyond electric vans panies, Hamburgs government could campaign at known in Hamburg, like eBikes, eQuads or compa- the Bundesrat (federal assembly) to extend the 10 nies who offer conversions. The information could years of tax reduction beyond 2016, i.e. for com- be made available at public events as well as on mercial vehicles. (Low effort). the internet, as demonstrated by other countries and cities. Short term: A special focus could be laid on electric cargo cy- Freight EVs in tenders and municipal fleet cles. Apart from reducing emissions, electric car- The two top short term actions identified are to in- gocycles offer the possibility of reducing conges- crease the numbers of EVs which transport goods tion on the roads and the amount of valuable land for the government. Fostering a low emission mu- used for parking in city centers. The current ’Cy- nicipal fleet (including freight vehicles and external clogistics Baseline Study’ found that 31 percent vehicles engaged in transport services) can serve of motorized professional urban goods transport in as a role model for other freight transporting com- freight and service could be transferred to (elec- panies. tric) cargo cycles in European cities (Reiter and A measure requiring less effort, is to actively and Wrighton, 2013). A Hamburg based courier ser- more consistently execute the HmbVgG §3B (9). vice company estimates that 30% of their courier This directive offers the possibility to favor com- cars could be replaced by eCargocyles. panies for transport tasks, who utilize emission Information campaigns on eCargobikes could raise free vehicles. Hamburgs government has many a) the awareness in companies about the availabil- contracts with companies delivering goods and ity of electric cargo cycles for freight transport and providing services. An example are companies that b) communicate the advantages for businesses as replenish office supplies. well as the environment. Drivers of eCargocycles As a second more cost intensive measure, more could furthermore be supported in handling the freight EVs could be implemented in Hamburgs fast and bulky bikes by exemptions, such as al- municipal fleets. Currently an impressive measure lowing the driver to to drive on the roads even if being implemented by Hamburg’s governmental the use of (unsuitable) bicycle lanes is obligatory passenger car fleet. It foresees that a vehicle will (”blue bicycle sign”). In order to support high num- be replaced by an EV, unless a valid reason is bers of eCargobikes over the long run, a further stated which justifies that a conventional vehicle investment in infrastructure for fast and bulky is acquired. This directive could be extended to eCargobikes would be necessary, to improve the freight EVs in municipal fleets and services. Exam- conditions for this environmentally friendly means ples are the transport of books between libraries, of freight transport in Hamburg (compare mea- currently carried out with a 3.5t van, internal sure: ”Cycle lanes infrastructure improvement for postal services (”Hauspost”), etc. EVs could fur- cargo cycles”). (Medium effort). thermore be utilized servicing parks and greens, as well as for garbage collection. (Low effort for Short term: tenders, medium effort for municipal fleets). Privileged parking Regulatory advantages of EVs can partially off- Short term: set the higher investments for EVs. An impor- Information campaigns on freight EVs includ- tant prerequisite for any regulatory measure is the ing cargo cycles, eScooters or eQuads consistent and legally-binding marking of electric Electric mobility is a ”hot topic” in the media at the vehicles. This would allow an easy distinction of moment, but there is a lack of awareness about the emission-free vehicles in traffic. So far electric vehi- potential in electric urban freight transport. Like- cles cannot be distinguished in traffic by a marking. wise in our interviews with 23 freight transport- The German Bundesrat (federal assembly) passed ing companies in Hamburg, we found that decision a request of Hamburg in September 2013 to label makers are not fully informed about the current electric vehicles, but the according law is still to EV models, battery technology, profitability strate- be passed. gies, project or regulatory support, challenges and advantages. Promotion could include case stud- Many of the interviewed freight companies found

47 the parking situation especially problematic in port label will require a higher effort according to Hamburg. The interviews with freight transport- the estimations of the experts then is the case ing companies showed that especially companies for achieving an exemption for the drivers license involved in services or courier services would ben- through the Bundesrat (federal assembly). Though efit from privileged parking lots. (Medium effort). the necessary steps seem comparable, a possible explanation is, that the experts expect this action Medium term: to be discussed more controversially at several Drivers license exemptions stages. Another explanation might be that a di- An action which was rated as requiring a relatively rective on exemptions for EV drivers licenses is low effort is to grant a drivers license exemption currently already being discussed at the European for EV drivers: Commission. A directive on European level could reduce the effort to pass such a directive on the Drivers of vehicles over 3.5t need a C class drivers federal level. (Medium effort). license. Drivers with this license are far less com- mon and more expensive than drivers with a B Medium term: class license. Large electric vans have heavy batter- (Quick) charging infrastructure on company ies and thus can exceed the weight limit of 3.5 tons compounds when their payload is kept equal to diesel vans. In A recommended measure which requires a higher this case, more of the better qualified, thus expen- (financial) involvement from the government is to sive drivers are needed. When on the other hand, support charging infrastructure at company com- the weight limits are observed, the vehicles payload pounds and premises. is reduced. This leads to the need for more tours or The limited amount of public charging infrastruc- vehicles compared to conventional vehicles, again ture is highlighted as a key obstacle for com- inducing costs and increasing emissions. In order panies to invest in commercial EVs in the latest to compensate for this disadvantage, neighboring report of the project ’Wirtschaft am Strom’ (Knahl countries such as the UK, the Netherlands, France and Sommer, 2013). The vast majority of freight and Denmark have allowed B-class drivers to drive transporting companies interviewed for this report EVs up to 7.5 tons. Hamburg as a federal state stated that they would not utilize public charging could support an initiative to implement a fed- infrastructure, but charge their freight EVs at their eral calculative reduction of EVs gross payload by depots or possibly at the compounds / premises weight of batteries, or for permission that class B of customers, if visited regularly. Other studies drivers may drive up to 7.5t EVs. (Low effort). support this finding (Tenkhoff, 2011; Taefi et al., 2014, 2013b). Thus, the expansion of public charg- Medium term: ing infrastructure is not an important requirement Federal green transport label for freight EVs. However, interviewed companies A green transport label similar to the mentioned that the costs for setting up the charg- ’Umweltkurier’ in Hamburg could support com- ing infrastructure at their depot are included in panies in communicating their commitment to TCO calculation for the first EVs purchased. This reduce emissions by deploying EVs in order to adds to the negative balance of the EV’s TCO, provide their services to their customers. A la- compared to conventional vehicles and thus leads bel would become more relevant when granted to the decision to not invest in freight EVs. Fur- based on transparent, qualified information and thermore, an even more expensive in-house quick is accompanied by information campaigns. In or- charging infrastructure could be beneficial to ex- der to prevent confusion through too many labels, tend the daily range of the freight EVs. Deploy- one single federal label would be preferable, i.e. ing EVs on multi-shifts is an effective method for provided by the Federal Environmental Agency. companies to benefit from the EVs low operational Even if companies rate the measure as not being costs and reduce the total costs of ownership rel- overly effective, it could showcase the appreciation ative to a diesel vehicle (compare chapter 3.1). for their efforts in transport greening and support Besides, companies can benefit from off-hours de- marketing activities. livery since the roads are not congested, thus fur- Campaigning for a Germany wide green trans- thermore increasing the productivity of the logistic

48 chain (Tenkhoff, 2011). All these effects could help In this way, it can be evaluated whether the mea- that EVs could reach a TCO comparable or lower sures are effective and efficient for Hamburg. than conventional vehicles and thus increase the numbers of freight EVs in companies.(High effort). Generally, initiating further pilot projects for the integration of EVs in urban freight transport is Long term: recommended by the experts. Through project Zero emission zone or exemption from city testing, new approaches can be tested in a con- toll trolled situation, optimized and be established as The German ’Energiewende’ implies a paradigm role models, once successful. Even though financ- change from fossil fuels to more sustainable en- ing pilot projects require a high effort due to the ergy sources. Instruments to reduce emissions from financial investment, there is a common under- freight vehicles are an inner city zero emission zone standing that such freight EV projects are neces- or a high city toll for freight vehicles. The latter sary at the introduction phase and that they are would require the exemption of ultra low emis- an ”investment in the future”. All measures were sion freight vehicles from paying the toll. Either suggested to be carried out within the next 3 years. measure could be implemented in the long run, when more ultra-low emission freight vehicles are The following measures are proposed for testing in available and stakeholders have time to prepare. pilot projects in Hamburg: Which measure is suitable and will be accepted by the public needs careful assessment. The experts Purchase price subsidy in government rated that from their point of view Commercial goods transport with trucks over 3.5 the exemption of EVs from a city toll would re- tons is the main source of traffic related nitrogen quire lower investment and resources than setting dioxide emissions in Hamburg (compare chapter up a zero emission zone. This different rating can 2.7). Thus financial support for purchasing freight possibly be explained with the high likelihood for EVs above 3.5 tons in research projects would in- a positive overall fiscal effect. (City toll: Medium crease EV numbers and have a positive impact effort, Low emission zone: High effort). on Hamburgs air quality. Moreover, it would gen- erate role models which companies outside the Long term: pilot project could follow. A project similar to Electric cargo cycle paths ’Wirtschaft am Strom’ - but without the limita- The benefit of electric cargo cycles has been sum- tion in daily mileage by a leasing contract and the marized above in the short term actions. To facili- possibility to purchase vehicles - would be desir- tate freight transport with a higher number of elec- able in order to support utilization of freight EVs tric cargo cycles in the longer run, promotion and (compare chapter 4.3.3). regulative advantages need to be supplemented by the according infrastructure development of appro- Entry in pedestrian zones with city logistic ap- priate bicycle lanes. This measure is relatively ex- proach, micro consolidation centers, privileged pensive for Hamburg’s government due to the in- loading bays frastructure construction, but it would allow the In inner city pedestrian zones, the delivery to shops fast and bulky bikes to be operated more safely is limited by a time window. This means in Ham- and effortlessly in the inner city areas. (High ef- burg that delivery vehicles supplying the shops fort). have to enter the inner city during the morning rush hour, adding to the congestion. When a cus- 5.2 Actions to test in pilot projects tomer requests delivery or pick up outside of the delivery window, companies in parcel delivery or The actions discussed in this section did reach a courier service companies face the problem that medium score for the expected replacement of con- they cannot access the pedestrian area with mo- ventional vehicles by EVs, or their feasibility to be torized vehicles. integrated in the existing overall traffic planning A city logistic approach with a shared hub system concept. Thus, this report proposes testing the could integrate delivery and pick up of parcels, measures in pilot projects before adopting them. goods and recycling items. It could be carried

49 through by a neutral third party with EVs, such as hours and night time delivery more easily into the Cargohopper. Delivery companies would ben- their transport processes, as the example of T¤di efit from avoiding the expensive and time limited in Dortmund shows (Taefi et al., 2013b). Further- last mile delivery. Shops could be delivered to more more, the municipal fleets might represent a good often during the day, and reduce storage costs. By opportunity to integrate off-hours delivery with allowing the EVs of the city logistic company to EVs as the client is the municipality. The same access the pedestrian zone throughout the day, is true for the access and delivery into pedestrian congestion and thus emissions could be reduced. areas. Delivery windows are regulated by the lo- Past city logistic approaches in central Europe of- cal government and could be extended for silent ten failed in the past (Wolpert, 2013). The main vehicles. However, not only the silent engine tech- barriers identified were profitability and coopera- nology has to be considered. An additional noise tion issues (ibidem). City logistic approaches need reduction of the vehicle body and of the loading to be carefully orchestrated and facilitated by the or unloading process is necessary so as to ensure a local government to function and prevent problems silent operation. arising in the past. A different approach would be to offer spaces for Facilitating an EV repair shop micro consolidation hubs, i.e. privileged loading To ensure the availability of an EV repair and bays, close to the inner city pedestrian areas. At service shop can overcome one central techni- these loading / unloading facilities i.e. cargo cycles cal barrier: although in the past years EVs have could be replenished. In this way each delivery com- proved technically suitable for many freight trans- pany could keep owning ’their’ last mile delivery port applications, companies utilizing freight EVs - because especially delivery companies described still need to overcome difficulties in after sales the outsourcing of the last mile as problematic in services. A lack of spare parts or technicians can interviews. At the same time shops would benefit increase down times and thus costs of EVs (Taefi from just-in time delivery throughout the day; de- et al., 2014). Our interviews showed that this is livery companies could avoid the rush hour traffic a challenge especially for smaller or medium size and deliver right in front of the customers door companies, which do not have a dedicated fleet throughout the day; at the same time congestion, management or extensive service contracts. and emissions like noise, greenhouse gas and air pollutants would be reduced. Ensuring the availability and communicating the existence of an e-mobility repair and service shop Time or spatial limitations for loud vehicles could raise the level of comfort for companies to Electric vehicles are predestined for off-hours or invest in available electric transport vehicles, which night time delivery, as especially heavy electric are not yet in serial production. Such a repair shop transport vehicles are quiter up until 50 km/h could provide trained technicians, keep spare parts - which encompasses nearly the whole city area to carry out fast repairs independent of the vehicle (Umweltbundesamt, 2013b). However, raising the brand, or assist in communicating guarantee claims share of electric freight EVs for noise reduction to the manufacturer. In the long term, hopefully, is not included in this plan. Furthermore, deliv- suppliers and manufacturers will set up more sta- ering freight with silent vehicles during off-hours ble servicing structures, and garages will be able to can reduce congestion and thus emissions. If silent provide trained personal, reducing the demand for EVs would be allowed to deliver at times other a specialized e-mobility workshop. vehicles are not, new business models can become more viable. Hamburg has included night delivery 5.3 Excluded measures as a vision in its masterplan on climate protection (Senat-Hamburg, 2013, p.8). The following actions have been excluded by the Vehicles utilized in mail and parcel delivery de- filters applied: pend on customer delivery windows, which cannot be extended to any greater extent. However com- Low emission zone panies active in transport-on-own account are not Even if a strict (blue) environmental zone would depended on customers and could integrate off- have a positive effect on the overall emissions

50 and can be well integrated in an overall traffic fer. Finally, the feasibility to integrate the measures planning, the measure is not effective in reaching in an overall sustainable traffic planning concept higher freight EVs numbers. It is expected that ve- needs to be considered. The factors ’Effort’, ’Inte- hicles would mostly be replaced by other vehicles gration’ and ’Time frame’ were rated based on the meeting the requirements, not by EVs. ratings of five e-mobility experts from Hamburgs government and one scientist from the University EVs on bus lanes of Applied Sciences in Hamburg with expertise in According to TomTom (2013), Hamburg is the sustainable economics and traffic. second most congested city of Germany. Allowing freight EVs to utilize bus lanes in the inner city Recommended measures would decease times for trips and thus could moti- The report concludes with the recommendation vate companies to invest in freight EVs. However, to implement supportive measures which reached Hamburg is currently implementing an expensive high scores for the factors ’Replacement’ and ’In- ’Bus speed improvement program’ (’Busbeschle- tegration’. If only limited resources are available, unigungsprogramm’). Experts fear that additional the expected effort gave an indication about a vehicles would reduce the improvements which can possible ranking of these recommended measures. be gained by the program. Also policy makers in literature favor other regulative measures over the Short term: usage of bus lanes (Bakker and Trip, 2013; Bozem et al., 2013, pp.93). • Keep or even extend the exemption from an- nual vehicle tax. Implemented - Low effort. 5.4 Summary • Increase the number of freight EVs in munic- ipal services by executing the HmbVgG §3B This report has investigated possible actions to (9) more consistently, which allows the fa- support electric freight vehicles in Hamburg. Other voring of emission free vehicles for municipal available reports such as the ’Handlungleitfaden transport tasks carried through by external Elektromobilität in Kommunen’ (Grausam et al., transport companies. Low effort. 2014) summarize measures to support EVs in gen- eral. These measures often cannot be directly • Carry out information campaigns on freight transferred to the freight transport industry, which EVs, including the possibility to deploy (elec- operates under different preconditions than indi- tric) cargo cycles, eScooters or eQuads. vidual passenger transport. Therefore, this report Medium effort. focuses on measures to increase the share of freight • Offer the regulative advantage of privileged EVs. The possible supportive measures in this re- parking to EVs, as soon as the vehicles are port were collected in interviews with 23 freight legally marked. Medium effort. transporting companies in Hamburg, some of them already experienced in deploying freight EVs. Cur- Medium term rent policy measures of countries of the European North Sea region were added to the list of possible • Campaign for drivers license exemptions at actions, as well as measures which would support the Bundesrat (federal assembly): allow the the profitability of freight EVs applied in the North deduction of the battery weight from EVs Sea region. gross weight, in order to allow drivers with Though all possible actions would be helpful to a B class license to drive 3.5 ton EVs with advance the field of electro mobility in Hamburgs a payload comparable to conventional vehi- urban freight traffic, the actions have a different cles. Medium effort. effectiveness with regards to replacing diesel ve- • Campaign for a federal green transport label hicles through EVs. Therefore the rating factor at the Bundesrat (federal assembly) to sup- ’Replacement’ was derived based on expert inter- port companies in communicating their com- views with companies. Moreover, the personal and mitment to reduce emissions by deploying financial effort for Hamburgs government, and the freight EVs towards the customers. Medium time period needed to implement the measures dif- effort.

51 • Support charging infrastructure on com- • Encourage a local garage to set up an EV re- pany compounds/premises: Especially with pair and service workshop providing fast and a more expensive quick charging infrastruc- reliable service to all freight EVs deployed in ture, freight EVs could be deployed on multi- Hamburg’s projects. shifts. In this way they could reach total costs of ownership similar to, or even be- • A purchase price subsidy in freight EV low, conventional vehicles. When financially projects, which is not limited to leasing, but viable, more freight EVs would be deployed, allows purchasing and which does not cap leading to reduced emissions. High effort. the annual amount of kilometers. Long term Excluded measures: Two possible measures were excluded due low rat- • Fostering zero emission zones or exemptions ings by the experts: from a city toll. City toll: Medium effort, Low emission zone: High effort. • A low emission zone would only have a lim- • Improve cycle lanes infrastructure to support ited impact on the number of freight EVs. the usage of fast and heavy electric cargo cy- • An exemption for freight EVs to utilize bus cles. (Long term - High effort) lanes seems especially undesirable in Ham- Measures to test in pilot projects: burg. Setting up pilot projects for freight EVs was This report offers a first overview of recommended a further recommended measure. Actions which actions and measures to be potentially tested in reached a medium score for the expected replace- pilot projects to Hamburg to increase the share ment of conventional vehicles by EVs, or their feasi- of freight EVs. We hope the discussed measures bility to be integrated in the existing overall traffic will serve as a source of information and inspira- planning thus are suggested to be tested in pilot tion for Hamburg’s policy makers. However, the projects. In this way, it can be evaluated whether measures should be further assessed before being these measures are effective, efficient and suitable implemented within a framework of traffic and ur- for Hamburg. ban planning development, to lead to a clean and • Entry in pedestrian zones with city logistic climate friendly city. The results of this report, as approach. well as the methodology to rate the measures, are transferable to other cities. In this way, this re- • Testing of consolidation centers or privileged port hopefully can help to increase the numbers of loading bays for micro consolidation hubs. freight EVs and thus reduce emissions from freight • Time or spatial limitations for loud vehicles transport in our cities. with EV exemptions.

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56 A Appendix A.1 Available electric freight vehicles

The following tables A.1 and A.2 list electric freight vehicles known to the authors. The lists might be incomplete. Vehicles in brackets have been manufactured in the past but are currently not available - for more details on future availability, the manufacturer should be contacted. Links to manufacturers have been provided when available and can be followed in the pdf version of this document by clicking the manufactures name.

If an existing vehicle shall be converted or individual solutions are necessary, it is possible to address companies with experience in converting vehicles, see table A.3

Manufacturer Model Gross Payload Top Speed Range weight

Electric Cargo Bikes - also check the recently released website www.lastenrad.vcd.org Urban-e iBullitt Pedelec Solar - 100 kg 25km/h 90 km Cycles Maximus Pedicab Rickshaw - 250 Cargo Load Trikes UPS Cargo Cruiser 300 kg or 2,2m3 - 35 km FedEx Cargo Cycle TNT Cargo Cycle DHL Cargo Cycle La petite reine Le Cargocycle - 180 kg or 1500l

Electric heavy quads Aixam Mega Multitruck 1.64 t 631 - 872 kg 40 km/h 60 - 110 km Alke ATX series 505 - 870 kg 35 - 44 km/h 70 - 130km Alke XT series around 1 t 56-58 km/h up to 140 km eWolf Ω Mini Cargo 1.1t 325 kg 45 km/h 65 km Faam Smile electric 400 kg 45 km/h 110 km Goupil G3 1,710 kg 500-700 kg 45 km/h 60 - 100 km Piaggio Porter electric 1,850 kg 450 kg 65 km/h 95 km

Electric truck/trailer Hoek Transport, Cargohopper I 1,000 kg 25 km/h 75 km Divaco and Cargohopper II 3,700 kg 3,000 kg up to 70km/h up to 150 km Fifthwheel

Table A.1: Overview of available small and light electric freight vehicles

57 Manufacturer Model Gross Payload Top Speed Range weight

Electric trucks > 7.5 t E-Force E-Force One 18 t 8 t 87 km/h 200 - 300 km Smith Electric1 Newton 7.5 - 12 t 2.8 - 7.4 t 80 km/h 50 - 240 km Electric trucks 3.5 to 7.49 t EMOSS Dyna EV200 7.49 t 4.6 t 160 km German E-Cars Plantos 5 t 2.17 t 90 km/h 120 km Iveco Daily Electric 5.2 t 17,200 l or 2.1 t 70 km/h 130 km Smith Electric1 Edison 3.5 - 4.6 t 0.725 t - 2.3 t 80 km/h 90 - 180 km Renualt and PVI Maxity pvi1 2 t 70 km/h Spijkstaal Ecotruck 7500 7.49 t 4 t 40 km/h 100 km (garbage truck) Electric vans 2.3 to 3.49 t Geodis Electron 3.5 t 1 t 90 km/h 105 - 155 km Faam Jolly2000 Electric 3.5 t 1.83 t 80 km /h 110 km German E-Cars Plantos 3.5 t 0.9 t 130 km/h 120 km Iveco Daily Electric 3.5 t 7,000 l 70 km/h 130 km Karabag Ducato-E up to 1.373 t 90 km/h 75 - 155 km Karabag Doblo-E 475 kg 130 km/h 85 - 130 km Mercedes Vito E-CELL 3.05 t 0.85 t or 5700 l 80 km/h 130 km Muses MooVille 3.5 t 3 to 8.5 m3 90 km /h 60 - 80 km Electric vans < 2.3 t Citroen Berlingo Electric 510 kg or 4.1 m3 110 km/h 170 km e-Wolf Ω 0.7 2.2 t 0.67 t 110 km/h 154 km Faam ECOmile Electric 2.2 t up to 1.3 t 80 km/h 100 km Karabag Fiorino-E 500 kg or 2500 l 75 - 115 km/h 70 - 140km Renault Kangoo Z.E. 2.126 t 0.65 t or 3 m3 130 km/h 170 km Renault Kangoo Maxi Z.E. 2.175 t 0.65 t or 4 m3 130 km/h 170 km Streetscooter Work 2.2 t 1.25 t or 4.3 m3 85 km /h 40 - 120 km

Table A.2: Overview of available electric freight vans and trucks

1 EV users report that Smith Electric Vehilces seems to focus the US and Asian markets. Vehicle availability for Germany has to be checked with Smith Electric.

58 Company Description Example

Efa-S German based company offering UPS 7.5 t trucks PE80 conversions of new and used vehicles independent from manufacturer or size E-Wolf Germany based company converting Experience in converting heavy new and existing vans and trucks up vehicles in an R&D project. to 12 tons. German E-Cars Electrifies new or existing Electrified with a partner in 2013 a commercial vans and trucks highlifter over 12 tons. E-moss Dutch company, converts up to 18 Converted 12 t MAN trucks for ton trucks. Meyer&Meyer and T¤di. PVI French company, converts 3.5 to 26 Converted the Renault Maxity. ton trucks.

Table A.3: Conversion companies

59 A.2 Amsterdam: Executive summary

During the last decade the Municipality of Amsterdam has initiated quite elaborate policies to improve the air quality within the city, both for reasons of public health and spatial development. These policies were redefined in 2011 and subsequently evaluated and updated in 2013. The main focus of these policies is on the reduction of NO2 and small particle matter emissions. Supporting electric mobility - for freight as well as passengers - is an explicit part of these policies, rather than a goal in itself.

With regard to the current ’action plan’ this implies that two different approaches could be imagined. First, to take current air quality policies as a starting point and zoom in on the role of electric freight vehicles. Or, secondly, to focus explicitly on the latter, thus largely ignoring the prevailing focus applied by the Municipality of Amsterdam for several years now.

We decided to choose the first approach, because it appears more realistic to connect to prevailing insights and policies than to ’reinvent the wheel’. Moreover, we also took into consideration that transnational learning is one of the objectives of Activity 7.4 of the E-Mobility NSR project, and indeed of Interreg as such. This means that whereas the already relatively elaborate - and evaluated - policies in Amsterdam may leave limited opportunities for additional recommendations, they may have a distinct added value for other cities.

Local policy in Amsterdam to support clean freight transport - and clean transport in general - applies a twofold approach: • an explicit focus on air quality norms, specifically those for NO2 and PM10 emissions, rather than on electric mobility as a aim in itself. EVs are supported, though, as a means to meet the air quality norms; • a strong focus on the cost efficiency of policy measures, in order to achieve a maximum improve- ment in air quality for the given budget. Amsterdam has been the first city to calculate the cost efficiency of measures in detail.

This means in practice that measures focus on a limited number of locations where NO2 norms are ex- ceeded. Also, measures focus on this categories of vehicles that generate the largest share in emissions, partly because they are large and heavy (trucks), partly because they make the most vehicle kilometres (vans, taxis).

Results so far have been good, but less than expected and hoped for. Several reasons may be indicated for this: • the reductions in emissions from Euro 4 and 5 vehicles were much less than expected;

• initial expectations concerning the number of EVs and Euro 6 vehicles that could be introduced have been too high; • the availability of Euro 6 vehicles and electric trucks was less than expected; • the willingness of private parties to invest was less than expected due to the economic crisis.

In terms of recommendations, some issues can be identified that may strengthen the position of electric freight transport within the prevailing policies: • it should be considered how to use subsidies in such a way that new initiatives are triggered to improve and demonstrate the reliability and usefulness of electric vehicles, since this remains a main worry for companies that consider electric mobility;

60 • the municipality should use their influence, not as a policy-maker but as a large customer, to stimulate clean mobility, more so that it does at the moment; • urban distribution deserves more emphasis, also taking into account the role of electric boats; • municipal bureaucracy, and divergence of rules between cities and countries remains a problem for firms considering electric mobility; • the results of policy and of pilot studies so far indicate that in this stage of development of electric freight transport a tailor-made approach is required. From the quite elaborated policy in Amsterdam some lessons can be drawn that may also be of use for other cities: • Amsterdam’s policy is characterized to a considerable degree by pragmatic, small, local and efficient interventions, strongly focused in terms of vehicle categories and locations; • it focusses on measures that generate the most effect per euro invested. This approach is based on elaborate calculations that resulted in the Cost Abatement Curve that guides the selection of policy measures.

61 A.3 Copenhagen: Executive summary

Copenhagen is one of the most environmental conscious and active municipalities in Denmark, including a focus on air and noise pollution, which are closely related to health problems. The transport sector re- mains one of the most polluting business sectors, including both light- and heavy-duty vehicles. Freight transport takes 13.4% in number of vehicles in Copenhagen Municipality. Even though it seems as a small share, emissions caused by the freight transport sector are considerable and can be estimated around 40% of the total costs of pollution from transportation in Copenhagen.

One of the solutions is implementation of electric freight mobility, which is the main focus of the Copenhagen action plan. Electric vehicles are an advanced technology, compared to other alternative fueled vehicles. It is widely applied to passenger cars in Denmark, including Copenhagen, and is on the way towards deployment for freight transport. Even though Denmark has announced sound goals and Copenhagen Municipality has taken initiatives in order to support green transport, there are some problems and obstacles identified, such as:

• Purchase price and cost of establishing the charging infrastructure are still high; • Technological characteristics, such as payload, capacity, range or life expectancy of the vehicles are not competitive with conventional vehicles yet, hindering flexibility of the business; • Higher availability of maintenance and its quality is needed.

In addition to overcoming these obstacles, some other actions are identified as necessary:

• Further incentives, both financial and non-monetary, such as public spatial planning; • Promotion and support of green and sustainable image, emphasizing benefits for both society and delivery companies.

In the end of the action plan more detailed recommendations are presented, focusing on how to deal with the obstacles mentioned above. These recommendations strengthen the path towards the deployment of electric vehicles not only from the delivery companies’ point of view, but also involving state, municipality and receivers. Therefore, regulatory tools, cooperation between stakeholders, promotion of green and sustainable solutions, financial support tools and optimization of logistic chain are discussed more thoroughly. From this, short term recommendations are the following:

• Taxation based on level of emission produced by vehicles;

• Regulatory incentive tools; • Promotional tools, which are not directly focusing on electric vehicles, but emphasizing the ben- efits of possessing green image.

On the long term, direct subsidies for purchasing electric freight are not among the most favorable means. A better way to further introduce alternatively fueled vehicles is to give them competitive ad- vantages related to spatial planning, such as driving in bus lanes or driving for free in congestion zones.

To sum up, the aim of information given and actions developed in this action plan is to support the deployment of electric freight vehicles in Copenhagen Municipality. As a result, benefits for both users and the city inhabitants can be achieved.

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