FREVUE D1.3 State of the art city logistics and EV

State of the art of the electric freight vehicles implementation in city logistics

Date 17 December 2013

Author(s) Nina Nesterova, Hans Quak, Susanne Balm (TNO), Isabelle Roche-Cerasi, Terje Tretvik (SINTEF)

Number of pages 79 Number of appendices 7 Version 2.1 final report

Project name FREVUE Deliverable D1.3: State of the art city logistics and EV

European Commission Seventh framework programme

FP7-TRANSPORT-2012-MOVE-1

Demonstration of Urban freight Electric Vehicles for clean city logistics (theme: GC.SST.2012.1-7)

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© 2013 TNO

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Document Control Sheet

Project no: 321622 Acronym FREVUE Project Title Validating Freight Electric Vehicles in Urban Europe Work Package no WP1 Work Package title Assessment and ICT framework Deliverable no 1.3 Deliverable title State of the art of the electric freight vehicles implementation in city logistics Dissemination Level Public Issue date 1.10.2013

Author(s) Nina Nesterova, Hans Quak, Susanne Balm (TNO), Isabelle Roche-Cerasi, Terje Tretvik (SINTEF) Responsible Organisations TNO and SINTEF WP Leader Hans Quak (TNO) Internal Scientific Reviewer (s) Liv Øvstedal (SINTEF), Matthew Noon (CRP) Internal Industry Reviewer (s) Erik Van Duin (TNT), Dennis Lynch (Central London Freight Quality Partnership), Ansgar Roese (City of Frankfurt), Susana Val (Zaragoza Logistics Centre) Project Officer Antonio Scala

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Executive summary

Implementation of electric freight vehicles (EFVs) is not a new phenomenon. Over the last two decades several trials and demonstrations have been undertaken. Although today’s EFVs have greater range and improved loading capacity, the actual implementation of EFVs in city logistics operations is still limited. This FREVUE deliverable aims to identify current challenges and obstacles to the implementation and uptake of EFVs in city logistics, as well as to provide feedback and lessons from past and on-going projects.

A review of demonstrators, trials and initiatives with EFVs resulted in the following challenges and success factors for EFV implementation and uptake in daily city logistics operations:

Technical performance : the range of EFVs is usually not larger than 100 – 150 kilometres. The range promised by the manufacturer is often not reached, although new(er) vehicles have a higher real range. Whether the range is a limiting factor depends on the logistics operations. Technical issues observed include: failing batteries (and limited or late) support, equipment availability issues, relatively long charging time and the necessity to adapt charging infrastructure for fleet needs. The rapid improvement in the technology is mentioned as a reason for waiting to acquire EFVs. The limited availability of standard vehicles and vehicle types is also a factor that is seen as a barrier for EFV implementation.

Operational performance : EFVs demonstrate both positive and negative operational performance characteristics compared to conventional vehicles. Because of their environmental performance and reduced noise level they are often permitted in larger geographical areas and time windows in cases where any of those restrictions exist. Some technological features, like an acute turning range, steering circle and improved visibility facilitate the manoeuvring of the vehicles in dense city areas. At the same time, charging, load capacity, maintenance and the need to adapt logistic concepts for the usage of EFVs are seen by operators as the main existing operational challenges. Not all freight operations are currently suitable for using EFVs, which is particularly the case for the long-haul operations and vehicles with a large loading capacity. In terms of the range, the payload and overnight charging, current EFVs performance levels are good enough for the distribution operations.

Economics : currently the purchase price and total cost of ownership (TCO) for EFVs are significantly higher than for conventional vehicles. That is explained by the high battery cost and limited production volumes of these vehicles. In the longer term it is expected that EFVs will become more competitive, incorporating savings from the improved operational performance, reduction in purchase prices due to the massive production and associated environmental benefits. Currently, as operators are usually more focused on short term benefits, the wider uptake of electric vehicles (EVs) is difficult. The fact that the second-hand market and residual value of EFVs are not yet clearly known holds back some of the operators in their purchase decision. Leasing and financing companies are also reluctant to invest due to these uncertainties. Battery leasing or swapping options are regarded as potential options to reduce vehicle purchase and operational costs.

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Environmental performance : undoubtedly EFVs have improved environmental performance, manifested in reduced CO 2 emissions and reduced local emissions, compared to the ICE. For the full picture well-to-wheel emissions need to be considered and therefore certification of the electricity supply becomes important. No consensus has yet been reached on the wider systemic impacts of the EFVs which are mainly related to congestion.

Social and attitudinal impact : being less noisy and more environmentally friendly than conventional vehicles, EVs are very well perceived by the general public and are receiving positive feedback from drivers in most of the initiatives. Training is necessary in order to familiarize drivers and general transport operators with the technical and operational particularities of the vehicles in order to achieve better results from the vehicle performance. The low noise generated was sometimes reported as a concern for the EFVs operations in the agglomeration areas.

Impact of local policy and governance structure: at the current stage of the EFVs market development appropriate government policy is necessary in order to achieve the wider uptake of the EVs. Measures both supporting the usage of EFVs and discouraging the usage of ICEs are required and are already being successfully implemented by several European municipalities. Another way to stimulate the wider uptake of EFVs is by using them in the authorities’ fleets.

Overall, the overview of EFV initiatives in city logistics identified three key issues: 1. The need for an adapted logistics concept that enables the use of EFVs in city logistics operations to overcome range and load concerns. 2. The need (or desirability) of authorities support to increase EFV uptake in city logistics activities. 3. The opportunities that EFVs offer for private logistics companies to demonstrate their commitment to improving their environmental performance i.e. green image, visibility in cities.

These three issues and ways to deal with them are examined and discussed in more detail in the seven case studies addressed in the deliverable: the cases of Chronopost (France), Distripolis (France), Elcidis (France), TNT’s mobile depot (Belgium), Cargohopper (The Netherlands), London (UK) and Utrecht (The Netherlands).

A literature review together with the results from the case studies provided some operational lessons to be learnt from previous and on-going trials and initiatives: • Detailed planning of a demonstration process is very important; • For municipalities it is important to be coherent and consistent in their policy approach following a step by step method: building infrastructure, promotion, supporting EFVs and restricting conventional vehicles; • Private-public cooperation is important especially during the initial trials that involve EFVs; • From an operational point of view, driver training is important alongside the establishment of the correct vehicle charging routine; • Sharing the results with others outside the project is important, in order to encourage far wider uptake of EVs, since this might reduce uncertainties for companies not familiar with EVs.

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The state of the art review, conducted in this deliverable, illustrates the high importance and relevance of FREVUE as a project focusing on the implementation and assessment of freight electric vehicles in city logistics. There are many gaps in knowledge about the freight EVs technological and operation performance, which constrain private operators in their decision to buy a vehicle. The added value of the FREVUE project will therefore be higher if the project answers these frequently asked questions regarding EFVs. The review conducted in this deliverable indicates what some of these questions are, which will therefore be among the guiding questions of the Central Evaluation Framework to be produced in WP1: • What is the residual value of the freight EV? • What are the factors that determine the residual value of the freight EVs? • What kind of operation is suitable for freight EVs? • What are the wider systemic impacts from freight EV implementation?

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Table of contents

Executive summary...... 1 Deleted: 5 Lists of figures and tables...... 7 Deleted: 6 Glossary ...... 9 Deleted: 7 1 Introduction ...... 10 1.1 City logistics and electric freight vehicles ...... 10 Deleted: 7 1.2 Electric freight vehicles: progress in implementation and remaining challenges ... 11 Deleted: 8 2 Implementation of freight EVs in city logistics...... 13 Deleted: 10 2.1 Overview of the reviewed trials, demonstrators and initiatives...... 14 Deleted: 11 2.2 Challenges and factors of success ...... 18 Deleted: 15 2.2.1 Technical performance ...... 18 Deleted: 15 2.2.2 Operational performance ...... 23 Deleted: 20 2.2.3 Economics...... 26 Deleted: 2.2.4 Environmental performance...... 31 23 2.2.5 Social and attitudinal impact ...... 32 Deleted: 27 2.2.6 The impact of local policy and governance structures...... 33 Deleted: 28 2.3 SWOT analysis of the EFVs implementation in city logistics...... 35 Deleted: 29 3 Lessons from implementation of freight EVs in city logistics ...... 38 Deleted: 31 3.1 Logistics facilities enabling efficient use of freight EVs...... 39 Deleted: 34 3.1.1 The cases of Chronopost, Distripolis, Elcidis and TNT’s mobile depot ...... 39 Deleted: 35 3.1.2 Chronopost, Distripolis, Elcidis and TNT’s mobile depot lessons...... 42 Deleted: 35 3.2 Local government support to accelerate the introduction of the freight EVs in a Deleted: 38 large city...... 44 3.2.1 The cases of London and Utrecht...... 44 Deleted: 40 3.2.2 Lessons from London and Utrecht...... 46 Deleted: 40 3.3 Private EV initiative in city logistics operations to increase the company's clean Deleted: 42 image for authorities and residents...... 46 Deleted: 42 3.3.1 The case of the Cargohopper ...... 46 Deleted: 42 3.3.2 The Cargohopper case lessons...... 48 Deleted: 44 4 Discussion and recommendations ...... 51 Deleted: 47 5 Conclusions...... 54 Deleted: 50 References ...... 55 Deleted: 51 Deleted: 56 A 1. Appendix: Detailed overview of reviewed private initiatives ...... 60 Deleted: 62 A 2. Appendix: Chronopost ...... 67 Deleted: 68 A 3. Appendix: Distripolis...... 73 Deleted: 72 A 4. Appendix: Electric vehicle project London...... 78 Deleted: 74 A 5. Appendix: Cargohopper and Utrecht municipality...... 80 Deleted: 76 A 6. Appendix: TNT’s mobile depot in Brussels ...... 82 Deleted: 78 A 7. Appendix: Elcidis...... 84

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Lists of figures and tables

Figure 1. Modec used by UPS ...... 22 Deleted: 19 Figure 2. UPS P80E before and after conversion to electric drive (EFA-S) ...... 23 Deleted: 20 Figure 3. UPS EMEA Alternative Technology Roadmap...... 26 Deleted: 23 Figure 4. Total Cost of Ownership (as well as emissions and energy consumption), Lee et al. (2013) ...... 27 Deleted: 24 Figure 5. Schematic view of vehicle ownership cost over time: incumbent versus electric vehicles (FREVUE DoW)...... 28 Deleted: 24 Figure 6. Comparison of total cost of ownership for 2011 panel van of various powertrains (2.6 – 2.8t GW), Element Energy (2011)...... 30 Deleted: 26 Figure 7. Government support for the EFVs implementation...... 34 Deleted: 30 Figure 8. Logistics scheme for Gnwet (Bestfact, 2013) ...... 40 Deleted: 36 Figure 9. Key elements that make the adapted logistics concept enabling EV’s viable (based on lessons learned) ...... 44 Deleted: 40 Figure 10. Cargohopper I and Cargohopper II...... 47 Deleted: 43 Figure 11. TransMission drops in Amsterdam centre (red dots are TransMission Almere’s own drops, blue dots are drops from network partners, see Quak, 2012) ...... 49 Deleted: 45 Figure 12. Delivery service before and after the set up of the Urban Logistic Space (Source: Chronopost)...... 68 Deleted: 63 Figure 13. Chrono van with trailer (Source: Chronopost) ...... 69 Deleted: 64 Figure 14: Chrono Van (Source: Chronopost) ...... 69 Deleted: 64 Figure 15: Distripolis model (Geodis, 2012)...... 74 Deleted: 69 Figure 16: Electron electric trucks and power assisted tricycles (Source: Geodis) .. 75 Deleted: 70 Figure 17: Barriers and levers for Distripolis concept (Geodis, 2012) ...... 76 Deleted: 71 Figure 18: Cargohopper ...... 80 Deleted: 74 Figure 19: The mobile depot and tricycles concept for Brussels. (Hejine, P., 2010) 82 Deleted: 76 Figure 20: EFVs for deliveries in the city centre of La Rochelle (Proxiway, 2013) ... 84 Deleted: 78

Table 1. Overview of the reviewed EU projects ...... 15 Deleted: 12 Table 2. Overview of the reviewed national initiatives ...... 16 Deleted: 13 Table 3. Overview of the private initiatives...... 17 Deleted: 14 Table 4. Battery types used for electric (freight) vehicles ...... 20 Deleted: 17 Table 5. Examples of commercial vehicle characteristics...... 21 Deleted: 18 Table 6. The lifetime cost of electric vehicle versus conventional vehicle (2-seat Compact Van, 90 km/day, 260 days, 23400 km/year (new))...... 31 Deleted: 27 Table 7: Target situation for Distripolis in 2015 (Geodis, 2012)...... 76 Deleted: 71

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Glossary

CDC City distribution centre CEV Commercial electric vehicle CO 2 Carbon dioxide EFV Electric freight vehicle EU European Union EV Electric vehicle FTL Full truckload ICE Internal combustion engine LTL Less than truckload TCO Total cost of ownership ULS Urban logistics space VAT Value added tax

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1 Introduction

1.1 City logistics and electric freight vehicles

City logistics operations are usually recognized for their unsustainable impacts. And, even though the modern urbanized civilization requires an efficient city logistics system in order to sustain both the demands for goods and services, as well as to remove waste, reducing the negative impacts of the system takes most effort. City logistics operations have a negative impact on all sustainability indicators in several ways, i.e.: • People (consequences of accidents with large vehicles, (noise) nuisance, and the effects of local emissions on public health; • Profit (due to logistics inefficiencies due to last mile issues and local regulations, but also by adding to the often severe urban congestion);

• Planet (adding to the CO 2 emissions). One of the difficulties in city logistics is that many different actors with different (and sometimes even conflicting) interest are involved, which makes it a challenge to actually come up with sustainable solutions in this field. Van Rooijen and Quak (2013, p.505) for example show “compared to the other thematic clusters of CIVITAS, the urban freight logistics clusters has not reached the results that was hoped for. A large part of the measures in this cluster is not continued after the project or not completely implemented at all during the project. The main reason for that is that for freight transport the participation of private companies is needed because these measures take place in a competitive market”. This conclusion highlights one of the problems in city logistics: even though local authorities and residents are the most affected by the sustainability problems in the cities (e.g. emissions and nuisance, both local and global), solutions to improve sustainability are often lying within a scope of influence and action of private companies (especially carriers). These carriers often already organized the operations as efficient as is possible within their ability. The carriers’ solution space is limited due to local authorities’ restrictions (e.g. time access windows), infrastructure in inner cities, or commercial requirements (by for example receivers on delivery times). However, from a city perspective the situation is not as optimal as it is from most carriers’ perspectives; where carriers plan the most efficient roundtrips within their possibilities; they visit the same streets and shops with only a limited volume. From a city perspective it would be far more optimal to bundle goods based on their destination, thus decreasing number of vehicles entering to the city. Unfortunately, this is not how most supply chains were designed. With as a result (as it appears from a city perspective) a poorly organized urban logistics system (see for example Dablanc, 2007).

Although the described city context seems very complex, we can distinguish three main solution directions to improve the sustainability of city logistics operations (Quak, 2011): 1. Technology (which includes vehicle technology and ICT solutions) 2. Policy 3. Logistics Very often these solution directions are used separately (and are initiated by different actors), whereas to really make city logistics more sustainable a combination of efforts in each of the directions is required. This deliverable focuses on one solution direction, i.e. technology – to be precise – on electric freight vehicles. Electric freight vehicles could help to mitigate city logistics’ unsustainable impacts. Large scale uptake of this technological solution does not take place yet. Therefore, we examine this solution in this deliverable, but not in an isolated way; in this deliverable we consider how and in which

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way the other solution directions, policy and logistics, should be incorporated in order to (more) successfully implement this new technology in practice, since this is not the case in the daily practice at this moment in many cities. Using electric freight vehicles for city logistics operations is only one of the solutions to organize city logistics more sustainable. Other ways are equally important, but are not in scope of this study.

1.2 Electric freight vehicles: progress in implementation and remaining challenges

Implementation of electric freight vehicles (EFVs) in city logistics is not a new phenomenon. Indeed, the characteristics of many city logistics operations, including a relatively limited number of vehicle-kilometres per trip and multi drops (and collections) per trip, make these operations perfectly matched for electric vehicles. The first (modern) trials / demonstrators were undertaken more than 20 years ago (e.g. within EU-funded projects CIVITAS VIVALDI, MIRACLES, TELLUS projects, EVD – POST project). The main challenges faced then by operators in implementation of EFVs in city logistics were: high procurement costs, limited range of vehicle models, little or no after sale support and long waiting time for spare parts, low performance of the lead-acid, nickel – cadmium and ZEBRA battery technologies, limited mileage range, low vehicle speed and limited payload. In short, these early EFVs were far from perfect and were not a serious alternative for conventional vehicles in city logistics operations. The development of more reliable and better performing batteries was considered crucial for all types of electric vehicles to become (more) competitive to conventional vehicles.

Today, despite the significant progress being made in improving electric vehicle performance and after addressing many of the issues from the early trials and demonstrators, the implementation of the EFVs in city logistics is still in its infancy. Even though the new EFVs have greater range and improved loading capacity, the actual implementation of EFVs in operation shows other new and emerging challenges, which the FREVUE project, for which this report is produced, seeks to identify and overcome.

As described in the FREVUE description of work, this deliverable (Deliverable 1.3: State of the art city logistics and EV) provides the knowledge on the use of electric vehicles (EVs) in city logistics and on the difference in governance models for city logistics using EVs in comparison to regular city logistics operations. This is achieved through the accomplishment of two specific objectives: • To identify current challenges and obstacles on the implementation and wider uptake of the freight EVs in city logistics; • To provide feedback and lessons learnt from past and on-going initiatives related to the FREVUE demonstrators.

The results of this study will then be incorporated in the production of the Central Evaluation Framework against which the FREVUE demonstrator projects will be assessed.

These objectives are achieved by analysing current and previous examples of EFVs in city logistics and identifying the main technological, economic, operational, wider systemic challenges and success factors from these previous and on-going initiatives and demonstrators.

This state of the art study does not attempt to be exhaustive in providing an overview of all projects and initiatives concerning electric vehicles in city logistics operations. The aim

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of this study is to provide relevant insights based on current and previous initiatives. These initiatives were identified in two ways: 1. Through consultation and engagement with industry and other stakeholder groups such as FREVUE project partners; 2. Desk-based research in order to find relevant initiatives that were not mentioned by our project partners, including internet and literature searches of scientific articles. The approach taken in this deliverable includes two inter-related steps. First, a number of EU, national, regional and local projects as well as initiatives from the private sector were reviewed in order to define the main challenges and success factors from past and current implementation of EFVs in city logistics (see section 2). Subsequently an in-depth analysis of a limited number of selected cases was carried out, identifying lessons to be learnt from them (section 3). Finally conclusions and recommendations for the FREVUE demonstrators were drawn (section 4).

This deliverable is based on the available trial data, most of which is a few years old, and as such the trials have moved further on with larger/heavier vehicles. These newer vehicles have greater range and capacity, but actual (large scale) trial data and evidence is often lacking. Filling this gap is exactly what FREVUE is aiming to do.

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2 Implementation of freight EVs in city logistics

Electro-mobility is slowly gaining its place in current practices and in city logistics in particular. There are multiple major initiatives at the EU, national, regional and local levels supporting the development of EV infrastructure, demonstrating the personal and business usage of electric vehicles, focusing on the creation of a supportive regulatory environment for EV implementation and raising awareness and promoting electro- mobility.

These initiatives and demonstrations have different initial motivations, but ultimately all contribute towards a common goal: decreasing the use of fossil energy by transport and

therefore reducing CO 2 emissions as well as local emissions to improve air quality. The EU supports sustainability measures in transport in order to achieve the goals stated in the White Paper on Transport (2011) and, on a more global level, to fulfil its commitments to the Kyoto Protocol. National and local stakeholders seek to implement sustainability measures on the urban level to meet EU requirements and to improve the quality of life for their inhabitants. Private companies are implementing these measures because, along with a good image, it can bring them cost savings due to reduced energy costs and improved operational efficiency.

The introduction of EFVs in city logistic operations is one of the measures that is attracting increasing attention. This chapter provides an overview of the main examples of EFV implementation in city logistics undertaken within EU projects, public national / local initiatives and those undertaken by private operators. The outcomes of both previous and current EFVs initiatives, trials and demonstrators in city logistics are analysed within a set of categories, which represent the categories of the FREVUE Central Evaluation Framework that is currently under development. FREVUE’s description of work highlights the expected categories for evaluation. These categories include: • Technical performance of the vehicles, the battery and the charging systems; • Economic performance comprising the business case and analysis of the total cost of ownership; • Systemic impacts of EFV usage in cities on the transport network and the

environmental effects, including impacts on congestion, air quality and CO 2 emissions; • Wider attitudinal and social impacts of EFVs, such as the attitude from customers’ and drivers’ perspective, as well as traffic safety issues; and • The effects of policies, procurement and governance on the uptake and performance of EFVs.

These categories were taken as a starting point for the analysis.

Initial examples of the EFVs implemented in city logistics were identified at three different levels: • Demonstrators that are part of the EU-funded projects, • Projects that were initiated (or funded) by national, regional or local authorities, and • Examples from the private sector.

For the purpose of this deliverable, we only selected the projects and initiatives that meet a number of criteria:

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- Projects / initiatives that took place in Europe; - We were looking at projects that include physical (operational) running of the EFVs; - For the national projects / initiatives we were looking as well at the initiatives supporting and promoting the actual implementation of EFVs; - Projects that include implementation of light or heavy delivery vehicles, but not any other electromobility solution for the urban logistics (e.g. electric bicycles, tricycles and trams being out of scope of this deliverable); - Projects / initiatives that present actual results of the EFV demonstration and implementation, in terms of technological, economic, systemic or environmental impacts; - Projects/initiatives reported in English, French, Dutch or Norwegian. We selected cases based on these criteria after an internet-search for projects and initiatives on EFVs in city logistics, a search in academic literature (via Scopus), an examination of European project deliverables, all based on search words: ‘city logistics’, ‘urban freight transport’ in combination with ‘electric vehicle(s)’. Additionally FREVUE partners were asked to report relevant projects and initiatives.

This overview (and therefore the used selection criteria) does not intend to be exhaustive or to make an overview of all past and current electric freight vehicles and city logistics initiatives. The objective of the state of the art review is to examine the lessons and important factors that can speed up or form a barrier for large scale EFV implementation in city logistics operations. Therefore we do not aim at mentioning or reviewing all currently existing cases of EFVs implementation in city logistics. The main objective of this report is to provide a view on the current state of the art in the EFVs implementation in Europe. Therefore once the main conclusions were drawn and confirmed through the representative set of project results, no further desk research was undertaken.

2.1 Overview of the reviewed trials, demonstrators and initiatives

A growing number of EU funded projects address electro-mobility. These projects focus on: • The feasibility and construction of the infrastructure for the EVs (e.g. LIFE project “E- mobility in 3 cities NL - Boosting Electromobility Amsterdam - Rotterdam – Utrecht”, Green eMotion), • Providing information about existing EVs initiatives and all major EV developments in Europe (e.g. European electro-mobility observatory), • Awareness raising and knowledge exchange for different cities to further introduce and implement EVs (e.g. EVUE),and • Working out technological details of EVs or the whole new concept architectures for EVs (e.g. FURBOT, WIDE-MOB). These projects provide a good knowledge base, but do usually not focus on EFV implementation in city logistics nor involve actual demonstrations using these vehicles in real life city logistics circumstances.

In the framework of this deliverable projects focusing on urban freight transport policies and concepts might provide valuable information, e.g. SUGAR, BESTFACT, BESTUFS, C-Liege, ELTIS. These projects do not run any EFV demonstrations, but make an overview of existing best practices in urban freight transport, which might include information on the results (for example barriers or success factors) of EFVs implementation in city logistics.

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Projects that focus exclusively on electric freight vehicles and their technological or economic assessment are rare (e.g. ELCIDIS and now FREVUE). EFVs are often implemented as a part of the measure targeted at the improvement of the overall city logistics (e.g. VIVALDI), which is in line with the optimal mix between using all solution directions in order to make city logistics more sustainable. Table 1 presents an overview Deleted: Table 1 of the relevant EU projects that were reviewed initially for this study.

Table 1. Overview of the reviewed EU projects

Project Project full title Demonstration case Acronym/ Duration ENCLOSE Energy efficiency in City Logistics LuccaPort: up to date 6 EV’s and purchase of 3 (2012-2015) Services for small and mid-sized more during the project duration (Italy) European Historic Towns Trondheim city logistics: 15EV in Norway Post and planned to increase till 37 by 2015 (Norway) SMARTFUSIO Smart Urban Freight Solutions Testing of EV and HV for distribution of perishable N goods; testing of EV equipped with metering (2012 – 2015) devices (Italy) STRAIGHSTOL Strategies and measures for Usage of 2 EV’s in DHL demonstration (Spain) (2011 – 2014) smarter urban freight solutions CIVITAS Cleaner and better transport in TRENDSETTER. Deployment of EV’s for the (2002– cities department store in Graz (Austria) ongoing) VIVALDI. Bristol logistics platform demonstrator, using Smith EV’s operated by DHL (UK) TELLUS: Demonstration of EV’s in Rotterdam (the NL) RENAISSANCE: Usage of 2 Smith EVs for the Urban freight Logistics in Bath (UK) MODERN: Utilisation of freight EVs in Brescia (IT) MIMOSA: Running up Cargohopper CO2NeuTrAlp CO2 –Neutral Transport for the Inteporto: testing of 1 EV that includes refrigerated (2009 – 2012) Alpine Space units for perishable goods distribution (Italy) ELCIDIS Electric Vehicles City distribution Rotterdam and Stockholm deployed large electric (1998 – 2002) systems vans (payload 1000-1500 kg, Rotterdam) and hybrid electric trucks (payload max. 11 tonnes, Stockholm); La Rochelle focused on the deployment of electric vehicles with a payload of approximately 500 kg; Stavanger, Milan and Erlangen focused on the deployment of (hybrid) electric vehicles for in-house goods and mail distribution for companies. TURBLOG Transferability of urban logistics EV demonstration by Chronopost: 14 small electric (2010-2013) concepts and practice from a vans and two wheeled containers, (France); worldwide perspective Cargohopper (the NL). EVD Post Electric vehicles deliveries in Demonstrators of implementation of electric (1998 – 2000) postal services vehicles in the postal services in Germany, Finland, Sweden, France and Belgium SELECT Suitable electromobility for The project’s central objective is to understand the (2012-2015) commercial transport technical and practical user requirements for using electric vehicles in commercial transport and to develop a set of methods for the fleet management of electric and mixed fleets.

At the national level stakeholders mainly focus on the construction of infrastructure for electro-mobility, creating supportive regulatory environments, raising awareness about electro-mobility and carrying out promotion campaigns to stimulate private usage of EVs. Overview of these initiatives on the national / regional / municipality level is important in order to define what can be threats and opportunities for the future EFVs implementation

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in a particular urban area. These initiatives very often include specific sets of measures targeted aiming to facilitate the implementation of the EFVs. Examples of such measures are the creation of low emission / environmental zones, municipal support for the construction and operation of an urban consolidation centre being served by freight EVs and extended time windows for operators using EVs. Table 2 summarizes reviewed Deleted: Table 2 national initiatives. These initiatives also include city logistics projects that were initially developed and implemented by local authorities before being adopted by the private sector

Table 2. Overview of the reviewed national initiatives

Initiative Ownership Country Relevance MOVELE National Spain Government is planning to install an electric car (on-going) infrastructure in several cities and subsidize private purchase of a small fleet of electric cars (as well as buying some for itself). Plugged-In National United Programme offers match-funding to consortia of Places Kingdom businesses and public sector partners to install programme electric vehicle charging points. Does not include (on-going) demonstration of freight EVs. Source London Municipal United Source London is a city-wide charge point network (on-going) Kingdom key to increasing the uptake and usage of electric vehicles in London. Does not include demonstration of freight EVs. Plugged-in Municipal United Within this initiative, Energy Saving Trust, funded Fleets Kingdom by the Office for Low Emission Vehicles offers free (on-going) analysis and tailored review on how to successfully use plug-in vehicles in their business. LuccaPort Municipal Italy LuccaPort is an operative division of METRO Srl, (on-going) participatory society of the Municipality of Lucca. They have 6 different EV’s, plus 5 to be purchased in 2013 - 2015. Elektrofahrzeug National Germany A large-scale electric vehicle test on Rügen with Großversuch the aim to test the potential of electric mobility. (Rügentest), (1992-1996) Electric Mobility National Germany 8 demonstrator projects with some on freight EVs Pilot Regions (2009 - 2011) Frankfurtemobil Municipal Germany Provides information on important electric mobility (since 2010) projects and current events in Frankfurt. MOBI.E National Portugal Nationwide programme for the implementation of an intelligent charging network for the deployment of electric mobility. Elektrisch Municipal The Information and trial centre on electromobility in Vervoer Netherlands the Netherlands. Centrum Rotterdam (since 2011) E-Laad Private, on The Association of Dutch energy net owners to provide national Netherlands public charging points level Flemish Living Regional Belgium 5 platforms supporting different electromobility Lab Electric initiatives. EVTecLab focusing on new technologies Vehicles for electric heavy – duty vans EVE – Electric National Finland Programme that aims to create a community of Vehicle Systems electric vehicle and support system developers. Programme Test environment ECV support electric commercial (2011 – 2015) vehicles

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EMIL, EMKEP National Germany Promote the use of EV to reduce the petrol dependence and pollution Cologne-Mobil Regional Germany Promotes the electro mobility together with a new GPS system. SendSmart National Norway Objective is to develop sustainable freight (2012 – 2014) transport in urban areas. Running of 1 Renault Maxity with lithium battery for one week (parcel delivery) Stadsleveransen Municipal Goteborg, Last mile delivery in the city center of Goteborg, (2012 – 2015) Norway Deployment of Melex 391 vehicle with special- designed trailer

Multiple past and on-going private initiatives were reviewed as well and represented an excellent source of information. Table 3 provides a list of the private initiatives that were Deleted: Table 3 consulted at the first stage.

Table 3. Overview of the private initiatives

Company City/Country Dates Type of business EV’s flefleetetetet STEF - TFE Lyon/France 2011- Distribution services of 1 Refrigerated Renault Midlum 2012 refrigerated products for truck, 16 tonne. Carrefour Deret Different On- Last mile delivery to the 50 electric vans locations/ going city centres France Peter Appel Amsterdam, Was Distribution services for Renault Maxity Electric vehicle. The planned AlbertNL Re-build from conventional Netherlands in 2012 vehicle. Range is 100 km; max speed is 90 km/h CityShopper Nijmegen, On- Distribution services for First tests with Smith, which The going AlbertNL and appeared not reliable in their Netherlands Cornelissen case. Now service with Renault Maxity Electric. Range is 100 km; max speed is 90 km/h UPS UK, Germany Since Parcel and post delivery 12 Modec vehicles (6 in UK, 6 2009 in Germany). Range 100 miles EROSKI Bilbao, San Since Home delivery from 5 Mercedes Vito E-Cell Sebastian, 2011 supermarkets vehicles. Range 130 km; max Vitoria/Spain speed 80 km/h TNT Express UK, Scotland On- Business to business Newton vehicle; 7.5 tonne. going parcel delivery Correos Spain Since Parcel and post delivery 15 Comarth vehicles; range 2008 100 km; max speed 50 km/h SEUR Valencia, On- Home delivery services Comarth Cross Rider vehicle Madrid/Spai going for organic supermarket n 020 Amsterdam/ Since Distribution of 3 Electric vehicles stadsdistributi The 2009 refrigerated goods e Netherlands Eco-Logis Brescia/Italy Since Serving last-mile delivery 3 Electric vehicles 2012 to the city centre from the UCC Posten Norge Norway On- Postal service 40 Comarth Cross Rider going vehicles; another 500 vehicles are ordered in 2012/2013 La Poste France On- Postal service 250 Comarth vehicles going Seymour London, On- Sustainable marketing 10 Aixam Mega Vans Green Westminster going company /UK

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Tesco London/UK Since On-line shopping 15 Modec vehicles; range 2007 around 90 miles. Cargohopper Utrecht, Since Last-mile delivery in a 1 Cargohopper I, several Enschede/ 2010 city centre Cargohopper II the Netherlands Abby Couriers London/UK On- Furniture and antique 3 Goupil vehicles going items delivery service Brewers London/UK Since Decorating materials 1 Modec van 2008 store and delivery Entreprise London/UK Since Integrated highways 10 Modec vehicles Mouchel 2008 maintenance provider Gnewt Cargo London/UK On- Parcels delivery Ltd going Melrose and London/UK On- Grocery shop 1 second hand Axiam Mega Morgan going van Nappy Ever London/UK Since Weekly cotton nappy 1 brandshaw taxi travel After 2005 laundry services Office Depot London/UK Since Supplier of office 4 electric vans 2009 solutions Sainsbury London/UK Since Supermarket chain 19 electric vehicles; in a 2005 process of procuring 50 new Smith electric vehicles Speedy Manchester, Since Provider of equipment 10 Modec vehicles Glasgow, 2007 rental and support London/UK services Go-Ahead London/UK Since Provider of passenger 15+ Smith EV’s 2008 transport services L’Oreal Paris/France 2003 Serving L’Oreal deliveries 10 tonne EFV to deliver goods in centre of Paris Label Route Montpellier/ Since Provider of city center 2 roues et petits utilitaires France 2009 deliveries (grosseries, électriques courier services, distribution) Post Nord Sweden, Mail delivery 5.050 electric vehicles (out of Denmark 20.000 vehicle fleet), mainly bicycles, mopeds and club cars

2.2 Challenges and factors of success

The demonstrators, trials and initiatives that include actual running of the EFVs were reviewed with the aim of understanding the current challenges and factors of success. The assessment criteria included their technical, economic, operational, environmental, social and wider systemic performances of the EFVs in city logistics, and what lessons can be learnt from them for the FREVUE demonstrators. The results of the overview are presented in the following sections.

2.2.1 Technical performance Early cases of EFV usage often include major technical problems and often issues concerning maintenance. As a result some of the early demonstrations included vehicles that were out of running for long periods (more than months). However, in many of the reports we see also positive feedback from private operators and demonstrators about the overall technical performance of EFVs. Examples include the CityShopper first tests with Smith vehicles and trials of Daimler Chrysler vehicles within CIVITAS TELLUS project. Types of reported failures included problems with the failing of a battery pack for Modec vehicles (Brewers, UK) and burning out of a fuse in an Axiam Mega vehicle during a heavy rainfall.

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Range, batteries, charging, rapid technological improvement and limited availability of types of EFVs were identified as the main technical performance challenges that operators of freight EVs encountered.

The use of telematics on EFVs is mentioned as a crucial aspect within the daily operation of EFVs, e.g. range prediction for the driver and dispatcher and driving style behaviour that affects the actual range and energy consumption. In the reviewed documentation we did not find any documented information on telematics and EFVs though.

Range An average daily driving distance in the urban context does not usually require a range larger than 100-150 kilometres. Manufacturers claim that the EFVs currently available on the market are able to achieve this range and more. At the same time, operators real world experiences indicate (in a number of examples) that the range promised by the manufacturer cannot be achieved in everyday conditions. The operators appreciate good range estimates in the vehicles better than simply a larger range, since this allows them to plan the right trips and to make sure the vehicles are not stranded during the operation. Whether the range is a limiting factor depends on the usage, the availability of charging points and charging speed. As reported by Go-Ahead (London, UK) “range has not been an issue as far as the types of journeys we tend to do are fairly localised, and the current maximum range I get out of it is 25 miles which suits the types of journeys we need to make. However in the short term I wouldn’t want to spend all day driving the electric vehicle as range could be an issue if the van was on the road all day” . Melrose and Morgan (London, UK) states that “the battery capacity can limit the area the service can cover, especially in the winter months or when carrying heavy loads” .

In general, climatology greatly affects the range of the vehicle: if in winter months more energy is necessary for heating, in summer months air conditioning will be an additional energy-consuming element in the vehicle. Topography of the city has an impact as well. As reported by Nyquist (2013), the test drive of Renault Maxity within SendSmart project (Sweden) has shown that “ the energy consumption was high on highways and in uphill slopes. On the other hand the truck was very smooth to operate in city traffic”.

At the same time, Nappy Ever After (London, UK) thinks that the limited range has the advantages, “drivers learn to make the deliveries efficiently, conserve energy and think in a more environmentally friendly way” .

It is reported that newer vehicles have higher real range and private operators expect that the range of the electric freight vehicles will further increase as vehicle and battery technology develops.

Batteries Rechargeable batteries are usually the most expensive component of EFVs, being about half the retail cost of the electric freight vehicle. Considerable attention is therefore focused on technical performance and development of batteries including weight, range, charging time, etc.

Traction batteries for EVs must be designed with a high ampere-hour capacity. They are characterized by their relatively high power-to-weight ratio, energy-to-weight ratio and energy density. Research and development in this field is considerable, and increasing

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returns to scale can be expected to bring future cost of battery manufacture down, and performance characteristics up. Key concerns are battery life and remaining value after its useful lifespan as a traction battery (after losing more than 20% of its full power). Current estimates of the lifetime for the commonly used lithium-ion battery based on laboratory testing is eight years, but according to Murray (2013), if managed properly, EV battery packs could operate reliably for 15 years, and possibly as long as 20 years. This will depend on how it is being charged and what temperature it operates at.

There is a possibility at the end of the batteries lifespan of using them as storage batteries during the night. After that the EV can be charged directly from the old battery. In this context, EV car manufacturers are pushing so called "second-life" uses for batteries that have lost too much power to be useful in cars and can be further used as a backup power for electrical equipment, electric grid storage and recycling of components to make new batteries.

Table 4 and Table 5 present currently available EV battery types as well as different Deleted: Table 4 batteries corresponding to some commercial vehicles. In these tables, the energy density Deleted: Table 5 is defined by the ratio weight/power and determines the vehicles' performances. The “Life cycles” indicates the accumulator life in the number of times it is possible to re-establish 80% of the nominal energy. The battery charging time depends on the electric intensity limit not being exceeded to avoid irreversible damages to the battery.

Table 4. Battery types used for electric (freight) vehicles

EV Batteries Energy Life (Cycles) density (Wh/kg) Lead, Lead-Acid, Lead-Gel, 30 - 50 500-1500 Lead-Silicone Nickel Cadmium (Ni-Cd) 50 - 80 2000 Nickel Metal hydride (Ni-MH) 60 - 120 1000 Nickel Zinc (Ni-Zn) 80 750 Sodium/Nickel chloride (Zebra) 120 1500 Lithium-ion (Li-ion) 150 - 200 1200 Lithium phosphate (LiFePO4) 100 - 200 2000 - 4000 Lithium polymere (Li-Po) 180 2000 Lithium Metal Polymere (LMP) 110 1800 Source: AVEM/AVERE France

The Li-ion batteries have no memory effect and a higher energy density. However they are expensive. Batteries with memory effect such as Ni-Cd may remember that their storage capacity was not used fully and they no longer supply full energy, therefore they are less efficient in the long-term.

The battery of the future has to have a high energy density and a life time at least equivalent to the current EV batteries. The technology is quite recent and new chemical components are being studied to increase current performances (e.g. Li-air, LiMnO2, LiNiO2). The potential obsolescence of these batteries may be a key constraint of the market uptake. Table 5 presents a selection of vehicles and the batteries that were (or Deleted: Table 5 were) available for city logistics. This table also provides an overview of the characteristics of these battery-vehicle combinations, such as the maximum speed, the

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(estimated) charging time, the autonomy and the loading capacity. Table 5 is not meant Deleted: Table 5 to be exhaustive, but to illustrate what the technical performance of (often) used electric freight vehicles (and batteries) is.

Charging Charging of the vehicles can take a long time depending on the vehicle model and size (especially compared to the short time conventional vehicles need for refuelling), battery types and charging infrastructure (please see Table 5Table 5). Deleted: Table 5 Deleted: Table 5 Usually freight vehicles are charged during the night, therefore there is a necessity to adapt charging infrastructure for fleet needs. As UPS (UK) reports, “loading the vehicles usually takes 4-5 hours and is done at the depot overnight at dedicated loading bays installed for each vehicle”. If a problem occurs however, for instance a charging failure, there is then insufficient time for the vehicle to recover before starting its next duty cycle. UPS also mentions that to charge large fleets, the power network infrastructure in the depot could be insufficient.

Often fleets are charged at the company and sometimes the driver charges the EV at home or public points. Since charging can be done during periods the vehicles are not used, the relative long charging time is in many cases not considered as a problem.

Table 5. Examples of commercial vehicle characteristics

Commercial Battery Max Estimated Autonomy Loading vehicles type speed charging (km) capacity (km/h) time (kg) (h) Alke XT320E 13 kWh 58 13kWh: 9 60 - 75 1300 pure-lead 8kWh: 8 85 - 110 18 kWh 26kWh: 13 105 - 140 lead-acid 26 kWh pure-lead Citroën Nickel 110 5 120 575 Berlingo First chloride Zebra Citroën Nemo Li-ion 120 8 80 - 120 430 Smith Newton Li-ion 80 8 50 -160 6100-7400 Gruau 42, 52 or 90 5 105 -155 1000 electron 62 kWh Li-Po Renault 22kWh Li- 130 6 - 9 170 650 Kangoo ZE ion Jolly 2000 van Li-ion 100 6 120 1900 Ecomile van Li-ion 80 8 80 900 Mia U 12 kWh 100 5 130 300 LiFePO4 Peugeot 22.5 kWh 110 30mn – 6h 170 685 Partner Li-ion Chrono Van Lead 40 8 - 10 70 500 - 700 Goupil

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Piaggio Porter Lead Gel 55 8 70 - 100 430 - 540 Matra GEM Lead Gel 40 4 50 - 75 470 - 650 Ford transit 28 kWh Li- 120 6 - 8 80 - 130 454 ion Renault 42kWh 70 7 100 2000 Maxity LiFePO4 Mercedes Vito 36 kWh – 80 5 130 900 E-cell Li-ion (Source: Different vehicle manufacturers)

Figure 1. Modec used by UPS

Rapid improvement in technology EFVs available on the market today represent an important technological improvement in comparison to vehicles from 10 – 20 years ago. Operators expect further technological developments in terms of range, speed and payload of the vehicles. At the moment however, “people are scared to buy the first ones so they are waiting and waiting for newer generation vehicles and batteries” (Abby Couriers, UK). Buying an electric vehicle now can mean that the model’s technical characteristics can be outdated in a year, which is in some cases a hurdle to purchasing EVs. So, the expected technological progress of vehicles is mentioned as one of the reasons to delay a purchase decision.

Limited availability and types of vehicles on the market The limited availability of vehicles on the market was identified as one of the main barriers in initial demonstrators and is still a problem today (FREVUE partners are still struggling with procuring the right vehicle). Operators mention that it is often not possible to procure an EFV from their regular manufacturer, since many large well-known ICE (internal combustion engine) vehicle manufacturers do not (or did not) have an EFV in their assortment.

The limited availability of information, both on model specifications as well as wider vehicle options, is seen as another factor slowing down the uptake of the freight electric vehicles in city logistics. Go-Ahead (UK), reports “at the time of purchase there wasn’t a great deal of information available as to basic nuts and bolts of the vehicle which I needed to know, e.g. did the vehicle require water or oil, where the battery was, and whether the battery is different from other types of car or household batteries” .

Identifying and procuring suitable eco-friendly vehicles and operating such vehicles in order to achieve reliable CO 2-free service with proper load capacity was initially a

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challenge for the Posten Norge project (Trondheim, Norway). Gnewt Cargo Ltd (UK) states that “ it would be great to see a central point of contact to speak to about electric vehicles to make sure people know what they are buying and are confident that they are getting quality, environmentally – friendly vehicle”. He adds, suggesting to other operators “to do your own research to make sure that you know exactly what type of vehicles you are getting for your money ”.

UPS converted used conventional vehicles to electric drive vehicles ( Figure 2), after Deleted: Figure 2 Modec went into administration (see also Figure 1). To do so, UPS designed a light- Deleted: Figure 1 weight long-life body in aluminium and glass-fibre for the distribution vehicles.

Figure 2. UPS P80E before and after conversion to electric drive (EFA-S)

2.2.2 Operational performance Transport operators observe both positive and negative sides of EFVs operational performance. Some operators note that EFVs offer technological advantages and have higher operational efficiency in comparison to ICE (internal combustion engine) vehicles. At the same time, charging, load capacity, maintenance and the range (which results in the need to adapt logistic concepts, or a limited availability of suitable roundtrips) for the usage of EFVs are seen by operators as the main existing operational challenge. Besides, increasing cost efficiency is requiring longer vehicle duty cycles, of sometimes up to 15-19 hours a day (operating time rather than range). This changing nature of the industry implies extra requirements and challenges for charging times of the battery.

Improved technological features in comparison to ICE Next to these technical challenges to use an EFV in daily operations, there are also some key technological features that improve operational performance of the electric freight vehicles in comparison to the ICE vehicles. UPS (UK, DE) says that “ the company’s drivers praise the Modec vehicles as they have an acute turning range, which is very helpful in the capital’s streets, and are very quiet compared to their diesel counterparts ”. Brewers (UK) agrees with this stating that “ the steering and turning circle of the Modec is a great asset for manoeuvring in London’s streets and squares ”. Enterprise Mouchel (UK) declares that “ an advantage of the Modec includes the vehicles unique cab design, which provides dual access points and clearer visibility, enabling an effective health and safety solution for reactive highways maintenance operation” .

Higher operational efficiency In regular circumstances, e.g. no restrictions due to infrastructure or policy, there are no real advantages mentioned (next to the turning circle). However, since more local authorities are now implementing a low emission or environmental zone for their cities,

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EFVs are permitted in these zones as they are environmentally friendly, or provide other advantages for EFVs (discussed later in policy). Thus transport operators have more efficient choice of routes for operation (e.g. Cargohopper, NL). In some cases these vehicles are allowed to drive in the bus lanes (Lisbon, PT, Trondheim, NO), bike lanes and pedestrian zones (EROSKI, ES) which further improves operational efficiency.

Being noiseless, freight electric vehicles can also benefit from extended time windows (i.e. during the nights, or early morning) and are often qualified for making early deliveries (e.g. Cargohopper, NL; STEF – TFE for Carrefour, FR).

Charging Charging represents two major operational problems: infrastructure provision and the downtime of the vehicles.

In the majority of cases depot charging (i.e. at the own facility) is being used for EFVs. According to Sainsbury (UK), the trials with electric freight vehicles “ allowed the company to learn the importance of having robust charging routines in place and close ties to electric vehicle maintenance providers. The EV’s are plugged in whenever they are at the store; there are three drop off cycle’s per day and they charge for ½ hour between these runs, with main charge being overnight ”. This overnight depot charging with several shorter charging sessions during the day (e.g. during the drivers lunch break) is the most frequently reported charging scheme. The availability of public charging points is therefore being seen as a confidence boosting measure (showing that local authorities take EV serious), but often unnecessary for performing logistics operations with EVs as these are mostly used in (and best suitable for) fixed routes or a fixed area.

Electric vehicle charging infrastructure is being installed in all major cities that promote electro-mobility. However in some cities, operators report inconsistency in the publicly available charging point system and insufficient charging infrastructure. This can be partially resolved through the development of well-established charging routines, especially if the vehicle is running on fixed routes. For vehicles with variable duty cycles it might be necessary to consider complementary charging methods, such as fast charge or battery swap technologies (Green eMotion, Deliverable 1.7) in order to also make these types of operations suitable for EVs. The authors did not find examples of operations with variable duty cycles; so at present most operators use EVs only for fixed duty cycles where range is not a problem (see the previous section on ‘range’). This means the cases we studied do not require fast charging / battery swaps, but this might be necessary in order to use EVs for more than ‘just’ small routes in cities.

A key operational problem related to charging is the time needed to recharge the batteries compared to filling the fuel tank of an ICE vehicle (Peter Appel, NL), which can be a particular problem for the “back to back” shift scenarios.

Loading capacity Several operators reported insufficient loading capacity of the electric freight vehicles (e.g. Peter Appel, the NL). This indicates that current EVs are not suitable for all freight transport operations. The term vehicle capacity versus loading capacity is sometimes confusing from a logistics point of view. These terms distinguish between the capacity measured in weight or volume 1. For those vehicle roundtrips where volume (or time) is

1 Vehicles carrying heavy goods can be full measured in maximum weight, but still be empty if one considers the volume (and the other way around). Vehicles that carry a lot of volume, but a limited weight

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the restriction that determines the planning, and weight is not an issue, EFVs are most suitable. Heavy goods are not suitable for EFVs at this moment, since the electric powertrains are currently limited to medium duty vehicles, rather than heavy duty vehicles. For some historic city centres this argument does not hold, since vehicle restrictions forbid larger vehicles to enter these city centres. For these cities that already have strict regulations on vehicles on size or weight (e.g. maximum 3.5 tonnes) the barrier to change towards EFVs might be lower than for the cities that do not have such regulations imposed.

Maintenance The early experiments and initiatives using EVs for freight transport show that vehicle manufacturers were often not able to provide as responsive or fast maintenance services. As a result, vehicles were out of order for longer than acceptable periods. This meant additional expenses for transport operators, as, for example, mentioned by Melrose and Morgan (UK) who “had to wait three weeks for a replacement battery from France, so I had to hire a van in the meantime”.

Operational limitations of EFVs From the research, it is clear that not all freight operations are currently suitable to be carried out using EVs, especially where vehicles with a large loading capacity (weight) are needed or for a long period per day (over a continuous 12 hours in 24h period, due to the charging time and the range). Current technological characteristics of vehicles make the implementation of EFVs easier for the light duty deliveries. Looking at the overview of the delivery product samples provided in Figure 3 it is clear those are products Deleted: Figure 3 designated for the light duty delivery with low to medium complexity level of a product (so perishable products requiring for example cool or frozen temperature zones, are less suitable for EFV usage). Heavy duty vehicles are appearing on the market but this is a recent development and no results are yet reported. Following testing of several electric vehicles, UPS found that with current performance levels the range, the payload and the overnight charging were good enough to include the EFV in the distribution operations. There were also some drawbacks identified: the high costs, the reliability of the EFVs was only fair, charging infrastructure challenges and operations training. Based on these results (and the tests UPS did with other propulsion systems) UPS developed an alternative technology roadmap. This roadmap (see Figure 3) shows that electric vehicles Deleted: Figure 3 are considered good on sustainability, feasibility and payback balance for collection and delivery trips under 100 kilometres per day. For roundtrips that do not exceed this range, EFVs are feasible, larger trips require other drives, e.g. hybrid (see Figure 3). Deleted: Figure 3

Necessity to adapt logistics concepts to deal with limitations in operational performance of EFVs Some operational situations are not appropriate to be undertaken using EFVs compared to conventional ICE vehicles. This is the case for freight operations that are carrying heavy goods. Another limiting factor can be for example the distance and limited range of EFVs (in comparison to the conventional vehicles). These issues could be dealt with by

(e.g. parcel deliveries or post) are well suited to EV requirements. A vehicle’s operation is not always restricted by the capacity of the vehicle; other restrictions can also determine the maximum length of the vehicle duty cycle. In addition to capacity, the working hours of a driver, or the allowed time period in a city (i.e. time access restriction) can restrict the length of a vehicle roundtrip. For example, in case an operator plans small parcel deliveries, a van can carry more parcels than a driver can deliver to different addresses during his working hours. In that case, the working hours of the driver are determining the maximum load in the vehicle. These types of roundtrips, with many stops, are also suitable for EVs. .

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adapting the existing logistics concept that was designed for conventional vehicles, to the requirements of EFVs. Sometimes the distance between the operator’s logistics facilities to (and from) the delivery area is too large to use EFVs as replacement for the conventional vehicles. Adding a transhipment point from where the final deliveries and pickups can be made is often enough to make these operations well suited for the use of EFVs. The transport between the logistics facilities and the transhipment point can be made with large trucks, and from the transhipment point smaller EFVs can make the final deliveries.

Collection and Delivery Collection and Delivery Feeder under 100 km per day over 100 km per day

Walker or tricycle

Electrically assisted tricycle

Electric

Range extended electric or hybrid

Biomethane

Biodiesel

Natural gas (CNG, LNG)

Hydrogen

Propane (LPG)

Key: Good sustainability, feasibility, payback balance Backup Poor sustainability, feasibility, payback balance Figure 3. UPS EMEA Alternative Technology Roadmap

An example is the planned use of the Cargohopper in Amsterdam; the operator has to use an extra transhipment point in Amsterdam, where all cargo is transferred from conventional trucks (that come from the operator’s local warehouse in Almere, about 25 kilometre from Amsterdam) to the electric Cargohopper (see Van Duin et al, 2013 and the case study on the Cargohopper in chapter 3). By using an extra transhipment point, the operator adapts its logistical concept in such a way that it becomes possible to deliver and collect in the Amsterdam urban area using EVs, where this was not possible in the previous operational structure.

2.2.3 Economics The economics of EFVs is currently characterised by high purchase and related battery costs and lower maintenance and fuel costs. In the short and medium term EV costs are high, but as their benefits are realised, they become more competitive over the longer term. As operators are usually more focused on short term benefits, the wider uptake of EVs is difficult.

Recent research shows that the TCO (total cost of ownership) can be lower for an electric than a conventional diesel truck, depending how much benefit an EV has in terms of increased vehicle efficiency (i.e. especially in vehicle trips in busy cities with frequent stops and average low speeds), the diesel fuel price, and elements determining costs such as any necessary battery replacement and prices, recharging infrastructure, and electricity and transmission efficiency (see Lee et al., 2013 and Figure 4). Other Deleted: Figure 4

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(theoretical) studies show similar results. For example, Lebeau et al. (2013) show in their total cost of ownership analysis that for light commercial vehicles the EFVs are competitive compared with conventional vehicles.

Figure 4. Total Cost of Ownership (as well as emissions and energy consumption), Lee et al. (2013)

As EFVs are still in their operational infancy, no secondary market has developed which inhibits the quantification of their residual value. As such, the absence of clear information on the residual value of the freight electric vehicle and limited payload of the vehicles are other challenges that slow down operators in their purchase decision. In this context, innovative battery leasing schemes are seen as a promising solution to help stimulate transport operators in their adoption of EFVs, since this reduces the technological uncertainties for the operators and the subsequent financial risks.

FREVUE recognises that ultimately the uptake of EFVs in logistics applications will be determined by the overall ownership cost of the vehicles as perceived by the logistics operator. The high cost of battery electric vehicles is likely to persist beyond 2020 and dominate on a conventional TCO basis. This, along with penalties associated with the range and charge time, is a major barrier to widespread uptake of EFVs. Therefore novel solutions are required to meet the policy objective of deploying EFVs in logistics applications across Europe. A combination of technical, logistical and policy measures are needed to improve the ownership cost case for EFV operators and penalise conventional vehicles, in an attempt to tilt the economic balance in favour of EFVs (as Figure 5 shows). Deleted: Figure 5

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Figure 5. Schematic view of vehicle ownership cost over time: incumbent versus electric vehicles (FREVUE DoW)

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Costs Initial purchase costs for the EFVs are still considered by transport operators as too high to compete with ICEs. The higher price is mainly due to cost of the battery. For example, the investment cost into the Daimler Chrysler electric van in Rotterdam was 4 times higher than for a conventional van (CIVITAS TELLUS projects, 2009). Not only were the investment costs higher, some other costs may also turn out to be higher, because of the newness of the product. For example, Melorse and Morgan (UK) claim that “ whilst the van is cheap to run, insurance can be expensive. Initially my insurance broker found it difficult to find insurance ”. As reported by Nyquist(2013), “the high battery cost eliminates the possibility to have two set ups of battery when the range is insufficient”.

Operators report lower maintenance cost in comparison to ICE equivalent. As stated in Green eMotion project (Deliverable 1.7, p. 42), this might be “ due to the lack of oil in the vehicle and the reduced ware [sic] on the braking systems as a result of the use of the motors in slowing the vehicle ”.

For companies transporting freight in urban areas, EVs have the advantage to decouple transport costs from fuel price increases (Taefi et al (2013). Lower fuel costs were reported by all operators. For example, TNT Express (UK) reported that “ on average it costs £40 (46 euro) a week to power a zero emission vehicle versus around £200 (231 euro) spent on diesel fuel ”. Correos (ES) declared their spend as €1.50 electricity consumption on 100 kilometres.

The mentioned adaptation of the logistics models requires extra investments and costs as well. Putting an extra transhipment point (to tranship goods from ICE vehicles to EFVs) in between the depot and the final deliveries results in extra costs, e.g. for handling, land, buildings, etc. This extra link in the city logistics deliveries turns out to be financially challenging in many cases (apart from the use of EFVs); i.e. see for urban consolidation centres for example Browne et al. (2005); Olsen and Woxenius (2014) or Quak and Tavasszy (2012). Very often local authorities have to support these links financially in order to run these links, since other stakeholders in the city logistics context are hard to mobilize to pay for the use of such a link (as long as it is not obligatory by local regulations). These extra costs for such a link also occur in case of other types of transhipment points, see for example TNT’s mobile depot in section 3.1.1 or Citylog’s transhipment solutions (CITYLOG, 2012). These extra costs might be a barrier for those cases where such an extra link is necessary.

Benefits The research demonstrates that over the long term EFVs result in less pollution, lower operating and maintenance costs (in case no long downtimes occur as in some of the early tests) which results in more productive hours, better service quality and lower total lifetime usage costs.

Moreover, if the regulatory environment supports the introduction of EVs, the benefits from EV’s implementation are higher. There is a large body of evidence for this from London’s Congestion Charge scheme. For example, Seymour Green (UK) says that their cost savings “ from using electric vehicles average £4,000 – 5,000 (4633 – 5792 euro) per year from not having to pay the Congestion Charge, road tax or parking in Westminster ”. Abby Couriers (UK), confirm “ also, whilst the output for the electric vehicle is higher in the beginning, we save roughly £95 (110 euro) per week by not having to pay the Congestion Charge or road tax and through fuel savings ”.

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Short term versus long term and residual value of a vehicle There is insufficient primary and secondary market data at present to establish the residual value of EFVs. Due to the increasing technical improvements (e.g. in batteries), the vehicles that were used initially do not provide clear insights in what determines the actual residual value of EVs that are currently on the market, nor on the factors which determine it. The lack of this knowledge holds back some of the operators in their purchase decision.

A key factor in the economics of vehicle ownership pertains to the expected payback period. Where an operator may keep a vehicle for 5 years, the full benefits of the EFV are unlikely to be realised and the business case will be weaker. As the length of time owned increases however, the positive financial impact grows. The period of vehicle turnover has traditionally been based on an assessment of the remaining cost of vehicle ownership such as increasing maintenance requirements. However, as EFVs have significantly fewer moving parts and therefore significantly reduced maintenance costs, a traditional 5 year TCO comparison may be flawed and a longer period needs to be considered for the EFV.

Nevertheless some estimates have been produced. As Figure 6 illustrates, within 5 year Deleted: Figure 6 period the total cost of ownership of EFV is considerable higher than for conventional ones at this moment.

Figure 6. Comparison of total cost of ownership for 2011 panel van of various powertrains (2.6 – 2.8t GW), Element Energy (2011)

Element Energy (2011), considers that “ there is however a strong potential for EVs in the light commercial vehicle market in the long term, as rising fuel costs and falling battery and fuel cell costs cause ownership costs to converge by 2030. All powertrains except the pure EV are within 10% of the ownership costs of a diesel van, which interviews with van operators suggest is the maximum premium they are willing to pay to deploy EVs across their fleets ”.

It is interesting to note in the calculation of the TCO above, the high proportion allocated to depreciation. As the secondary market develops and these values are refined, this should bring the TCO cost into line with other hybrid vehicles, if not ICE vehicles. However, for current EFVs the residual value is expected to be really low, which is reflected in the high depreciation costs in Figure 6. Deleted: Figure 6

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Research conducted by Crist (2012), comparing the total lifetime usage cost of conventional and electric vehicles supports Element’s findings, estimating that within the vehicles 15 year lifetime the cost of electrical vehicle ownership is lower than for the identical conventional one (see Table 6). Deleted: Table 6

Table 6. The lifetime cost of electric vehicle versus conventional vehicle (2-seat Compact Van, 90 km/day, 260 days, 23400 km/year (new))

Kangoo Maxi ZE (16 g CO2/km) Kangoo Maxi – dCI 85 (diesel) (166.738g CO2/km Purchase cost (euro) w/subsidy 16200 Purchase cost (euro) 16400 Battery cost (euro 75/month) 11874 Oil cost of fuel (euro) 10249 Electricity cost (euro) 3807 Other fuel cost (euro) 2501 Electricity taxes (euro) 1420 Fuel taxes (euro) 8827 Electric vehicle subsidy (euro) 5000 Additional repair cost (euro) 778 CO2 intensity of electricity (g/kWh) 90 Local pollution costs (euro) 1161 Total lifetime usage cost (euro) 34501 38755 Additional consumer cost (veh.life) -4254 Additional consumer cost (3 years) 322 Additional societal cost (veh.life) 6992 CO2 reduction (tonnes) 50.0 Cost per Tonne CO2 reduced 140 (euro/t)

Finally, there is some evidence from practice starting to confirm this trend. Brewers (UK) have reported that “ Two years into the operation of the Modec, we have been gratified to find the costs are less than expected. With the increase in fuel cost, congestion charging and lower than projected running costs, the actual net result has been a slight saving on that of a 3500 kg van, which makes the initial decision to use this EV the right one ”.

Still, as massive uptake of the EFVs by the industry has not happened yet, there is a lack of field-proven information on residual value of electric vehicles, batteries as well as on battery replacement costs. Currently, the business case in most circumstances is still negative for the operators, due to the high procurement costs (for vehicle and battery). These aspects will be addressed in more detail in the FREVUE project.

Innovative battery leasing schemes Innovative battery leasing schemes can be seen as a potential solution to deal with the high initial price of the electric freight vehicles. For example Renault manages to sell the electric version of the Kangoo model (‘Kangoo ZE’) for a competitive price (€15,000) thanks to its battery leasing scheme, along with the purchase grant allocated to electric vehicles by several member states. The battery is not purchased but leased for a subscription of €72 per month (indicative cost for three years contract, see URBACT, State of the Art Commercial Electric Vehicles in Western Urban Europe” p.7).

2.2.4 Environmental performance

Improved environmental performance, manifested in reduced CO 2 emissions (see Figure 4) and the associated improved air quality due to a reduction in local emissions (NOx, Deleted: Figure 4 CO, PM), is reported by all EU demonstration projects and private operators using EFVs. No consensus has yet been reached on the wider systemic impacts of the EFVs which are mainly related to congestion. Other issues, such as emissions associated with energy

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generation to produce the electricity, are not always included in the equations of the performance of conventional versus electric vehicles 2. In Norway, for example, a Guarantee of origin for renewable energy from ECOHZ is paid for, for new EV's (and members' EVs) by The Norwegian Electric Vehicle Association. But even the well-to- wheel comparisons show that electric vehicles are performing better for the environment.

A lot of evidence on the improved environmental performance is reported by users of the EFVs. We mention some examples, but there are many more: Posten Norge (NO) reports

the savings of 1.4 – 2.1 tonnes CO 2 per vehicle per year by using EVs instead of fossil fuel vehicle. Tesco (UK) operates 15 Modec EVs and states that each of EV saves

between 13 – 15 tonnes of CO 2 each year. Deret (FR), says they have 38 times less CO 2 emission per truck for the EV compared to a conventional truck of the same capacity. UPS reports about 20% well-to-wheel carbon saving, no air quality emissions and low noise as positive effects from using EFVs.

Both negative and positive impacts on congestion are observed. From one side, EFVs have higher manoeuvrability and smaller size which helps to reduce congestion. However, due to the lower possible load of EFVs in some cases one ICE might be replaced by several EFVs which increases the number of vehicles in the street and in bus lanes in cities where the EVs are allowed to drive in these lanes. Some operators have stated that electric freight vehicles (small vans) are easier to park because of their smaller size.

2.2.5 Social and attitudinal impact Being less noisy and more environmentally friendly than conventional vehicles, electric vehicles are very well perceived by the general public and are receiving positive feedback from drivers in most of the initiatives.

Noise EVs emit no engine noise and therefore sometimes benefit from an extended operational time window (out of peak periods, like early morning or late evening / night) regulation for freight deliveries. However, tyre noise from EVs is comparable to the conventional vehicles and there is still a problem with the noise coming from driver activities, loading/unloading personnel, as well as from loading/unloading equipment when operated within extended time-window regulation. At the same time, to address the latter issue, silent electric pallets can be used.

Drivers’ acceptance Overall, in most cases the drivers are happy with freight electric vehicles because of the improved technological features that make manoeuvring and parking easier in the city centres as well as standing out for their appearance.

At the same time, sometimes ambivalence in drivers attitude to the EFVs can be observed which is mainly related to the novelty of the EFV and its technology. For this reason, driver training is seen as important by almost all demonstration projects and private operators in order to familiarise drivers with the new vehicle concept. Sainsbury (UK) adds that “ driver training has also been key in ensuring drivers are maximising the potential of the vehicle; for instance through regenerative braking ”.

2 It must be noted however that in countries with competitive electricity markets, consumers can choose whether to source their electricity from clean i.e. renewable generation sources such as ecotricity.co.uk

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Posten Norge (NO) considers that general acceptance in the organisation is important. They have involved and informed all the employees during the whole period of implementation of electric freight vehicles and see it as a key factor of success.

General public acceptance Electric vehicles are well perceived by the public and attract a lot of attention. As Seymour Green (UK) states “electric vehicles make people stop, stare and interact ”. Melrose and Morgan (UK) confirms this, saying “ the vehicle is often a talking point with customers who are interested in the vehicle and how it works, particularly as many of our customers own either an electric or hybrid car ”. In some cases the novelty of the solution might result in extra time needed. For example in Gotenburg (Sweden), “Move by bike” had to add an extra 30 minutes to each delivery round “just to talk to people about the vehicles”. This might raise a concern of efficiency of the EFV distribution operation (requiring more delivery time at the end). It is expected that this extra time gets less, when novelty phenomenon around EFVs will fade away and public gets used to EFVs.

Brewers (UK) reports “ we have had a positive reaction from everybody, whether it be suppliers, customers or the general public ”.

Positive corporate image Implementation of electric vehicles has helped some transport operators to improve the image of their company. For example, according to Tesco (UK), “ our customers want to

know that we are caring for the environment and we are working hard to reduce our CO 2 emissions ”. In the review of EFVs implementation cases in Germany, Taefi et al (2013) reported that a courier company in Hamburg (DE), had acquired new customers due to the implementation of the electric van. The nice thing of an EFV is that it is a very visible solution to improve city logistics’ sustainability, whereas other solutions (e.g. better bundling or planning) are not visible at all in the city streets.

Moreover, more shippers are becoming sensitive to their own environmental performance and are seeking different ways to improve it. Implementation of electric freight vehicles for the final goods delivery is seen as one of the options. As Speedy (UK) says “ these vehicles have been a key differentiator in winning contracts, especially high profile sites in London, as clients seek to reduce the environmental impact of their supply chain ”. Abby Couriers (UK) says that electric vehicles are “ helping to build our work profile as customers in London are now asking for their goods to be delivered in our electric vehicles, so we are helping our customers to improve their environmental credentials as well ”.

Safety perception As for all ‘new’ technologies, concerns over their perceived safety is often mentioned as a worry among the various stakeholders. This is particularly identified with regard to the low noise emitted by the vehicles. In cities these vehicles use the same infrastructure as pedestrians and bicyclists, who do not always hear these EVs. However, no serious issues were reported in the demonstrations reviewed.

2.2.6 The impact of local policy and governance structures In the context of the high initial purchase price of EFVs and remaining uncertainties about their long-term performance, appropriate government policy is often mentioned to be necessary in order to support the wider uptake of vehicles. A combination of government

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policy and financial support subsidies promoting the implementation of the freight EVs and limiting the usage of ICEs is a key factor of success.

The research has clearly shown that political support, public opinion and awareness also among private companies and surrounding municipalities are also seen as factors contributing to the success of a demonstrator.

Government support for the implementation EFVs As illustrated in Figure 7, government support for the implementation of EFVs can be performed using the measures promoting EVs or restricting the ICE vehicles usage, whether combining both types of the measures in one package. Interventions can have financial and non-financial character.

Figure 7. Government support for the EFVs implementation

The most common government regulatory/support measures include: • Purchase subsidies (e.g. Amsterdam, Goteborg) • Exemption from purchase taxes (e.g. VAT on purchase) (e.g. Monaco, Norway) • No charges on toll roads (e.g. London, Norway) • Free access on bus lanes (e.g. London, Norway) • Free municipal parking (e.g. Monaco, Lisbon, Norway) • Extended time windows and / or access to the city (centre) (e.g. Bremen, Montpellier, Goteborg)

In this respect London can be considered as one of the most successful cities implementing a mix of measures to support the implementation of the EFVs (though measures were not targeted directly at them). The London congestion charge exempts environmentally friendly vehicles from this fee and brings a clear competitive advantage to zero and low emission vehicles. Melrose and Morgan (UK) stated that “a key motivation behind making the initial investment decision to purchase an electric van was to help reduce the setting up and running costs of my new business, particularly as driving within central London would have meant having to pay the Congestions Charge every day in addition of the costs of diesel and road tax ”. TNT Express (UK) also sees this as a big incentive: “ the electric vehicles are exempt from the London congestion charge of approximately £ 1,750 (2,031 euro) a year per vehicle and do not incur road tax in the UK. If we extended this to 10% of our fleet in urban locations, the cost savings to the company would run into millions of pounds ”.

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In Bremen loading and unloading zones located close to final delivery destinations in city centres, which are exclusively available for low/zero emission vehicles, were introduced. The city has established an Environmental Loading Point (ELP) which is close to the pedestrian central zone of the city; access to this loading area is only available to Euro 5 diesel vehicles or electric vehicles up to 8.5 metres in length and up to 7.5 tonnes gross vehicle weight. ELP are beneficial for the users in two way: it is situated in the close proximity to the city centre and deliveries are allowed outside of the usual delivery time window.

In Montpellier access to the city centre is forbidden to all of the delivery vehicles after 10 AM except for the electric vehicles. In Monaco EFVs are supported via public purchase subsidy and free parking arrangements for the EVs. Brewers (UK) goes further saying that “ fleet operators need long term certainty to put these vehicles on the road as capital expenditure is high. Governments need to demonstrate, promote and commit into the keeping of the current operational and tax regime along with discounts on any congestion/road user chargers ”. This is also one of the conclusions from the demonstrators of the STRAIGHTSOL project (D.2.1, p.3): “the electric vehicles’ success is further guaranteed on condition that several supporting measures and regulations, accompanied by the respective law enforcement promote their prioritization in mobility and parking inside urban areas ”.

Next to supporting measures, (local) authorities can play another role in stimulating EFVs uptake. By using EVs in the authorities’ fleets, e.g. for cleaning vehicles, garbage collection in city centres, greening and maintenance, or for the collection of parking revenue, the authorities could promote EVs through demonstrating their usage. For example the purchase of large CEV (commercial electric vehicle) fleets by state owned utility companies is a major instrument in the strategy of the French National Electric Vehicles Plan to achieve the objective of 450,000 electric/hybrid vehicles by 2005, 2 million vehicles by 2020 and 4.5 million by 2015 (URBACT, State of the Art Commercial Electric Vehicles in Western Urban Europe, p 6).

Another possible area where government intervention might be necessary is the regulation of the access to charging points. Since EFVs are likely to be operating more hours a day, it might be necessary to establish time windows to prioritize EFV over general EV for public charging point. However, since most EFVs are currently charged at depots and not at the public facilities, this is often not currently an issue.

2.3 SWOT analysis of the EFVs implementation in city logistics

Although only a limited number of sources (from those identified in section 2.1) presented real evaluation results of EFVs, we can identify strengths, weaknesses, opportunities and threats in relation to current and future implementation (i.e. the barriers and success factors) of EFVs in city logistics when compared with ICE vehicles.

Strengths of EFVs compared to ICE vehicles Economics/operational performance: - Lower maintenance and fuel cost - In case of government support (e.g. larger time windows, environmental zones, free parking, etc) allow more efficiency in operation

Social and Environmental impacts: - Good environmental performance and improved air quality

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- No noise from vehicles, but only from (un)loading equipment and drivers behavior - Drivers are happy with vehicles and acute turning range, which is helpful on city’s streets - Positive general acceptance from public - Contributed to the positive image of transport operator and shipper

Weaknesses of EFVs compared to ICE vehicles Technical performance: - The range promised by the manufacturer is not reached and is limited in comparison to ICE vehicles - Failing batteries - Limited or late technical support - Relatively long charging times - Necessity to adapt charging infrastructure for large fleet needs - Limited availability and types of vehicles on the market

Economics/operational performance: - High procurement costs - High cost of battery - Long downtimes (due to malfunction) and limited availability of spare parts - Limited loading capacity - Slow maintenance services and vehicles - Extra transshipment costs might occur (transshipment from ICE vehicles to EFVs)

Opportunities Technical performance: - New(er) vehicles have higher real range - The availability of public charging points is seen as a confidence boosting measure - New vehicles and batteries are available in near future (from one side its positive, from another – reason to wait (at the moment) to buy)

Economics/operational performance: - If regulative environment supports the introduction of EVs the benefits from EVs implementation are higher - Innovative vehicle / battery leasing schemes - For vehicles on the fixed routes, in company charging may be sufficient; for vehicles on variable distance routes it is necessary to consider complimentary charging methods - Political support, procurement demands, public opinion and awareness also amount private companies and surrounding municipalities are factors of success of demonstrators

Threats Different uncertainties and risks: - Logistics concepts might require to be adapted for the usage of EFVs (i.e. an extra transshipment point is necessary to transship goods from ICE vehicles to EFVs) - Equipment availability issues - Uncertain safety level - Other uncertainties and risks

SWOT analysis makes it clear that currently the main strength of the EFVs are of environmental and social value. The main weaknesses have economic and operational

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character, and basically come down to the negative business case of EFVs (i.e. higher TCO) compared to ICE vehicles. Opportunities lie in the improvement of the vehicles technical performance, supporting governmental regulations, which makes the business case for EFVs more positive, compared to ICE vehicles, and increasing scale advantages in production of for example batteries (which might reduce costs). Finally, main threats are related to the fact that there is a high uncertainty level about availability of the equipment in the future, safety level and other risks.

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3 Lessons from implementation of freight EVs in city logistics

The overview of EV initiatives in city logistics in chapter 2 identified key challenges and how they have been addressed. Three main issues have been identified: 1. The need for an adapted logistics concept that enables the use of EVs in city logistics operations to overcome range and load concerns (see section 3.1). This is an issue from both economic (extra costs for transhipment area and handling) as well as operational (extra handling and planning) performance. 2. The need (or desirability) of authorities support to increase EV uptake in city logistics activities (see section 3.2). The examples in many of the discussed cases show that a positive case using EVs is difficult without supporting actions from authorities. 3. The opportunities that EFVs offer for private logistics companies to demonstrate their commitment to improving their environmental performance i.e. green image, visibility in cities (see section 3.3). EFVs are (at this moment) still a striking appearance in cities; therefore this is one of the (few) sustainability measures private companies can take that are actually noticed by the public and the local authorities, in contrast to for example better bundling or cooperation. This opportunity gives motive to some carriers to choose for EFV (even though it is more expansive). These extra costs for EFVs add to the sustainable image of a company. Looked at it from this perspective, Coca-Cola decided for example to use (parts if) its marketing budget for these extra costs, since using EFVs gives the company exactly the image that is desired.

In this chapter we take a closer look at the approaches taken in six examples and the lessons learned. This chapter does not present the cases in full details, for further details please see Appendix 2-7 and references. The aim of this chapter is to provide illustrative examples of how is dealt with the three main issues that were identified in practice.

Six examples were chosen based on the following criteria: - availability and depth of information, - duration and currency (timeliness) of the case, - type of vehicles employed, - existence of quantified results, and - operational and regulatory environments and project sponsors (private and/or public initiatives).

Based on these criteria, six examples of the EFV implementation in city logistics were selected; Chronopost and Distripolis in Paris (FR), ELCIDIS in La Rochelle (FR) and the mobile depot of TNT (BE) in Brussels (part of the STRAIGHTSOL project) showing examples of adapted logistics concepts; the electric vehicle project of Transport for London (UK), and to a lesser extent the Cargohopper (NL) in Utrecht showing examples of authorities support; and the Cargohopper (NL) illustrating the opportunities EVs offer logistics companies for a corporate sustainability, marketing and green image reasons. Obviously, there are many other good examples, and we do not try to be exhaustive in this chapter. This chapter’s aim is to show how – in practice – companies and authorities are dealing with the issues that were raised in chapter 2, and to show inspiring examples for other companies and / or authorities in order to increase EFV take up (also for

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FREVUE partners). Detailed comparisons of the illustrative cases are out of scope for this deliverable.

For all cases background information on several elements was examined, including a description of private-public projects or private initiatives, the partners and their roles, the duration and current status of the initiative (e.g. on-going), the characteristics of the electrical powered fleet, the vehicle characteristics and performance, operational characteristics of the service, the battery and charging characteristics and performance and the dissemination of evaluation results.

In this chapter the lessons are grouped together under the following headings: 1. Logistics facilities enabling efficient use of freight EVs in city logistics. Although most case studies in this chapter focus on large cities, the lessons are often transferable to smaller and medium sized cities. The most important issue here is a (relatively) high drop density for an operator. 2. Local government support to accelerate the introduction of freight EVs in a city. 3. Private EV initiatives in city logistics operations to increase the company’s clean image for authorities and residents.

3.1 Logistics facilities enabling efficient use of freight EVs

Not all logistics operations are suitable for EFVs as existing operations were designed for ICE vehicles rather than EFVs. This could be a barrier for EFV take up, as followed from chapter 2. However, instead of seeing this as a reason not to use EFVs, it is also possible to redesigning the logistics concepts so that these fit the characteristics of EFVs (i.e. smaller range, loading capacity) in order to enable the usage of EFVs in city logistics operations. In this section we discuss three examples that show how rearranging the logistics concept and supporting infrastructure enables the use of EFVs in city logistics operations. The lessons from these cases on the changes in the logistics infrastructure to enable efficient EV use are the key issue. These examples show different ways to redesign current operations in order to adapt these to EFVs requirements. On a high conceptual level most solutions are similar; an extra transhipment point is added in the transport chain. This point is usually necessary because often the origin of the goods (e.g. the carriers’ or shippers’ depot) is located too far from the city to be able to make the final deliveries in the cities and the transport from the depot to the city as well as the return from the city to the depot within the range of the EFV. This section is not meant to make a comparison between different concepts. The aim is to show ways of how the existing transport chains that are designed for ICE trucks doing the last mile deliveries could be redesigned in order to use EFVs. How this will be done in practice depends on many factors, such as the type of city (and the corresponding infrastructural and policy restrictions), the type of deliveries, the volume, the depot locations of carriers (or shippers), etc.

3.1.1 The cases of Chronopost, Distripolis, Elcidis and TNT’s mobile depot An EFV can replace a conventional truck if the trip is within the range of the EFV. However, this is often not the case. If the trip is longer than the EFV range, then an EFV can only be used when the trip is split in two (2-phase delivery) at some point near the receivers, or the operator has to charge battery during the service, which can increase the costs due to additional downtime. This means that the goods need to be transferred to the EV at a logistics facility or parking space in or nearby the urban area. This leads to new activities and requirements in the logistics concepts.

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These three cases show different examples of how the logistics concept can be redesigned (see appendixes). A common factor involves the introduction of a physical hub (transhipment point) that enables 2-phase delivery and facilitates the use of environmental friendly transport in the urban areas. This is especially the case for those trips that contain many drops in a small area (i.e. high drop density). For other city logistics activities, for example more FTL (full truckload) deliveries 2-phase deliveries are less suitable because it is likely that additional value added activities (such as consolidation and sorting) are required to further support the investment in a physical hub. When transferring a FTL to another truck, there is little advantage to be gained while incurring additional cost, (see section 3.1.2) Another approach that can be taken is exemplified by Gnewt Cargocycle who use electric vehicles for retail distribution (see Bestfact, 2013), which shows a similar change in the logistics concept (see Figure 8). Deleted: Figure 8

Logistics concept before Gnewt Logistics concept during Gnewt Cargocycle project Cargocycle project

Figure 8. Logistics scheme for Gnwet (Bestfact, 2013)

The case of Chronopost Chronopost International is a specialist in express delivery of letters and parcels to both companies and private customers worldwide. A 950 m2 underground Urban Logistics Space (ULS) in Paris, has been operational since 2004. A second ULS was opened in June 2013.Parcels are transported from the conventional hub at the border of Paris to the ULS, by a large van with a trailer. Consolidation and sorting per route and consignee takes place in the ULS after which the parcels (2,000 a day) are distributed by electric bikes and Goupil electric vans to the consignees in inner Paris. This system reduced greatly the number of kilometres travelled by the diesel truck inside the city; avoiding the trips from one consignee to another.

The success of the concept is due to the strong private public collaboration and the support of the municipality in finding a suitable property; both financially (the delivery concept is today economically viable thanks to an initial public investment of over 700.000 euro) and by facilitation. The main barrier, to find an available urban space in a busy area, has been overcome by building the facility underground.

The case of Distripolis Distripolis (FR). This new concept of delivery services in Paris is part of a project (2011- 2015) supported by Geodis, a state-owned global multimodal logistics provider. Shipments from three private companies (Geodis Calberson, France Express and Geodis Ciblex) are consolidated at the multimodal Bercy platform in Paris.

Packages over 200 kg are directly delivered to the receiver by truck (1-phase delivery). Deliveries less than 200 kg are delivered to “BLUE” Environmental Urban Bases. These

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are located in the city centre close to the main retailing districts. For the final kilometre (2- phase delivery), Distripolis uses electric trucks and power-assisted tricycles, which are clean and quiet.

The main challenge is to find suitable space for the BLUE bases. Local authorities can support the initiative by providing lower rents for state-owned locations for the first years of operation. The base should be accessible by a 12t vehicle, which is difficult in congested Paris. As a result, only two bases have been operational so far. The aim is to have eight bases in total.

The case of TNT’s mobile depot TNT Express has introduced a mobile depot (see Figure 9) in Brussels which allows the replacement of vans by electric tricycles (‘cyclocargos’) in three congested neighbourhoods. For larger parcels that do not fit in these tricycles TNT will use electric vans.

The mobile depot is a large custom-designed trailer and serves as a storage and sorting centre between the TNT Express hub and the centre of Brussels. The trailer is equipped with various facilities, subdivided into an office area and an area for loading, unloading and sorting (see appendix A.3). Bikes are stored at TNT’s subcontractor’s depot. At this moment the concept is still being tested and the facility has not reduced costs yet. Service time and reliability have not changed due to the introduction of the mobile depot.

Each day, the mobile depot drives from the hub at Brucargo to the car park at Parc du Cinquantenaire where remains stationary. During travel, the mobile depot has normal truck dimensions (14 x 2.5 m). When parked, the trailer is extended automatically to its full size of 14 x 6.5 m. The municipality has facilitated the parking area for TNT. The concept is part of a 3 month experiment (Summer 2013). It is set up and being evaluated within the STRAIGHTSOL project.

Figure 9. TNT’s mobile depot

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The case of ELCIDIS, La Rochelle The European project, Electric Vehicle City Distribution System (1999-2002) was a cooperation between 7 European cities. The objective of the city of La Rochelle was to promote the use of clean vehicles for freight distribution in the city centre by introducing new access restrictions and providing premises, vehicles and equipment to the urban consolidation centre manager.

From an urban distribution platform, created in 2001, the electric vehicles deliver parcels and packages to shops and businesses in La Rochelle. At the platform they are unloaded and controlled, and shipping orders are validated. They are then transferred to a zone where they are sorted per sector, street and consignee in order to be loaded onto electric small vans and scooters.

The technical feasibility of the concept was confirmed but the long term economic viability of the distribution system was considered as not demonstrated at the end of the project. A new management model was set up in 2006 to engender large savings by developing new activities in order to split up the fixed costs (premises and staff). Today, the new company, Proxiway/Veolia has regular customers and offers other services, such as self-service electric car rental, electric city shuttle, home deliveries for shopkeepers, express deliveries for companies located in the city centre and storage space rental for companies. The Agglomeration Community of La Rochelle (CDA) is still the owner of part of the EVs.

3.1.2 Chronopost, Distripolis, Elcidis and TNT’s mobile depot lessons The co-location of urban facilities close to their customer base enables these logistics concepts to facilitate efficient EFV use. The three presented cases show some lessons that are of importance for transhipment concepts.

Weight of goods. The weight of goods should not be too high; two-phase delivery is only suitable for goods that can be transferred from one truck to another without too much effort (or other systems should be in place to transfer heavier loads, but that is not easy to implement in these urban facilities). The weight to be transported is a particular determinant on range; high volume low weight operations are well suited for EFVs. The Distripolis case shows for example that a distinction is made between deliveries over and under 200kg. Heavy goods are directly transferred to the receiver by a conventional truck.

Adding value on logistics facilities. Many urban locations are quite expensive, and have more productive economic uses (higher value) than for logistics activities. Considering the cost of land in urban areas, the logistics facility should be part of a system that adds value to the logistics operations in order to be financial viable. However, when the facility only serves as a location where the goods are simply transferred from the large truck to the EV, it will not likely be financial viable to use a secure and accessible logistics facility at a prime location. The Chronopost, Elcidis and TNT case show that value can be added at the new facility with sorting and consolidation activities. More consolidation benefits are possible, when the facility is accessible for multiple operators, like in the Distripolis case. Another option to add value to the facility (but not shown in the cases) can be to provide a customer collection point. If located in a pedestrian zone, it would not increase the trip generation and can reduce the shipment cost for the customers who can come on foot or by bicycle to collect light parcels.

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Bundling. Bundling of cargo could be done for several carriers in such a facility. This does create the issue of parcel tracking and liability, which could be handled with a common IT system between the carriers.

Bundling also increases drop density for the EV deliveries in the city, and can also reduce costs for the last mile logistics. The chance that value added services as described above can be offered at a hub is much higher when there are many different consignees served with one vehicle (i.e. Groupage delivery). This is why the concept works well for postal services (see all cases).

The Chronopost and Elcidis cases have illustrated that the number of trips and kilometres travelled by diesel truck was reduced. The total number of kilometres travelled by polluting vehicles decreased by 68 % for Chronopost. Carriers in La Rochelle estimated the time saving to be 3 hours per day per truck thanks to the urban platform.

Property requirements. Property requirements for logistics facilities are a difficult area to address. If (local) authorities support the idea and concept of the logistics facilities, they may help in finding the right location for the right price. It is often a big challenge to find an available, suitable and affordable property for the activities. The main requirements for the property site are: • The distance of a roundtrip (2nd phase) to receivers should be within the EV range, while at the same time, the fuel savings (1st phase) should be maximized. • There should be enough space for parking, charging and (un)loading activities- preferably for value added activities as well. • The in- and outbound movements at the site should not cause or be hindered by congestion.

The case of the mobile depot is included in this deliverable to show an alternative for physical buildings to facilitate transhipment. This mobile depot could serve a similar purpose, but requires less space. However, (public) parking space is still required to make use of such a solution. Therefore, the support of the municipality and / or another governmental body in finding a site is crucial, both financially and regulatory (e.g. giving permissions) in this transition period.

Finally, other lessons from the cases are: • Architecture. The architecture of the logistics facility should be attractive to avoid visual nuisance in the city centre. Especially when it concerns public space. Either, by not being visible (e.g. underground like in the Chronopost case), or by being innovative (e.g. TNT mobile depot). The risks of vandalism and crime and possible security measures should also be considered in the development of the concept. • Long term vision. It should be considered whether and how the municipality can give support or grant certain permissions to other parties in the future (i.e. be part of long term vision). There will be a limit to the number of mobile depots that can be placed in a public park (TNT case), without receiving complaints from citizens. Not all transport operators can use such a depot and park it in public space, because then there will simply be too little space available (especially in denser city centres).

Another reason is that municipalities should support market competition. This is why municipalities are often reluctant to support an individual initiative. However, initial

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public (financial) support is often required to provide confidence to private sector investors.

Figure 9. Key elements that make the adapted logistics concept enabling EV’s viable (based on lessons learned)

3.2 Local government support to accelerate the introduction of the freight EVs in a large city

The adoption and implementation of EFVs has not been smooth. Where the business case for the logistic operators is often uncertain, the benefits to society are evident. Authorities therefore have a clear interest in the uptake of EVs, and hence, are in general very encouraging. This is required because the development and procurement of EVs is costly and their introduction requires adaption (e.g. charging points) and additional logistic activities and facilities (see 3.1). Without the encouragement and support of the authority, the logistic market is often not able or willing to implement EFVs massively. Supportive public policy or exemptions from restrictive policies often make the business case for EVs better: • Congestion charge discounts or exemptions, • Access to priority lanes e.g. bus lanes or access to pedestrian areas, • No or extended time-window restriction, • Free parking, • Priority in public charging points.

In the above cases, the use of EVs for freight transport becomes more cost and operationally efficient than similar operations with conventional trucks or vans.

Chapter 2 has illustrated that well-considered, coherent and consistent government strategy can efficiently support and facilitate the introduction and implementation of EFVs in city logistics. In this section, we provide more detailed illustrations of how (local) authorities can support the uptake of EVs in two cases.

3.2.1 The cases of London and Utrecht The EV City Casebook (2012) describes various experiences and best practices of pioneering cities. It is no coincidence that all of these cities have put in place various incentives to boost EV uptake. Many cities employ a mix of measures that either promote the introduction of EVs directly or restrict the functioning of the conventional vehicles. This can be achieved both through implementation of regulatory measures promoting and supporting the introduction of the freight EVs (e.g. purchase subsidies, exemptions from purchase taxes, allowed access to the bus lanes, etc.) as well as by measures that restrict the functioning of the conventional vehicles in city areas (e.g. implementation of low emission zones, high parking charges, etc.)

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The case of London Transport for London and Source London. The Mayor of London, Boris Johnson has ambitious plans to make London the electric vehicle Capital of Europe. Transport for London (TfL) has the responsibility to coordinate the delivery of the Mayor’s plans, which has goals for the number of EV’s (100,000 on the road) and the charging network. Transport for London is working with private and public partners to make this possible. Source London brings together London's new and existing public charge points into one network. The network has already achieved its goal of 1,300 charge points by the end of 2013.

London is one of the best examples that illustrates that if government is committed, has a clear strategy and follows a step by step approach, then it will serve as a trigger for people to start buying EVs. The lesson is to develop policies for a wide range of measures, collaborating with the private sector, building charging infrastructure and providing supportive action like a low emission zone and exemptions from the local congestion charge.

An important incentive provided by local government is a 100 per cent discount from London's Congestion Charge for electric vehicle drivers. At a national level, there are also incentives for business – all EVs will be exempt from company car tax for 5 years and electric vans will be exempt from van fringe benefit tax for 5 years. There are also grants available from the government which contribute towards the purchase price of the vehicle and there are tax benefits for purchasing EVs.

Source London also shares information on the potential savings from lower fuel and maintenance costs, since “ it's not just about corporate social responsibility”. Practical information on how businesses across London are using electric vehicles in their fleet is provided on the website. See also: https://www.sourcelondon.net/benefits-your-business

The case of Elcidis, La Rochelle In the ELCIDIS project (1998-2002), the Agglomeration Community of La Rochelle (CDA) set up an urban distribution platform near the city centre to deliver goods to the old city. To stimulate the use of this platform by the transporters, the CDA introduced at the same time access restrictions for entering this historical city: polluting heavy vehicles (over 3.5t) were only allowed to enter the centre between 6 and 7:30 a.m.

This solution was technically possible due to the delimitation of the geographical zone, which has facilitated management and the setup of regulations. Various activities previously located in the old city moved outside the city boundaries, contributing to liberate urban spaces and reducing congestion. This concept showed that local regulations and environmental commitment may motivate a behaviour adaptation of carriers encouraging them to use urban platform. (CERTU, 2007).

The case of Utrecht The Cargohopper case, see 3.3, from Utrecht shows how a local logistics company is able to come up with an innovative solution for EV city centre distribution, in the context of a local authorities’ city distribution plan which had been developed over years.

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The Cargohopper case was supported by a well-developed urban distribution plan. Other measures like vehicle restrictions, time windows for deliveries, City Distribution Centres (CDC) privileges and environmental zone regulations were in place. The city of Utrecht has targeted its urban policy to address the problems of congestion and air quality and improve the quality of life for its inhabitants over many years. Since 2000 coherent policies have been implemented to improve the situation for urban distribution.

3.2.2 Lessons from London and Utrecht The London example shows that even if government support and strategy provide a good framework to initiate the EFVs purchase, this is not sufficient to take away the existing barriers for operators at this moment. Even though the actual EFVs uptake in London is still low, it is a good example to illustrate how the committed policy of municipality can initiate the EFVs uptake.

Although the business case for logistics operators improves with a supportive regulatory framework, reducing uncertainties on performance and costs seems to be necessary to convince more operators and increase EFV uptake.

Set up a comprehensive package of measures. The lesson is to develop policies supporting a wide range of measures that do not only focus on facilitation and promotion of EVs, such as building charging infrastructure and giving financial incentives, but also restricting the use of conventional vehicles, for example with low emissions zones and time-windows.

Look at the needs of the logistic service providers in the city. Collaboration with the private sector and the provision of transparent, practical information on how to implement EVs will help the uptake of EVs as well.

Whether enabling or restricting measures work best depends on the initial situation. For example, in Amsterdam, there are a lot of restrictions in place for freight vehicles. Logistics service providers would be (more) interested in driving EVs if EVs are exempted from these restrictions. This does not work in a city like Rotterdam for example, as the city does not have many restrictions in the first place.

Availability of public space. When the logistic concept need to be adjusted, and facilities are needed (see 3.1) then it often concerns public space. It is a challenge for logistics operators to find an affordable space in congested, urban areas. This is one of the key aspects for a positive business case for operators to start using EFVs. The local authority can play a great supportive role by giving permissions to build or use a logistic facility, see Chronopost case.

3.3 Private EV initiative in city logistics operations to increase the company's clean image for authorities and residents

3.3.1 The case of the Cargohopper Next to the economic arguments, including the supporting authorities’ measures as discussed in the previous section, companies might have other arguments or reasons to start using EVs for their urban freight operations. One example is the example of Coca- Cola that use finance (some of the) extra costs for use EFVs from their marketing budget, since the EFVs show the general public that this company works on sustainability. There are other examples of private companies (e.g. Deret in France) making investments in

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EFVs (some were discussed in chapter 2, others are not discussed since the reporting of the initiatives is sometimes limited to a press release stating the company starts operating EFVs). This section reports one example in detail, i.e. the Cargohopper (based on conversations and interviews with the company and documentation). The Cargohopper is an illustrative example of what a private company can do in increasing EFV uptake.

The case of the Cargohopper Hoek Transport is a regional carrier specialising in city logistics for Utrecht. This transport company wanted to convert to electric operations in Utrecht, in order to: • Improve its environmental performance; • Improve liveability of the city; • Increase its efficiency due to the regulations in place as it could operate in pedestrian areas and outside of time windows. Jacques van der Linden, managing partner at Hoek Transport, developed Cargohopper I to do so, which was launched in 2009. This Cargohopper I is a zero-emission truck, with three small trailers in which a Europallet can fit. The Cargohopper I replaces between 5 and 8 vans every day in the city centre of Utrecht.

Figure 10. Cargohopper I and Cargohopper II

The Cargohopper is used to make the final deliveries; Hoek Transport, as a regional carrier, has a high drop density for the city of Utrecht, which is partly due to fact that Hoek is a partner in TransMission.

TransMission is the largest cooperation of independent transport and distribution companies in the Netherlands and Belgium. In total 16 transport and distribution companies collaborate under one name, but the companies remain independent (often family) firms. The TransMission partners have divided The Netherlands and Belgium in regions, so that every company operates in its own regions (as a regional specialist). This regional subdivision applies to all LTL (less-than-truckload) deliveries and pickups (i.e. packages and pallets) of the partners in the collaborative network. The TransMission collaboration contains 13 locations in the 13 regions in which The Netherlands is divided by the partners, of which one is used as central depot. All central affairs are arranged by a separate organisation with a central management. This cooperation is based on uniform agreements between all partners. The cooperation is organised as follows: all goods that are suited for the collaborative network, i.e. LTL deliveries and pickups, are transported from the partner’s region to a central hub in Utrecht. All partners carry the cargo that has to be delivered in their own region back from this central hub. During the night all deliveries are cross-docked between the partners in this central hub. All partners use the same software and barcodes for tracking and tracing. Overall, this network collaboration has other advantages as well: long distance transport (from and to the hub) is undertaken off-peak periods (i.e. nights) and therefore, in the morning all cargo is

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already in the region of destination. For the Cargohopper this means that all deliveries from the network destined for Utrecht are collected by Hoek, which results in a high drop density and a good base volume to start operating the Cargohopper in Utrecht.

The logistics operation is such that boxes destined for the inner city are preloaded outside the city in the Hoek Transport’s depot (which is a recognized CDC by the city of Utrecht) and towed to the boundary of the inner city by means of a regular truck, since the Cargohopper I has a limited maximum speed.

The transport company Hoek launched Cargohopper II in 2011. This is a second generation solar powered electric distribution trailer capable of covering a wider area in and around the city of Utrecht and also planned for the operations by TransMission partners in the cities of Amsterdam and Enschede. It is designed to carry heavier and larger loads with a greater delivery range and at faster speeds. Cargohopper I continue to run in the Utrecht city centre, so this is an extension of the original concept.

Cargohopper II can be used to bring the boxes to the city centre. The boxes are then put on the Cargohopper and rolled into the pedestrian zone. Once empty, the vehicle collects dry carton, paper and empty packaging from shops for recycling, avoiding it running empty.

The positive environmental impacts are evident, since Cargohopper is able to do the work of 5 to 8 regular (European sized) vans. It removes up to 100,000 van kilometres from the inner city streets and saves approximately 30 tonnes of CO2 on an annual basis, and brings about noise reduction. Several economic impacts are affected in a positive way, like city attractiveness, congestion reduction, productivity and accessibility. Although real evidence is hard to come by, it is estimated that Cargohopper has contributed to a reduction of accidents, improved working conditions and quality of life.

3.3.2 The Cargohopper case lessons Strong commitment of the private entrepreneur. The Cargohopper case demonstrates that if a private entrepreneur, in this case Jacques van der Linden, managing director at Hoek Transport, really believes in the concept of electric freight transport (for city logistics), real progress is possible. This activity has also generated a lot of positive media coverage and subsequent awards. The complementary public relations benefit illustrates some of the further opportunities that such activity can provide as it accompanied the actual launch of the Cargohopper in Utrecht. The use of the Cargohopper did not directly result in an increase in profits. Relatively few new clients joined Hoek Transport or TransMission. The customers, i.e. shippers acting on a national or even European level, are not always aware of the Cargohopper (local actors are, but these are often not clients of transport operators). Many shippers are also not able to move instantly to another carrier due to contractual issues. At the local level some small customers were welcomed as new clients, but that was not enough to compensate for the extra costs of the Cargohopper and its operations.

High visibility. The vehicle itself, made the transport company visible and distinguishable from other carriers, to local shop owners in Utrecht, residents and (local) authorities. The striking appearance of the vehicle, together with the PR campaign, resulted in a change of attitude towards the carrier. Here we see that the technical innovation (i.e. the Cargohopper) actually makes the logistics concept of TransMission visible, i.e. regional

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bundling of cargo and cooperation between carriers. Without this non-visible logistics concept, the amount of volume for the Cargohopper would be far too low to actually make it economically feasible to use. Both Hoek Transport and TransMission were invited to discuss issues with local authorities, whereas in the past it was hard for the carrier to be in contact with authorities; mostly local authorities were not willing to discuss carriers’ issues. The Cargohopper changed that for Hoek Transport and for TransMission, as they are now often welcome guests. Other local authorities asked the carrier whether it would be possible to operate a Cargohopper in their city.

Knowledge of logistics. Many local authorities in the past started city logistics initiatives or freight EV initiatives from the wrong perspective due to relatively limited logistics knowledge (see Van Rooijen and Quak, 2013; Quak, 2012). As noted above, the Cargohopper initiative started from an entrepreneur that believed in the concept; this is different than an initiative started by authorities and in which no transport companies (or shippers or receivers) are actually involved. Therefore, Hoek and TransMission explained to several authorities that this solution could only work when the right logistics concept was in place. For the Cargohopper this means that (among other things) it is necessary that facilities are in place close to the city centre and that there is sufficient demand (drops and collections) to fill the vehicle. A top down approach can make the business case for EFVs feasible on a shorter term, but local entrepreneurship seems to be necessary to get the EFVs actually running in freight operations.

High drop density and the availability of logistics facilities. Local facilities need to be available and high drop (and collection) density is required. We illustrate these lessons based on attempts to use the Cargohopper in Amsterdam (see also Van Duin et al., 2013). TransMission has no local carrier located in Amsterdam in its network. Amsterdam is served by the TransMission carrier that is in Almere (about 25 kilometres from Amsterdam centre). About 87% of all TransMission’s deliveries and collections in Amsterdam are not for the TransMission partner in Almere, but for the other TransMission network partners (see Figure 11 ). Deleted: Figure 11

Figure 11. TransMission drops in Amsterdam centre (red dots are TransMission Almere’s own drops, blue dots are drops from network partners, see Quak, 2012)

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Due to the TransMission network collaboration, the local carrier (from Almere) has a high number of drops and collections for Amsterdam, which makes it feasible to use several Cargohoppers II. Horizontal cooperation between regional carriers makes it possible to have a high drop density in Dutch cities.

This horizontal cooperation obviously has to be arranged within an open marketplace. In the case of TransMission: the network does not have a dominant market position, the TransMission management determines the cooperation conditions (e.g. mutual prices for network transport, coordination). The regional carriers in the network are free to use the network and to compete with each other for customers. These carriers do not discuss competitive issues among each other. This bundling is necessary to make the logistics concept feasible, since there are only a few carriers that have a network with high enough drops density to run a local facility in a city (network carriers, like express companies, or postal services are usually the only carriers that are able to run a logistics network dense enough for local facilities and corresponding EV use). For other carriers, cooperation and consolidation is necessary (see also Quak, 2012).

The distance between Amsterdam and Almere should be travelled by large conventional trucks, because of range and speed limitations of the Cargohoppers. Besides, the 50 kilometres (Almere – Amsterdam – Almere) is mainly high way, and FTL transport. The benefits of using an EFV for this part of transport do not, at this moment, equal the extra costs. Therefore, TransMission needed a location to tranship the cargo from the conventional trucks to the EV-powered Cargohopper. This turned out to be problematic; although the local authorities were cooperative, it took over 2 years to find space that fitted both the requests of TransMission and was available for logistics activities. However, the Cargohopper should start operating in Amsterdam from 2014. This corresponds to the lessons in section 3.1; speed and limited range are not issues, as long as the logistics concept is adapted to EV use for the last mile. And the availability of space is essential for adapting the logistics concept.

Other lessons learnt from the Cargohopper case include the vehicle itself; the trailer is equipped with solar-power panels that provide electricity to the vehicle. Subsidies are considered as a short term market stimulus and funding programs often provide financial support only for the truck. Many additional investments are consequently not subsidized, whereas they are part of the concept. The parties that provide subsidies would often like to be able to provide support for all additional costs of the Cargohopper, but are not allowed to do so by the regulations (often self-imposed). Discussing the possibilities to subsidize the entire concept also slows down the actual implementation of EVs. This is also the case for when the vehicle is not a standard design, as for example, in a case of the Cargohopper I and II. This may result in significant difficulties to actually get the vehicle approved for use on public roads; it took a long time to finally receive a licence plate for the Cargohopper II.

The Cargohopper is now used in two Dutch cities (Utrecht and Enschede), and planned for Amsterdam. These cities all have regulations and restrictions for freight transport. These regulations result in an advantage for the EV powered Cargohopper in comparison to the conventional vans and trucks that were used; access to pedestrian areas and longer or no time-windows, are making the use of the Cargohopper economically more feasible (see also section 3.2).

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4 Discussion and recommendations

The review has indicated that there is already a lot of information available on EVs, but the majority focuses on promotion, support and introduction of the EVs for private usage. The scope and number of the projects / initiatives focussing on freight EVs is limited, but slowly growing. From the available freight EV literature and information, only a few sources actually present real evaluation results; the majority focus on pre-trial or context descriptive information only.

Within EU projects, EFVs are not seen as a stand-alone measure but are usually dealt with in combination with the implementation of an urban consolidation centre, time window regulations or an environmental (low emission) zone. In a lot of these cases EFVs are bought with a support of (local) authorities or in the framework of EU or national demonstration projects. In cases where the purchase of an EV is done directly by a private company, these are mostly light duty commercial vehicles (< 3.5t GW), with a very limited number of the medium and large size vehicles. A lot of freight EVs in city logistics are used in postal sector, deliveries to stores, waste collection and home delivery from supermarkets.

Based on the information collected from several existing projects, both public and private initiatives, the main technological, economic, operational, wider systemic challenges and success factors from the previous and on-going initiatives and demonstrators of freight EVs were identified in Chapter 2. This has illustrated that back in the 1990s the main challenges with implementation of the EFVs were related to high procurement costs, limited product diversity and low performance of the vehicles. Nowadays a lot of technological progress has been made and technological reliability and efficiency of EVs is much higher and trials and demonstrators are moving on with larger/heavier vehicles that have greater range and capacity (which FREVUE is looking for evidence of). Nevertheless, further improvement of EFVs technical characteristic is necessary as well as their practical and commercial viability. High procurement price and uncertainty on the residual value of the vehicle remains one of the main challenges.

Although (theoretical) studies show that the total cost of ownership of EVs can be lower than for conventional trucks, the novelty, uncertainty, low availability and on-going technical improvements are barriers for transport companies in purchasing EVs (next to the high initial purchase costs). Use of EVs for city logistics still has to gain benefits from practical demonstrations in order to be recognized, most notably by fleet managers. More larger scale demonstrations of operational feasibility, to show EVs are technically reliable and provide more certainty on the residual value (which should make it easier to lease or finance EVs), are necessary to convince more companies to invest in EVs for (city) logistics activities.

In order to gain some more insights into the success factors and lessons to be learnt from previous and on-going initiatives that include freight EVs, this analysis looked at six in- depth case studies. These case studies went into more details on the three main issues that came out of the reviewed initiatives and projects in chapter 2. The examples show how: • to deal with adapting the logistics concept, i.e. design the corresponding logistics infrastructure facilitates, to introduction of EFVs in city logistics practice for private operators;

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• coherent and consistent government strategy can be another trigger for the wide- spread uptake of EFVs; • the use of EVs can make a carrier more visible in a positive way and improve its image in an urban area.

The state of the art on city logistics and EVs can be summarized in four main points, which in essence show why the actual use and implementation of EVs is limited in (city) logistics at this moment.

1. Logistics operators defer purchasing and using EVs due to concerns over a mismatch between characteristics of EVs and the vehicle requirements to perform efficient operations. The limited range of the vehicles, the relatively long charging time, and the limited loading capacity are barriers for EV usage in logistics. However, this review also showed that for some operations this mismatch is basically due to the fact that the current logistics models are designed for conventional vehicles. An adapted logistics concept can enable the use of EVs in city logistics while it deals with these issues.

2. The high initial purchasing costs for EVs. The review shows that for some operations the total cost of ownership can be at least comparable (or lower) with conventional trucks. This turns out to be particularly the case for areas in which supporting measures are in place, such as fewer restrictions for EVs than for conventional vehicles, lower taxes or charges, and obviously purchasing subsidies. These supporting measures do not only result in direct financial benefits, but also in increased operational efficiency (in urban areas).

3. The early-adoption of EVs in logistics operations can also have another advantage for carriers, improved visibility in a city for residents, clients and local authorities, which can result in more business and in more influence on, and a better relationship with these stakeholders.

4. Finally, there are still issues and uncertainties to be dealt with. Rapid technical development is an issue for some operators that are afraid that their vehicles will become obsolete and as a result have no residual value. The limited availability of EFVs in the market is also an issue, but this is improving as more manufacturers start to offer EVs. Questions remain on which operations are suitable for EV use, how the operational and technical performance of the vehicles is influenced by other elements, such as climate and geographical and city characteristics (hills, pavements, etc.). These questions are to be answered based on the different demonstrations in FREVUE.

Based on the evidence identified from Chapters 2 and 3 a number of practical recommendations can be given to FREVUE demonstrators. Operational lessons to be learnt from previous and on-going trials and initiatives:

• Detailed planning of a demonstration process is very important; • For municipalities it is important to be coherent and consistent in their policy approach following a step by step method: building infrastructure, promoting, supporting EVs and restricting conventional vehicles; • Private-public cooperation is important especially during the initial trials that involve EFVs;

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• From an operational point of view, driver training is important alongside the establishment of the correct vehicle charging routine; • Sharing the results with others outside the project is important, in order to encourage far wider uptake of EVs, since this might reduce uncertainties for companies not familiar with EVs.

The state of the art review, conducted in this deliverable, illustrates the high importance and relevance of FREVUE as a project focusing on the implementation and assessment of the freight electric vehicles in city logistics. There are many gaps in knowledge about the freight EVs technological and operation performance, which constrain private operators in their decision to buy a vehicle. The added value of the FREVUE project will therefore be higher if the project answers these frequently asked questions regarding EFVs. The review conducted in this deliverable indicates what some of these questions are, which will therefore be among the guiding questions of the Central Evaluation Framework to be produced in WP1:

• What is the residual value of the freight EV? • What are the factors that determine the residual value of the freight EVs? • What kind of operation is suitable for freight EVs? • What are the wider systemic impacts from the freight EVs implementation?

Results of this deliverable also help to identify the important technological, economic, operational, wider systemic and social factors to be evaluated by the Central Evaluation Framework of the FREVUE project. In order to answer the above-mentioned and other questions of the Framework, it is important that FREVUE demonstrators have robust data collection and reporting methods.

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5 Conclusions

The state of the art review performed in this deliverable has shown that there are still many uncertainties about EFVs implementation and therefore many risks. The main strengths of the EFVs in city logistics are related to its low (no) emissions and its limited noise nuisance. The main weakness is, next to some uncertainties in the technical and operational performance, from the economics side; i.e. it is at this moment really difficult to find a viable business case. Next, the SWOT analysis shows that a supporting governmental scheme is very helpful to make the business case for EFV implementation more likely to become financially sustainable as well.

Challenges with implementation of the EFVs in city logistics operations during the first trials differ from today’s challenges. Because of the strength, weaknesses, opportunities and threats identified within the SWOT analysis, today some private operators (e.g. the front runners in the first EFV implementations) show some scepticism in purchasing EFVs; they are waiting for further technology development and a viable business case. Use of EFVs for city logistics still has to gain benefits from practical demonstrations in order to be recognized notably by fleet managers.

At this stage of the FREVUE project, we can identify the following three elements that are necessary for acceleration or uptake of EFVs: - Adaptation of logistics concepts that enables EFV use in urban logistics - Local government support to accelerate EFV introduction - Companies that wish to be more sustainable

The objective of the FREVUE project is to further investigate the issues identified within this deliverable by testing EFV implementation on a large scale in various city logistics operations, as well as to indicate the possible path of improvement for the successful EFVs business case. This first FREVUE deliverable showed the challenges of EFV implementation in city logistics, as well as a number of illustrative examples of how some companies and authorities deal with these challenges in order to actually utilise EFVs in their daily city logistics operations.

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List of websites (all websites visited in period between April 2013 and July 2013)

CO2NeuTrAlp, http://www.co2neutralp.net/

MOVELE http://www.etsi.org/deliver/etsi_tr/102800_102899/102886/01.01.01_60/tr_102886v01010 1p.pdf

Plugged-In Places http://www.publications.parliament.uk/pa/cm201213/cmselect/cmtran/239/23906.htm

Source for London https://www.sourcelondon.net/electric-vehicles-your-business

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Luccaport http://www.luccaport.it/content.php

Electric Mobility Pilot Regions http://www.bmvbs.de/SharedDocs/EN/Artikel/UI/electric-mobility-pilot- regions.html?nn=37302

Frankfurtemobil http://www.frankfurtemobil.de/

MOBI.E http://www.mobie.pt/en

Elektrisch Vervoer Centrum Rotterdam http://elektrisch-vervoer-centrum.nl/

Flemish Living Lab Electric Vehicles http://www.livinglab-ev.be/content/introduction

EVE – Electric Vehicle Systems Programme http://www.tekes.fi/programmes/EVE E-Laad http://www.e-laad.nl/

STEF – TFE http://www.stef.com/index.fr http://www.stef.com/our-group/news/a-world-first-the-worlds-largest-electric- powered-truck-undergoing-tests-with-carrefour?set_language=en http://fplreflib.findlay.co.uk/articles/38643/Carrefour_trials_electric_truck.pdf

Deret http://www.deret.fr/contenu.php?id_entite=2

Peter Appel http://www.logistiek.nl/Distributie/duurzaam-transport/2010/7/Test-Renault- Maxity-Electric-in-duurzaamheidsproject-LOGNWS110444W/

UPS https://www.sourcelondon.net/ups

EROSKI http://www.interempresas.net/Energy/Articles/48006-EVE-and-Eroski-sign-an- agreement-for-the-promotion-of-the-electric-vehicle.html http://www.myvan.com/2012/01/25/vito-e-cell-conquers-spain/ https://www.irekia.euskadi.net/en/news/5293-ibil-and-eroski-install-charge- points-for-electric-vehicles-supermarket-car-park-salburua-vitoria-gasteiz

TNT Express http://legacy.london.gov.uk/electricvehicles/commercial/mayor-fleet/tnt.jsp

Correos

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http://www.hellmail.co.uk/postalnews/templates/postal_industry_news.asp?articlei d=2361&zoneid=3 http://www.publictechnology.net/sector/green-it-difference-spanish-postal- service-switches-electric-vehicles

SEUR http://postandparcel.info/48639/news/environment-news-2/seur-tries-out-all- electric-delivery-vehicle-in-valencia/

020 stadsdistributie http://www.logistiek.nl/Distributie/duurzaam- transport/2010/3/020stadsdistributienl-Amsterdam-vervoer-zonder-uitstoot- LOGDOS112894W/ http://www.amsterdam.nl/parkeren-verkeer/milieuzones/goede- voorbeelden/020stadsdistributie/

Eco-Logis http://www.eco-logis.it/it/

Posten Norge http://sustainability.ipc.be/en/best-practice-cases/Posten_Norge http://www.investinmurcia.com/invest/docbasico.jsp?id=3&doc=1023 http://theforeigner.no/pages/news/norway-electric-post-vehicle-gets-a-design- award/ La Poste http://www.laposte.fr/

Seymour Green https://www.sourcelondon.net/seymour-green

Tesco https://www.sourcelondon.net/tesco

Cargohopper http://www.cargohopper.nl/cargohopper_info/

Abby Couriers https://www.sourcelondon.net/abby-couriers

Brewers https://www.sourcelondon.net/brewers

Entreprise Mouchel https://www.sourcelondon.net/enterprisemouchel

Gnewt Cargo Ltd https://www.sourcelondon.net/gnewt-cargo

Melrose and Morgan https://www.sourcelondon.net/melrose-and-morgan

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Nappy Ever After https://www.sourcelondon.net/nappy-ever-after

Office Depot https://www.sourcelondon.net/office-depot

Sainsbury’s https://www.sourcelondon.net/sainsburys

Speedy https://www.sourcelondon.net/speedy-hire

Go-Ahead https://www.sourcelondon.net/go-ahead

ADEME http://www2.ademe.fr/servlet/KBaseShow?sort=-1&cid=96&m=3&catid=17614

ALKÈ http://www.alke.com/

Avere http://www.france-mobilite-electrique.org/l-avere-france,198.html

Chronopost Condorde. Chronopost actions in France. http://www.geopostgroup.com/jahia/Jahia/site/geopost/lang/en/pid/174

Fraikin http://www.fraikin.com/

Goupil http://www.goupil-industrie.eu/

Mooville http://www.mooville-by-muses.com/

TNT Express, 2012. http://www.youtube.com/watch?v=NSnaxAnEeRI

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A 1. Appendix: Detailed overview of reviewed private initiatives

Company EV’s fleet/Technical performance/Operational performance/Economics/ Environmental impact/ Social and attitudinal impact/Impact of local policy and government support STEF --- TFE EV’s fleet/ 1 Refrigerated Renault Midlum truck, 16 tonne. Technical performance/ Prior trial: Technical characteristics of the All-electric Renault Midlum 16 t; Operating range: 100 km; Recharging time: 8 hours; Electric motor power: 103 kW; 3 Lithium ion battery packs with a total capacity of 150 kWh; Payload: 5.5 tonnes; Bodywork: refrigerating unit Operational performance/ Vehicles are expected to drive 75km daily. Social and attitudinal impact/ Using this silent truck will mean that deliveries to town centre stores can be made early in the morning (between 5 AM and 7 AM) to respect the peace and quiet of local residents Deret EV’s fleet/ 50 electric vans Peter Appel EV’s fleet/ Renault Maxity Electric vehicle. Re-build from conventional vehicle. Range is 100 km; max speed is 90 km/h Technical performance/ Renault Maxity Electric. Re-build conventional vehicle. Bruto weight 4,5 tonne. The actieradius is 100 km and max speed 90 km/h, can be limited till 70 km/h. Operational performance/ Downtime of vehicles is too big. Vehicle is too light and capacity is not sufficient. Impact of local policy and government support/ Support from municipality (see Proeftuinen) CityShopper EV’s fleet/ First tests with Smith, which appeared not reliable in their case. Now service with Renault Maxity Electric. Range is 100 km; max speed is 90 km/h Technical performance/ Renault Maxity Electric. First 48 kWh later 67kWh. Now trying to continue the project. Operational performance/ Vehicles are loaded at DC of Cornelissen . UPSUPSUPS EV’s fleet/12 Modec vehicles (6 in UK, 6 in Germany). Range 100 miles. Six vehicles were introduced into UPS's UK fleet in February 2009 with the remaining six to be operated in Germany. Successful nine months trial in London. The six Modec vehicles are serving routes in different German cities and were also part of the scientific projects conducted under the framework of the model region electromobility in the Rhine-Main area. UPS regards the trials as an investment in the future, helping to advance technology and make it more economically efficient. Technical performance/ The vehicles have been used for almost all their routes, to test their viability and the results are promising. Operational performance/ Can drive 100 miles when fully charged. Loading the vehicles usually takes 4-5 hours and is done at the depot overnight at dedicated loading bays installed for each vehicle. It performed well by using only 25% of its full battery charge per typical day during the course of its delivery routes in North-West, East and Central London. Economics/ The vehicles operate out of UPS's Camden facility, which lies within London's Low Emission Zone and is the company's central package facility in the capital. Compared to the traditional diesel vehicles Modecs have: 1) Reduced maintenance and fuel costs, 2) Congestion Charge and road tax exemptions. Social and attitudinal impact/ The drivers of this first trial vehicle made a number of recommendations, which were implemented on the full order of Modecs which followed. The company’s drivers praise the Modec vehicles as they have an acute turning range, which is very helpful in the capital’s streets, and are very quiet compared to their diesel counterparts. It took some time for UPS drivers to get used to the new package car model, but now they are proud of them as they get so much interest from the general public on the road. EROSKI EV’s fleet/ 5 Mercedes Vito E-Cell vehicles. Range 130 km; max speed 80 km/h Technical performance/ The electric van is usually on the go the entire day with approx. 15 to 20 (up to 30, see movie) deliveries in the city. cargo

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capacity of 1,000 kilograms. The battery is charged overnight for 6 hours. The charging station is located in the basement directly below the supermarket. Operational performance/ Used for home delivery from supermarkets to the customer and for goods sold online in the Basque country. About 5% of all customers have their food, toiletries and cleaning products delivered to their homes. Economics/ Although extremely high acquisition costs, they want to proof the economic viability. The new vehicles will cover approximately 146,217 km per year, an average of 96.51 km per day for each vehicle. Environmental impact/ Eroski will monitor the use of these vehicles and must provide on a quarterly basis the EVE data to assess the results of the use of the electric vehicle. The five vans will help EROSKI reduce its CO2 emissions by 36,066 kg, the equivalent of planting 3,607 trees. Save 13,358 litres of fuel. Social and attitudinal impact/ Recharge points can also be used by customers (for free) who use electric vehicles. Attracts a lot of attention of customers and pedestrians. Impact of local policy and government support/ Allowed to drive through pedestrians zones. In 2011: agreement with The Basque energy entity (EVE). Including the installation of charge points by IBIL. The research project is a collaboration between Eroski, SD Logisti, Mercedes-Benz and the Basque government. The all-electric vehicle will be tested for five years in terms of efficiency and cost-effectiveness. TNT Express EV’s fleet/ Newton vehicle; 7.5 tonne. Operational performance/ The vehicles are used for TNT's business-to- business parcel delivery service in the Greater London area, delivering thousands of items each day to countless private and public sector organisations. Economics/ 100 vehicles totals an investment of £8m. On average it costs £40 a week to power a zero emission vehicle versus around £200 spent on diesel fuel. The electric vehicles are exempt from the London congestion charge of approximately £1,750 a year per vehicle and do not incur road tax in the UK. If we extended this to 10 per cent of our fleet in urban locations, the cost savings to the company would run into millions of pounds. Impact of local policy and government support/ The electric vehicles are exempt from the London congestion charge and do not incur road tax in the UK. Correos EV’s fleet/ 15 Comarth vehicles; range 100 km; max speed 50 km/h. Technical performance/ Electric fleet includes vans, bikes and motorcycles. The motorcycles (100x) have 4 kilowatts of power (equivalent to a 125 cm3 motorcycle petrol), reaching a top speed of 80 km / h and offers a range of 70 km. The total charge time the battery is between 4 to 6 hours but there is also the possibility of partial charge for making small runs. The vehicles are also economical, using around a fifth of the cost of a petrol versions. Small car (at least 15): by Spanish company Comarth, with 300 kilograms of cargo, maximum speed of 50 kilometres and a range of up to 100 kilometres. Electric bicycles (80). Oxygen CargoScooters: autonomy of up to 120 km with one recharge and capacity of 90 kilos. Economics/ Procurement is driven by project MOVELE, managed and coordinated by the Ministry of Industry. Although the vehicles are priced significantly higher than conventional motorcycles, the long service life, low pollution, and lower operating and maintenance costs resulting in more working hours and better service quality. Scooters: Oxygen technology guarantees savings of up to 90 per cent of energy costs in comparison to traditionally-powered scooters. Car (Comarth): € 1,5 consumption per 100 kilometers. Environmental impact/ Goal: reducing noise pollution and CO2 emissions. Correos reduced its emissions by 5% during 2010 (OVERALL), as it works towards the ‘20% reduction by 2020’ target set by the postal industry during the international climate summit in Copenhagen. The reduction is the equivalent to about 6,628 tons of CO2. The operator also achieved a reduction of close to 5% for energy consumption. From first CSR report. Social and attitudinal impact/ Along with CORREOS, 17 town councils in the region have also signed up to the initiative “Plan Biobike", and have given

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electric motorcycles to their local police forces and other municipal services. SEURSEURSEUR EV’s fleet/ Comarth Cross Rider vehicle Technical performance/ Very small vehicle suitable for the delivery of small packages and messages within urban areas of Valencia. 2012: also electric tricycle. 2013: Scooters in Madrid. Operational performance/ The Cross Rider has a capacity of about 300kg and a top speed of 50 km/h. It is made by the Spanish manufacturer COMARTH. Economics/ Cross Rider vehicle will operate home delivery services for organic supermarket chain retailer Herbolario Navarro Social and attitudinal impact/ The concept meets the retailers (SEUR's customers) concern about respecting the environment and people’s health. SUER has won an award in 2012 for sustainable company. 020 EV’s fleet/ 3 Electric vehicles stadsdistributie Technical performance/ Euro 5 +EEV Electro vehicles; Refrigerated (up till -29 ºC) Operational performance/ Combined with a distribution center in the city (centre). Bundled distribution of (refrigerated) food products. Combines the last mile distribution for several shippers/retailers. In 2010: 350 shipments daily. Duncker vervoert koel-, vries- en droogproducten van 1 colli tot 10 pallets per afleveradres. Environmental impact/ Has won the Lean and Green award. Impact of local policy and government support/ Support from municipality for part of the investment for the procurement of the EV (see Proeftuinen, mei 2010). Charging locations are needed. Municipality needs to give permissions to build these. EcoEcoEco-Eco ---LogisLogisLogisLogis EV’s fleet/3 Electric vehicles Operational performance/ The vehicles capacity is 5 - 15 m3 (700 – 900 kg); Impact of local policy and government support/ MODERN Project and later (evaluation by) CIVITAS. Logistics Urban Plan (LUP) including an UDC service implementation, named Eco-Logis. Vehicles can access the city centre without any restriction (except for exclusive pedestrian areas which are closed to any kind of motorized traffic) Posten Norge EV’s fleet/ 40 Comarth Cross Rider vehicles; another 500 vehicles are ordered in 2012/2013 Technical performance/ Requirements. 6 hour of operations. Minimum of 300 stops a day. Capacity 300kilo's. Climate challenges: operating in harsh, sub- zero condition Operational performance/ Less time is spent on routes Economics/ Being less costly and more efficient.. Environmental impact/ Savings: 1,4 - 2,1 ton CO2 per year per vehicle by using electric power instead of fossil fuel. Social and attitudinal impact/ General acceptance in the organisation was important. They have involved and informed the employees during the whole implementation. And also vehicle introduction training was part of the implementation La Poste EV’s fleet/ 250 Comarth vehicles Seymour EV’s fleet/ 10 Aixam Mega Vans Green Operational performance/ Electric vehicles are used for promotions and campaigns. They are not the most practical vehicles at the moment and have not been as reliable as we had hoped. Big issue is the inconsistency in the charging point system across London. Economics/ Cost savings... from using electric vehicles average £4,000-5,000 per year from not having to pay the Congestion Charge, road tax or for parking in Westminster. Social and attitudinal impact/ The electric vehicles make people stop, stare and interact. TescoTescoTesco EV’s fleet/ 15 Modec vehicles; range around 90 miles. Technical performance/ The electric vehicles average about 90 miles per day. The vans are charged overnight at the store for about 8 hours, and receive short boosts on site during the day. Environmental impact/ Tesco.com estimate that each electric vehicle saves between 13 and 15 tonnes of CO2 each year. This is the equivalent of driving a

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standard car for 34,000 miles. Social and attitudinal impact/ “My experience so far with environmentally- friendly technology has been extremely positive. Our customers want to know that we are caring for the environment and we are working hard to reduce our CO2 emissions”. Cargohopper Operational performance/Cargohopper is loaded at DC of Hoek Transport, 300 meter of center. The Cargohopper has sun sells at the roof of the vehicle. Economics/ Can drive in environmental zone and has no time window restrictions. Environmental impact/ Emission free. Total savings in Utrecht up till 15 May 2013: 100.000 km of conventional cars avoided = 60.000 liter diesel = 159 ton CO2 reduction Social and attitudinal impact/ The Cargohopper is very small, so it is not a disturbance for other traffic. Impact of local policy and government support/ Subsidized for the innovative aspects; sun cells and PR on the process of the project and also for training of e-drivers. For the exploitation, it runs private. More efficient routes, because no need to obly with time window schemes and can drive inside environmental zones. In Enschede, subsidized by Regio Twente. Abby Couriers EV’s fleet/ 3 Goupil vehicles Technical performance/ One problem we have currently is that as technology is constantly developing people are scared to buy the first ones so they are waiting and waiting. But I see there is a big benefit in getting in their first and taking the lead. / Source London... will be really good for us, especially as our work develops and we spread further across London. It would definitely be really handy and practical just to pull up and charge the vehicle on lunch breaks for example especially if you were having a really busy day with deliveries. Operational performance/ The electric vehicles are based in Vauxhall. They mainly drive in south west London but we hope to increase this to London wide. Economics/ / Also, whilst the output for an electric vehicle is higher in the beginning, we save roughly £95 per week by not having to pay the Congestion Charge or road tax and through fuel savings. When you first see the price of the vehicles you think ‘wow’ but there are definitely benefits to be had Environmental impact/ 'Electric vehicles have bought us a number of environmental and cost benefits. Even more than this though, they are helping to build our work profile as customers in London are now asking for their goods to be delivered in our electric vehicles, so we are helping our customers to improve their environmental credentials as well.' Social and attitudinal impact/ The reaction that we have had is really positive. The two guys that drive the vehicles in London full-time think they are great. They only have a top speed of 30mph but you can’t go much faster than that in London anyway so it is ideal! In France these vehicles are more common so people are used to seeing them, but over here I think people need a bit more time to get used to seeing them on the road. But overall the response has been positive and there has been lots of interest within the capital and even abroad in the vehicles and how they can be incorporated into our business; they certainly capture the imagination. Brewers EV’s fleet/ 1 Modec van Technical performance/ The carrying capacity in both terms of volume and weight, enable loads to be taken that would not be possible on a 3500 kg van. With a payload slightly over 2000kg the Modec manages to do the job that would have meant deploying two 3500kg panel vans that have a payload of circa 1200 kg each. The steering and turning circle of the purpose built Modec is a great asset for manoeuvring in London’s streets and squares. There have been problems – the battery pack has failed and had to be replaced three times and the rear axle broke up leaving the vehicle without drive. On each occasion the problem has been attended to with Modec’s backup service Operational performance/ Out of the company’s Putney branch, The Modec travels into the Congestion Charge zone daily, making on average 30+ deliveries of sold orders to clients' sites and home addresses/ The initial

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projections indicated the running costs of the Modec would be about £2,000 more per year than a typical 3500kg panel van. However given the greater load capacity that the Modec offered, this was deemed worthwhile. The Modec also meets the challenge of carrying out multi-drop delivery in central London within the low emission zone areas. Two years into the operating the Modec, we have been gratified to find the costs are less than expected. With the increase in fuel cost, congestion charging and lower than projected running costs, the actual net result has been a slight saving on that of a 3500 kg van, which makes the initial decision to use this EV the right one. Social and attitudinal impact/ We have had a positive reaction from everybody, whether it be suppliers, customers or the general public. Some workers have even come down from the scaffolding to have a closer look and quiz our driver about the vehicle come down and see what we were driving. It is a different beast to look at - it is definitely noticed more than normal vans that just blend into the background. Impact of local policy and government support/ Fleet operators need long- term certainty to put these vehicles on the road as the capital expenditure is high. Government needs to demonstrate, promote and commit into the keeping of the current operational and tax regime along with discounts on any congestion/road user charges. Entreprise EV’s fleet/ 10 Modec vehicles Mouchel Technical performance/ An advantage of the Modec includes the vehicles unique cab design, which provides dual access points and clearer visibility, enabling an effective health and safety solution for reactive highways maintenance operations. EnterpriseMouchel has worked very closely with Modec to develop the operational role of the vehicles. This has evolved from an initial highways role into more specialised applications - supporting traffic management and incident response units. Operational performance/ It provides highways maintenance services including traffic management, winter service operations and full maintenance and repairs for the Blackwall Tunnel Gnewt Cargo Economics/ Main gripe is that there are no subsidies or grants to reduce the LtdLtdLtd cost of electric vehicles. To buy the vehicles that I want would cost a lot of money and there is nobody helping with this at the moment. It would also be great to see a central point of contact to speak to about electric vehicles to make sure people know what they are buying and are confident that they are getting a quality, environmentally-friendly vehicle. Social and attitudinal impact/ We have had a great response from the public towards the electric vehicles we use. Being in the public eye all day, the vehicles attract a lot of attention and the reaction has always been positive. Companies also advertise on the sides of the vehicles which again attract a lot of attention and positive PR. Impact of local policy and government support/ Source London... will be fantastic when it comes in because we have a lot of vehicles operating across different London boroughs and to be able to access all of their charging points with only one registration would save a lot of time, money and confusion! These publicly accessible charging points would also allow my van drivers to park up and plug in whilst they are on lunch to increase the range they can cover in one day. / 'If you are looking to buy an electric vehicle I suggest that you do your research to make sure that you know exactly what type of vehicle you are getting for your money.' Melrose and EV’s fleet/ 1 second hand Axiam Mega van Morgan Technical performance/ A second hand Axiam Mega van purchased for around £15k from a dealer, which we have been running for the past three years / At the time of purchase there wasn’t a great deal of information available as to basic nuts and bolts of the vehicle which I needed to know, e.g. did the vehicle require water or oil, where the battery was, and whether the battery is different from other types of car or household batteries. Range hasn’t been an issue as far as the types of journeys we tend to do are fairly localised, and the current maximum range I gets out of it is 25 miles which suits the type of journeys we need to make. I fully expect the mileage range of electric vehicles to increase as the technology appears to be evolving rapidly over time. However in the short term I wouldn’t want to spend all day

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driving the electric vehicle as range could be an issue if the van was on the road all day. I’m not registered with any borough to access their on-street charging points. One day I was nearly caught out as I was running low on battery charge and thought I could just use an on-street charge point, but when I found a charge point I found that this wasn’t the case so the Source London network will be ideal to charge up with/ I have had a few problems, e.g. to wait three weeks for a replacement battery from France, so I had to hire a van in the meantime. When there was a huge amount of rain a fuse blew. Operational performance/ A grocery shop and kitchen providing a range of seasonal foods, hand-prepared with premium ingredients/ A key motivator behind making the initial investment decision to purchase an electric van was to help reduce the setting up and running costs of my new business, particularly as driving within central London would have meant having to pay the Congestion Charge every day in addition to the costs of diesel and road tax. Another key reason behind the purchase was that by branding the van it immediately offered the business a good, continuous marketing opportunity to promote the grocery shop. / Whilst the van is cheap to run, insurance can be expensive. Initially my insurance broker found it difficult to find insurance. The initial insurance premium was around £1,400 but these costs have reduced over time to around £1,000. Social and attitudinal impact/ The vehicle is often a talking point with customers who are interested in the vehicle and how it works, particularly as many of our customers own either an electric or hybrid car. Kids are fascinated by the vehicle as it is so different to other vans on the road and I tend to find tourists want to take pictures of the vehicle. Nappy Ever EV’s fleet/ 1 brandshaw taxi travel AfterAfterAfter Operational performance/ A non-profit company which provides weekly cotton nappy laundry services to homes and nurseries in central and north London. In 2005, Nappy Ever After purchased a Bradshaw Taxi Travel electric van. The battery capacity can limit the area the service can cover, especially in the winter months or when carrying heavy loads. However, Nappy Ever After feels that the limited range of the vehicle does have its advantages. 'Drivers learn to make the deliveries efficient, conserve energy and think in a more environmentally friendly way...This is a good thing and reduces unnecessary road traffic' Economics/ While we initially had some operating and driving issues to deal with, we have found the costs and environmental savings far outweigh any problems'. Environmental impact/ 'The electric van has significantly reduced our costs and CO2 emissions. OfOfOfficeOf fice Depot EV’s fleet/ 4 electric vans Operational performance/ Leading supplier of office solutions in the UK/ In November 2009 Office Depot brought in a revolutionary green fleet, replacing seven of its diesel vans with six cargo cycles and four electric vans. Economics/ The entire fleet is run from a satellite depot in the heart of the city, where vehicles can have a full recharge overnight. Although Office Depot’s electric vans have a smaller load capacity (445kg in 3m3) than the company’s diesel vehicles (1270kg in 9m3), they can carry the same payload throughout the course of the day. This is because they can return to nearby the close by satellite depot to reload with stock delivered from the company’s Heathrow depot, 20 miles away./ A typical delivery round for an electric van/cargo cycle will involve dropping off around 145 parcels of stationery products and will take between six and six and a half hours to complete/ Office Depot has seen some clear benefits of running an electric fleet in Central London, including no Congestion Charge, ease of parking (due to smaller vehicle size) and ease of travel through the busy city roads (due to vehicle maneuverability). Sainsbury EV’s fleet/ 19 electric vehicles; in a process of procuring 50 new Smith electric vehicles Technical performance/ The trial allowed the company to learn the importance of having robust charging routines in place and close ties to electric vehicle maintenance providers. The EV’s are plugged in whenever they are at the store; there are three drop off cycle’s per day and they charge for ½ hour between these runs. They return home for the last time at around 10pm and

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the vehicle has its main charge overnight. Driver training has also been key in ensuring drivers are maximising the potential of the vehicle; for instance through regenerative braking. Operational performance/ the third largest chain of supermarkets in the United Kingdom with a share of the UK supermarket sector of 16.3%./ In 2005 Sainsbury’s Online trialled Smith Electric Vehicles in its home shopping delivery applications in and around Central London. The year long trial proved so successful that Sainsbury’s placed an order for 8 vehicles in 2007 and a further 50 in 2008. / The company currently utilised a fleet of 19 electric vehicles within its online delivery operation in Central London and is in the process of procuring 50 new Smith electric vehicles for use in the city to be rolled out by the end of this year Economics/ Key benefits realised through these trials include reduced running costs (fuel savings, Congestion charge exemption, tax breaks, etc), reduced maintenance costs, improved driver safety and drivability, 50% CO2 savings compared to Diesel as well as reduced particulates, NOx and noise. Environmental impact/ Each zero emission van will save 5 tonnes of CO2 per year – the equivalent of one round trip from London to Rio de Janeiro, or the entire annual CO2 footprint of a small UK household. Speedy EV’s fleet/ 10 Modec vehicles Technical performance/ My main gripe is that EVs are urban conveniences that get you from A to B cost effectively but that is all they are at the moment. They are not the most practical vehicles at the moment and have not been as reliable as we had hoped. Economics/ From using electric vehicles average £4,000-5,000 per year from not having to pay the Congestion Charge, road tax or for parking in Westminster. Social and attitudinal impact/ From media agencies to brands and the all- important public, the electric vehicles - and therefore the ethos of the company - make people stop, stare and interact. GoGoGo-Go ---AheadAhead EV’s fleet/ 15+ Smith EV’s Operational performance/UK’s leading provider of equipment rental and support services to a wide range of clients across the construction, infrastructure, industrial, manufacturing and facilities management sectors/ 4 Modec electric vehicles in October 2007 with the aim of finding a workable solution to reducing CO2 emissions and improving air quality. Following the success of the pilot scheme, Speedy expanded their fleet within the London area with a further 4 vehicles, and now also has electric vehicles in Manchester and Glasgow – bringing a total of 10 electric vehicles to their national fleet. Social and attitudinal impact/ These vehicles have been a key differentiator in winning contracts, especially high profile sites in London as clients seek to reduce the environmental impact of their supply chain. Some clients go as far as requesting to be solely serviced by Modec vehicles, enhancing the need to invest in greener vehicles.

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A 2. Appendix: Chronopost

Source: Chronopost, Turblog project

Brief description Chronopost case Chronopost International is a specialist in express delivery of letters and parcels up to 30kg to both companies and private customers for national and international destinations. 250,000 parcels are delivered every day around the world. The company belongs to Geopost, a state- owned subsidiary of the French postal company, La Poste group. The innovative solution implemented at Place de la Concorde in Paris uses a 950m 2 underground Urban Logistics Space (ULS). The concept was developed after a bid for tender in 2004, won by Chronopost to organise the distribution of parcels in the 7 th and 8 th districts of Paris. It was evaluated the following years and is still running now.

The fleet is composed of electric bikes and Goupil electric vans, especially designed to fulfil the company needs. The parcels are transported from the hub situated at the entrance of the capital to the ULS, by a larger van with a trailer. They are then consolidated, sorted and transferred in Goupil electric vans to be distributed to the different consignees. Around 2000 packets are delivered per day by this urban facility.

Roles of stakeholders The expansion of ULSs is strongly encouraged by the municipality in Paris, which proposes state-owned transhipment facilities inside the city. Action plans and new environmental goals are defined in La Poste group companies to reinforce the "responsible development" strategy of the group. This new delivery service was set up thanks to public subsidies by financing the concept demonstrations, the impact assessment studies, the space allocation at a low renting rate and the fleet purchase of EVs. Chronopost also financed the parking place modifications into a functional logistics space.

Performance The total number of km travelled, by polluting vehicles decreased by 68 %, over the two year evaluation period (2006-2008); around 61 500 travelled km have been avoided. The new service is also more efficient with more points delivered per route. This new service generated time and energy savings; the impact assessment analysis found a zero balance between the fuel savings and the additional costs (renting site and vehicle energy consumption).

Impacts Chronopost reduced its CO2 emissions (from 2007 to 2011, by 18.4%) and recruited employees (mainly low qualified jobs). The total assessment was found as positive at the social level in terms of environment and well-being of local residents with a reduced noise level. Interviews in 2009 showed that employees appreciated starting working later and spending less time in congestion; they also found out that driving electric vehicles is more comfortable.

Lessons learned and success factors The concept is based on a strong private public collaboration for promoting innovative environmentally friendly services and a logistics facility integrated in the urban architecture closed to the delivery area. The municipality makes the space available for rent and participated financially in the set up of the service and the evaluation of the test studies. The Chronopost company also invested a large capital in the project and a close collaboration with the EV

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manufacturer, Goupil was necessary to develop vehicles adapted to the needs of this express postal company. The main barriers reported concerned the difficulty in finding available urban spaces (e.g. vehicle load volume and safety issues) for logistics purposes in busy areas. The EV maintenance is also a support service required periodically to keep the vehicles in good operating conditions. The second Chronopost ULS opened in June 2013 in a logistic area of 3,000 m 2 over two floors owned by the municipality and a fleet of 30 electric commercial vehicles or tricycles. Chronopost chose for this facility, the Mooville electric vehicles with a load volume of 6 m 3 (Manufacturer: Muses).

Chronopost full description In 1999, Chronopost designed and introduced an electric trolley in several cities in France and abroad. In 2004, Chronopost won a bid for tender to develop a clean supply chain and consolidate the deliveries for the 7 th and 8 th boroughs in Paris, In 2005, Chronopost started to operate the deliveries from the Concorde underground parking lot, In 2006, the Chrono van, a small vehicle was introduced. In 2010, new Goupil electric vans have been added to the Chronopost fleet to better fulfil the company needs. Key figures for 2010: 665 millions of turnover, 3,500 employees, 60,000 corporate customers, 70 million parcels delivered. In 230 countries, 20% of parcels delivered.

The innovative solution implemented at Place de la Concorde in Paris uses a 950m 2 underground Urban Logistics Space to organise the distribution of parcels to the 7th and 8th districts of the capital. This space has received the certification ISO 14001 in 2008.

Figure 12. Delivery service before and after the set up of the Urban Logistic Space (Source: Chronopost)

The parcels are transported by a van with a trailer from the hub situated at the entrance of the capital to the underground parking space. In 2009, 1700 packets were delivered per day by Chronopost-Concorde in Paris.

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Figure 13. Chrono van with trailer (Source: Chronopost)

The Chrono City fleet includes different types of clean vehicles: • Chrono vans, • Chrono bikes, • Chrono trolleys.

Vehicle: Chrono Van (GOUPIL G3) Length: 3,22 m, width: 1,1m, height: 2m Capacity: 2,8m 3 Max speed: 40kph Autonomy: 70km Max load: 500 to 700 kg Maximum towing capacity: 3 t Number of passengers: 2 No driving licence required Manufacturer: GOUPIL Figure 14: Chrono Van (Source: Chronopost)

The organisation of parcel distribution is based on two routes per day, one 3.5 hours long in the morning, the other 2 hours in the afternoon. Each driver is able to deliver at 70 delivery points per day. For the collection of parcels, one 3.5 hour long route is necessary to stop at 21 collection points per day per person.

Policies Electric and hybrid vehicle deployment is considered as an economic and environmental opportunity for the country. 2 million vehicles are expected to be registered in 2020. The Ministry of ecology, environment, sustainable development and energy, responsible for the road transport network, elaborates informative and incitement measures concerning the organisation, efficiency and security of the transport of passengers and gods.

These measures include actions to encourage the use of electric and hybrid vehicles (status 2012): • A national plan for the development of clean vehicles with 14 concrete actions, • A charter to stimulate the implementation of electric vehicles, signed by industrials accompanied by tax incentives for the purchase of vehicles,

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• A financial support to encourage the local authorities to develop infrastructure and accessible loading stations in the framework of programs with a total budget of 50 million Euros, • A better understanding of the safety risks related to the decarbonised technology,

In 2009, the National plan for the development of electric and hybrid vehicles was launched in France. With its 14 actions, it reinforces the industry sector with subsidiaries to develop reloadable batteries in France and contributes to CO 2 emission reduction. Action 4 concerns the launch of tenders and projects to promote the use of clean vehicles by large private companies and local authorities with an objective of 100,000 clean vehicles in 2015.

The Grenelle environment , an open discussion forum with national and local authorities, and private companies defines the new public policy to stimulate a sustainable development. A voluntary three year CO2 charter is now signed by more than 794 goods transport companies for 93 852 vehicles (values for January 2013) with the objective of reducing the CO2 emissions, fuel consumption and expenses. Chronopost International in Ile de France is one of the signatories.

ADEME , the French Environment and Energy Management Agency is a public agency under the authority of the Ministry for Ecology, Sustainable Development and Energy and the Ministry for Higher Education and Research. Its mission is: encouraging, supervising, coordinating, facilitating and undertaking operations with the aim of protecting the environment and managing energy. ADEME offers companies, public authorities and individuals its technical skills, helpful advice and financial assistance in order to help them choose the solutions best suited to their needs.

The city of Paris has a consultation-policy making with the freight sector that has the opportunity to give input and to provide feedback to the authorities. This leads to freight partnerships and improves the efficiency of the goods distribution in Paris. The capital has a freight policy to develop new innovative ways to deliver parcels in city centres by introducing clean vehicles and small city logistics facilities. To promote the development of Urban Logistics Spaces , city authorities in France propose transhipment facilities in city centres, such as the underground parking lot in La Concorde in Paris. Cities own the facilities and either operate the transhipment or employ a private operator to manage it.

A " responsible development" is the main objective of state-owned La Poste Group and the priority defined in its Performance and Confidence strategic plan. It set up action plans at each level of the company. In 2008, new positions as regional sustainable development officers and local correspondents were created in the company business sectors to reinforce the strategy of the group. Managers have now long term environmental goals in addition to their financial objectives.

The policy of Chronopost International to reduce its greenhouse gas emissions is based on three objectives: • Optimisation of the routes and increase of the load factor, • Development of new transport systems (e.g. electric vehicles), • Development of new Urban Delivery Centres in city centres.

By developing services with clean vehicles, private companies in Paris want to anticipate future restrictive environmental regulations.

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Procurement mechanism In 2004, the city of Paris published a tender with the objective to develop an environmental friendly delivery service in the busiest area of the 7 th and 8 th boroughs of Paris by using the Urban Logistics Space concept. Chronopost won the bid and developed the distribution of parcels in this area.

The partners and their role in this initial project were: • The municipality of Paris financed the experimental study (€20,000) and offered the renting of the underground parking place at La Concorde at a competitive real estate cost (15€/m 2/year the first three years, 30€/m 2/year the next three years and the normal average price 60€/m 2/year afterwards). A contract was signed for a period of 10 years. The financial support was evaluated up to €207,000. • Chronopost financed the parking place transformation into a logistics space (€500,000). • The national electricity company, EDF, furnished advices for the purchase of electric vehicles and supply devices • The French Environment and Energy Management Agency, a public organisation (with a €557 million action budget) financed the fleet purchase and the impact assessment studies (participation of €20,000).

To guarantee the respect of safety regulations, other partners were also involved: the Fire Brigade and the Police Authority. (Source: Turblog_D3.1)

Performance Chronopost Concorde has treated in 2009 more than 490,000 packages. Its activity represented around 15% of the parcels delivered in Paris by Chronopost. (Source: Chronopost). From 2006 to 2008, the electric vehicles of Chronopost La Concorde travelled more than 110,000 km. The total number of km travelled by polluting vehicles then decreased by 68 % over the same period leading to an equivalent reduction in local pollution (Source: Chronopost). The service is more efficient with 70 points delivered per route from the ULS, instead of 56 delivered before from the terminal located outside the city. (Source Turblog)

Impacts Economic impacts The total operational cost, financed by Chronopost, was divided between employee salaries (60%), sub-contractors (20%), transport (13%) and, facilities and equipment (7%). The productivity gain of 20% on the distribution routes (more deliveries per route) compensated the extra cost of transhipment. (Source: Chronopost, Grant Thornton and Turblog_D3.1)

Systemic and environmental impacts In total, more than 55 tons of equivalent CO2 were saved over 24 months, a reduction of 54% of the greenhouse gas emissions, including 1/3 thanks to the new logistics organization and 2/3 thanks to the electric vehicles. (Source: Chronopost)

Social and attitudinal impacts A large majority of the clients of Chronopost considers that innovative clean solutions represent an advantage for Chronopost over its competitors. Thanks to the decrease in the number of kilometers travelled and the time wasted in congestion, the new organization induces less stress and hard work, and more security for the employees. Furthermore, it modifies the work schedules and allows employees to come to work in public transportation. 19 new employees (mainly low qualified jobs) have been recruited (Source: Chronopost).

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Evaluation and data collection methodology In France, cities provide their data about Urban Goods Movement. The impact category, indicator category and indicators can be found in the deliverable 1.3 of the project TURBLOG. The global performance of Chronopost Concorde has been evaluated based on three objectives of sustainable development, (economic, environmental, and social-societal) by a private audit cabinet and an independent council, Grant Thornton in 2006. The method used was based on data provided by Chronopost (management control, cast accounting and human resources) and the municipality of Paris, and complementary data collection and expertise on site, interviews and surveys amongst clients, collaborators and subcontractors. A detailed cost analysis was performed to support the choices in operational management and the identification of any dysfunction, and to improve the economical, environmental and social performances. (Source: Chronopost/Grant Thornton)

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A 3. Appendix: Distripolis

Source: Distripolis

Brief description Distripolis case Description This new concept of delivery services in Paris is part of an ongoing project (2011-2015) supported by Geodis, a state-owned global multimodal logistics provider. This concept is based on the creation of Blue logistics bases where the parcels can be transferred to clean vehicles for the final kilometre delivery. The shipments from three private companies (Geodis Calberson, France Express and Geodis Ciblex) are consolidated at the multimodal Bercy platform in Paris. From this platform, deliveries over 200 kg are transported by Euro 5/6-compliant vehicles or hybrid vehicles directly to the consignees. For the shipments less than 200kg, the trucks will deliver the parcels to eight “BLUE” Environmental Urban Bases, located in the city centre and close to the main retailing districts. For the final kilometre, Distripolis uses clean and quiet vehicles and equipment: Electron electric trucks and power-assisted tricycles.

Stakeholders The Geodis group is owned by the SNCF, the state-owned National society of French railways. The three companies Fraikin, Fiat and Gruau elaborated together electric vehicles according to the Geodis requirements. The Fraikin group offers solutions for long or short term vehicle rental and for fleet management. The Gruau group is a specialist in all types of light commercial vehicle conversion. This concept is in line with the city strategy in developing more ULSs inside urban areas and promoting environmentally friendly solutions for the final kilometre delivery service.

Performance The project is on-going, so there are limited results disseminated. In 2013, a fleet of 10 electric vehicles started to deliver 20 % of the deliveries (600 parcels delivered a day) and the results showed already a reduction of 5 % in the distance travelled.

Impacts

The CO 2 reduction was evaluated to 3 % in 2012 compared to the situation in 2011. The target situation for 2015 is a total reduction of 85 % with a fleet of 75 electric vehicles and 56 tricycles.

Lessons learned and success factors An effective IT system is required to manage the complexity of the deliveries from a large number of bases and to optimise the vehicle and tricycle routes. Distripolis planned a turn over of 75 vehicles and 56 tricycles before the end of 2015 with the set up of 8 blue bases. The difficulty is to find available infrastructure inside the city of Paris for the blue base networks. It is a real challenge to provide state-owned spaces adapted to the deliveries of a 12t truck in a congested city as Paris. The project is now delayed and only two bases are in place instead of four as planned in the project (Status in June 2013).

Distripolis full description Description The Distripolis concept includes the following objectives (Geodis, 2012): • Cooperation: working alongside local stakeholders

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• Cost effectiveness: meeting sustainable performance requirements • Environmental: protecting the environment • Local: becoming part of the local community life • Social responsibility: improving city living

The project started with the opening of two Blue bases with 20 electric vehicles and 8 tricycles in 2011 and 2012. Between 2012 and 2014, the undertaking of 4 more bases should be opened and will make use of 31 vehicles and 40 tricycles. Before the end of 2015, two more bases should be created and a turn over of 75 vehicles and 56 tricycles should be in place.

Figure 15: Distripolis model (Geodis, 2012)

Electron Electric truck : Manufacturer: Fraikin and Fiat Gross vehicle weight: 3,500 kg Payload: 1 ton Capacity: 20m 3 Autonomy: 105 to 155 km Max speed: 90 kph Charging time: 6 to 8 hours Truck driving license not required. Other features: access to the back by the cab, access ramp to pallets, foldable shelves and nets for small packets.

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Power-assisted tricycles: Payload: 180 kg – 1.5m3 Average speed: 20 kph Autonomy: 50 km Gradients up to 8 % Power supply: 8AH – 24V ion-lithium battery Other features: adjustable seat.

Figure 16: Electron electric trucks and power assisted tricycles (Source: Geodis)

Stakeholders In Paris, Geodis delivers 20,000 parcels and 200 tons per day in Paris and the surroundings. The service represents daily 4,235 deliveries and covers around 8,560 km. 70 semi-trailers deliver the parcels to the platform where 164 light commercial vehicles operate the final kilometre delivery to the consignees. 18 months have been necessary for the three companies Fraikin, Fiat and Gruau to propose a new vehicle based on a Fiat Ducatto (Fiat is the largest vehicle manufacturer in Italy). The Fraikin group (turn over of €671 millions, fleet of 62,000 vehicles, 3,000 employees, 13,000 clients) is a European leader of industrial and commercial vehicle hire. (Source: Fraikin). The Gruau group (turn over of €175 millions in 2012) consists of ten companies and transforms vehicles in collaboration with vehicle manufacturers (e.g. Fiat) to adapt them to the needs of transport companies.

Policies The political context for Distripolis is almost the same as it was for Chronopost in 2009. A new law was voted in 2010, the Grenelle II , describing the national environmental commitment for encouraging important change in the transport sector. The measures Of the Grenelle II include six major areas: • improving the energy footprint of buildings and harmonisation of planning instruments • making essential changes in the transport sector • reducing the consumption of energy and industrial carbon footprint • conserving bio-diversity • controlling risk, waste treatment and preserving health • Implementation of new ecological governance and foundations for more sustainable manufacturing and consumption

The Heavy Goods vehicle Eco-tax system is a tax paid directly by the carriers. However they can ask their clients to contribute to it, by increasing their prices of their services. This tax can also have an effect on the product sale price. The system was validated in May 2013 by the French constitutional council. This tax will be paid on national and departmental roads for vehicles over 3.5 tons; even if the vehicle is empty. It depends on the number of km travelled, the size and the age of the vehicle (not on the weight). The mean rate will be of 13 cents per km in 2014. This tax will represent a mean increase of 3.7 % of the transport price (10 % of the product sale price). With this tax, the Ministry wants to encourage the transport users to change their behaviour by choosing transport means more sustainable. Distripolis is in line with the French "Grenelle" environment forum to promote innovative solutions for the final kilometre delivery service, with the main objective to better respect the environment and the inhabitants.

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The Geodis group is owned by the state that supports the concept. It will be proposed to around 30 towns in France and a number of major European cities. Ultimately, Geodis plans to deploy 287 Electron vehicles and 214 power-assisted tricycles. According to Geodis, some barriers have to be overcome to demonstrate the Proof of Concept both technically and economically.

Figure 17: Barriers and levers for Distripolis concept (Geodis, 2012)

Impacts The situation published by Geodis in 2012, was the following:

Table 7: Target situation for Distripolis in 2015 (Geodis, 2012)

DISTRIPOLIS Distripolis Target situation 2012 2015 Nb of deliveries a day 5,500 Nb of parcels delivered per day on 13,000 avg. Nb of tonnage a day on avg. 125 Nb of deliveries a day made by 400 5,200 electric vehicles % of deliveries made by electric 8% 95% vehicles Nb total od vehicles operated 184 170 Nb of electric vehicles operated 10 75 Nb of tricycles operated 1 56

CO 2 emissions a year in tons 1995 308 Reduction (/2011: 2055 tons) -3% -85%

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A 4. Appendix: Electric vehicle project London

Source: TfL

Brief description Electric vehicle project London case

Description The Electric Vehicle Project is responsible for the delivery of the Source London electric vehicle charge point network and membership scheme for the transition of Source London to the private sector, for TfL’s procurement structures and for managing funding provided by the UK Government 's Office for Low Emission Vehicles (OLEV).

Stakeholders Partners include the Greater London Authority group (Transport for London, the Metropolitan Police, the London Fire Brigade and the Greater London Authority), many of the London boroughs, and a range of private sector organizations including car hire companies, retail and supermarkets, universities and hospitals, car parks, vehicle manufacturers, electricity providers and airports. Transport for London (TfL) is the integrated body responsible for London’s transport system. Its main role is to implement and deliver the Mayor’s Transport Strategy for London and manage transport services across the Capital for which the Mayor has responsibility, the central London Congestion Charge and London Low Emission Zone.

Source London is the Capital’s first London-wide publicly accessible charge point network. Source London members get access to all Source London charge points for a £10 annual fee, providing unlimited free electricity to charge their vehicle. Two key partnerships, the Electric 20 and the London Electric Vehicle Partnership provide a forum for private and public sector organizations and the motor vehicle industry to share information and accelerate the proliferation of EVs in London.

Incentives The Mayor of London’s spatial plan, The London Plan, requires between 10-20% of parking spaces at new developments to have an EV charge point in order to manage future charging demand. The central London Congestion Charging scheme provides a 100% discount for electrically propelled vehicles to incentivise their uptake. A number of London boroughs offer also free parking for EVs enabling EV owners to save thousands of pounds a year.

Plugged-in Fleets Initiative (PiFi) TfL has been working with the Energy Saving Trust on a fleet initiative to help understand how EVs can best be utilised in fleet operations. Twenty companies received free guidance and a strategic plan for the introduction of electric vehicles into their fleets. Energy Saving Trust experts analysed each company's individual situation to show where electric vehicles could best be used by the organisation. The next stage of the PiFi initiative will provide 100 organisations in England with vehicles under 3.5 tonnes with free analysis of where and how plug-in vehicles could work in their business, a whole life cost analysis, comparing existing vehicles with suitable plug-in alternatives, an infrastructure report and a tailored final report. This work is being funded by the Department for Transport. TfL has launched another project with the Energy Saving Trust to map strategic locations for electric vehicle charge points across London. This project will analyse the existing routes used by 10-15 London based organisations and seek to identify where additional charging infrastructure could be needed.

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Procurement mechanisms TfL has created two procurement frameworks: one for EVs and another for EV charge points. These frameworks provide TfL and its public sector procurement partners with a pre-approved list of suppliers for charge points and EVs. These suppliers will provide key EV technology more quickly and at a fixed price, providing the benefits of efficiency and value for money.

Concerns about air quality and climate change are issues that affect the whole city and require a pan-London approach. The Mayor has statutory obligations to address poor air quality and climate change within the capital. As a functional body the Greater London Authority and TfL has both the ability and responsibility to coordinate the delivery of the Mayor’s plans for electric vehicles and is working in conjunction with boroughs, Government, the automotive industry, businesses and other key stakeholders to achieve this. The Transport for London project is an on-going project financed by the UK Government's Office for Low Emission Vehicles (OLEV).

TfL support fleet TfL currently has 5 Toyota Prius Plug-in hybrid cars; 4 Mitsubishi I-MiEV electric cars, 4 Smith electric vans, a Peugeot iOn and a Citroen Nemo. The vans are used in the incident response fleet for bus operations and the electric cars to support traffic light and camera maintenance work. In addition, there are 14 Alke electric vehicles in use on the TfL contract with Serco and 16 Modec electric vehicles in use by Highways and Maintenance and Works contractors. Six Renault Kangoo vans are being integrated into the bus station cleaning contractor's fleet. The Metropolitan Police (another functional body of the Greater London Authority) is also testing five plug-in Prius cars as part of its fleet.

Information sharing The Mayor’s Electric 20 is a working group of organisations that use electric commercial vehicles in their fleets and have agreed to work with the Mayor to share information about their experiences and help increase the uptake of commercial EVs in London. The London Electric Vehicle Partnership, chaired by the Mayor’s Environment Advisor, brings together key stakeholders and decision makers from within the vehicle manufacturing industry, London boroughs, the Greater London Authority, energy and infrastructure providers and EV users to accelerate the delivery of new EV technology and increase the level of support for EV drivers in London. The Source London website provides a one-stop shop for information on EVs, including their benefits, where to buy, charge point locations and an online registration portal where drivers can register for the scheme

Incentives National Government incentives for EVs include exemption from company car tax, vehicle excise duty and capital allowances. In 2011 the Office of Low Emission Vehicles (OLEV) launched a ‘Plug-in Car Grant’, allowing motorists to apply for a grant of up to £5,000 towards purchasing an EV. A ‘Plug-in Van Grant’ of up to £8000 was later launched in 2012.

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A 5. Appendix: Cargohopper and Utrecht municipality

Brief description Cargohopper and Utrecht municipality case

The boxes are preloaded outside the city in the Cargohoppers Distribution Centre and towed to the boundary of the inner city by means of a regular truck. There, at an additional transhipment point, the boxes are put on the Cargohopper and rolled into the pedestrian zone. Once empty, the vehicle collects dry carton, paper and empty packaging from shops for recycling, avoiding it running empty. The service is run by a local logistics company Hoek Transport.

Vehicle Solar powered van Three trailers, pneumatic tyres length: 16m, width: 1.25 m, Electric engine: 48 Volt 28 hp, Maximum towing capacity: 3 t, Max speed: 20 kph, Autonomy: max 60 km travelled per day

Manufacturer Alkè

Figure 18: Cargohopper

Stakeholders The city of Utrecht, carrier (i.e. Hoek Transport and TransMission) and retailers.

Policies, procurement, governance The city of Utrecht has a well developed urban policy to decrease the problems of congestion and air quality and improve the quality of life for its inhabitants. Since the beginning of the century coherent policies have been implemented to improve the situation for urban distribution. When the Cargohopper was introduced in 2009, other measures like vehicle restrictions, time windows for deliveries, City Distribution Centres (CDC) and Environmental zone regulations were in place.

The four CDCs in Utrecht are commercial services and they are run by well-known logistics companies and the local Hoek Transport which operate the Cargohopper. Certain criteria have to be met to become a CDC, e.g. have at least 100 delivery addresses in the inner city on an average working day. The operation is exempted from the delivery window restrictions in the pedestrian areas, and drivers are allowed to use bus lanes, using environmental friendly vehicles. The municipality did not fund any of the Cargohopper initial investments and the ongoing operation is not subsidized.

Impacts The environmental impacts are evident, since Cargohopper is able to do the work of 5 to 8 regular (European sized) vans. It removes up to 100,000 van kilometers from the inner city

streets and saves approx. 30 tons of CO 2 on an annual basis, and brings about noise reduction. Several economic impacts are affected in a positive way, like city attractiveness, congestion reduction, productivity and accessibility. Although real evidence is hard to come by, it is

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estimated that Cargohopper has contributed to a reduction of accidents, improved working conditions and quality of life.

Lessons learned, success factors Because of the positive impacts of Cargohopper on key elements of the distribution policy of Utrecht, and the fact that it is economically sustainable, it is in many ways a good practice example. The municipality has acted as a facilitator, and businesses have responded well to that. A lesson from Utrecht is to start off with realistic measures and targets it wants to achieve, to which businesses can respond, and to involve business stakeholders from the beginning. The Cargohopper shows that it is possible to operate in a greener way, and still be profitable.

The transport company Hoek launched Cargohopper II in 2011. This is a second generation solar powered electric distribution trailer capable of covering a wider area in and around the city of Utrecht. It is designed to carry heavier and larger loads with larger action radius and at faster speeds. Cargohopper I continue to run, so this is an extension of the original concept.

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A 6. Appendix: TNT’s mobile depot in Brussels

Brief description TNT’s mobile depot in STRAIGHTSOL

This initiative is part of the on-going EU-funded project, STRAIGHTSOL (2011-2014)

General description The TNT Express demonstration aims to increase efficiency of operations for TNT's central Brussels parcel deliveries. In the baseline situation several vans drive from the TNT depot (located outside the city centre) to the city centre to deliver parcels. To increase efficiency of operations, TNT planned to start using a mobile depot which is a trailer/truck fitted with all depot facilities (i.e. loading docks, labelling, data entry). In the morning, this trailer/truck is loaded at the TNT depot with all deliveries for that day and carries them to a central location in the inner- city. Afterwards, a set of electrically supported tricycles carries out the last mile delivery operations.

Figure 19: The mobile depot and tricycles concept for Brussels. (Hejine, P., 2010)

Stakeholders TNT Express, Dutch Technical University Delft, Ecopostale

Impacts Together with the Dutch Technical University Delft, TNT designed a mobile depot which will be built in the near future. Once it is ready, for a period of 9 months, all TNT parcels destined for the inner ring area will be delivered through this depot. A long testing period should enable TNT to decide whether the mobile depot solution can live up to these expectations: • Decreased truck-kilometres • Reduced costs per stop • Delivery times and punctuality for inner-city operations are at least maintained

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• Reduced CO 2 emissions • Employee satisfaction and noise level are at least maintained • Information flows are at least maintained

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A 7. Appendix: Elcidis

The city of La Rochelle (135.000 inhabitants) is situated on the French Atlantic coast and promotes the use of electric cars for delivering goods in the narrow streets of the historic part of the city (1200 shops for a surface of 1.5km x 1.2km).

In the ELCIDIS project (1998-2002), the Agglomeration Community of La Rochelle (CDA) set up an urban distribution platform near the city centre (750m2), from which 6 electric vans (e.g. Citroën Berlingo with a payload of 500kg) and 3 scooters delivered parcels to (and collected parcels from) shops and businesses. This solution was well adapted to the narrow streets of the historic part of the city. The city authority provided premises, vehicles, handling equipment, computer hardware, a fast-charge port, and office furniture for managing the consolidation operations. Refrigerated vehicles and a 3.5t truck were also bought in order to deliver fresh goods and larger pallets. .

Figure 20: EFVs for deliveries in the city centre of La Rochelle (Proxiway, 2013)

The project was initially financed by the European Commission and the city of La Rochelle. The partners were the CDA, the trading company of La Rochelle, the Chamber of Commerce and Industry (CCI), carriers and the Programme of Research, Experimentation and Innovation in land Transport (PREDIT). The initiative also received other financial supports from the CDA, the Regional Council, the CCI and the French Environment and Energy Management Agency, ADEME.

Policy The city has also introduced access restrictions for entering the old city. Heavy vehicles (over 3.5t) are allowed to enter the centre only between 6 and 7:30 a.m. Only vehicles transporting fuels, fresh and frozen food are allowed to enter in the city centre. The other transporters need a special permission.

Impacts The platform is considered as well situated. Carriers estimated the time saving to 3 hours per day and per truck. Working conditions are improved for drivers. Shopkeepers noticed a reduction in congestion and noise. The vehicles were equipped with a Mobix box system to register the total km driven, kWh charged, trip length and time driven. However the data recorded were often not reliable. The ADEME Agency announced in 2006 a reduction of 0.5

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tons of CO 2 equivalent per year and an average decrease of 62 % of greenhouse gas emissions.

Lessons learned In the beginning phase of the project, the platform rates were found too high. The lack of support and motivation among the transporters, and the fact that urban distribution is not usually a public service justifying a public management were found as barriers in the project. The long term economic viability was difficult to demonstrate as the public financial support could not be reduced as expected at the end of the first phase of the project. The Agglomeration Community of La Rochelle is still the owner of the EV fleet (4 Citroën Berlingo vans and 1 Modec truck with 100km of autonomy).

The solution then developed was to include a group of other public services to split up the fixed costs (e.g. space rental, staff). Today, Proxiway/Veolia proposes other services to promote electric mobility (self-service electric car rental, electric shuttle between a parking place and the city centre, home deliveries, express deliveries for companies, secure space renting for goods storage).