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Milena Janjevic Presentation

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Milena Janjevic Presentation URBAN FREIGHT CONSOLIDATION CENTRES – TRENDS, CHALLENGES, SOLUTIONS Milena Janjevic, Qalinca Labs, Université Libre de Bruxelles European Cycle Logistics Conference, San Sebastian, 15th October 2015 Urban freight transport is essential for the city’s economy and liveability but is also a source of important externalities…. PLANET PEOPLE PROFIT (Environmental Sustainability) (Social Sustainability) (Economic Sustainability) • 1/3 of transport Nox emissions • Safety • Congestion contribution • ½ of particulate matter • Noise (add 5dB to the (double parking) emissions from transport passenger traffic) • Congestion contribution (10- • 21% of CO2 emissions 15% of travelled miles) • Critical to support consuming market: last mile accounts for 40% of the total transportation costs Sources: Janjevic, Lebeau, 2013. Strategy for the implementation of sustainablelogistic concepts for the Brussels Capital Region ( No. Activity report of 18 month of research). ULB, VUB, Innoviris, Brussels. 2 Illustration: the urban link accounts for 1% of distance and 25% of logistical costs Example: textile inDustry supply chain China-Europe 1 - Champs de coton 2 - Stockage de la matière première 3 - Filature et tissage 4 - Confection et lavage 5 - Entreposage 6 - Port d’expédition 7 - Port de transbordement 8 - Port de réception 9 - Plateforme logistique 10 - Distributeurs, détaillants, clients Source: CERTU, 2013. Transport de marchandises en ville : quels enjeux pour les collectivités ? 3 Urban consoliDation centres aim in rationalizing the last mile Deliveries anD decreasing the total vehicles*km relevant to urban freight transport Transport flows before anD after Number of Deliveries anD trips for Brussels the implementation of the UCC 100% 90% 80% 45% 70% Occasional 60% 80% 50% 10% Branches procurement 40% Consolidatio 30% n 20% 45% 10% 10% 10% 0% Deliveries Trips Source: Bruxelles Mobilité, 2012, ADEME, 2010 4 Urban consolidation centres are also an opportunity to adopt the vehicles used for the last leg of distribution to the urban environment ELCIDIS, La Rochelle BinnestaDservice, Nijmengen 5 There is a large number of implementation cases of urban consolidation centres (mostly in Europe) Start Date of the UCCs 45 40 35 30 25 20 15 10 5 0 1970-1975 1976-1990 1991-1995 1996-2000 2001-2005 2006-2010 Source: Allen, J., Browne, M., Woodburn, A., Leonardi, J., 2012. The Role of Urban Consolidation Centres in Sustainable Freight Transport. Transport 6 Reviews 32, 473–490. doi:10.1080/01441647.2012.688074 There are many variations of the UCC concepts… (1/2) UCCs serving a town/city UCCs on single site Construction project UCCs Examples: La Rochelle, Nijmegen, Examples: Meadowhall (Yorkshire), Examples: Construction material Bristol Heathrow retail UCC UCCs in Heathrow and Stockholm Source: Allen, J., Browne, M., Woodburn, A., Leonardi, J., 2012. The Role of Urban Consolidation Centres in Sustainable Freight Transport. Transport 7 Reviews 32, 473–490. doi:10.1080/01441647.2012.688074 There are many variations of the UCC concepts… (2/2) UCC Surface of the UCC (m2) Micro-Consolidation centre London 160 Motomachi UCC, Yokohama 330 Ecologis Brescia 400 Broadmead UCC, Bristom 465 The Green Link 750 La Rochelle UCC 800 Lucca 810 City Depot Brussels 1000 Padova UCC 1000 Monaco 1300 Leiden 1500 Beaugrenelle urban Logistics Space 2900 Source: own elaboration based on litterature review 8 However, despite the significant interest from both the public and the private sector, their long-term viability is difficult to reach Source: Lebeau et. al, 2015, Investigating support for Urban Consolidation Center in Brussels 9 Challenge 1: Commercial feasibility (i.e. sufficient market for UCC) Example: urban consoliDation centre in LeiDen Some figures • Leiden: 117 000 inhabitants • UCC surface: 1300 m2 • Expected impact: a daily reduction of the number of commercial vehicles from 24,000 to 5,000 (-80% !) • Break-even: 600 shipments/day • Maximum throughput reached: 90 shipments/day Source: BESTUFS 10 Challenge 2: Additional cost of transhipment Source – urban distribution service Price UCC1* • 2,5-5 euros/parcel • 10-20 euros/pallet Boudouin, 2006 • 3 euros/parcel UCC La Rochelle • 3,80 euros/parcel UCC Monaco • 4,90 euros/100kg La Petite Reine • 2,50-5 euros/delivery Source: Own elaboration based on litterature review; Browne, M., Woodburn, A., Allen, J., 2007. Evaluating the potential for urban consolidation centres. 11 Challenge 3: Allocation of costs and benefits +/- Change in cost of Deliveries +/- Change in cost of Deliveries + Receiver-orienteD services - Loss of customer contact - Monopolistic situation 12 Challenge 4: Lack of stakeholder support (1/2) Brussels International Logistics Centre: the project… 13 Challenge 4: Lack of stakeholder support (2/2) Brussels International Logistics Centre: the reaction… 14 Recently, there has been a regain of interest in the UCC concept and some new concepts have emerged… Ecologic, Brescia CityDepot, Brussels Cityporto, PaDova BinnenstaDservice, NetherlanDs 15 Concept 1: Downscaling the scope of the consolidation Micro-consoliDation centre, LonDon La Petite Reine, Paris Source: Browne, M., Allen, J., Leonardi, J., 2011. Evaluating the use of an urban consolidation centre and electric vehiclesin central London. IATSS Research 35, 1–6. doi:10.1016/j.iatssr.2011.06.002 16 Concept 2: Reducing the necessary infrastructure Example: Mobile Depot by TNT Express in Brussels Source: STRAIGhTSOL project, 2015 17 Concept 3: Receiver-based consolidation centres BinnenstaDservice, NetherlanDs CityDepot, Hasselt, Belgium Some aDvantages for retailers participating in the UCC scheme • Remote storage (potential to increase the sales surface in the shop) • Single delivery for several suppliers (reduction of the time necessary to receiver the goods) • Possibility to choose the delivery hours (potential to move them to off-peak shopping periods) • Public recognition (“green logistics”) • Other services (e.g. home delivery) • Management of the return logistics 18 Concept 4: Better supply chain integration SUPPLY CHAIN INTEGRATION Transhipment point Remote storage Value-adDed services • Consolidation of goods • Remote stock of goods available • Labelling, packaging, pre-retailing, • Transhipment towards more at request tracking and tracing, quality adapted vehicles • Increase in the sales area control, etc. • Fast turnover of goods in the • Better reactivity of the supply consolidation centre chain 19 Concept 5: Night and off-hour deliveries to the UCC Carriers • Decreased travel time • Decreased service time Receivers • Increased reliability of the deliveries • No need to extend the reception hours as in the case of regular off-hour deliveries 20 Conclusion Improved loading factor Decreased CO2 Decreased cost and pollutant of operations emissions Reduction of time per journey CITY Improved SUPPLY CHAIN PERSPECTIVE Decreased delivery PERSPECTIVE congestion reliability Off-hour deliveries Competitive Improved local economy service quality Value added- services 21.
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