Gothenburg Inner City Freight Delivery

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Gothenburg Inner City Freight Delivery Master Degree Project in Logistics and Transport Management City Logistics Optimization: Gothenburg Inner City Freight Delivery Hyusein Erdinch and Chao Huang Supervisor: Ove Krafft Master Degree Project No. 2014:51 Graduate School ABSTRACT As number of freight vehicles and the volume handled steadily increase and negative effects of transport are being recognized, sustainable transport attracts more attention from both the researchers and transport stakeholders. Since conflicts of interest among stakeholders are not avoidable, it is important to seek for and keep the balance. This research conducts a qualitative method to discuss the optimization possibilities of the city logistics of non-chain stores in central Gothenburg, Sweden by focusing on two stakeholders: The administrators and the freight operators. Based on some of the best practices in urban logistics in other major cities in Europe, this paper tries to suggest new methods for the area in Gothenburg. To understand the subject better, relevant information is collected by the authors from different people involved in city logistics. After getting a clear idea, literature on the subject has been scanned to find the relevant theories. Based on the dynamics of the city, ideas which are not suitable and which could be suitable are discussed from the perspective of the three pillars of sustainability. Keywords: Gothenburg, Göteborg, city logistics, innovation, sustainability, non-chain stores I II ACKNOWLEDGEMENT Hereby, we would like to express our appreciation to our supervisor Ove Krafft, in the School of Business, Economics and Law at University of Gothenburg, for being a wonderful mentor for us. Your encouragement and advices have been priceless. We would also like to thank each of our interviewees. This thesis could not have completed without the information they provided to us. Göteborg, May 2014 Hyusein Erdinch Chao Huang III ABBREVIATIONS ERP Enterprise Resource Planning EEV Environmentally Friendly Vehicle FCC Freight Consolidation Center FQP Freight Quality Partnership FTL Full Truckload GPRS General Packet Radio Service GPS Global Positioning System Innerstad Gothenburg inner city area ITS Intelligent Transport Systems LCV Light Commercial Vehicles LEZ Low Emission Zone / Environmental Zone LTL Less Than Truckload PPP Public - Private Partnership RFID Radio-frequency Identification SCB Swedish Statistics (Statistika Centralbyrån) UCC Urban Consolidation Center ULS Urban Logistics Space VAS Value Added Service IV TABLE OF CONTENTS ABSTRACT ................................................................................................................................... I ACKNOWLEDGEMENT .............................................................................................................. III ABBREVIATIONS ....................................................................................................................... IV TABLE OF CONTENTS ................................................................................................................ V 1. Introduction ......................................................................................................................... 1 1.1. Problem Description and Motivation .................................................................... 2 1.2. Purpose .................................................................................................................. 3 1.3. Research Questions ............................................................................................... 3 1.4. The Area ................................................................................................................ 3 1.5. Delimitations ......................................................................................................... 4 2. Literature Review ................................................................................................................ 7 2.1. City Logistics Overview ........................................................................................ 7 2.2. Stakeholders .......................................................................................................... 8 2.3. Arguments on in/Efficiency of City Logistics ...................................................... 9 2.4. How to Design a Master Plan in City Logistics .................................................. 10 2.5. Policies Regarding City Logistics ....................................................................... 12 2.5.1. Low Emission Zone (LEZ) .......................................................................... 12 2.5.2. Access Restrictions: Weight, Time, Length, Width, etc. ............................. 13 2.5.3. Incentives and Charges ................................................................................. 14 2.5.4. Establishing Special Loading Zones ............................................................ 14 2.5.5. Fees for Parking ........................................................................................... 15 2.5.6. Night Deliveries ........................................................................................... 15 2.5.7. Pedestrian Zones .......................................................................................... 16 2.6. Investing Problem ............................................................................................... 16 2.7. Freight Divisions and Features ............................................................................ 17 2.8. Light Freight Transport in Urban Areas .............................................................. 18 2.9. Specialized Vehicles ........................................................................................... 20 2.10. Urban Consolidation Centers .............................................................................. 20 2.11. City Logistics with ITS ....................................................................................... 21 2.12. Sustainable Transport .......................................................................................... 23 2.13. Summary ............................................................................................................. 24 3. Methodology ..................................................................................................................... 25 3.1. Research Philosophy ........................................................................................... 25 3.2. Research Design .................................................................................................. 25 V 3.3. Data Collection .................................................................................................... 25 3.3.1. Primary Data ................................................................................................ 25 3.3.2. Interviewees ................................................................................................. 26 3.3.3. Secondary data ............................................................................................. 27 3.4. Validity & Reliability .......................................................................................... 28 3.5. Analysis Approach .............................................................................................. 28 4. Background (Gothenburg) ................................................................................................. 29 4.1. Making the City More Attractive ........................................................................ 29 4.2. Active Consolidation Centers and Transport Modes .......................................... 30 4.2.1. Roads and Infrastructures ............................................................................. 30 4.2.2. Public Transport ........................................................................................... 31 4.2.3. Commercial Freight Transport ..................................................................... 31 4.3. Statistics on Retailing and Retailers .................................................................... 31 4.4. Regulations in Gothenburg .................................................................................. 34 4.5. Incentives ............................................................................................................ 34 4.6. Measures Taken & Current Situation .................................................................. 35 4.6.1. Environmental Zone ..................................................................................... 35 4.6.2. CNG/CBG Operated Distribution Vehicles ................................................. 35 4.7. Stadsleveransen Project ....................................................................................... 36 4.7.1. Background Information .............................................................................. 36 4.7.2. Business Model ............................................................................................ 37 4.7.3. Vehicle & Load Information ........................................................................ 38 4.7.4. Suggestions ................................................................................................... 38 5. Urban Transport Practices around the Globe .................................................................... 39 5.1. Best Practices ...................................................................................................... 39 5.1.1. London
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