Integration of passenger and freight transport in Venice and use of NOVELOG Evaluation Tool (EVALOG)

Prof. Marco Mazzarino (Università IUAV di Venezia and VIU)

Prof. Eftihia Nathanail (University of Thessaly)

Brussels, April 24th 2018 Index

• Introduction: challenges, objectives and expected impacts • Cargo hitching: principles and benefits • Venice case study • Assessment and evaluation • Conclusions Introduction: challenges, objectives and expected impacts

• Main challenges: – SOTA: lack of updated data, information, methodologies, innovative policies at urban level feeding the forthcoming SUMP – Operational, socio-economic, environmental inefficiency and sub-optimization of urban logistics network performance – Case study focus: Lagoon – islands facing tremendous lack of accessibility, depopulation, poor connections and social cohesion

• Objectives and policy priorities : – Case study: promoting better connections to urban peripheral areas via highly innovative business models – cargo hitching – Cargo hitching opportunities to improve Venice Lagoon urban logistics performance – never tested/simulated in Venice before – Two policy dimensions of transport “integration” to foster a polycentric urban development and promote a single integrated urban transport network within a SUMP framework: • “horizontal” (geographic): core-periphery integration • “vertical”: freight and passenger integration – Governance issues: promoting cooperation between Municipality and Metropolitan Area (and logistics operators associations) – Developing a DSS approach supporting innovative SUMP policy actions with regards to island connections – Sub-objectives: • Regulatory: strategic level – new urban logistics network design: optimized extended/distributed logistics network • Business models: tactical/operational level – simulating (and assessing) cargo hitching services connecting islands

• Expected impacts – Logistics operations: • Reducing traffic and the number of freight boats; • Reducing travelled distances and travel times; • improving logistics asset utilization – load factor; • Improving logistics service – frequency – Socio-economic: • improving accessibility, liveability and economic development of islands (environmentally sensitive and tourism-oriented areas) via economically viable business models (“keep the Lagoon alive, not only the historical center”) – Enviroment: • Reducing emissions and energy consumption Cargo hitching: principles and benefits

• Strategic planning principle and main goal for SUMP/SULP: integrating/combining freight and passenger transport resources to optimize existing overall urban transport capacity (sustainability) and create viable and successful business opportunities • EU Commission (2007) : “Urban freight distribution could be better integrated within local policy-making settings. Public passenger transport is usually supervised by the competent administrative body while freight transport distribution is normally a task for the private sector. Local authorities need to consider all urban logistics related to passenger and freight transport together in a single logistics system.” • Well-known principle in long-haul transportation (air, ferries, etc.), not yet thoroughly developed at urban level, where rarely people and freight share services (although they often share the same infrastructures) – significant potential gains are there to be assessed • Cargo hitching theory: Groening University, DINALOG, University of Twente, Eindhoven University of Technology

• SUMPs current approach: passenger and freight systems are considered separately under different regulatory regimes – potential sustainability gains are lost • Cargo hitching aims at designing integrated (pax/freight) transport networks and related coordination policies - transport planners have to design urban transport systems to manage both passenger and good flows • Related measures: – Sharing infrastructures (linear – e.g., road space – and nodal – e.g., DCs, parking, stations, etc.) – Sharing vehicles

• Cargo hitching belonging to the “share economy” framework – red road spaces: • Some good practices/pilots of “share solutions” at urban level: – Barcelona (share road space: parking spaces used as loading/unloading bays during night hours – project CIVITAS I MIRACLES) – Paris (share delivery bays: parking spaces used as DCs) – London (shared bus – Freight*bus) – Dresden, Amsterdam, Zurich (CargoTram, ETram) – Saint-Etienne (share tram: TramFret – see also: https://amp.theguardian.com/sustainable- business/2017/jul/21/electric-trams-cities-groceries-europe-edinburgh-dresden) – Masdar City (Freight Rapid Transit) – Brandeburg (KombiBus) – Groningen (home deliveries of library books, magazines and medicines via Connexxion – public transport company - network – for instance, involving Biblionet Groningen, Media Logistics) (see Interreg North Sea Region) – Gangelt, Selfkant, Waldfeucht (district of Heisenberg) («MultiBus» within the MULI project – MULI Buslorry with multiple use goods and passenger transport) – Newcastle, London (shared bus&lorries lanes: prioritisation criteria) Saint-etienne Zurich

London

Amsterdam

Dresden Paris

Brandeburg Methodology: data requirements and data collection

• SOTA: – Secondary sources (reliable although somehow outdated): past studies, reports, etc – Significant info gaps on flows to/from islands (interviews)

• Data collection framework: – Data collection rather exhaustively completed in D2.2 – Main primary sources: • Surveys at main urban logistics nodes • Interviews with logistics operators specialized in island connections (whole population);

• Sound methodological framework of logistics network planning, including: – Urban logistics nodes (location, type, volumes, etc.); – Flows (type of goods, main origins – nodes, main destinations and major customers, main suppliers, ADTs including overall daily freight operations (urban quantities in/out of the urban context), routing pattern, scheduling patterns and hourly distribution of activities, load factor, seasonality, travel times, distribution strategies, type of transport: urban market shares of own account transport and third-party providers, etc.); – Level of logistics customer service (frequency, lead time); – Fleet composition (type and sizes, operational hours, capacity, fuel consumption, crew requirements, etc.) Focus: additional extensive (and exhausting..) joint VIU+operators (Confartigianato – Trade Association) on-the-field survey (tremendous added value for NOVELOG!): • 54 hrs during June 2017 • Performed at all major urban logistics hubs: Tronchetto, Scomenzera, Rio dell’Arzere, San Giuliano, Treporti

Multi-stakeholders platform

• Focus: stakeholder involvement – various meetings organized with stakeholders (Confartigianato, Venice Metropolitan City, Venice Municipality, Veneto Region) - 25.1, 22.2.2017, 5.7.2017, 18.7.2017, 10.9.2016, 5.10.2016, 13.10.2016 • In particular, public event/workshop on October, 5th 2016 and media impact Methodology: data analysis and scenario-building

• Methodological steps: – “as is” scenario: replicating the existing urban logistics systems and network configuration for passenger and freight; – identifying main critical issues and opportunities to develop cargo hitching solutions – “to be” scenario: simulating and designing the optimized/improved (integrated) urban logistics network Urban logistics network: the “as is” scenario • Case study area: northern Lagoon • Simulation goals: – analysing existing freight and passenger networks – estimating available capacity of public transport (by main lines and type of boats – No seats)

- Freight transport routing patterns

Public transport network Cargo hitching opportunities

• “overlapping” (and decomposition) approach: integrating freight and passenger networks (origins, destinations, nodes, schedule, etc.) to unlock opportunities of “combined” services • Potential opportunities, among others: – Physical bundling/consolidation of flows (freight+pax) on specific connections – Re-routing options (eg, proposing routing adjustments of existing routes - close-to-origin, close-to-destination, en-route); – Re-scheduling options (eg, proposing optimized scheduling and time- windows policy options); Urban logistics network: the “to be” scenario • Goal: building the optimized urban logistics network by assessing the feasibility of cargo hitching solutions • Simulation steps: 1. estimating the spare capacity of public transport (No seats → sqm → cm) 2. estimating freight transport demand (potential + actual → cm) 3. matching • Public transport spare capacity (main lines) (No seats) • Transforming spare capacity (No seats) into square meters (standard official values – per each lines + precautionary parameters)

4 passengers = 1 sqm • Transforming public transport spare capacity into cubic meters • Estimating potential freight transport demand in terms of cubic meters (thanks data collection!) • Estimating actual freight transport demand by considering type of goods (more regular scheduling – e.g., laundry, beverage) and third-party vs own account (thanks again!) Results

• Results show that actual freight transport demand can be accommodated by the existing spare capacity of public transport NOVELOG Evaluation Tool Approach Scenario formulation for Venice’s Public Authorities Venice_PA: Selection of evaluation parameters

Selection of impact areas

Selection of criteria Venice_PA: Weighing evaluation parameters

Weights of impacts areas, criteria, indicators

Weights of impacts areas for SC & O Venice_PA: Indicators’ values before and after Venice: Indicators’ percentage change per stakeholder category Venice_PA: Results (LSI, LCI)

LSI Before: 0.807

LSI After: 1 Venice Stakeholders - GLSI

Stakeholder categories’ weights were attributed based on their engagement within the NOVELOG project Before and after GLSI values for all NOVELOG cities Conclusions from Venice’s case study evaluation • Evaluation in a nutshell – Traffic: -25% – Travelled distances: - 67,5% – Operational hours: - 68% – Load factor: +62%

– CO2 emissions: - 38% – Energy consumption: - 38% – Fuel costs: -42% – Logistics service (frequency): + 133% • The overall performance of the logistics system in Venice has been improved by +17% (GLSI change) Conclusions and lessons learnt: challenges, opportunities and the way ahead

• Main challenges ahead: what’s needed to promote the implementation of cargo hitching in cities? • Strategic level: – regulatory issues: the bottom-line principle of integration of pax/freight urban transport systems should be embedded in SUMPs and specifically in the competitive public tender procedures and framework • main next step goal: designing a new (integrated) regulatory/SUMP framework providing new rules, measures, standards, etc. to allow for coordination of overall urban transport systems and resources (operators, equipment – including drivers – infrastructures, information, etc.) – Stakeholders cooperation must be ensured and correspondent policy tools provided to take into consideration various (and conflicting) interests (“clearing rooms” similar to integrated ticketing measures?) – We need to get a “shared” governance.. • Tactical/operational level: – promoting sustainable case studies to support regulatory changes and promote the implementation of effective business models – identifying small-scale pilots (integration of pax/freight systems at the current state of regulatory frameworks) • Proposed regulatory framework (guidelines): – Why regulating? • Bottom-line principle: urban mobility “market” to be seen as a regulated one (role of social and environmental goals) • Currently, a lack of sound regulatory measures is in place – How regulating? • Policy tools: SUMP and competitive tendering (“competition for the market”) – Roles: • Local public authorities: – integrated urban network design, including infrastructure provisions (mostly, nodes – UDC, urban terminals/ “rive”) – competitive public tender design comprising public goals, constraints and generally criteria to ensure maximum social efficiency, effectiveness and sustainability to be attained • Competing operators – winning operator is the one capable of ensuring the maximum operational efficiency and effectiveness of transport services (i.e., business models) by satisfying “public” goals (tender criteria) • Tenders open to both passenger and freight components (details) – Competitive tender design specifying (SUMP framework), among other things: • Standards (tech, operational – eg, vehicles, supply chain-related equipment – safety, emissions – including noise, energy systems, fuels, etc.) and incentives • Scheduling options (time-windows, etc.) • Restricted areas, loading/unloading areas • Control systems (speed limits, fine schemes, unregulated operations, etc.) • Coordination criteria among urban traffic components (frequencies, prioritisation criteria, etc.) • Need to improve accessibility to remote urban areas (extended network) Contacts:

Prof. Marco Mazzarino Professor, Università IUAV di Venezia Head, International School of Transport, Logistics and Infrastructures, Università IUAV di Venezia Head of Unit, TLSU (Transport, Logistics and Supply chain management Unit)- Tedis Center - Venice International University e-mail: [email protected] Skype: marco.mazzarino

Prof. Eftihia Nathanail Associate Professor, University of Thessaly, Department of Civil Engineering Director of Traffic, Transportation and Logistics Laboratory – TTLog e-mail: [email protected] • Further simulation results: – Estimating the reduction in the number of freight boats (on each route) – Re-scheduling options to optimize deliveries (freight demand can be satisfied within tighter operational time laps – 4 hrs) – Re-routing opportunities • Further opportunities to be explored: – including other passenger transport systems (eg, taxies, etc.) in the integrated network – different shipment sizes (small to medium to large) – reverse trips – ICT requirements and opportunities (apps for users) Transferability issues

• Cargo hitching general features – effective urban planning approach to increase sustainability by optimizing existing capacity of overall urban transport system (“share economy”) – general principle: integration/coordination of passenger and freight systems and resources – innovative (and economically more viable) business model to increase accessibility to urban “weak” areas

• Urban structures suitable for cargo hitching solutions: – Urban structures characterized by a significant sprawl: • an urban center and a large number of far distant “satellites” (where distances are meaningfully considered in terms of travel times) • cargo hitching as an effective transport solutions and a suitable business model capable of optimizing core-periphery connections (“weak” arcs) in a more economically viable manner within an extended/distributed urban network • scalable at metropolitan or regional level indeed; – Strongly tourism-oriented urban contexts along with a significant environmental sensitivity • Urban planning theoretical approaches: – satellite city (in Venice, each island with its own “green belt”); – new towns; – metropolitan areas; – garden city (Howard model) Links to Business Models Guidance Strategy • Key partners: municipality, metropolitan area, logistics operators • Key activities: urban logistics network design; integration pax/freight • Value proposition: optimizing existing urban capacity; increasing operational, socio-economic, environmental efficiency; improving accessibility; increasing sustainability • Internalisation of externalities: emissions (CO2); fuel cost savings, energy consumption reduction; improving quality of life • Customer relationships: B2B; B2C • Channels: face-to-face arrangements; e-platforms • Customer segments: – restaurants, shopkeepers, laundries, bakeries, hotels, drugstores, coffee shops, souvenir shops, apparel – Private customers, families • Revenues streams: – Increasing overall efficiency (operational; socio-economic; environmental) – Improving effectiveness (frequency, accessibility)