Cargo Bikes as a potential solution for sustainable urban logistics: a case study in Tirana Faculty of Civil and Industrial Engineering Department of Civil, Constructional and Environmental Engineering Master Degree in Transport Systems Engineering Candidate Gleardo Terziu - 1777838 Supervisor Prof. Andrea Campagna A.A. 2018-2019 Contents Page CONTENTS ............................................................................................................. I FIGURE CONTENTS .......................................................................................... III TABLE CONTENTS ............................................................................................ IV 1 INTRODUCTION ............................................................................... 1 1.1 Problem description ...................................................................................... 1 1.2 Research question .......................................................................................... 3 1.3 Statements and hypothesis ........................................................................... 3 1.4 Purpose of the thesis ..................................................................................... 4 1.5 Methodology .................................................................................................. 4 2 LITERATURE REVIEW ...................................................................... 6 2.1 Last Mile Logistics ......................................................................................... 6 2.2 Importance of delivery .................................................................................. 7 2.3 Usage of cargo bikes ...................................................................................... 9 3 METHODOLOGY ............................................................................. 13 3.1 Survey methodology ................................................................................... 13 3.1.1 Investigation of distribution flow ....................................................... 13 3.1.2 Survey technique .................................................................................. 14 3.1.3 Methodology of data analysis and elaboration ................................ 17 3.1.4 Survey methodology and software implementation ....................... 18 3.2 Ex-ante evaluation of the scenarios ........................................................... 21 3.2.1 Overview ................................................................................................ 21 3.2.2 Logistics Sustainability Index calculation ......................................... 22 3.2.3 Phase 1: Selection of the impact area ................................................. 23 3.2.4 Phase 2: Selection of criteria ................................................................ 23 3.2.5 Phase 3: Selection and computation of indicators............................ 24 3.2.6 Phase 4: Weighting process ................................................................ 25 3.2.7 Phase 5: Values normalization ............................................................ 28 I 3.2.8 Phase 6: Logistics Sustainable Index .................................................. 29 4 IMPLEMENTATION TO THE CASE STUDY .............................. 30 4.1 Study area “Blloku” district of Tirana ...................................................... 30 4.2 Independent retail sector ............................................................................ 38 4.2.1 Establishments area .............................................................................. 40 4.2.2 Employees and vehicles ....................................................................... 41 4.2.3 Supply chains and deliveries .............................................................. 42 4.2.4 Transport & delivery operations ........................................................ 44 4.3 Brand retail sector ........................................................................................ 45 4.4 Freight Deliveries & Quantity .................................................................... 46 4.5 Supply chains selected for the project implementation ......................... 47 5 New supply chain design ................................................................ 49 5.1 Supply chain characteristics ....................................................................... 49 5.1.1 Depot layout .......................................................................................... 49 5.1.2 Vehicle selection .................................................................................... 54 5.2 Route generations ........................................................................................ 56 5.3 Cost-Benefit Analysis .................................................................................. 61 5.3.1 Project financial costs ........................................................................... 62 5.3.2 Project financial benefits ...................................................................... 68 5.3.3 Break Even Point analysis ................................................................... 69 6 BEFORE’ AND ‘AFTER’ SCENARIOS COMPARISON ............. 70 6.1 ‘Before’ and ‘After’ scenarios assessment ................................................ 70 6.2 Logistic Sustainable Index calculation ...................................................... 71 6.3 LSI Results .................................................................................................... 81 7 FINAL CONCLUSIONS .................................................................. 84 7.1 Conclusions .................................................................................................. 84 7.2 Further researches........................................................................................ 87 8 REFERENCES .................................................................................... 88 II Figure contents Page 1 Methodology division ................................................................................................. 5 2 Copenhagen Illum Department Store ....................................................................... 9 3 A typical carrier of 1910 (Bergrijer Brother, Amsterdam) ................................... 10 4 Long-John, Denmark 1920 ........................................................................................ 10 5 Usage of cargo bikes in Europe (Lenz & Riehle, 2013) ........................................ 12 6 Logical process of the questionnaire ....................................................................... 18 7 Detail of the “Supplies” process of the questionnaire .......................................... 20 8 LSI evaluation process .............................................................................................. 22 9 Tirana Road Map (Urban planning project JCIA Studio Team) ........................ 31 10 Cargo-Bikes used for city cleaning service in Tirana (EcoVolis) ....................... 32 11 New dedicated lane for bikes in Tirana (Tirana Municipality) .......................... 33 12 New urban buses 100% electrical (Tirana Municipality) .................................... 33 13 Depot location ............................................................................................................ 50 14 Depot layout ............................................................................................................... 51 15 VELOVE, electric cargo bike (case used by DHL) ............................................... 55 16 Example of electric Cargo Bike operations ............................................................ 58 17 Example of courier walking operations.................................................................. 59 18 Example of electric Cargo Bike route per tour ...................................................... 59 19 Example of courier walking route per tour ........................................................... 60 20 Cost benefit analysis .................................................................................................. 61 21 Linear depreciation of e-Cargo Bikes ...................................................................... 64 22 Break Even Point graph ........................................................................................... 69 22 ‘Before’ Scenario representation .............................................................................. 70 23 ‘After’ Scenario representation ............................................................................... 71 24 Impact areas performance ........................................................................................ 81 III Table contents Page 1 Number of criteria and indicators per impact area ............................................... 24 2 LSI Indicators categories ........................................................................................... 25 3 Random Consistency Index (RI) ............................................................................. 28 4 Traffic counts in the study area (Tirana Open Data) ........................................... 34 5 Traffic flow during last three years ......................................................................... 35 6 Time-Window Traffic Limited Zone (Municipality of Tirana) ........................... 36 7 Population of Retail chains and brand sector .......................................................