City LogisticsAuthors: Dr. Jean-Paul Rodrigue and Dr. Laetitia Dablanc
Dr. Dablanc: French
Institute of Sciences and Technology for Transport,
Development and Networks (IFSTTAR), Universite de Paris-Est.
Note: An
expanded and adapted version of this text to appear in UN-HABITAT, 2013
Global Report on Human Settlements: Sustainable Urban Transport,
United Nations Human Settlements Programme, London: Earthscan. 1. Freight and the CityFreight transportation maintains
a set of
core relations with
urban areas since a city is an entity where production, distribution
and consumption activities are using scarce land. Elements of the
urban landscape such as commercial districts are important
generators and attractors of freight
movements. The global urban
and economic system has also become functionally specialized,
permitting a global division of production and its associated
freight volumes. City Logistics, as a strategy ensuring efficient
freight movements and innovative responses to urban customer and
business demands, is an emerging field of investigation
that was brought by the challenges of the commodification and massification
of production and consumption.
City logistics / Urban logistics. The means over which
freight distribution can take place in urban areas as well as
the strategies that can improve its overall efficiency while
mitigating congestion and environmental externalities.
Urban economies are evolving rapidly towards a higher level of
material intensiveness. Store inventory levels have
shrunk and businesses are increasingly supplied on a just-in-time
basis. The number of different products sold has increased
considerably, and inventories change several times a year. With the
rise of the service economy, the demand for express transport and
courier services is also soaring. These factors have made urban
economies more dependent on transportation systems, with more
frequent and customized deliveries. All this incites a greater intensity and
frequency of urban freight distribution and correspondingly improved
forms, organization and management. Accurate figures are difficult
to come by but urban goods movements account for 20 to 30% of all
vehicles kilometers. There is a complex relationship
between the spatial and functional
structure of city logistics where the organization and density of
land uses interact with various forms of transport infrastructure
influences on the location of logistics activities. Therefore, although city
logistics appears to be an issue taking place at the local (urban
metropolitan) level, a comprehensive understanding of its drivers
and dynamics requires the following:
Global supply chains. A salient issue
relates to urban freight distribution in the context of global
supply chains as global processes are imposing local forms of
adaptation to insure that freight is delivered in a timely and
reliable fashion. Offshoring has also contributed to the setting
of supply chains where freight distribution activities taking
place within an urban area cannot be effectively explained by
the regional economic structure.
Global freight distribution. Since the
distances involved in supporting global supply chains have
increased, the function of distribution has taken a new
significance, particularly with the setting of large terminal
facilities such as ports, airports, rail yards and distribution
centers. They are handling movements originating from, bound
to or simply passing through a metropolitan area. With containerization as a tool supporting the bulk of
international trade,
intermodal terminals have become a notable element of the urban
landscape. With the growth of valuable cargo carried over long
distances, airports are also active nodes interacting with urban
freight distribution. Along with their attached freight
distribution facilities (e.g. transloading facilities and
warehouses) large terminals form a fundamental element of the
interface between global distribution and city logistics.
Urbanization.
Global urbanization is
compounding the challenges of city logistics since the share and
the level of concentration of the global population living in
cities is increasing. Historically, the production and
consumption of freight has dominantly taken place in cities, but
with the industrial revolution and subsequently with
globalization this share has increased. Cities also present a
variety of forms and levels of density, each associated with
specific city logistics patterns. Socioeconomic factors, such as rising income and
consumer preferences should
also not be neglected.
Most of the early applications of city logistics were undertaken
in Japan and Western Europe as these cities were more constrained by
the lack of available land and had an established tradition
pertaining to urban planning. Up to the 21st century the consideration of urban freight distribution within
the planning discipline remained limited. This implies that urban
planning generally does not pay much attention to issues related to
urban freight distribution. Yet these issues are linked with
externalities and growing concerns by private and public interests
to address them:
Private concerns. Actors directly involved
in urban freight distribution are mainly concerned by its
constraints such as congestion since it imposes additional costs and delays in their operations.
Also, restrictions on street access by trucks as well as for
pickups and deliveries, provide additional challenges. Urban
logistics becomes a competitive factor that needs to be
addressed since it impairs the cost and efficiency of the last
mile (or first) of global
supply chains.
Public concerns. Actors involved in the
oversight of urban freight distribution as well as urban
residents in general are concerned by its externalities.
Congestion and noise impacts residents, particularly their
commuting and social interactions, as well as the general
livability of a city. Passengers and freight flows are therefore
subject to conflicts. Environmental concerns such as air
pollution are recurrent in many cities. City logistics is
becoming a salient urban sustainability issue.
2. The Diversity of Urban Freight DistributionA city is supplied by an impressive variety of supply chains
servicing a wide array of economic activities such as grocery stores, retail, restaurants,
office supplies, raw materials and parts,
construction materials and wastes. The level of economic development
is linked with the level
of urban freight activity as income and consumption levels are
interdependent. Because of the divergence in built environments and
the diversity of urban economic activities,
each city around the world has different freight transport and logistics activities
and level of intensity. This brings the question about the specific
size threshold after which urban freight distribution problems, such
as delays and congestion, become more prevalent, which requires a
concerted approach. Using the
United States as
evidence, congestion starts to be a serious issue once a threshold
of about one million inhabitants is reached. For cities of less than
one million, city
logistics is less likely to be a problem and may be localized to
specific areas such as the downtown or the port or other terminals
areas.The unique and often non-replicable conditions
of each city are influencing the nature and intensity of congestion
in its urban
freight distribution system. The share of public transit use, land use
pattern and density and income levels are common factors relatively
unique to each city. Considering the growing level of material
intensiveness related to the functions of production, distribution
and consumption, cities above
4 million inhabitants
should have planning and circulation management schemes where urban freight distribution
is preeminent. Cities of smaller size can also proactively be involved at
mitigating specific and localized urban freight distribution
activities.The intensity of urban freight distribution depends
on local economic, geographic, and cultural characteristics, which
leads to different objectives and preoccupations in urban freight
distribution. For instance, world cities have each a diverse array
of concerns:
Paris aims to limit the environmental footprint of freight distribution
so that the quality of life of its residents can be maintained
and improved. The city's status as one of the world's leading cultural and
touristic hub has a notable impact on the strategies and priorities
accorded to urban freight distribution.
Mexico tries to cope with the
contradictory demands related to the dual presence of both
modern (motorized) and traditional forms of urban distribution
in terms of infrastructure provision and regulations. Modern
logistics services are as vital to the urban economies of
developing countries as are more basic freight activities
serving street vendors or home based manufacturing workshops.
Chicago aims at maintaining its role as a
major rail hub and freight distribution platform for North America
with concentration of distribution and manufacturing activities.
The metropolitan area is the point of
convergence of the rail lines of the Class I carriers, but the
different terminal facilities are in separate parts of the city
and not well connected. This involves truck congestion as
containers need to be carried from one terminal to the other.
Los Angeles is facing congestion and
environmental issues such as noise and air pollution. The city
is facing conflicts between its function as a major commercial
gateway for the East Asian trade and other functions linked with
touristic and cultural activities. Recent
initiatives concerns trucking associated with the main port
facilities as well as
nearby major import-based distribution centers.
Shanghai has become the largest cargo port in the
world and acts as the major transport hub supporting China’s
export-oriented strategies.
A significant share of the freight circulating within the city
is therefore linked with global distribution processes. Rising
standards of living imply growing consumption levels.
Istanbul is coping with rapid urbanization and economic
growth, along with unique geographical constraints, namely a
scarcity of flat land and the division of the city by the strait
of Bosporus. The city is embarking in large infrastructure
projects with a new mega airport and the relocation of
manufacturing clusters.
3. Forms of Urban Freight DistributionAll urban freight distribution systems involve a wide array of
supply chains, each of varying importance depending on the urban setting
and the level of development, but coming into two main functional
classes. The first involves what can be called consumer-related distribution:
Independent retailing. Urban areas have a
notable variety
of retailing activities, many of which defining the commercial
and social character of neighborhoods. More than often they are
small single owner stores and in developing countries these retailing
activities are often complemented by informal street markets and
stalls.
Chain retailing. In the contemporary commercial
landscape large retail stores (such as "Big box" stores)
have become an important element. While they used to be located
in central areas and being an defining element of urban
centrality, they have also emerged in suburban and peri-urban
areas. Shopping malls, many quite large, are set on the
principle of economies of agglomeration and the provision of
ample parking space. Chain retailing tends to rely on the expertise of third
party logistics services providers to mitigate urban freight
distribution challenges, but mostly to organize complex
multinational sourcing strategies sourcing mass
retailers. Large stores are commonly accessed through
dedicated delivery bays where they are resupplied on a daily
basis through their own regional warehousing
facilities.
Food deliveries. Since most food products
are perishable, a specialized form of urban distribution has been
set to supply outlets such as grocery stores and restaurants.
The outdoor market (central markets offer enclosed facilities)
also take an important role in supplying urban populations with
perishables, particularly in developing countries. This may be
linked with informal forms of distribution where food producers
deliver their production to urban markets.
Limited information is available about urban food consumption
levels but high levels of spoilage are observed, in the range of
50% of all the food consumed.
Parcel and home deliveries. Globalization
and the setting of advanced services such as insurance, finance
or corporate management (head or regional offices) are linked with a
growth in the movement of parcels. While some are serviced by
local companies, large parcel carriers have established services
covering the majority of the world's main commercial cities. They maintain a network of strategically located distribution
centers where shipments are consolidated or deconsolidated.
International shipments are often taken care of by parent
companies, namely air freight integrators. Online shopping (for
retail goods but also for groceries)
has grown significantly, a trend which is associated with the
growth of home deliveries.
The second functional class of city logistics is related to
producer-related distribution:
Construction sites. Urban infrastructures,
from roads, residences to office and retail spaces, are
constantly been constructed, renovated and repaired. Such
activities are intensive in material use and must be supplied on
an irregular basis both in terms of the time and location of the
deliveries.
Waste collection and disposal. Urban
activities generate large quantities of waste, namely paper,
paperboard, food, plastics, metals and glass. These materials
must be collected and carried to recycling or disposal sites. In
particular, recycling has become an important activity taking
place in urban areas and involve specialized vehicles and dedicated pick-up tours.
As standards of living are increasing across the world, the
amount of waste generated by cities has grown accordingly.
Industrial and terminal haulage. Cities are
zones of production as well as gateways for the circulation of
goods. Large transportation terminals such as ports, airports
and railyards are dominant elements of the urban landscape,
including logistics zones
where freight is distributed to extensive markets. Transport
terminals and logistics zones
are also generators of goods movements that may impact urban
circulation (the last mile). Gate access at large intermodal terminals
such as
ports
can lead to congestion (queuing) and local disruptions.
Two actors, private and common carriers, are handling commercial
freight transportation. Private carriers are at the same time
beneficial cargo owners (manufacturers or retailers) using their own
transportation assets (fleet and workforce). They can also
subcontract this function to an independent carrier.
Common carriers service any customer on a contractual basis, which
also leads the opportunity to consolidate cargo and deliveries,
which can benefit smaller users. The share of private carriers is
dominant for urban freight distribution in developing countries
while in developed countries common carriers account for about half
of urban deliveries.The issue of dualism remains prevalent in urban
freight distribution as it underlines different modes of operation
between distribution systems that are integrated to
globally-oriented supply chains and distribution systems linked with
informal activities that are more related to the local or regional
economy. This is best represented by owner-drivers, or small
independent truckers acting as sub-contractors to large carriers for
the final distribution of goods in urban areas. Dualism is therefore illustrative of a co-existence of
modern and traditional means of freight distribution within the same
metropolitan area. Another aspect of dualism is related to an active
informal transportation sector that supplies the needs of lower
income segments of the population, a very important component of city logistics services in developing
countries.4. The Externalities of Urban Freight DistributionModern freight distribution systems operating on the global urban landscape
are generators of environmental and social externalities. In less
developed countries, rural migration and population growth have led
to very rapid urbanization, while the public supply of infrastructure
and transport services has lagged behind, impairing the efficiency of
urban deliveries. Road transportation is the most polluting per unit of distance
travelled, but their are limited alternatives than the road to
provide for urban deliveries. A positive trend has been the decline
of air pollution due to better engine designs and the phasing out of
leaded fuel in most countries. Diesel trucks still account as
significant sources of particulate matter and NOx emissions, an
issue compounded by their use as urban delivery vehicles. Urban freight distribution
is on average twice as polluting than intercity freight transport,
particularly because of the following factors.
Vehicle age. On average vehicles used for urban deliveries
are older and it is a common practice to use trucks at the end of
their service life for short distance drayage.
This problem is compounded in developing countries where
vehicles are even older and thus more prone to higher emissions
and accidents.
Vehicle size. The size of vehicles used for
urban deliveries is on average smaller, particularly in areas
that have high density and limited street parking. This implies
that the advantages of economies of scale cannot be effectively
applied for urban freight distribution. This has also additional
drawbacks from an environmental perspective as smaller delivery
vehicles must undertake more travel to deliver a similar volume
of freight than a regular truck.
Operating speeds and idling. The conditions
pertaining to urban freight distribution are such that vehicles
are forced to have lower driving speeds, regular stops and
acceleration (e.g. traffic signals) as well as much more idling
than a vehicle operating in an uncongested environment.
Additionally, driving restrictions such as one ways or car-only
streets often make the usage of the shortest path unfeasible. The
result is more fuel consumption and pollutant emissions.
A common characteristic of cities in developing countries is that
motorized and non-motorized traffic are sharing the same
infrastructures, which leads to congestion and vehicle operation
problems. The urban environment of many cities in the developing world is
characterized by street vending
(petty trade) supplying the urban population a range of basic
necessities. This is particularly the case for shantytowns that tend
not to be supplied by formal supply chains and are thus serviced by
forms of urban freight distribution about which little is known.5. Key Urban Logistical ChallengesAddressing city logistics requires an understanding of urban geography
as well as supply chain management, which tends to be an uncommon set
of skills. Urban freight distribution thus has a unique array of challenges
as a multidisciplinary field. Urban freight distribution reflects many dimensions
of contemporary logistics such as route and delivery sequence
selection. It also exacerbates its
constraints such as on-time deliveries. Among the most salient
challenges of city logistics:
Commuting and peak hours. Passengers and truck
movements are not interacting efficiently as freight and
passenger circulation are a zero-sum game; road capacity taken
by freight transportation is at the expense of capacity
available to passenger transportation. They share the same road
infrastructure and peak hours due to commuting exacerbate the
difficulties of freight distribution.
Congestion. City logistics, like logistics in
general, depend of consistent and reliable deliveries. The urban
environment that tend to have high congestion levels is
challenging. To avoid congestion, deliveries can take place during the night
(or off peak hours) if possible.
Parking. There is limited
parking capacity to accommodate deliveries in high density
areas. Delivery vehicles cope with this challenge by
double parking, thus seriously
impeding local circulation.
Cargo load contradictions. Urban freight distribution is
characterized by smaller volumes and high frequency deliveries.
This is not prone to economies of scale and involves higher
delivery costs.
Land use. Land use patterns determine many
features of the urban movement of goods, where the pattern
of industrial, commercial and logistics facilities has a direct
impact on the flow of commercial goods.
Logistics sprawl has been a dominant land use change of the last
decades with is the relocation of logistics facilities towards
peripheral areas at faster rates and greater distances than any
other economic activity. Suburban
logistics has become as relevant as city logistics.
Reverse (green) logistics. While cities are
major consumers of final goods, there are also reverse logistics
activities related to the collection of wastes and recycling.
E-commerce. Related to new forms of demands
and new forms of urban distribution with a growth in the home
deliveries of parcels. While the concerned volumes were
relatively small, the diffusion of information technologies has
impacted the urban distribution structure of retail goods. This
has been accompanied by a growth of parcel deliveries and new
strategies to complement home deliveries with alternate
solutions (pick-up-points, automated locker banks). For large
apartment complexes, the
lobby has
essentially become a small freight distribution center.
The urban space is prone to conflicts
between different stakeholders, as high population densities are
related to a low tolerance for infringements and disturbances. There are also opportunities
for collaboration as city logistics open new realms of engagement
for urban planning, but with diverging priorities according to the
urban setting. Insuring an adequate circulation of freight
flows in urban areas can involve specific strategies that can be
done at the level of the individual firm or as a concerted urban
planning effort. 6. Freight Distribution Strategies for City LogisticsFrom a freight distribution perspective, a city can be considered
as a bottleneck where transportation resources are scarce relative to
the potential demand and are thus highly valuable. As a distributional strategy,
city logistics can take many forms depending on the concerned supply
chains (e.g. retailing, parcels, food deliveries, etc.) as well as the
urban setting in which it takes place. Urban freight distribution strategies
are however difficult to implement as they systematically imply higher
costs and additional delays. The
mitigation strategies that are the most considered concern three
interrelated realms of engagement:
Rationalization of deliveries. Relates to adjustments
about how freight is delivered (or picked up) in urban areas so
that externalities, namely congestion, are minimized. Such a strategy
tries to better use existing assets. One of the simplest
strategies is to regulate access to specific parts of the city, such as forbidding
daytime deliveries in central areas. Distributors can also opt for
night deliveries or at least extended delivery windows to avoid
peak hour traffic. There is an array of information technologies
that are increasingly being used to manage urban freight
distribution systems. The most used technologies relate to
global positioning systems that improve vehicle tracking and
urban navigation as well as load management applications that
can assist in building routes and delivery schedules. Under such
circumstances it becomes more effective to match trip sequences,
such as deliveries and pickups to strive towards forms of
collaborative distribution. Still, urban freight
distribution remains highly imbalanced as deliveries are more
numerous than pickups and the most significant relation concerns
very different supply chains; retail deliveries / garbage
disposal.
Freight facilities. Relates to the development
of freight distribution infrastructures that are better adapted
to the urban context. This can involve the setting of designated
parking areas for deliveries, as well as the usage of urban freight
distribution centers and
local freight stations.
The later are small facilities trying to service a cluster of
urban freight demand (e.g. a neighborhood) or a single large
facility such as an office building. Since these facilities
imply additional costs that can only be justified if there is a
sufficient volume and concentration of deliveries within an
area. Urban freight facilities can thus be a value proposition
in large cities (or high density areas) while for smaller cities
such initiatives would drive up costs and unreliability.
If the opportunity arises, such as the availability of a brownfield
site in proximity to the city center,
urban logistics zones
can be developed, which can provide a counterweight to
logistics zones that have emerged in the periphery of most
large urban agglomerations. Urban
consolidation centers (UCC) specifically provide a bundled and
coordinated delivery service. A UCC is a logistics facility
located close to the city center from which consolidated
deliveries are carried out, and which provides a range of other
value-added logistics services. Land prices however constitute
an important obstacle to the urban siting of freight facilities. Up to 200 such terminals existed
in European cities in the 1990s and early 2000s. Due to
operating costs, most of them closed down when municipalities
could no longer subsidize them.
Modal adaptation. Relates to the usage of adapted
vehicles for urban freight distribution.
Smaller vehicles tend to
be better suited for urban deliveries because of their lesser footprint,
their ability to maneuver and their higher than average load factor.
Yet, a similar amount of freight would require move vehicles to
be delivered. Regulations can therefore be enforced concerning the
permitted size of delivery vehicles (with a chosen limit
permitting medium size trucks to operate) and even their age if environmental
concerns such as emissions and noise are salient. Innovative strategies
such as CNG vehicles
and even bicycles
have been successfully implemented and underline a good
potential for modes to adapt to the diversity of the urban
landscape. The usage of the existing public transit system has also been considered for
urban freight distribution. However, there are no cost and
logistically effective strategy to date. Urban transit is not well
adapted to freight distribution and often involves additional load
break and costs. Attempts at developing "cargo-trams" have failed,
such as the ambitious cargo-tram project in Amsterdam, which went
bankrupt in 2009.
Although each of these strategies has its own advantages, there are
also drawbacks that are commonly
related to higher distribution costs and additional delays. City
logistics is facing the paradox of being incited to look at sites
located at the urban periphery where land availability is less an
issue while most consumers and activities tend to be located in more central areas. For instance,
a high density and congested central city can be serviced by an independent
freight distribution system calling from an consolidation center (UCC) located at a location in
proximity to the city center,
often a brownfield site that served an abandoned function (e.g. rail
yard, industrial area). The vehicles used to service customers (either
for deliveries or pickups along a flexible route) are likely to be
cleaner (electric, CNG)
and thus better adapted for distribution in an urban environment. The
urban freight distribution center could be a neutral facility interfacing
with a set of distribution centers, each being connected to their respective
supply chains. Thus, a wide array of supply chains connected to the
city can achieve a better distributional efficiency within the central
city. Few projects for urban consolidation centers (such as the
Motomachi UCC in Japan)
have met success even because of their operating costs since
they involve high rents and additional handling before final delivery.Urban areas remain congested areas
where space utilization comes at a premium and where the presence of
many stakeholders imposes concerted efforts to insure that urban
markets remain serviced in an effective and environmentally friendly
fashion. The future is indicative of a transition towards
greener forms of city logistics
since the current situation appears unsustainable in many cities
that are facing rising congestion and environmental externalities.
Since each city represents a unique setting with its own prevalence
of transport infrastructure and modal choice there appears to be no
single encompassing strategy to improve urban freight distribution,
but a set of strategies reflecting challenges that are rather unique
for each city. As underlined, a salient difference relates to city
logistics between developing and developed countries.
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Intercity Bus Station, Douala, Cameroun
Motomachi Consolidation Center, Japan
Motomachi UCC Employees Unloading a CNG Truck
Heavy Truck, in a Street of Trois-Rivières, Canada
Delivery Truck for E-groceries, Madrid, Spain
Electrically Assisted Delivery Tricycles, Paris
Urban Freight Stations
Urban Freight Station: DHL Packstation
The Lobby as a Freight Station
Effects of Truck Environmental Regulations, Gothenburg, Sweden
CNG Delivery Truck, Paris
Delivery Truck, Tokyo
Freight Depot, Central Tokyo
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