to be or not tobe a typical cdc question rv d
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Presentation Vervoerslogistieke Werkdagen 2009 To be or not to be, a typical city distribution centre question! Research on success and failures in 10 European CDC-casesTRANSCRIPT
Ron van DuinDeurne, 12 – 13 November 2009 1
To be or not to be? A typical city distribution centre question!Research on success and failures in 10 European CDC-cases
Ron van Duin (TUD)Thanks to Alexander Kloppers
Ron van Duin
Contents
1. History of city distribution2. Complexity of the research problem3. Survey4. Factors that determine success/failure5. Conclusions6. Research path7. Discussion
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So called ‘Veemhuizen’ anno 1913“Zo oud als de weg naar Kralingen”
• At the edge of town
• Multimodal accessible
• Temporary stock
• Cross-docking
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The last mile delivery
• Environmental friendly(beside drivers and horsesC02-neutral)
• Collection of return flows(‘Voddenman’/’Schillenboer’)
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Freight flows in towns
Deurne, 12 – 13 November 2009 Ron van Duin
habitants
provinces governmentoffices
consumers
constructors
producers
entrepreneurs
carriers
municipalities
public services shippers
Multi-actor field
suppliers
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Problem……..!!!
Instead ofInstead of
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Different policy views on a sustainable cityAccessibility Economic growth
Freight Friendly
Liveability
Coordinated
Minimal space
Sustainable urban goods transport should facilitate a continuing economic growth and meanwhile protecting the environment and ensuring a better quality of life for future generations (OECD, 2003)
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Potential benefits(Huschebeck and Allen, 2005):
•Reductions in the number of vehicle trips.•Reductions in the number of vehicle kilometres.•Better utilization rates for vehicles
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Urban consolidation in literature• Modelling urban freight generation (Ogden, 1977)
• Considerable costs involved with the construction and operation of the transhipments(Button & Pearman, 1981)
• Urban Goods Movement (Ogden, 1992)
• City distribution centers lead a laborious life (Van Duin, 1997)
• City logistics modelling (Taniguchi et al., 2001)
• Innovation Steps Towards Efficient Goods Distribution Systems for Urban Areas (van Binsbergen & Visser, 2001)
• The key concept is that the volume of freight vehicles travelling within urban areas could be reduced through a more efficient utilization of vehicles: higher load factors and fewer empty trips (Crainic et al. 2003)
• GVZ or freight villages have been popular as real estate sources (Klaus, 2005)
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Survey 10 EU cases3 Successes
Bristol 2004La Rochelle 2001Kassel 1994
4 FailuresLeiden 1994Utrecht 1995Nuremberg 2005Malaga 2004
3 Not clear (yet)Nijmegen 2008ThunSiena
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Applied Methods• Literature European CDC
(Morris et al., 1999), (Hesse, 2004) (Köhler, 2004), (Browne et al., 2004),(Browne et al., 2005), (Patier, 2006), (Marcucci & Daniels, 2008), (Van Rooijen& Quak, 2009)
• Experts in the fieldName Company name Date Communication
Birgit Hendriks Binnestadservice.nl 15-05-2008 personal
Vronie van Manen Bureau Binnenstad (Municipality of The Hague) 16-06-2008 personal
Tim Hapgood Bristol city council 29-06-2008 email
Magnus Jäderberg Göteborg city council 03-07-2008 email
Jésus Muñuzuri Universidad de Sevilla 03-07-2008 email
Peter Krichel Universität Kassel 08-07-2008 email
Mark Degenkamp Municipality Utrecht 06-08-2008 personal
Rainier van der Kamp Miles Benelux B.V./Allgreenvehicles 29-09-2008 telephone
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Evaluation aspects
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Comparison (I)
1Co-usage of private DC
1Cross-dock
8UDC
n=10Type of CDC
1Shopkeepers
1Private CDC operator
2Transportation companies
6Municipality
n=10Origin of the initiative
4PPP
4Private
0Public
n=8Organisation
1Shopkeepers
5Transportation companies
6Subsidies
Funded by
2EC subsidies
2National subsidies
6Local subsidies
2No subsidies
Subsidies I
5Structural
3One time
n=8Subsidies II
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Comparison II
2No
1Usage of bus lane
3Pedestrian only area
1Environment zone
5Time windows
n=9Accompanying measures
4Combination conventional and electric
1Carrier cycle and natural gas car
1Electric vehicles
3Conventional trucks
n=9Distribution vehicles
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Survey among 7 EU citiesType of
UCCStakeholder(s) that
initiatedOrganisati
onFunding Subsidies I Subsidies II Acc. measures Distribution
vehicles
Success
Bristol UDC Municipality Private Subsidy EC Structural None Conventional
Kassel UDC Transportation companies
Private Subsidy Local Temporary Pedestrian zone
Conventional
La Rochelle UDC Municipality (agglomeration)
Private Subsidy Local Structural Time windows Electric
Failure
Leiden UDC Municipality PPP Subsidy EC One time Time windows Conventional and electric
Utrecht Multiple UDCs
Municipality Private Transportation companies
- - Time windows, usage of bus lanes
Conventional
Malaga Cross-dock Municipality PPP Transportation companies and subsidy
Local One time Pedestrian zone
Conventional and electric
Nuremberg UDC Shopkeepers Private Transportation companies and shopkeepers
- - Pedestrian zone
Conventional and electric
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Conclusions from the survey
• Ex ante evaluation often too positive• e.g. number of participating companies• seldom ex-post analysis
• Private organisation UCC
• All successful UCC have structural subsidies (as well as local as EC)
• Location of a UCC
Browne (2002) emphasise the importance of choosing a right location. Evaluations of decision making on this issue however many cases the result of what was available at the moment (Hesse, 2004) (Quak, 2008)
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Example of commercial feasibility CDC Den Haag I
Criteria Scenario 0: Current situation
Scenario 1:Full participation,
light trucks
Scenario 2: Full participation,
medium trucks
Scenario 3:Few participants
Vehicle kilometre reduction
0 -2% -8% -0.8%
Net benefit 0 -/- € 50,577 € 118,083 -/- € 220,040
Service 0 ++ + +
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Example of commercial feasibility CDC Den Haag II150,000 m3 goods per year means a participation of
approximately 60%
10.00
11.00
12.00
13.00
14.00
15.00
16.00
17.00
18.00
19.00
20.00
21.00
22.00
25000 50000 75000 100000 125000 150000 175000 200000 225000 250000
m3 of goods delivered via the UCC
Euro
per
m3
BenefitsCosts using light trucksCosts using medium trucks
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CBA – Unbalanced costs & benefits based on (Browne et. al., 2007)
COSTS BENEFITSSupplier
• Not a single “door-to-door” operation • Less time spent making deliveries in cities, leading to reduced operating costs
• Potential to use time savings to generate additional revenue
Transportprovider• Security • Routes involving UCCs allow more deliveries per day• Loss of control over timed deliveries/responsibility • Opportunity for night deliveries• Perceived increase in damage through extra handling • Helps counter WTD driver shortage• Additional handling/delivery charges ● Greater efficiency as no time spent slow running in town/parking
problems etc– could be passed to supplier as “surcharge” • Less slow running = improved fuel usage
Receivers• Additional stage when chasing missing/late deliveries • Improved delivery reliability
• Fewer deliveries/less staff disruption• Ability to call-off orders in parts• Clients able to collect purchases from UCC• Less storage/more selling space• Off-site value-added activities• Improved retailing (street) environment• Continuous waste removal/recycling• Clients avoid travelling to store to collect orders – collect at UCC
LocalAuthority• Cost of policing freight movements • Potential licensing revenue
• Fewer delivery vehicles in zone, leading to cleaner air, less congestion, pedestrian benefits and improved traffic flow
• Potential for alternative fuel vehicles
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CBA – Unbalanced costs & benefits II
UCCOperator
• Multitude of IT & paperwork systems to handle • Profit-making businessbut not if UCC is considered final delivery point andoperator has own system to cover the “last mile”
• Timed deliveries – how to service• Responsibility for identifyinglosses/damages at intake stage
Developer(new retailsites only)
• Cost of establishing UCC if condition of planning consent • A revenue stream, either if managed inhouseor additional charge on rent
• More rentable space as result of centralisedreceipt point and less “in-store” storage space
• Single UCC makes whole site more attractive with fewerfreight vehicle movements
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Conclusions – To be or not to be??Towards research of business models
• Collective sourcing of last-mile transport by joint shopkeepers
• Joint ventures with currentefficient distribution structures
• E-auctionsDuin, JHR van, Tavasszy, LA, & Taniguchi, E (2007). Real time simulation of auctioning and re-scheduling processes in hybrid freight markets. Transportation research part b-methodological, 41, pp. 1050-1066.
Large retailers
Logistic Services Partners?
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So for city distribution centers it means
To be, or not to be: that is the question:
Whether 'tis nobler in the mind to sufferThe slings and arrows of outrageous fortune,
Or to take arms against a sea of troubles,And by opposing end them?