With urban transport being responsible for about a quarter of carbon emissions, real world pilots are being conducted to improve the efficiency of the last stage of urban goods delivery. Howard Knott, logistics projects director at the Irish Exporters Association, reports on their progress
In the run up to meet the EU’s 2030 greenhouse gas emissions targets, cities are becoming much more energised in congestion and pollution reduction activities while at the same time, online retailing has, on the back of global broadband and mobile technology development, become firmly established.
This growth is by no means confined to mega-retailers, but has also become the route to market for small firms that could never otherwise service international markets. In these cases, the last mile logistics that enable them to have their products consolidated with others is of vital importance. For manufacturers of consumer products, particularly food and drinks, a low carbon supply chain is becoming a necessity if they are to secure consumer acceptance.
Also, the technology behind vehicles burning alternatives to fossil fuels has advanced considerably in the last few years. Nissan, in particular, has pushed on with getting viable electric vehicles onto the streets, while methane, compressed natural gas (CNG) and even hydrogen‑powered vehicles designed for operation in urban environments are under active development.
Distributing urban goods
Aiming to make a step-change in freight deliveries, the LaMiLo (Last Mile Logistics) project addresses the ongoing challenge of managing urban goods distribution for an increasingly demanding 24/7 society by fully considering the last mile of a supply chain when planning a freight logistics journey. Led by the Institute for Sustainability, LaMiLo is a European INTERREG NWE IVB project co-funded by the European Regional Development Fund (ERDF) that aims to encourage more efficient and integrated logistics solutions and incentivise behaviour change of private companies, the public sector and consumers to make better use of existing urban transport infrastructure and networks.
Working in partnership across North-West Europe (NWE), logistics industry experts, local authorities, and researchers have been undertaking real world pilots to improve the efficiency of the last stage of goods delivery to businesses and homes. With urban transport being responsible for about a quarter of carbon emissions, LaMiLo has been exploring utilising more environmentally friendly transport methods such as electric and other low emission fuel powered vehicles; as well as consolidated approaches to streamlining deliveries that will help reduce CO2, congestion and pollution levels in city centres and around freight hubs.
Capital deliveries
In some European cities such as London, virtually all deliveries of goods into the central area are made using road transport. Working with Enfield, Waltham Forest and Islington councils, the London Borough of Camden is running a pilot delivering goods to a London Boroughs Consolidation Centre (LBCC). Here, the goods are sorted into fewer vehicles for the final ‘leg’ (last mile) of the journey to Council sites, on a ‘just in time’ basis. Based in Edmonton, the facility is currently operated by DHL and serves over 250 council buildings across the four boroughs in Central and North London.
The congestion experienced on Camden’s roads affects the bus transport system, with wasted fuel estimated to cost £426 million per annum. Hold-ups to business and freight due to congestion currently amount to an annual cost in the UK of £1.1bn and contribute indirectly to increases in the costs of goods and services. The projected growth in demand for freight (seen in van demand increases) of 30 per cent over 2008 and 2031 further shows a future consisting of greatly increased congestion on Camden roads, and a deepening adverse economic impact stemming from congestion.
Greener and more efficient
As the first public sector-led initiative of its kind in the UK capital, the success of the pilot has demonstrated that environmental and operational benefits for residents, businesses and Council staff can be achieved.
The two vehicles that are currently making the final delivery to council buildings are now operating at 80 per cent or higher utilisation. Within the first 12 months of operation the LBCC consolidated 51,000 deliveries fulfilling 9,700 orders, with only 0.64 per cent of items being returned. This has led to a 46 per cent reduction in the number of vehicle trips and a 45 per cent reduction in kilometres travelled.
Analysing the impact, Camden Council has succeeded in approximately halving the delivery-vehicle traffic going into and around London and halving the associated emissions.
The environmental credentials of the centre will be further enhanced following the introduction of an electric Nissan commercial vehicle. As short delivery distances are travelled, the adoption of electric vehicle technology will lead to substantial environmental benefits.
The LBCC also provides Camden Borough with an innovative and sustainable mode of operating which supports the delivery of the green agenda; these objectives are part of Mayor of London Transport goals for London as a whole, which include aims of reducing transport’s contribution to climate change and enhancing the quality of life for all Londoners.
By September 2015, the LBCC plans to achieve a 57 per cent reduction in vehicle trips, 69 per cent fewer kilometres travelled and 70 per cent reductions in NOx and CO2 emissions.
The story in Holland
Meanwhile, Eco2City, a logistics service provider in the Netherlands, has launched similar distribution centre operations in Maastricht and Nijmegen, with goods being delivered to consumers located within the cities.
In this model, customers sign up to the ‘Freight Circle’ scheme, choosing the hubs as their delivery address instead of their home address. Here, goods are consolidated according to area and delivered to the customers (by bike) at a time chosen by them. By consolidating the deliveries, the Freight Circle scheme contributes towards the reduction of the number of vehicles in the city centre and residential areas, and towards the reduction of failed deliveries. The scheme now also offers an ad hoc reverse logistics service to its customers, collecting valuable waste, and supporting a circular economy.
Greening the French capital
In Paris, LaMiLo project partner The Green Link (TGL), a private sector company working on the last mile, has trialled an IT system to map and optimise the delivery of goods using electric bikes and electric vans.
The aim of the system is to optimise the calculation of routes taking into account specific bike accessibility (such as bike lanes) in Paris. This, in turn, will help to maximise the efficiency of deliveries.
A number of TGL messengers are also undertaking a parallel trial to the ICT software pilot with temperature controlled cargo bikes to deliver food in the city of Paris. The objective of the trial is to test different types of temperature controlled material, analysing the rate of temperature drop. Deliveries using these bikes have the potential to replace standard refrigerated vehicles generally used for delivering temperature-controlled goods.
Over the next two months the results of these pilot activities carried out by the fifteen LaMiLo partners will be measured.
Sharing knowledge
The learnings are being captured in a number of case studies and reports which are being published on the LaMiLo project website. Through sharing the knowledge and promoting best practice, LaMiLo is aiming to influence the future thinking of public planning and transport authorities, as well as private sector businesses to encourage innovation and sustainable economic growth. The project results will also be presented at the LaMiLo project final conference which takes place in Brussels on 24 June.
Further information
Visit tinyurl.com/plu8kpd to watch the LaMiLo video