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An ex ante evaluation of mobile depots in cities
An ex ante evaluation of mobile depots in cities
To cite this article: Niklas Arvidsson & Ala Pazirandeh (2017): An ex ante evaluation of mobile
depots in cities: a sustainability perspective, International Journal of Sustainable Transportation,
DOI: 10.1080/15568318.2017.1294717
Article views: 29
Download by: [University of Newcastle, Australia] Date: 02 April 2017, At: 04:12
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Abstract
Today, a large share of cost, congestion, and emission in cities is attributed to light goods
vehicles like carrier vans distributing to the last mile. The aim of many policy agendas is to reach
cleaner cities with less disturbance from the distribution vehicles. Several suggestions have been
put forward and tested in research and practice, such as access restrictions, multimodal transport,
and use of cleaner vehicles. In this paper, we develop a case for a more sustainable freight
distribution within cities using an ex ante case study. The idea of the the mobile depot is built on
the iteration between historical transitions within cities and contemporary developments in urban
freight distribution, and then analyzed ex ante both quantitatively in calculations and
qualitatively in two stakeholder workshops. The idea is integrated and multimodal, based on a
mobile depot (e.g. a bus, truck, barge, or tram) that circles the city, while a team of people using
ultra light vehicles, like bikes or segways, link to it and distribute the last mile. We found that
such a system can be environmentally and socially better for the city context, while maintaining
economic viability above a certain utilization rate of the mobile depot for the transport operators.
Keywords
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1. Introduction
Transport systems are the backbone of cities, which have been the birthplace of several transport
technologies such as bicycles, electric trams, and automobiles (Geels, 2005). However, for both
people and freight these transport systems have become environmentally unsustainable (Banister,
et al. 2011).
Last mile distribution of parcels within cities, or urban freight distribution, plays an important
role in the transport system and in the development of the economy (Figliozzi, 2010), but is also
a disrupting activity that creates negative externalities such as congestion, noise, and pollution
(Crainic, et al. 2004) in densely populated areas where, for instance, congestion also has social
and economic implications. As much as 28 percent of the transportation cost can be attributed to
this last leg of distribution (Goodman, 2005). Additionally, about a quarter of the vehicle
kilometers driven in cities are attributed to freight, which contributes to between 16-50 percent
of the transport related emissions, depending on which pollutant one considers (Filippi, et al.
2010; Dablanc, 2007; Albergel, et al. 2006). Consequently, last mile logistics commonly
performed in urban areas is considered the most expensive (Goodman 2005; Onghena, 2008),
least efficient (European Commission, 2011) and most polluting (Albergel, et al. 2006) part of
As a response, governing bodies have called for immediate action; for instance, the EU calls for
halving the use of “‘conventionally-fuelled’ cars in urban transport by 2030", phasing " them out
in cities by 2050" and essentially achieving "CO2-free city logistics in major urban centres by
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So far, strategies to alleviate the negative externalities of urban distribution have mostly focused
on optimization of freight movement (e.g. Nourinejad, et al. 2014; Ouyang, 2007; Hensher &
Figliozzi, 2007), different regulatory forms such as time and access restrictions (e.g. Arvidsson,
2013; Silas, et al. 2012; Maes & Vanelslander 2010; Holguin-veras, 2008; Browne, et al. 2005a),
mode choice (e.g. Boerkamps, et al. 2000) and vehicle choices (Browne, et al. 2007). While such
strategies have substantial momentum, their future is often uncertain (Banister, et al. 2011). For
instance, the research on vehicle choice has found larger electric freight vehicles to reduce the
negative externalities (Löfstrand, et al. 2013; Baker, et al. 2009), however, these vehicles are not
yet financially viable from a total cost of ownership perspective (Löfstrand, et al. 2013).
In this paper, we argue for the importance of also focusing on other types of vehicles and
operational changes for more sustainable solutions; vehicles that are better adapted to the urban
context and that accommodate the infrastructure changes of cities. Recent studies recognize
smaller vehicles as an operationally flexible and more sustainable mode of transport suitable for
parcel distribution in cities (Lebeau, et al. 2014; Browne, et al. 2011), but with limited radius of
action. Distribution centers can address this limitation and expand the radius of action (e.g.
Browne, et al. 2011; Conway, et al. 2011; Muñuzuri, et al. 2012). However, such distribution
centers add loading and unloading, costs associated with the intermediate storage, and require
subsequent dependence on subsidies from various actors (Quak, et al. 2014), and consequently,
We build our arguments on the findings from these studies and hence move the conversation
forward. More specifically, in this study we contribute to the sustainability discussions in city
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logistics literature by introducing an integrated multimodal approach using a mobile depot, small
vehicles, and a transloading unit making intermediate storage and reloading unnecessary.
As depicted in the study timeline in Figure 1, we motivate the development of our case inspired
by the transition perspective and historical transitions in urban freight (as suggested by Rotmans,
et al. 2000; Loorbach, 2007), which we then analyze ex ante in terms of costs and benefits (i.e.
framework to better understand desired system changes in societies (Loorbach, et al. 2010). An
essential part of this perspective is to have common insights into how the system works; for
instance, dominant practices, technologies, and ways of thinking, power relations, types of
regulations or other incentives that influence the behaviour of actors (Loorbach, 2007).
Consequently, the contributions of this paper are twofold: the framing of mobile depot
urban freight distribution; and, a case-study illustrating the economic, environmental, and social
Henceforth, we will first give a brief introduction to the transition perspective and explain how it
has guided this study, then we argue for the importance of the auxiliary and small vehicles in
urban transport. Thereafter, in section 4 the case and results from analyses are discussed.
2. A transition perspective
History shows that oftentimes established technologies are slowly replaced with new
technologies, e.g the replacement of sailing ships with steam boats, or horse carriages with
automobiles (Geels, 2005; Falkemark, 2006). These transitions start in small niches, often
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limited by special functional requirements, and in experimental settings (for a transport setting
see Bakker, et al. 2014), driven by lower costs, incremental performance enhancements,
increases in competitiveness in markets, but also socio-technical adoptions (Geels 2005; 2012).
A diffusion process, from which a transition takes place, is the result of linking various elements
together; i.e. products, technology, markets, infrastructure, preferences, habits, values, modes of
social activities, job creation, regulation and subsidies. Diffusion is possible only when enough
of these elements are linked, increasing momentum, irreversibility, mutual dependencies, lock-
ins and path dependencies (Geels, 2005; Bergh and Kemp, 2006).
In other words, a sustainable transition is a nonlinear, complex and long-term process that results
from the interplay of developments at three levels (see Figure 2): 1) niches (the locus for
regimes (the locus for established practices and associated rules that stabilize existing systems),
and 3) an exogenous socio-technical landscape (e.g. demographic trends, societal values, and
macroeconomic patterns).
Change in such systems is based on co-evolution of the different actors on the different levels
(Geels, 2011), and an important part of innovation is the “new combinations of existing
elements” (Geels and Schot, 2007). Figure 3, depicts how change can occur, change the patterns
and dynamics and eventually lead to a transition (Geels and Schot, 2007).
Transition to a more sustainable urban freight distribution is also multifaceted and multilayered.
Below we will review the dynamics of transition in this context by summarizing historical
transition cases in cities, and review some experimental implementations today. By reviewing
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solutions, and the aspects of change needed. By iterating the theoretical and conceptual
understanding gained from historical and contemporary evidence, we develop the case for
Within the transportation industry, previous technological transitions have been signified by
various add-on and hybridization mechanisms. The new technologies typically link to the old
technology in the form of an auxiliary add-on, often to improve its functioning. In addition to
competing technologies, these linked technologies can also borrow technical elements and cross
An example is the case of bikes in the transition away from horse transport in the 19th century.
At that time transport means such as horse trams and horse wagons were commonplace, and had
created operational, societal and environmental problems (Falkemark 2006; Geels 2005; Kirsch
2000). Societal problems (Landscape level) with horses including congestion and pollution
triggered the search for alternative ways of transportation and created windows of opportunity
for new technologies that were first developed in niches; e.g. trams, steam and electricity (Geels
2005; Kirsch, 2000). Electric vehicles were considered an alternative to horse carriages only
after the bicycle, which was at this point produced in higher quantities, showed that another
means of motion was possible (Birky 2008). The transition to electric trams and bicycles paved
Today, cities again suffer from “congestion, poor air quality and noise exposure”, and urban
transport contributes to a quarter of the transport emissions and more than two thirds of road
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accidents (European Commision, 2011, p. 8). The use of bicycles is also again promoted by
many cities for congestion, health and emission reasons (Transport for London 2010; New York
City, 2008)1.
Higher population density in cities means lower demand on radius of action. Thus, smaller
vehicles with limited range, which are often cleaner modes, can be implemented faster in cities.
In a freight study funded by the EU Bestfact, Lebeau, et al. (2014; 2015) find electric vehicles to
be a competitive alternative in the small vehicles (quadricycles and clubcars) segment and the
lighter Light Goods Vehicles (LLGVs) segment (i.e. gross vehicle weight of max 2.300kg), but
not yet in the heavy Light Goods Vehicles segment (i.e. gross vehicle weight of 3.500kg); and
thus, show the applicability of lighter electric vehicles for the urban context.
We can see a continuous increase in policies limiting the use of conventionally fueled vehicles,
and an increase in the spatial area for public transport, walking and cycling in many cities
worldwide (Schwanen, 2015). For instance, in private transportation, for every electric car that is
being sold, 60 e-bikes are sold (Dings, 2014). So, the space for freight deliveries will most likely
shrink. We argue that this development will support the use of small electric freight vehicles in
urban distribution.
Smaller vehicles, in general, are rather operationally flexible; e.g. the accessibility to a wide
variety of infrastructure such as bicycle paths, pedestrian areas, and bus lanes, easier flow
through congestion, better parking possibilities, and with limited structural impacts in terms of
noise and road damage. Electrically assisted smaller vehicles are also found to be cheaper in
1
Drawn on environmental considerations, in the EU White paper (2011), it is recommended to move away from the use of conventionally
fuelled vehicles, encouraging the use of smaller and lighter vehicles, and integrating walking and cycling in urban transport and infrastructure
design (ibid, p 8). “Large fleets of urban buses, taxis and delivery vans are particularly suitable for the introduction of alternative propulsion
systems and fuels. These could make a substantial contribution in reducing the carbon intensity of urban transport while providing a test bed for
new technologies and opportunity for early market deployment” (European Commission 2011, p 8).
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purchase price, tax, insurance, storage, depreciation and running costs, have no parking and
congestion charges, have higher speed in congestion, do not need driver training, and have less
environmental impact (Browne, et al. 2011; Transport for London, 2009). From a more social
point of view, smaller vehicles do not pose a threat to pedestrians and cyclists to the same extent
as trucks do, thus are perceived safer and less intimidating. The Transport for London study
(2014) shows that although heavy goods vehicles (HGVs) only make up around four percent of
the traffic, more than half of the fatal cyclist and pedestrian accidents involves a HGV.
However, the limitation in radius of action of smaller electric vehicles, necessitates an auxiliary.
Many of the experiments currently underway in Europe use some sort of an urban consolidation
or distribution center (e.g. Browne, et al. 2005b; Browne, et al. 2011; Conway, et al. 2011;
Muñuzuri, et al. 2012; Dablanc, 2014), which unfortunately, are often not financially viable and
heavily rely on subsidies (Quak, et al. 2014; Macharis and Melo, 2011). Such logistics facilities
are located in or near a delivery area to consolidate freight flows, and use different carriers in the
last mile such as electric vans and tricycles (Browne, et al. 2011; Dablanc, 2014); tricycles
(Conway, et al. 2011), or by foot with a handcart (Muñuzuri, et al. 2012; Dablanc, 2014).
In a project in Berlin an electric Micro-Carrier Utility Vehicle, a Segway-like vehicle with trailer
capacity, was tested in a pilot project, where the larger trucks delivered their goods to a City-hub,
from where the micro-carriers pick them up (Magnes, 2013). The use of this vehicle made it
possible for the operator to deliver goods for a greater amount of time in the day, that is, since
vans are only allowed in the city in the mornings. In another urban parcel delivery project in
Brussels a moveable warehouse facility was introduced; simply a truck equipped with all the
normal depot technologies, like data entry, labeling, and loading docks. This facility was moved
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to a central location and parks in one place all day, from which electric freight tricycles delivered
parcels within the last mile (Straightsol, 2012). Compared to conventional distribution, in both of
these cases extra loading and unloading was required and in one project a costly intermediate
This makes such solutions dependent on subsidies from various actors (Quak, et al. 2014),
something that ought to be accounted for in future business models of the sort. Additional
drawbacks or barriers identified in these projects are related to the limited capacity of these
vehicles in terms of carrying weight and volume. This forces the small vehicles to travel a further
distance per item delivered, and forces the companies to employ more drivers (Browne, et al.
2011; Transport for London, 2009). Furthermore, security, driver fatigue, and seasonality
In summary, historical transitions show us that new technologies oftentimes coexist with old
technologies, complementing and supporting them. This reveals the importance of hybridization
and add-ons as a step to change. Additionally, sometimes technologies “go out of fashion”, to
later become popular again, such as the bike. This perspective also shows us that innovation can
sometimes just simply be “new combinations of existing elements” (Geels and Schot, 2007).
Lastly, the transition perspective equips us with a broad notion of how change happens, and the
importance of various elements connecting together (Geels 2005, 2005; Bergh and Kemp, 2006)
in a diffusion process. Change in such systems is based on the co-evolution of the different
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As depicted in Figure 3 the urban space required to transport the same amount of people with
bicycles or a bus, is much smaller than that with cars. The picture would look very similar if the
people in this figure were replaced with parcels and the cars with delivery vans, representing
today's urban freight distribution. In theory, it is possible to fit more freight into the vans than
shown in the picture, but with the actual load rates of today's deliveries, the picture would be
very similar to reality. The main reason for this poor resource utilisation is the length of the
workday; in an 8-hours working day a driver can deliver about 30 parcels or make 30 stops.
Other drawbacks with parcel distribution using vans, than air pollution and urban space, are
linked to the amount of non-value adding time the drivers spend driving from and to the
distribution centers, which are typically located in the outskirts of the city. This driving is done at
the time of the day when there is more congestion than normal, that is in the mornings and in the
afternoons. Upon entering the city the drivers either incur parking charges (i.e. quite a
noteworthy cost for the companies) such as those for double parking, or spend a significant
the use of an existing transport network within the city, such as a bus, truck, barge, or tram lane
for transit of the mobile depot in the city. Bus Rapid Transit (BRT) is a similar concept for
distribution of passengers in the city (as presented in e.g. Combs and Rodrigues, 2014). In our
suggestion, the BRT concept will be transferred to the freight distribution context; simply put, a
larger distribution vehicle (i.e. the mobile depot) connected with a series of small vehicles,
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In this suggestion, as depicted in Figure 4 and 5, the mobile depot is loaded at the distribution
center (located in the outskirts of the urban area) and is driven into the city by a driver. Pre-
packed load units in the form of e.g. standardized mini containers or small trailers can be used to
facilitate transloading. A wishlist for the mini containers would be Euro pallet size, lightweight
material, stackable at least one layer. Along the city, a series of smaller vehicles, e.g. cargo
bikes, segways, or the other small vehicles mentioned in previous projects, can be used to pick
up the pre-packed load units from the depot, and distribute in the last mile. This will reduce the
high emission flows created by the delivery vans to a great extent. In a situation where the
mobile depot is fueled by more environmentally friendly energy (e.g. an electric bus or tram), the
Connecting the mobile depot to the extant public transport system can facilitate the delivery
using this system. For example, the mobile depot can use the existing public transport lanes, and
it would not interfere with public transport, since it does not have to stop at every stop, and could
The results of the economic, social, environmental, and stakeholder perspectives of this
suggestion are presented in this section. The mobile depot model is calculated based on a freight
bus serving as the mobile depot with electric cargo bikes for last mile deliveries. For the
economic and environmental evaluation, firstly, the variables are analyzed according to a base
demand model. Since the base scenario illustrates very low utilization rate of the bus, to
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investigate how scale influences them, the same calculations are performed for a scenario with
higher demand (i.e. 25%, 50%, 75% and 100% utilization rates of the freight bus)2.
The base scenario is based on real-time data from a medium size parcel distributor in the city of
Gothenburg in Sweden in 2015, with 520 return trips per year, 80 parcels per return trip, 41600
parcels per year, 53 stops per return trip, 27560 stops per year, and 1.5 parcels per stop (in 260
working days a year in a six-hour time frame of 10am to 4pm). On average, each parcel weighs 4
kg and has a volume of 19,5 cm3 (i.e. a standard DHL package of 33.7 cm x 32.2 x 18 cm).
In the conventional distribution model, to fulfill the demand specified in the base scenario, two
vans are needed (with a volume load capacity of 5.9 m3 and a weight carrying capacity of 815
kg). The average distance per return trip per vehicle is 74 km or 19 240 km per van per year (i.e.
The freight bus is assumed to take the same route to the city as the vans, and makes six stops in
the city center. In the base scenario, assuming an equally distributed demand, if the two vans
deliver 80 parcels each, the freight bus would be loaded with 160 parcels and deliver 27 parcels
per stop, requiring two cargo bikes. It is worth noting that in this scenario, the bus driver has an
important managerial function to coordinate the bikes and decide when to move the mobile depot
to the next stop. Based on the bus routes for the city of Gothenburg, the total distance driven by
the bus is 31 km (i.e. 9 km from DC to center + 22 km in center), and by the bikes, 24 km (i.e. 6
km in between stops+3 km radius of action around each stop*6 stops=24 km). One fully charged
bike battery works for 25 km, but one extra battery is also accounted for.
2
Part of the economic and environmental calculation are previously published in a master thesis on this research project (see Berninger and
Farneman, 2015)
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In this section, the cost of conventional urban freight distribution using vans is compared with
that of the mobile depot, to estimate its financial viability. The operating costs of the distribution
systems (i.e. the standing costs, running costs and overhead costs) are analyzed based on the base
and scaled scenarios, and then the influence of possible variables that can affect the outcome of
the cost analysis are tested through a sensitivity analysis. In the sensitivity analysis, the labor
costs, the fuel costs, the delivery rate of parcels per stop, the delivery speed of the distribution
vehicles as well as congestion charges and parking fees were evaluated to find the break-even
points where one of the two models make more economic sense.
Table 1 shows the difference in operating costs of the two distribution systems in the base
scenario. The bus would have the highest total operating costs per year (i.e. 84,544 EUR), due to
the high capital investment required, and the cargo bike the lowest (i.e. 39,605 EUR compared to
52,306 EUR for a van). As a result, the mobile depot distribution would yield about 24% higher
However, since the base scenario represents low utilization of the vehicle maximum weights and
volumes (i.e. 6-40% for the different vehicles), for a more realistic comparison, as depicted in
Table 2, cost of per-parcel delivery is compared for 25%, 50%, 75% and 100% utilization rates
of the bus.
At above 25% utilization rate, as the capital investment for the bus is spread over a larger amount
of parcels and since the cost of employing a new van is higher than that of a cargo bike, the
deliveries using vans. This is further illustrated in Figure 6, in which the total cost for the
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different systems increases in a stepwise manner and where the mobile depot becomes
financially competitive when the cost gap between vans and bikes equals the fixed costs of the
bus.
The results of the sensitivity analysis, show that the mobile depot model remains financially
viable even in situations of lower labor costs, parking charges, fuel costs, or higher delivery rate
per stop. On the other hand, if the bikes deliver at a higher speed than the assumptions, or with
lower congestion charges that commonly apply for more environmental modes of delivery,
mobile depot gains even more competitiveness (for more details of the calculations please see the
To evaluate the environmental implications, the “Guidelines for Measuring and Managing CO2
Emission from Freight Transport Operations” (Cefic and ECTA, 2011) were used.
In the base scenario, the annual CO2 emissions for distribution using vans is 11,160 kg CO2 (i.e.
2*2.9 kg CO2/liter [Well-to-Wheel fuel emission conversion factor for diesel fuel]*10liter/100
km*19,240 km) and 11,171 kg CO2 for the mobile depot (i.e. 3.3 kg CO2/kg [Well-to-Wheel
fuel emission conversion factor for CNG fuel]*42 kg/100 km*8,060 km). In this scenario, we are
essentially comparing two vans with a bus, since the electric cargo bikes employed are
considered emission free with a Swedish energy mix. The environmental performance is greatly
improved in the scaled scenario since only one bus is required for 1-1869 parcels while the
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The mobile depot suggestion would also add notable benefits in terms of congestion 3, noise and
visual intrusion. The space-time occupation method suggested by Browne, et al. (2011) is used,
in which the dimensions of the various vehicles are multiplied with the time spent in the city.
The results show that the total road space and time occupancy is 59 m2-hours (9.87m2*6h) for a
van and 20 m2-hours (3.33m2*6h) for a freight bike. While, the space and time occupancy of the
vans and bikes increases linearly as the number of parcels increases, since only one bus is
required for 1-1869 parcels, for the bus it varies between 94 and 188 m2-hours in a zig-zag
pattern due to the break-of-point in terms of capacity (see Figure 8). At above 480 parcels, the
Stakeholders are any individual or group that can influence or are influenced in the process of
achieving objectives (Freeman, 2010). They directly influence the factors that stimulate
sustainable development and growth of technology and infrastructures, and each have their own
views, objectives, incentives, norms and standards to govern the situation. Consequently, the
study of stakeholder involvement and perspective is of great importance (Verlinde, et al. 2014;
Freeman, 2010).
In the transport sector, investors, operators, and the society as a whole are part of the
actors, some of which are freight carriers/ operators, transport buyers, authorities and
3
From the standpoint of congestion, the gain is made by replacing x distribution vans with one freight bus and x smaller vehicles. The x=x
relationship can be maintained by smaller vehicles being more agile in a city environment: The distributors (for instance freight cycle operators)
start their work day when they meet up with the bus in the morning and work for eight hours delivering, the distributors do not have go back and
forth to the distribution center in rush hour in the morning and afternoon. They do not have to incur parking costs and fines and are not restrained
by one way streets to the same extent and can use shortcuts, like bike paths. They can also get a bit closer to where they have to deliver (often just
outside the door), whereas a van driver usually has to walk a bit longer. They do however have to go back to the bus a once a day to collect a new
load unit. In general, the delivery speed for the cycles and distribution vans are considered to be the same.
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administrators, vehicle manufacturers (Arvidsson, et al. 2013), citizen, transport unions and
researchers. In this study, the aim was to get the input from representatives from each of these
stakeholder groups that would be affected by the new distribution system, on its applicability,
advantages, disadvantages, possible barriers, and needed adjustments to increase its likelihood of
success. In this regards, two workshops were conducted ensuring the participation of at least one
representative from each stakeholder in either of them. Representatives were selected using a
snowball sampling and by contacting the actors in the city of Gothenburg, where the scenarios
The mobile depot suggestion and the economic and environmental results were presented in the
workshops and then data was collected using roundtable discussions, joint discussions, and
surveys. The details of data collection from the two workshops including the number of
Biggest advantages of the BRD were discussed to be improved aesthetics of the city due to
reduced number of vans and the difference in size and movement of small vehicles compared to
vans, improved air quality and lowering of CO2 emissions, and lower urban congestion (also
related to reduced number of vans). Related to these aspects, the participants noted the large
geographical drop-density the solution can offer compared to other non-mobile city warehouse
On the other hand, as the numbers in Table 4 suggest, the biggest possible barriers, were
operations (e.g. bus driver with the multiple cargo bike drivers), risk and reward sharing, turf
protection due to change of actors, and resistances to change. But, to our surprise, economic
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viability and use of city space of this solution compared to existing methods of delivery was not
regarded as an issue after round-table discussions. In general, all discussed issues were regarded
solvable at either the short or long term. Table 4 shows what percentage of the participants who
considered each possible barrier to be solvable in short versus long term and the application
Additional application possibilities to the ones listed in Table 4 were discussed in relation to the
size of packages suitable for the solution (small to medium, e.g. e-commerce, perishable local
goods like food or home deliveries, or newspapers and post), possibility of integrating a
collection system with the delivery (reverse logistics), combining the solution with drop-off
terminals for small vehicles to pick up the freight, the importance of standardized containers for
future scale-up of the solution, and the suitability of the solution for residential areas as well as
city centers.
In the mobile depot system, the interrelation and interplay between the actors becomes of vital
importance. The small vehicles drivers act similar to satellites and work throughout the day,
adding value to the company by delivering parcels to customers in the load units. The driver of
the mobile depot has a coordinating role. The municipality, in such a project, is a vital actor who
has to analyze and approve the system. Technological add-ons, such as a smartphone app that the
distributors and the driver of the mobile depot can know the location of each vehicle, could
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In this paper we suggest and analyse an urban distribution system informed by the socio-
technical transitions literature and based on the historical transitions and contemporary needs of
urban transport. The suggested system is integrated and multimodal, consisting of a mobile depot
(i.e. depending on the context of the city e.g. a freight bus, truck, barge, tram, or other), small
vehicles (quadricycles, clubcars and/or segways), and some form of standardized load unit to
make transloading easier. Compared to previously discussed mobile depot distributions in the
literature (such as the case of TNT in Brussels, in which the depot parks in the vicinity of last
mile distributions during the day and thus requires urban space for this matter suggested in
Verlinde, et al. 2014), the suggested depot in our study circles the city and only stops for loading
Our analysis revealed that such a transition to mobile depots for distribution of parcels in cities
can be beneficial from an environmental and social point of view in terms of improving air
quality and lowering CO2 emissions, noise intrusion, congestion and visual intrusion (i.e. time-
space occupancy at 480 parcels or more in our example), and still remain economically
competitive for transport operators (i.e. when the cost gap of the vans and the small vehicles
While more studies are required to understand the drawbacks of this system, the major aspects
found in our study were related to coordination of the actors (both individuals and
organizations), fair sharing of risks and rewards, resistances to change and turf protections. This
finding is in line with suggestions in the transition literature regarding vested interests, mutual
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dependencies, lock-in and path dependencies that are influenced during a transition (Geels 2005,
In a situation where an electric bus is utilized from the start, the environmental (i.e. “tailpipe
emissions”) benefits can be even higher. However, the investment costs are also significantly
higher, impacting the short-term economic calculations. Additionally, the range issue might
affect the applicability of this solution. Alternatively, conventional distribution vans could be
replaced with electric vans with the same investment and range issues as with the freight bus.
Lebeau, et al. (2015) discusses this paradox with electric vehicles further.
From a policy perspective, these results suggest that a mobile depot distribution system using
small vehicles for the last mile delivery of parcels in the city can be a more sustainable
alternative to the current distribution systems using vans. This suggestion can replace part of the
parcel distribution in the cities. Aspects to consider for higher success of the system are the
context of the city such as the available public transport systems and existence of inner
waterways, the importance of standardized load units, and inclusion of the actors impacted by the
change. Further studies need to be conducted on small scale implementations of such a system to
better understand its implications. It is also important to point out that a continued increased
pressure by regulatory bodies on the transport operators to find zero emission alternatives (e.g.
sustainable solutions (according to the transition perspective e.g. as depicted in Figure 3).
Yet, the findings of this study are firstly limited to the method employed. The effect of policy
measures, like Congestion Charging and Low Emission Zones, to promote the use of more
sustainable operations is not analyzed in this paper, see for instance Verlinde, (2014).
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Furthermore, the analysis has not taken into account the type of network patterns suitable for this
type of deliveries. Topography and weather conditions have not been analyzed specifically.
These matters need to be taken into account in future research. Finally, during the workshops we
had limited representation of the operators which are arguably key actors in such a system
change. It is, however, worth mentioning that towards the end of the review process of this
research paper Schenker consulting confirmed the quantitative findings of the paper and
developed a reference case based on it (see appendix), and Mercedes-Benz together with Starship
Technologies, a manufacturer of autonomous small robots, are aiming to invest $560 million on
7. Acknowledgements
Financial support by The Swedish Retail and Wholesale Development Council (Handelsrådet),
made this research possible and is gratefully acknowledged. We would also like to acknowledge
the two master students, Stefanie Berninger and Sofie Farneman and the anonymous reviewers
4
http://www.drivesweden.net/en/smart-mobility-news-and-comments/mercedes-benz-and-starship-technologies-build-robot-enhanced-delivery-
concept
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Table 1 Cost comparison of the conventional and mobile depot distribution for base scenario in €
(41600 parcels/year)
Cost Depreci Insura Lab Tax Fuel Lubric Mainten Tir Othe Overh Total per
of ation nce or ants ance es rs ead parce
Capi l
tal
Conventio 890 5561 3878 722 114 59 59 1570 34 176 1120 1046 2.51
nal 60 6 26 6 8 8 12
Mobile 434 20779 5510 729 107 63 63 1003 35 554 1754 1295 3.11
depot 2 52 10 3 5 17
Difference 345 15219 1632 692 - 38 3 -567 6 - 6337 2490 0.60
2 103 4 121 5
9 4
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Table 2 Per-parcel cost comparison of the conventional and mobile depot distribution for a
scaled scenario in €
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method
Consultants (2)
Architects (2)
- Notes from
roundtable
discussions
Transport union (1)
- Roundtable
discussions
Operators (2)
Buyers (1)
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- Whiteboard
vote from
joint
Local authorities (1)
discussion
- Vote ballots
- Joint discussion
- Anonymous
votes
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% considering it
solvable in
Short Long-
multiple individuals
effect"
Turf protection 25 75 -
sharing
Compensation of 41 59 -
losers
Safety issues 50 50 -
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Legal and insurance 50 50 - You create novelty, you create new rules
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Figure 2: A multi-level perspective, in (Nykvist and Whitmarsh, 2008 and Geels, 2002)
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Figure 3 The transition process in time and the three MLP levels (based on Geels and Schot,
2007: 401)
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Figure 3: Amount of space required to transport the same number of passengers by car, bus, or
bike
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Figure 4 The impact of a mobile depot system on delivery flows in a city, own making.
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Figure 5 A suggestion on how the intermodal transloading could look like, in this case the
mobile depot is a low floor vehicle, created by Per Gyllenspetz in the Vinnova project Mobil
depå. Source:
http://www.core77.com/blog/object_culture/car_bus_bicycle_taking_up_space_in_the_same_pla
ce_8015.asp
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Figure 6 Comparison of the total costs of conventional freight distribution vs. mobile depot
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Figure 7 Comparison of the CO2 emission of conventional freight distribution vs. mobile depot
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Figure 8 Comparison of the road space and time occupancy of conventional freight distribution
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