To Be Or Not Tobe A Typical CDC Question Rv D
- 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 Deurne, 12 – 13 November 2009 Ron van Duin 1
- 2. Contents 1. History of city distribution 2. Complexity of the research problem 3. Survey 4. Factors that determine success/failure 5. Conclusions 6. Research path 7. Discussion Ron van Duin
- 3. So called ‘Veemhuizen’ anno 1913 “Zo oud als de weg naar Kralingen” • At the edge of town • Multimodal accessible • Temporary stock • Cross-docking Ron van Duin
- 4. The last mile delivery • Environmental friendly (beside drivers and horses C02-neutral) • Collection of return flows (‘Voddenman’/’Schillenboer’) Ron van Duin
- 5. Freight flows in towns Ron van Duin
- 6. entrepreneurs public services shippers habitants constructors Multi-actor field consumers carriers producers municipalities suppliers provinces Ron van Duin government Deurne, 12 – 13 November 2009 offices
- 7. Problem……..!!! Instead of Ron van Duin
- 8. Different policy views on a sustainable city Accessibility Freight Friendly Economic growth Minimal space Liveability Coordinated 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) Ron van Duin
- 9. 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 Ron van Duin
- 10. 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) Ron van Duin
- 11. Survey 10 EU cases 3 Successes Bristol 2004 La Rochelle 2001 Kassel 1994 4 Failures Leiden 1994 Utrecht 1995 Nuremberg 2005 Malaga 2004 3 Not clear (yet) Nijmegen 2008 Thun Siena Ron van Duin
- 12. 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 field Name 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 Ron van Duin
- 13. Evaluation aspects Ron van Duin
- 14. Comparison (I) Type of CDC n=10 Organisation n=8 Subsidies I UDC 8 Public 0 No subsidies 2 Cross-dock 1 Private 4 Local subsidies 6 Co-usage of private DC 1 PPP 4 National subsidies 2 EC subsidies 2 Origin of the initiative n=10 Municipality 6 Funded by Subsidies II n=8 Transportation companies 2 Subsidies 6 One time 3 Private CDC operator 1 Transportation companies 5 Structural 5 Shopkeepers 1 Shopkeepers 1 Ron van Duin
- 15. Comparison II Accompanying measures n=9 Distribution vehicles n=9 Time windows 5 Conventional trucks 3 Environment zone 1 Electric vehicles 1 Pedestrian only area 3 Carrier cycle and natural gas car 1 Usage of bus lane 1 Combination conventional and electric 4 No 2 Ron van Duin
- 16. Survey among 7 EU cities Type of Stakeholder(s) that Organisati Funding Subsidies I Subsidies II Acc. measures Distribution UCC initiated on vehicles Success Bristol UDC Municipality Private Subsidy EC Structural None Conventional Kassel UDC Transportation Private Subsidy Local Temporary Pedestrian Conventional companies zone La Rochelle UDC Municipality Private Subsidy Local Structural Time windows Electric (agglomeratio n) Failure Leiden UDC Municipality PPP Subsidy EC One time Time windows Conventional and electric Utrecht Multiple Municipality Private Transportation - - Time Conventional UDC companies window s s, usage of bus lanes Malaga Cross-dock Municipality PPP Transportation Local One time Pedestrian Conventional and companies zone electric and subsidy Nuremberg UDC Shopkeepers Private Transportation - - Pedestrian Conventional and companies zone electric and shopkeepers Ron van Duin
- 17. 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) Ron van Duin
- 18. Example of commercial feasibility CDC Den Haag I Criteria Scenario 0: Scenario 1: Scenario 2: Scenario 3: Current Full participation, Full participation, Few participants situation light trucks medium trucks Vehicle kilometre 0 -2% -8% -0.8% reduction Net benefit 0 -/- € 50,577 € 118,083 -/- € 220,040 Service 0 ++ + + Ron van Duin
- 19. Example of commercial feasibility CDC Den Haag II 150,000 m3 goods per year means a participation of approximately 60% 22.00 21.00 20.00 19.00 18.00 17.00 Euro per m3 Benefits 16.00 Cos us light trucks ts ing Cos us medium trucks ts ing 15.00 14.00 13.00 12.00 11.00 10.00 25000 50000 75000 100000 125000 150000 175000 200000 225000 250000 3 m of goods delivered via the UCC Ron van Duin
- 20. CBA – Unbalanced costs & benefits based on (Browne et. al., 2007) COSTS BENEFITS Supplier • 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 Transport provider • 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 Local Authority • 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 Ron van Duin
- 21. CBA – Unbalanced costs & benefits II UCC Operator • Multitude of IT & paperwork systems to handle • Profit-making business but not if UCC is considered final delivery point and operator has own system to cover the “last mile” • Timed deliveries – how to service • Responsibility for identifying losses/damages at intake stage Developer (new retail sites only) • Cost of establishing UCC if condition of planning consent • A revenue stream, either if managed inhouse or additional charge on rent • More rentable space as result of centralised receipt point and less “in-store” storage space • Single UCC makes whole site more attractive with fewer freight vehicle movements Ron van Duin
- 22. Conclusions – To be or not to be?? Towards research of business models • Collective sourcing of last-mile transport by joint shopkeepers Large retailers • Joint ventures with current efficient distribution structures ? Logistic Services Partners • E-auctions Duin, 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. Ron van Duin
- 23. So for city distribution centers it means To be, or not to be: that is the question: Whether 'tis nobler in the mind to suffer The slings and arrows of outrageous fortune, Or to take arms against a sea of troubles, And by opposing end them? Ron van Duin