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Urban logistics : Realities and prospects
Urban logistics covers all activities involved in the transport of goods in a city. It lies at the crossroads between urban development issues, economic dynamics and quality of life; it is an increasingly important consideration in the overall functioning of the city and its management requires an efficient rationalization of its components.
Urban logistics groups several interdependent realities, such as the organization of flows generated by the commercial, industrial or service companies in the trade sector; private individuals’ shopping trips; the related flows covering a diversified reality (waste transport, public transport, etc.).
The city traditionally remains a major place for exchanges and consumption and it has seen an increase in the number of deliveries, even though the development of e-commerce tends to dematerialize part of shopping at the ordering level.
The weight of urban goods transport
Because of its role as a “driving force” of the city, trade generates one third of the movement of goods. From the various studies conducted, urban goods transport can be broken down as follows:
- 20% of urban vehicle-kilometres are due to transport of goods, 55% of which represents household shopping trips,
- 50% of the diesel consumed in the city is for transport of goods (including purchasing),
- 35% of urban CO2 emissions come from transport of goods (including purchasing),
- 70% of deliveries last less than minutes,
- 8 small vehicles are needed to carry the load of one heavy-goods vehicle.
Furthermore, the number of deliveries in the city centre remains four times higher than the number of collections. In the more dense areas, vehicles under 3.5 tons do roughly half the deliveries and collections.
As a source of nuisance in the city centre, the transport of goods represents 10% to 15% of vehicle movements and 30% of urban transport energy consumption (energy, pollutants, etc.). In addition, the noise pollution generated by goods transport is still high. Similarly, it creates congestion in the city centre. Road occupancy by double-parked delivery vehicles represents 25% of total occupancy of the road network, or even 60% in the centre of some large cities, where 50% of parking for delivery is illegal.
Realities and prospects
According to the different surveys conducted, relocating the exchange of goods outside the city is not an option, because it would generate a negative result on the whole in terms of distances travelled, consumption of space and energy, and pollution emissions. So we need to find the most appropriate methods and means to control and manage urban logistics, by involving the public and private actors concerned in the choice of innovative solutions. Cities must simultaneously reduce nuisances, revitalize urban centres and organize public spaces in order to meet a growing demand for new logistic services. Various strategies have been elaborated to that end, covering grouping, delivery vehicles, real estate and logistics facilities, commercial structures, etc.Grouping can apply to vehicles, delivery areas, bulk-break bulk platforms, technical means or even data. Grouping deliveries increases the filling ratios and lowers costs through the mass distribution effect. It can be done via a central booking type of platform. A plan to group deliveries is currently under study in the flower sector (C1 pavilion) of Rungis Market.
Multimodal transport (train/road, river/road, etc.) remains an interesting solution for large urban centres equipped with good infrastructures and for very large flows, like Paris or other major cities.
As regards delivery vehicles, there has been a shift towards electric or gas powered “clean vehicles” (LPG, NGV, etc.). However, these fuels are still relatively undeveloped and limited by various constraints (autonomy, cost, etc.). Since diesel is now less polluting since it meets new standards (Euro 5 and 6) it will continue to be used, while the use of bio-fuels will grow. We are also seeing bicycle-trailers to carry goods in the famous “last kilometre”, reputed to be the least costly (20% of the total cost of the chain).
Reducing noise pollution is a major issue, so research is being done (engines, ball bearings, refrigeration units, handling, etc.) to move towards quieter equipment, particularly electric equipment.
Urban logistics and concepts
Under the pressure of real estate prices and low transport costs, logistics has moved out of city centres, causing an increase in kilometres and pollutants, while lowering the productivity of transport operators and the urban economy. Yet urban logistics requires the use of platforms so urban real estate then becomes a strategic variable. It can resort to innovative concepts like urban distribution centres, “logistic hotels” combining various functions within a sustainable development policy, urban logistic spaces designed to optimize delivery of goods in the city (breakbulk points, recomposing flows) by providing specific services (storage, handling, clean vehicle service), lockers or urban logistics boxes, etc.
Delivery bays are the first urban logistics equipment and they are often misused through illegal parking, which impedes the productivity of carriers. To remedy this, they can be controlled or equipped with dissuasive systems or put to combined use (shop/private user). There are also guarded local delivery spaces, strictly reserved for deliverymen. The supply is still poor for home delivery although the demand is growing very significantly.
Urban logistics is destined to become a high value added service business but to grow it has to rationalize its structures.
Lowhub in London
Lowhub supplies transport services to the clients – florists and greengrocers – of the different London markets (New Covent Garden, Borough Market, Spitalfields, Smithfield, Billingsgate, Western Intl.) that functions on the principle of grouping deliveries. Retailers shop at the wholesale market and entrust the transport to Lowhub. Also established at the wholesale market, Lowhub groups all the purchases entrusted to it and then delivers them, in one round, to the retailers concerned.
This solution saves retailers from having to bring their own vehicle to do their shopping, which can cause congestion and pollution. This solution is all the more ecological because Lowhub principally uses electric vehicles or vehicles using flexifuel/bio-fuel. The service can be invoiced to the wholesaler or the buyer if the volumes are big and the amount is calculated according to the distance travelled and the volume of the load. This solution has met with growing success across the Channel.
Chronopost and Chronocity
A major transport actor in France, Chronopost (250,000 parcels deliveries/day, 230 countries covered) is also a responsible actor in sustainable development terms, as shown by its concept of urban goods transport in Paris, in consultation with the Paris City Council. It includes an underground urban logistics area at Place de la Concorde (a branch of the Chronopost International Paris – Bercy agency) that handles the distribution of parcels to the 7th and 8th arrondissements of the capital,
using clean vehicles, namely eight “Chronocity” (electric trolley concept pulled by an operator) and seventeen “Chrono vans” (small electric van). In terms of results, this method of operating has saved the CO2 equivalent of 55 in 2 years (-54% greenhouse gas effect, of which 1/3 is due to reorganization and 2/3 to clean vehicles), 61,546 km of light vehicle travel avoided and a 20% productivity gain on the rounds.
Francis Duriez
( Source : Mairie de Paris, LET, PIPAME, Certu)
Pro reviews
 Crédit photo : FD
Laurent Grandin
(Managing Director of Sicaer - Pomona Group- F&V sector of Rungis)
“Sicaer is a company specialized in the distribution of fruit and vegetables for institutional (15,000 tons/year) and commercial (10,000 tons/year) catering. We have 1,500 clients in all, and we deliver 700 to 800 clients a day.
Given the traffic problems in the Paris region, we had to anticipate and rationalize our distribution by finding the best solution for pre-loading our trucks and leaving very early in the morning. We optimized our rounds with our clients, using computer calculations and support software to cut costs. Actually, I think we have the best optimization capacities in terms of delivery. Concerning sustainable development, our company has done a carbon audit and we are committed to the ISO 14001 standard. This means optimizing our haulage upstream with rail transport and reducing the number of trips downstream, particularly for orders below 50 kg.
Nonetheless, we will increasingly face problems like using gas or electric engines, which will ultimately add to our costs significantly. As for the parking problem, we need to reserve delivery spaces for professionals with a parking permit at specific times (from 2 am onwards). As for grouping deliveries, that applies to subcontracted carriers, so it does not concern us statutorily. Optimizing our capacities is still the best solution to urban goods transport for us, by agreement and in line with official policy, and consistent with the regulations.”
Crédit photo : FD
Rui Dos Santos
( Managing Director of ITD Transports - Rungis)
“The transport of goods in the city centre is not sufficiently defined in regulatory terms to interest us. There are too many regulations and they change too often. The standards of the local authorities should be set out in specifications for a period that satisfies us, which means for at least three years, to be able to invest. Under the current conditions, we have no plans to transport goods in an urban environment, especially as the famous last kilometre is still the most expensive and the least profitable.”
Crédit photo : M Fraicolo
Jean-Sylvain Boudoy
(Managing Director and founder of M. Fraicolo)
“Our concept is that the client sends an order for fresh produce to us on Internet, and we deliver him on bicycle. The idea came to me after producing websites for the car industry and after visiting Rungis. We buy every day at Rungis to avoid any storage and to guarantee our clients the best freshness. The time between buying at Rungis and delivering is well under 24 hours, even for deferred deliveries. To deliver, we used a bicycle towing a small trailer on which we group several cool boxes (35 litres and 14 litres, partitioned according to the products) containing our clients’ purchases. Our bicycles are equipped with an electric battery for steep climbs. The orders are prepared in our warehouse and dispatched by van to the outskirts of Paris or the suburbs (92, 94, 78) and delivered by bicycle from there. For reasons of efficiency and sustainable development concerns, I opted for the bicycle-trailer. There is no pollution, no parking problem, no traffic jams and it takes less time than a car, particularly in Paris at certain times of the day.
We have about a thousand clients today, and our line contains 900 listed products, notably all fresh produce (except fish, which is still hard to transport), all groceries and “organic” hygiene and cleaning products. All orders start at €39 and the average bill comes to €90. I work with my wife, Karen, who is in charge of the Internet orders and accounts, and I have an employee who assists me with the deliveries. I hope to develop the business sufficiently to have an intra-urban logistics base.”
Crédit photo : Petit Forestier
Arnaud de Cespedes
(Director General in charge of development of the Petit Forestier group)
“European leader in the refrigeration rental market with a network of 103 agencies in France and 43 in Europe, Petit Forestier today has a multiple product offer that includes vehicles, furniture and containers. Thanks to the contributions of successive generations, this family business has successfully made the necessary changes to improve its know-how and competitiveness, particularly in terms of logistics and urban distribution. With a fleet of 30,000 vehicles for hire in many business sectors, we have a thorough understanding of the different professions that need to rent refrigerated vehicles. We advise our clients not only on the choice of vehicle but also on options like accesses, interior fittings and onboard software (geolocation, round options), so that everyone gets a custom-built vehicle, adapted to their specific needs. Our engineering department keeps a permanent technology watch so our clients also benefit from all the latest innovations, principally in terms of accessories (lift gate, tachograph, temperature recorder, GPS tracking). Our vehicles are a real work tool for our clients, and they have to suit their products and business constraints. Changes in urban delivery have made us more reactive and, with this in mind, we regularly innovate in our methods of producing and installing our vehicles’ accessories to satisfy our clientele as best as possible.”
Crédit photo : Mairie de Paris
Nicolas Roy
(Section Head users - goods and territory – Mobility Agency – Department of Roads & Transport – Paris City Council)
“The volume of goods entering Paris represents about 32 million tons/year and 90% comes by road. Deliveries are essential to the Paris economy, particularly foodstuffs, and they must occur under the best conditions, while limiting nuisance, (noise and air pollution, road congestion, etc.). To achieve this, we need to be as pragmatic as possible. The approaches undertaken with economic actors concern the development of rail transport (goods train, tramway) and river transport. In addition, we want to encourage the use of clean vehicles (vehicles meeting Euro 5 and Euro 6 standards, natural gas and electric-powered vehicles, bicycle-trailers, etc.) including those that preserve the cold chain during the transport of perishable goods. To reduce the mileage involved, we allow the use of high load capacity lorries (up to 43 m² floor space) operating at night to group deliveries. Regulations limit the size of delivery vehicles to 29 m2 floor space between 7 am and 10 pm. We are also developing local urban logistics spaces in underground parking lots for the “last kilometre”. The creation of lockers where private individuals can collect a parcel without waiting for the deliveryman is also an interesting solution. Similarly, Internet helps keep shopper travelling down and pollution too. Lastly, we are thinking about ways to alternate the use of delivery bays between shops and private individuals. All these areas of reflection will inform the preparation of our new Charter of best practices for transport and delivery of goods in Paris, for 2010, in which we wish to involve Rungis Market, since it is a major actor in this domain.”
Crédit photo : UNTF
Jean-Paul Meyronneinc
(General delegate of the Union Nationale du Transport Frigorifique)
“The eighty members of UNTF are carriers whose principal specialty is controlled temperature transport. They use refrigerated vehicles, especially rigid and articulated lorries, and work as subcontractors, particularly for mass distribution. There are currently 110,000 vehicles specialized in cold transport in France, including 65,000 heavy-goods vehicles (over 3.5 tons) and 45,000 light commercial vehicles. Our ten members at Rungis Market mainly work in procurement logistics. The particularity of the wholesale market is the upstream mass distribution logistics, but unlike the large and medium-sized commercial outlets, the downstream logistics are much more complicated because they are not organized. This generates energy losses, increases the number of small vehicles transporting small quantities and doing straight runs, which increases traffic and traffic jams, far removed from a coherent sustainable development policy. The solution is to get rid of this transport part in order to group it. Shopkeepers, traders and restaurants would be better off accepting the principle of grouped consignments, along with the smaller wholesalers. Logistics costs will effectively soar due to the rise in petrol prices and the constraints in urban areas can only become heavier. Grouping is one solution and it can be done inter-product or inter-pavilion. By definition, transport is profitable on the central link (mass distribution) through collective logistics solutions. Logistics in urban areas will be increasingly left to the specialists because of the costs involved and we need to think about this now.”
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