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M Browne Urban Logistics Elsevier Paper

This document provides an overview of urban logistics and freight transport. It discusses how cities are growing rapidly and urban logistics has become more important. Urban freight transport involves delivering and collecting goods in cities. It has responded effectively to modern economies but also contributes to local pollution and noise. The document examines the complexity of urban logistics, including heterogeneous commodities that result in complicated freight flows, overlapping regulatory regimes, logistics facilities located farther from cities, and multiple organizations involved in decision making.

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0% found this document useful (0 votes)
303 views12 pages

M Browne Urban Logistics Elsevier Paper

This document provides an overview of urban logistics and freight transport. It discusses how cities are growing rapidly and urban logistics has become more important. Urban freight transport involves delivering and collecting goods in cities. It has responded effectively to modern economies but also contributes to local pollution and noise. The document examines the complexity of urban logistics, including heterogeneous commodities that result in complicated freight flows, overlapping regulatory regimes, logistics facilities located farther from cities, and multiple organizations involved in decision making.

Uploaded by

Rafael Caparas
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Urban Logistics and Freight Transport

Michael Browne, Jose Holguin-Veras, Julian Allen

in:
International Encyclopedia of Transportation
Elsevier, 2021, Pages 178-183
https://doi.org/10.1016/B978-0-08-102671-7.10239-8

Introduction
Cities around the world are changing rapidly. Many are growing and this trend seems set to
continue with over half the world’s population already living in urban areas. Much attention has
focused on the growth of some of the largest cities—those with a population over 10 million—
referred to as mega-cities. However, many smaller cities are also growing. The growth and the
scale of cities mean that urban logistics has become more important and relevant to public
authority policy making. Urban logistics has in many cases responded very effectively to the
requirements of modern urban economies. However, it is a major contributor to environmental
impacts, particularly to local air pollution and noise and, as a result, has an important impact on
the health of the most vulnerable residents of cities. This rise in importance and the initiatives
that can be taken in urban logistics provides the focus for this chapter.

Urban freight transport and logistics involves the delivery and collection of goods and provision
of services in towns and cities. It also includes activities such as goods storage and inventory
management, waste handling, office and household removals and home delivery services (Allen
et al., 2015). Scope and definitions can be important because they have implications for the
policies developed by those responsible for transport and related activities in cities and
metropolitan areas. A key change has been the growing tendency to include the last-mile
deliveries to final consumers associated with e-commerce within the scope of urban freight
transport and urban logistics. A report by the RPA (Barone and Roach, 2016) noted that different
geographical scales could be considered in urban freight and logistics activities. At the wider or
regional scale, the commodities travelling into and out of a metropolitan area need to be
addressed. At the more local level, there are those flows that remain within a metropolitan area
or perhaps a smaller part of such an area.

Hicks (1977, p.100) noted that: “any urban area depends for its existence on a massive flow of
commodities into, out of, and within its boundaries. Yet the transport of goods remains a
forgotten aspect of urban transportation study. ”At the time, few would have disagreed with
Hicks that this important activity had received relatively limited attention from researchers.
However, there has been a major growth in research into urban freight, encouraged by the
increased attention that has been focused on wider logistics activities. The extra attention has
been strongly influenced by the growing awareness and concern about the local and global
environmental impact of transport and the implications for the economic vitality of cities caused
by congestion problems.
Over the past 40 years, the range of commodities, the scale and the complexity of the flows has
increased. For example, during the past 10 years the growth in e-commerce means that many
products now go direct form a seller or supplier to the end-customer. These changes in the
routing of products has led to a significant rise in the use of small vehicles, such as vans and
cargo cycles, in many cities. Although there have been major changes in the volume and types of
commodity moving within cities it has, in most cases, been difficult to change the infrastructure
to accommodate these new patterns.

A major challenge for improving urban logistics lies in the nature of the activities. Decisions
about freight movements and truck operations lie almost entirely in the hands of the private
sector. However, the regulatory and legal questions about freight movements in cities are
addressed by public authorities—for example, city councils or metropolitan authorities. Many
cities have a powerful political figure, such as a mayor, who takes overall responsibility for
transport and other strategies in the development of the city. The political level typically relies on
professional policy makers and technical managers to develop policy and manage transport and
traffic in the city. Long-term land-use planning is also controlled by public authorities with
considerable variation in the detailed legal powers governing these actions in different countries
and indeed sometimes between cities in the same country. In addition, urban areas vary
substantially in terms of factors including their geographical and physical size, population
density, economic composition, land-use patterns, transport infrastructure, and street layouts. All
the above makes for a complicated commercial, technical, social, and political landscape within
which urban logistics activities take place. This in turn has made it difficult to find simple
solutions to urban logistics and freight problems that can be readily scaled up and transferred.
Urban logistics plays an important economic role in cities and its efficiency or otherwise has
implications including:
 the effect of logistics and supply chain costs on the cost of commodities consumed in a
city or metropolitan region;
 the fundamental importance of urban logistics in sustaining urban lifestyles;
 the role urban logistics plays in the service, retail, and trading activities which are
essential for wealth generation in cities.

At the same time there has been a major focus on the problems caused by urban freight
movements—the majority of which are by road. Road freight vehicles operating in an urban
environment generally emit a greater proportion of certain pollutants per kilometer travelled than
other motor vehicles, such as cars and motorcycles. This is due to their higher fuel consumption
per unit of distance travelled and the fact that many of them use diesel as a fuel. However, when
considered in terms of the quantity of goods carried, a well-loaded truck will produce fewer
pollutants per ton or cubic meter of goods carried than say a van.

As well as making a journey within an urban area to collect or deliver goods or provide a service,
a freight vehicle also has to be parked while loading, unloading or servicing activity is carried
out by the driver away from the vehicle. This requires the parking of the vehicle either at the
kerbside on-street, or in an off-street facility, either at the building being served or somewhere
else sufficiently nearby. Many dense, central urban and residential facilities requiring goods or
services comprise little off-street parking space, and in these locations freight vehicles compete
for kerbside space with many other road users. Freight companies and their drivers are, therefore,
subject to various challenges associated with stopping/parking their vehicles as well as the
journey itself. These include:
 Parking and loading/unloading problems including complicated regulations concerning
time and location, fines, lack of unloading space, and handling problems resulting from
the kerbside design and paving material, for example, as well as the distance that goods
may need to be carried or moved by hand in order to make a delivery.
 Customer/receiver-related problems—for example, ident ifying the exact address can be
difficult and for some types of delivery there will be a need to obtain signatures as proof
of delivery and perhaps the most common problem—narrow time windows during which
receivers are willing to accept deliveries—which leads to complicated scheduling
requirements.

As discussed above, while it is generally possible to agree that urban freight transport is an
essential part of the economic and social well-being of a city, there is also agreement that further
improvements are needed. Urban logistics also suffers from the impacts of the rise in traffic
congestion, as this reduces the scope for efficient, reliable deliveries to be made. Logistics
strategies and improved technology, especially related to information systems, has opened up
possibilities for major gains in delivery efficiency. Yet much of this has been lost because of the
rise in general congestion levels in cities and because of the inflexibility of other parts of the
urban logistics systems—for example, the options to deliver outside peak times. Urban
congestion and an inertia in decision-making by both the public and private sector actors has
imposed constraints on further improvements.

The Complexity Challenge


Urban logistics exhibits a number of complexities including:
 Heterogeneous commodities, resulting in complicated freight flows and a variety of
transport sectors;
 Overlapping regulatory regimes;
 The trend toward “logistics sprawl”;
 The range of organizations involved in decision-making processes.
These points are discussed in more detail below.

The very varied range of commodities being transported in the urban logistics system leads to
complexity. Different products flow through different channels from supplier to end user and
they are carried by different types of transport operator using a variety of vehicles (types and
sizes). Some food products, for example, requir e strict adherence to specific temperature limits
and will be carried in specialist refrigerated vehicles. In construction, there are also vehicles
dedicated to a single type of freight movement—for example, cement mixers. Small packages
and parcels may be delivered by van or by bicycle or when combined with postal services—on
foot. All of this results in a very complicated pattern of vehicle movements where the main
influencing factors vary between sectors.
Regulations applying to freight movements come from different sources. For example, emission
standards in Europe have been established at a European Union wide level with increasingly
stringent limits set on emissions by new engines for trucks. On the other hand, many regulations
relating to urban logistics may be made and enforced by the city itself—for instance, there is no
national standard for a low emission zone in the UK and certainly no Europe-wide standard,
although there are broad similarities in some cases. At the street level then, there is considerable
divergence in the way kerbside parking regulations and loading spaces are designed, operated
and enforced. In some cases, such spaces will be controlled by a district within a city, leading to
the situation where the rules at one end of a street could be different to the rules at the other end.

Increased urbanization has in turn resulted in generally higher values of land, especially in major
urban centers. The rent or purchase price of such land has been too high to justify its use as
distribution property. As a result, land classified for industrial and distribution activities has
become increasingly scarce and much of this activity is now to be found only outside the city.

Longer access trips by vehicles delivering in the city may impose limitations on the type of
vehicle being used—for example, it becomes less feasible to use a small electric powered vehicle
if the city delivery trip is longer. City authorities have noted this development and some have
now sought to create regulation to safeguard future land availability for urban freight use. For
example, in the soon to be published new London Plan, the spatial development strategy for the
city, the Mayor of London is proposing to include new and improved policies to retain, enhance,
and provide additional capacity of logistics land, prioritizing these efforts in locations that are
suitable for last-mile distribution services and support access to supply chains that extend beyond
the city (Mayor of London, 2019; Transport for London, 2019).

Different types of stakeholders can implement change and influence urban logistics in different
ways. Public authorities may take the lead by changing regulations or by shaping policies in such
a way as to contribute to broader urban sustainability goals (Giuliano et al., 2013; Holguin-Veras
et al., 2020a,b). In the private sector, two categories of stakeholders have received considerable
attention: (i) freight transport companies or carriers and (ii) the receivers of products, for
example, retail companies, offices and in some cases industrial companies. Most attention has
probably been focused on the carriers, with many initiatives aimed at requiring or encouraging
them to make their operations more sustainable, primarily from environmental initiatives.

However, the scope for carriers to change transport operations may be limited because they
frequently have to respond to their customers, who may be the senders or receivers of the goods.
Take as an example the scope to change the time of delivery in order to allow deliveries to take
place outside the busiest hours on the road network (the peak hours). Many initiatives have been
aimed at finding ways to encourage carriers to deliver in the off-peak hours (Browne et al., 2014;
Department for Transport, 2011; Holguin-Veras et al., 2011, 2014; Transport for London,
2018a).

Despite many operational successes, carriers frequently encounter resistance from receivers,
particularly from smaller stores and businesses where there are few employees and where the
owner may already work long hours. Engaging with the decision-making stakeholders has been
recognized as important and more attention is now focused on property owners and managers
and businessled initiatives, such as Business Improvement Districts that represent local firms.

Urban Logistics Initiatives


A number of frameworks have been developed to categorize the many initiatives that can be seen
in urban logistics. By comparing pilot tests, projects and initiatives around the world it has been
possible for researchers to provide valuable insights for policy makers who are concerned with
finding ways to improve urban logistics performance and sustainability in their cities. An
extensive exercise to review urban logistics initiatives was carried out in 2015 with the
leadership of Rensselaer Polytechnic University, in a project on behalf of the Transportation
Research Board in the United States (Holguin-Veras et al., 2015). The project devised a
classification system that allowed projects and initiatives to be grouped into seven categories
divided between supply and demand initiatives.
Supply side initiatives include: (1) infrastructure management; (2) parking/loading areas
management; (3) vehicle-related strategies; (4) traffic management. Demand side initiatives were
categorized as: (5) incentives and taxation; (6) logistical management; (7) freight demand/land
use management. The report was subsequently developed using further original research
(Holguin-Veras et al., 2020a,b). The initiatives within these seven categories are discussed in
more detail below.

Supply-Side Initiatives
1. Infrastructure management: The focus here is on changes to the built infrastructure—
because most urban freight involves a road movement, then most of these initiatives are
concerned with building new road infrastructure or making modifications to existing
roads. Some of these can be considered as major—for example, a new road to bypass a
congested area or one where there is high housing density. Others may be more minor,
such as reengineering the kerb to allow deliveries to be made more efficiently or
changing a ramp to enable loading and unloading to take place. In practice, minor
changes to infrastructure can have important implications for freight efficiency.
2. Parking/loading zone management: Much attention in urban freight movement focuses on
moving vehicles. However, in some sectors (e.g., package or parcel delivery), it is
common for the vehicle to spend up to 60% of the time parked for unloading and delivery
operations (Allen et al., 2018a). Therefore, ensuring that loading zones are managed
efficiently can provide important benefits for carriers and, in turn, can improve the way
the city center operates from a public authority perspective. Changing regulations about
the time of access and the length of time that can be spent to load or unload has important
efficiency impacts. In addition, designating areas for loading or unloading can be a major
contributor to better urban freight operations.
3. 3. Vehicle-related initiatives: As noted in the opening sections of the chapter, vehicle
emissions have a major impact on urban air quality. As a result, a lot of attention has
focused on improving existing fossil fuel emissions standards and also on the scope to
change to alternatives such as electric vehicles. Furthermore, programs that have been
designed to support off-peak hours delivery have also led to the search for standards
relating to noise of both vehicles and handling equipment (Sanchez-Dıaz et al., 2017). An
important way to encourage a higher proportion of low emission vehicles is by creating
low emission zones within which vehicles are only allowed to operate if they meet certain
standards. Low emission zones—also known as clear zones or environmental zones—
have been introduced by a range of cities, especially in Europe. One of the largest zones
of this type is to be found in London which has also now introduced the ultra low
emission zone (Transport for London, 2020). One issue for transport operators has been
that there can be argued to be some inconsistency in terms of regulations between cities
in different countries. This can make for complications in some cross-border operations.
Low emission zones may specifically restrict certain types of vehicle that do not meet
specific standards.
4. Traffic Management: Vehicle access restrictions based on weight, size, or time of day are
widespread initiatives taken by city regulators to limit what may be seen as negative
environmental impacts from urban truck operations. Restrictions may make it more
difficult for freight operators to combine deliveries and, in some cases, can lead to an
increase in distance travelled or an increase in the number of vehicles (or both). A better
understanding of urban logistics by public authorities has helped to reduce the unintended
consequences of restrictions. Consultation with industry has resulted in changes to
restrictions that have a positive impact—for example, reconsidering vehicle length limits
may allow freight operators to continue to use the most efficient truck for the deliveries
that are required.
Many cities have identified that some roads and parts of the network are not suitable for all
freight vehicles. This may be because of the weight and size of the vehicle or in some cases it
could be the products being carried (e.g., dangerous or hazardous cargo). In these cases, cities
have defined specific routes for trucks to follow. Enforcement is an important issue when
defining and maintaining such a route or network. Increasing interest now exists in the scope to
use geo-fencing techniques to monitor and enforce such initiatives. Geo-fencing would require
vehicles to be able to demonstrate their whereabouts in the network and the access to some parts
of the network would be limited to certain trucks and types of operations.
Allocating road space can also be an important decision for public authorities. Initiatives such as
“Complete Streets” in the United States have led to discussions about how freight vehicles
should be accommodated in urban traffic plans (McCann and Rynne, 2010). Traditionally,
vehicle weight and size limits have been widely used in cities to control vehicle movements in
order to avoid large trucks being in sensitive and historic areas. However, restricting trucks
according to size may result in the increased use of smaller vehicles which can have negative
consequences for congestion. In the same way, access time restrictions may lead to more trucks
being present in the shorter times that are available for delivery.

Demand-Side Initiatives
1. Pricing, incentives, and taxation: Road user charging or congestion pricing has been
introduced in a number of cities around the world. In most cases, freight vehicles also pay
these charges. However, research has highlighted that freight movements do not change
much as a result of charges being introduced. This is mainly because carriers have limited
power over the time of day of the delivery because that power lies with the receivers (or
possibly the senders of the products). Incentives have been discussed as a means to
encourage higher standards and better operating practices related to urban freight.
However, there are relatively few examples of incentive schemes around the world.
Certification projects whereby carriers can apply to receive a certification based on the
quality and sustainability of their operations have been introduced with some measures of
success—see, for example, the FORS scheme in the UK (FORS, 2018).
2. 2. Logistical management: Managing urban logistics in new ways underpins many
initiatives. These range from approaches such as urban consolidation centers and the use
of lockers and collection points, as well as initiatives related to operations management,
such as the routing of the vehicles and special training for urban freight drivers. The
concept of consolidating products to achieve a reduction in the number of truck trips and
distance run in urban areas has been promoted for many years. Consolidating products
can improve the load utilization and ensure better loaded vehicle trips. However, it is
sometimes argued that the consolidation operation adds time and costs to the activity. As
a result, there has been commercial reluctance to adopt this approach unless there are
strong regulatory or other reasons. Despite the reluctance many urban consolidation
center schemes can be identified (Allen et al., 2012; Gonzalez-Feliu and Morana, 2010;
Greening et al., 2015; Kin et al., 2015). The goal of using electric vehicles has also led to
some support for the consolidation center approach. In many cases the lower range that
can be accomplished by electric vehicles means that that the operations are simpler when
there is a consolidation center available at, or close to, the edge of the urban area. Locker
boxes, collection points, and other ways to support the rise in home delivery and e-
commerce all have an important role in urban logistics (Morganti et al., 2014; Yuen et al.,
2018). Delivery direct to the consumer can work very efficiently, but there are also many
studies that have highlighted the problem of failed deliveries caused by the person
receiving the products being absent at the time of delivery. Using parcel lockers or a
collection point (such as a retail store) can enable a transport operator to make efficient
deliveries and, at the same time, allow a consumer to receive the product at a time that is
most convenient to them. As these systems become more widespread, the proximity of
locker boxes and collection points to the home of urban residents has also increased,
leading to greater satisfaction with such systems. Finding the right size vehicle for urban
freight operations can be challenging. Larger vehicles are required for the movement of
bulky products or where there are many goods destined to one delivery point. However,
for smaller packages and diverse loads, there may be scope to use smaller vehicles such
as cargo cycles or light electrical vehicles. Other fuel sources may also be an option in
the search for a lower environmental impact—for example, the use of biofuels. Cargo
cycle use has increased significantly in recent years (Allen et al., 2018b; Rudolph and
Gruber, 2017; Transport for London, 2018b) and such vehicles can now be seen
providing package delivery and other services in many cities around the world. Despite
the growth, the total scale of such operations remains modest at present, but there are
signs of growth and such vehicles can be expected to represent a larger share of
movements in inner city logistics in the future.
3. Freight demand/land use management: This can be considered as an important category
in making fundamental changes to the way urban logistics is carried out. During recent
years it has become apparent that many logistics activities are strongly connected to
decisions about land use. As previously discussed, warehouse and distribution center
activity that was formerly within city boundaries is often now found only on the edge of
cities or even at some distance from the urban area. As a result, vehicles have longer
access trips and the vehicle kilometers in relation to freight movements have increased.
The timing of deliveries can also be altered; changing to off-peak hours deliveries can have
major impacts on the efficiency and sustainability of urban logistics, as well as reducing the
freight vehicle contribution to emissions (Browne et al., 2014; Holguin-Veras et al., 2011, 2014;
Sanchez-Dıaz et al., 2017). Major gains have been achieved when such initiatives have been
introduced in cities around the world. Changing the time of deliveries to move them outside the
peak hours when traffic volumes are greatest has been shown to produce benefits (Browne et al.,
2014; Department for Transport, 2011; Holguin-Veras et al., 2011, 2014). However, there has
been resistance to implementing such initiatives, based on concerns about vehicle noise and
disturbance to residents and also because the change could lead to additional costs for some
organizations in the supply chain. Early discussions on this subject tended to lead to fears about
delivery being made in the middle of the night. In practice, it is the scope to shift to a slightly
later time in the evening or a slightly earlier time in the morning that seems to have had many
benefits. When this change is combined with the opportunity to make what are called unattended
deliveries, then the gains seem to be especially valued (Sanchez-Dıaz et al., 2017).

Unattended deliveries mean that there does not need to be a person present at the receiving
address at the time the delivery takes place. Instead, drivers are either granted secure access to
the delivery point or technologies that can ensure security in terms of delivery can be used. A
further important possibility is for receivers to find ways to group together or bundle their
purchases and thereby reduce the number of vehicles required to make deliveries—such receiver-
led consolidation approaches have received considerable attention (Allen et al., 2017; MacLean
et al., 2019). Mode choice is a very important topic in freight transport and logistics. However, in
the case of urban logistics it has been difficult for companies to find viable alternatives to road
deliveries using vans and trucks. Despite the problems, there are alternative modes used for
urban deliveries and these include switching from road to the use of tram, rail or waterway. Over
the past few years an increasing number of alternatives have become established in some cities.
The scope to increase the use of modes such as waterways is especially attractive when
considering the transport of bulky products such as construction materials and waste.

Discussion and Conclusions


In order to achieve successful implementation of the initiatives outlined above, a constructive
process of engagement between the relevant public and private sector actors is required. This
multistakeholder approach is necessary because there are many different actors involved in urban
logistics and freight transport operations, and also because no single stakeholder is usually
capable of solving the problem on its own. Urban logistics depends on decisions made by the
public sector and by those in the private sector.

However, the goals of organizations from the public and private sector differ and as a result it
can be difficult to achieve a harmonious working relationship. Strategies for engagement include
Freight Partnerships and Freight Networks (Lindholm and Browne, 2013; Quak et al., 2016).
As Holguin-Veras et al. (2020b) argue, public authorities typically lack detailed knowledge of
how and why urban freight activities and operations take place—formal training is scarce and the
level of information and data on urban freight movements is far lower than in the case of public
transport and personal mobility. Almost all the operational and commercial decisions about
urban freight and logistics are in the hands of the private sector, raising complicated questions
about confidentiality and the scope to share data and insights. When addressing freight and
logistics, urban public authorities have tended to rely on approaches based on regulation and
traffic engineering.

This chapter has outlined the wide range of initiatives that can be implemented by public
authorities to improve the performance of the urban freight and logistics system. However, as
researchers have, there remains the need to (1) assess the effectiveness of initiatives and consider
the advantages and disadvantages in different situations; (2) provide material that transportation
professions can use to determine the efficacy of one initiative compared with another; and (3)
identify the best ways to help public authorities take the necessary steps in improving urban
freight and logistics in terms of management, policy, and planning (Holguin-Veras et al.,
2020a,b).

Furthermore, the results of the research noted above also demonstrated that, in most cases, the
initiatives discussed reduce congestion, either significantly or slightly, and initiatives in the
group “Freight Demand/Land Use Management” were identified as having the most profound
impacts. Moreover, those initiatives related to “Logistical Management” and “Freight
Demand/Land Use Management” were not perceived to have significant negative effects. By
contrast, some negative impacts were argued to exist for initiatives relating to financial
approaches, as a result of increasing costs. Overall, the results of the work by Holguin-Veras et
al. (2020a,b) show the great potential of initiatives in “Freight Demand Management” to reduce
congestion with minimal negative impacts.

Research into urban logistics and freight transport has certainly grown significantly over the past
20 years. However, this is from a small base of researchers. At the end of the 1990s, there were
already research conferences focused on urban freight and logistics, but the number of
researchers attending was modest. Since then there has been a major increase in interest from
cities and a parallel growth in the number of researchers and the range of countries interested in
this field (Browne et al., 2019). The research community has grown and the practitioners
concerned with urban freight, and in particular those involved in the public sector and city
authorities, have also increased. However, in comparison to practitioners and authorities
involved in personal travel, the number remains very low. It is of considerable importance that
the research that has been produced in the past 20 years is made more widely
available to practitioners and policy makers and that guidance on implementation continues to be
developed. If this can be achieved, then the promising progress outlined in this chapter will
become far more widespread.

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