Freight and the City: An Overview of Urban Freight Distribution and City Logistics

1. Freight and the City: An Overview of Urban Freight Distribution and City Logistics Dr. Jean-Paul Rodrigue Dept. of Economics & Geography Hofstra University Hempstead, NY http://people.hofstra.edu/faculty/jean-paul_rodrigue/

2. Urban Freight Transportation: The Realm of the “Last Mile” • Contemporary Urbanization • A New Environment for Freight Distribution • City Logistics and Urban Freight Distribution

3. Contradictions between Passengers and Freight Transport Urban Transportation Commuting Shopping Recreation Commodity Chains Intensity Freight Trade Energy & Raw Materials Waste disposal Local distribution Business TourismMigration Passengers Distance

4. Passengers and Freight Movements by Time of the Day: Contradictions

5. Freight and the City • For freight, cities have three major dimensions • Cities are zones of production: • Industrial location. • Cities are transport nodes: • Accumulation of transport terminals. • Intermediary locations. • Cities are zones of consumption: • Problem of urban distribution. • Dislocation between those functions • Notably between production, distribution and consumption. • Brought by globalization, global production networks and efficient freight transport systems (increasingly by logistics).

6. World Cities Moscow Toronto San Francisco Seoul Chicago New York Tokyo Los Angeles Hong Kong Mexico City Singapore London Frankfurt Brussels Geneva Paris 1st tier Sao Paulo Milan Sydney 2nd tier Madrid 3rd tier

7. Traffic at the 50 Largest Container Ports, 2003

8. Key Issues in Urban Freight Transportation

9. Changes in the Urban Spatial Structure Multi-Nodal Nodal Core activities Peripheral activities Central area Central activities Major transport axis

10. I II Road Highway Activity center Transit line IV III

11. Possible Urban Movement Patterns Organized Primary flow Secondary flow Disorganized Monocentric Polycentric

12. Components of the Transportation / Land Use System • Economic base theory • Location theory • Traffic generation and attraction models Land Use • Spatial interaction models • Distance decay parameters • Modal split Spatial Interactions • Traffic assignment models • Transport capacity Transportation Network

13. Assets (Freight Transport) Privately owned (profit motivated). Relatively low entry costs (wages and rates subject to market forces). Value added function (trade distance for cost). Support industrial, manufacturing and commercial activities. Liabilities (Public Transit) Publicly owned (politically motivated). Little or no competition permitted (wages and fares regulated). Social function / “public service” (provides accessibility and social equity). Limited relationships with economic activities. Urban Transport: Assets versus Liabilities

14. Globalization, Commodification and Urbanization • Longer supply chains • International division of the production. • Fragmentation of production, distribution and consumption. • International trade • Imbalanced freight flows. • Higher levels of consumption • Growing incomes (challenged) • Debt and equity extraction.

15. From Push to Pull Logistics Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Freight flow Manufacturer Manufacturer 3PL Distributor Distributor Customer Returns / Recycling Point-of-sale data Customer Push Pull

16. Logistics and E-commerce Supply chain Supply chain Warehousing E-Retailer Retailer Warehousing E-Logistics Traditional Logistics Customers Customers

17. City Logistics and Urban Freight Distribution • City Logistics • Relatively new field. • “The process for totally optimizing the logistics and transport activities by private companies in urban areas while considering the traffic environment, the traffic congestion and energy consumption within the framework of a market economy.” • Means to achieve freight distribution in urban areas. • Improve: • Efficiency of urban freight transportation. • Reduce traffic congestion. • Mitigate environmental impacts.

18. City Logistics Urban Terminal DC

19. Freight Corridors & Freight Clusters • Geographical consequences • Migrating to more affordable locations in the periphery. • Growth in tons-km. • Competition between passengers (commuters) and freight traffic. • Freight corridors • Expands the sphere of distribution. • Providing an axis along which distribution centers can reliably service many locations along the corridor. • Emergence of freight clusters • Functionally unrelated distribution facilities. • Often located in small intermediary locations. DC

20. Large-scale Distribution Center

21. UPS National Freight Distribution Center, Chicago

22. Cross-Docking Distribution Center Before Cross-Docking Distribution Center Suppliers Suppliers LTL Customers Receiving Sorting After Cross-Docking Shipping TL Cross-Docking DC TL Customers

23. The “Last Mile” Urban Transport Problem • The “last mile” problem • Common issue in logistics. • More time-based than cost-based problem. • Components: • Delivery time (e.g. duration, possibility to fix delivery date); • Reliability of delivery (e.g. availability of goods, order handling time); • Flexibility of delivery (e.g. delivery date, delivery address); • Quality of delivery (e.g. accurate delivery, condition of delivered goods). • Unattended delivery problem: • Mainly apply to parcel deliveries. • Contradiction between working schedules and delivery schedules. • Made worse by the growth of two income families.

24. Traffic Conditions in Major American Cities, 1982-2003

25. Boston – Washington Corridor: Volume to Capacity Ratio

26. Toll Bridges and Roads, New York Metropolitan Area (1000s of vehicles per day) Hudson River Long Island Sound GWB 300 New Jersey TNB Bronx 110 100 LT 100 Manhattan WSB Garden State Parkway TBB 125 80 100 QMT Long Island HT Queens 60 BBT 20 20 75 BYB CBB Brooklyn GTB 210 NJ Turnpike VZB 20 Staten Island MPB Lower New York Bay 75 Raritan Bay OCB

27. Average Hourly Traffic on George Washington Bridge, 2002

28. Truck Freight Corridors New York New Jersey TZB Connecticut 8.4 23.2 7.8 7.4 GWB Bronx 8.6 5.2 TBB TNB LT 5.7 WSB Manhattan LGA Long Island QMT HT Queens EWR BBT 4.2 1.9 GTB BYB 6.4 Brooklyn JFK VZB Staten Island 8.4 1.5 Major Crossing OCB 1,000 of Trucks per Day (2000) 4.8 2.0 About 70 million truck crossings per year

29. Logistical Strategies to Cope with Urban Congestion

30. Challenges to Urban Freight Distribution • Multimodal Integration of Freight Transportation • Problem of modal dependence (80% trucking). • Specialization of modes, modal shift and freight diversion. • Entropy and Energy • Maintaining the cohesion and productivity of freight distribution. • Growing disorder and energy costs. • Urban/Suburban Supply Chains • Coping with the “last mile”. • Difficulties to maintain just-in-time and timely supply. • High distribution costs. • Adaptation of modes and delivery times.