4thEuropeanConferenceonSustainableUrbanMobilityPlans

29-30March2017

Theimportanceofbusinessmodelsinsustainableurbanfreightini5a5ves

MichaelBrowne-UniversityofGothenburg

VREFUrbanFreightIniIaIve

Outline

• WhyarebusinessmodelsimportantforsustainableurbanfreightiniIaIves?

•  HowcanthisapproachhelptoidenIfysomeoftheproblemsweneedtoresolve?

• Whatworks,whatcanwelearnfromexperienceandwhatcanwechange?

Whyisabusinessmodelimportant?

•  Everythingchanges–needtobeadaptable•  InurbanfreightandcitylogisIcspublicfundingisincreasinglylimited

•  Asoundbusinessmodelleadstolonger-termimprovements

•  ThequesIonofscalecanbeaddressed

CanweidenIfysomeoftheproblems?•  Product

–  ValueproposiIon•  Customerinterface

–  Customersegments–  Channels–  CustomerrelaIonship

•  Infrastructuremanagement–  KeyacIviIes–  Keyresources–  Keypartnerships

•  Financialaspects–  Coststructure–  Revenuestreams

Theninebusinessmodelbuildingblocks(OsterwalderandPigneur2009)

ProductandthevalueproposiIon•  SomeImeslackclarityaboutthepurpose

–  TrafficreducIon–  CO2/airquality/noise

•  Definingwhogainsvalue–  Shipper–  Receiver–  Carrier–  Resident….

…andhowvaluewillbeshared…

Vehicles,systems,infrastructure,operaIons…InsetLoadingBay:London Cargotram:Dresden Consolida5on

Electricvehicle:RegentStreet

EspaceLogis5quesProximité:Bordeaux

Customerinterface•  Customersegments

– Manysectorswithdifferentneeds–incitylogisIcshighlevelofabenIononretailing

•  Channels–  Complexity(relatedtotheabove)–  Controlandpowerinthechannel–maybewefocustooocenonthecarrier

•  CustomerrelaIonship–  ContracIngandsub-contracIng–  FragmentaIonofflows

Source:TransportforLondon

Infrastructuremanagement•  KeyacIviIes

–  SpaceuseinciIeschangingdramaIcally–logisIcssprawl,densificaIon,retail/e-commerce

•  Keyresources–  Infrastructureforurbangoodsmovementandservicesisbothprivateandpublic

•  Keypartnerships–  Theroleofpublic-privatepartnershipsinmanyformsisimportant

Salesbystoresande-commerceforecast2010-2020(billionsUKpounds)

EveningStandard28May2013

Revenueearningandchangingbehaviour

DeliveriesandlockerboxesatstaIons

MorespaceavailableasIcketofficeusechanges

Financialaspects

•  Coststructure–  IniIaIvesincitylogisIcsocenarguedtoincreasecosts

•  Revenuestreams– Addedvalueservicesareocendiscussed

KeyquesIonalsoabouttheallocaIonandtransferofcostsandrevenues

Weknowthingscanbedifferent…

•  EmissionsandcongesIoncanbereduced•  ImproveduIlisaIon,beberrouteingandbeberuseofspace

•  ConsolidaIonofflowsispossible–notonlythroughconsolidaIoncentresbutalsobysupplychainacIons

• Workingtogethertoachieveresults

NearbyiniIaIves:Gothenburg

TheGuardian,18November2015

Motomachi shopping street

CNG truck for cooperative freight transport

Parking area for cooperative freight transport

Source:EiichiTaniguchi

Furtheraway-CooperaIvefreighttransport-Japan

NewYorkCitySource:JoséHolguin-Veras,2014

Somewhereinbetween:London

0

1

2

3

4

5

6

7

8

9

10

Percentageshareofd

ailyto

tal

2011averageday

Paralympics

Olympics

Lorries(3.5tonnesorover)entering/leavingcentralLondon

SharingspaceinLyon

Source:DianaDiziain,GrandLyon

Freightnetworksandpartnerships

•  Gothenburg•  Paris•  London•  Philadelphia•  EastOsaka•  Brussels•  Copenhagen

CIVITASCITYLABCityLogisIcsinLivingLaboratories

WeknowwehavetokeepchangingthingsinciIes•  Flows(ofbothgoodsandvehicles)•  TheuseofIme•  Howspaceisusedandallocated•  BehaviourandpercepIons

…anddoitinawaythattakesaccountofmanyinterests

WhyGoodsMovementMaKers:StrategiesforMovingGoodsinMetropolitanAreas

AcIons•  Complexity:Useit–combinesoluIonsandimproveunderstanding

•  Integratedapproaches:makesurefreightandmobilityareconsideredtogetherinplanningfromthestart

•  Scale:Buildandreinforcenetworks–notone‘bigthing’butmany–usethemanyexisIngexamplesandnetworks

•  Behaviourchange:lookforgoodpracIce,eventsandIppingpoints

•  Inspirechangeandsupportlinks:o  Research–Industry–PublicauthoriIes

Thankyou

AcknowledgementsWithacknowledgementsto:(1)IanWainwrightfromTransportforLondon

fortheinformaIonandslidesonFreightinLondon(2)Dr.DanièlePaIer(LET)forslidesontheELP(3)Prof.EiichiTaniguchi(KyotoUniversity)forslidesaboutJapan(4)Prof.JoséHolguin-VerasforslidesaboutoffhoursdeliveryNewYorkCity(5)DianaDiziainfortheslideoniniIaIvesinLyon.However,anyviewsandcommentsexpressedinthepresenta5onarethoseofthepresenter–MichaelBrowne.MichaelBrowneProfessorofLogisIcsandUrbanFreightTransportUniversityofGothenburgDepartmentofBusinessAdministraIonSchoolofBusiness,EconomicsandLawBox610,SE-40530Gothenburg,Sweden

email:michael.browne@gu.setel:+46317866798

1)  Urban Freight Platform an initiative at University of Gothenburg and Chalmers supported by the Volvo Research & Educational Foundations (VREF): http://www.chalmers.se/en/centres/lead/urbanfreightplatform/Pages/default.aspx

VREF Urban Freight Conference, Gothenburg (17-19 October 2016) Information and presentations at: http://www.chalmers.se/en/centres/lead/urbanfreightplatform/vrefconf16/Pages/default.aspx

2)  Center of Excellence: Sustainable Urban Freight Systems (supported by VREF) for webinars and other information available see: https://www.coe-sufs.org/

3)  METROFREIGHT Center of Excellence (supported by VREF) for more information see: http://priceschool.usc.edu/metrofreight-the-localglobal-challenge-of-urban-transportation-planning/

4)  Why Goods Movement Matters - by the RPA in collaboration with the VREF (2016)

http://www.vref.se/publications/researchsynthesisreports/researchsynthesisreports/whygoodsmovementmattersbytherpaincollaborationwiththevref.5.1feeef8b156cfde87aa3d60e.html

Interactive website: http://goodsmovementmatters.org

LinksandfurtherinformaIon

Sources/references•  Allen,J.,Browne,M.andHolguin-Veras,J.(2015)SustainabilityStrategiesforCityLogisIcs,chapterin

GreenLogisIcs:ImprovingtheEnvironmentalSustainabilityofLogisIcs,McKinnon,A.,Browne,M.,Whiteing,A.andPiecyk,M.(eds.)ThirdEdiIon,KoganPage,London.

•  Broaddus,A.,Browne,M.andAllen,J.(2015)ImpactsoftheLondonCongesIonChargeandLowEmissionsZones.TransportaIonResearchRecord.Vol2478,pp1-11.Paperreceived'BestPaperAward'fromTRBUrbanFreightTransportaIonCommibee(AT025).

•  Browne,M.,Allen,J.,Wainwright,I.,Palmer,A.andWilliams,I(2014)London2012:changingdeliverypa5ernsinresponsetotheimpactoftheGamesontrafficflows,InternaIonalJournalofUrbanSciences,18(2),pp.244-261.

•  FlodénJ,andWilliamssonJ(2016)Businessmodelsforsustainablebiofueltransport:thepotenIalforintermodaltransport.JournalofCleanerProducIonVol113pp426-437.

•  Lindholm,M.andBrowne,M.(2013)CooperaIonamongurbanfreightstakeholders:Acomparisonofpartnershipapproaches.EuropeanJournalofTransportandInfrastructureResearch,13(1).pp20-38(ISSN1567-7141).

•  Holguín-Veras,José,Aros-Vera,Felipe,Browne,Michael(2015)AgentinteracIonsandtheresponseofsupplychainstopricingandincenIves.EconomicsofTransportaIon4(2015),pp.147-155.Ref:ECOTRA-D-14-00014R1).

•  VREF(2013)UrbanFreightforLivableCiIes(2013).PublishedbytheVolvoResearchandEducaIonalFoundaIons.Availablefordownloadfrom:hbp://www.vref.se/download/18.11165b2c13cf48416de7e59/1377188311719/FUT-Urban-Freigth-Webb_low.pdf