85872 Multi–Donor Trust Fund for Sustainable Logistics (MDTF–SL) Position Note Urban Logistics and Port-Cities The Multi-Donor Trust Fund for Sustainable Logistics (MDTF-SL) commissioned a series of short notes from recognized thought leaders to better understand burgeoning issues within the MDTF-SL’s thematic pillars. This note explores issues within the Urban logistics & Port-Cities thematic pillar and has been prepared by Dr Edgar E Blanco from MIT, USA. The Urban Logistics / Port-Cities pillar is one of three focus areas, or thematic pillars, for the MDTF-SL. The goal of this pillar is to finance activities that will assist developing countries in two areas; addressing urban congestion resulting from retail distribution of goods, and improving the sustainable design and operation of port–cities. Activities under this pillar will concentrate on reducing congestion and pollution by focusing on the efficient distribution of goods in urban environments. Additional emphasis will be placed on the urban planning tools and investments required for port–cites to address sustainability issues endemic to densely populated economies serving as either a local or regional transport hubs. 1 WORLD BANK COMMISSIONED CONCEPT NOTE Urban Freight and Port Cities Dr. Edgar E. Blanco, MIT Center for Transportation & Logistics, Cambridge, MA, USA sustainability is improved by increasing density, 1 THE URBAN FREIGHT DILEMMA mixing economic activities, promoting public The world is undergoing a wave of urban growth. The transportation and reducing private vehicle use (e.g. world population is expected to increase from 7.0 [4]). Thus, cities are investing in public transportation billion to 9.3 billion from 2011 to 2050. The rather than highways and roads, reducing road and percentage of inhabitants in urban areas are projected parking spaces in favor of pedestrian and public to grow from 78% to 86% and 47% to 64% in the transit infrastructure. But there is a conflict between more developed and less developed regions freight and such urban planning perspectives. Modern respectively [1]. But urbanization and economic logistics systems are designed toward efficiency. As development go hand in hand. As cities grow, their demand for products grow in urban areas, it makes economic activities and consumption patterns economic sense to consolidate multiple operations typically become larger, more intense and more under one roof. Larger shipments and larger complex. As one outcome of the urban development warehouses leverage economies of scale in process, more goods need to be delivered into cities to distribution operations, but supporting larger logistics satisfy consumption needs of growing urban operations require more land use. Dense urban areas, populations. Based on data from developed urban however, have limited road capacity and are cities, a city generates about 300 to 400 truck trips per incompatible with large trucks and residential 1000 people per day, and each person consumes about communities (e.g. noise), not to mention the increase 30 to 50 tons of goods per year. This increased freight cost of the land. As urban density increases and road activity, translates into increased use of road space networks are constrained, logistics facilities and infrastructure. Urban freight takes up 10-15 decentralize: they move further away from urban percent of the total miles traveled on city streets and centers. In Paris, parcel and express transport 3-5 percent of urban land [2]. companies, on average, located their terminals 6.8 miles farther away from their geographic centroid in Although urban freight vehicles make up a small share 2010 than in 1975, while businesses and shops have of all vehicle traffic, they generate a disproportionate only moved 1.8 miles away during the same period [5]. share of several externalities, such as congestion on But consumers of products are still located inside the local streets and highways, infrastructure damage, urban areas. Since “boxes” cannot leverage the pollution, greenhouse gases, and noise [3]. This is investment in public transportation, a larger quantity particularly acute in dense city areas in developing of increasingly small delivery vehicles is needed to countries with limited or no space for road capacity navigate the shrinking road space, contributing more expansion, with land uses which developed organically to traffic and congestion. over time and potentially incompatible with logistics demands. Thus, urban freight is often seen as a Second, designing effective policies for urban freight is nuisance from the public perspective. complex. On one end, there is a huge diversity in the urban freight needs from one economic sector to Urban planning often does not take urban freight into another and across urban areas. Such diversity makes account and it faces three tensions that prevent a it difficult to find “blanket” regulatory solutions, natural adoption. First, there is a widely accepted view, identify common technologies or transfer knowledge especially in the developing world, that urban between metropolitan areas. Combined with a fragmentation of the actors involved in policy making 2 in cities and metropolitan areas, such as planning volume happens using ocean transportation [7] .In agencies, port operators or transit authorities, 2012, 60 percent of the world exports and 58 percent decision-making crosses multiple jurisdictional of the imports were loaded and unloaded in barriers. The city of São Paulo, for example includes 39 developing countries ports [8]. Ports are also large municipalities and 460 traffic zones that will need to truck and train traffic generators, with many thousand coordinate for an integrated policy for urban freight. of truck trips per day, imposing traffic impacts, noise and pollution on local residents. Finally, urban freight is just the last (or first) mile of a much larger supply chain that expands beyond the Ducruet and Lee [9] developed a matrix to understand borders of the urban area, into regional, national and the relationship between the port and the city. The global economies. This is very different from matrix, shown in Figure 1, uses the concepts of traditional urban planning that focuses towards centrality (importance of the city and the port in value people mobility and accessibility mostly contained chains) and intermediacy (importance of the port in within geographical boundaries. This larger trade networks). Paraphrasing their description, one geographical span, makes supply chains flexible to diagonal illustrates a progression from a ‘coastal town’ adapt in various ways to policy intervention, making (e.g. a small coastal village) to the ‘global hub port city’ the long-term outcomes of urban intervention very where the two dimensions are of equal importance uncertain. [6] (e.g. New York, Hong Kong, Singapore). The second diagonal shows the most imbalanced situations: from 1.1 Port Cities the port hub, with limited centrality (e.g. Freeport) to Trade hubs and gateways such as ports, airports, the general city with limited intermediacy (e.g. border crossings and intermodal transfer points are Stockholm, Tunis, Calcutta). notable elements in the urban landscape of many cities, and an extreme example of the tensions between local urban needs and freight. These trade hubs are often at the heart of major urban centers, are important contributors to local economies but also generate significant externalities including urban freight. As these trade hubs grow in importance, they achieve efficiencies by a much larger consolidation process (larger conveyances and facilities that can achieve even larger economies of scale), but unlike private urban logistics operations, they seldom decentralize: their advantage is tied to their historical infrastructure investments and geographical location. Instead, they put further pressure to their urban context by expanding their activities into extensive inland/hinterland regions, which in turn increases the flow of freight that flows through the city. Finally, these trade hubs have even more jurisdictional and regulatory complexity due to their scale and sheer volume of activity. Fig. 1 A matrix of port-city relations. Source: [9] Understanding the relationship of ports and cities is of special importance, especially in the developing world. They argue that the theoretical balance, the ‘cityport’, Roughly 77% of the world trade by value occurs is unlikely to exist. Instead, unbalanced profiles are between countries that do not share a border via more likely such as a ‘gateway’ which is subdued to its airports and ports. The largest share of that trade by hinterland and develops few activities apart from 3 heavy industry and logistics (e.g. Le Havre, Genoa, Eastern Europe 53 Rotterdam); the ‘maritime city‘ where port functions Western Europe 55 are efficient in spite of an important urban High Income Asia 150 environment (e.g. Barcelona, Capetown, Buenos Australia/New Zealand 15 Aires); the ‘urban port’ which has some importance in USA 15 the urban system but with limited port activity (e.g. Canada 26 Incheon, Bordeaux); and finally, the ‘outport’ which is usually dependent on nearby cities and whose port functions do not act as a mechanism for developing its Thirdly, these cities are characterized by own urban economy (e.g. Buenaventura, Felixstowe, unprecedented income disparities. The improvement Apapa). These archetype relationships, are crucial to of the average urban income per capita is not understand the relationship between port activities necessarily a good indicator of widespread economic and urban freight, but have only been used improvement. There are extremely poor tangentially to inform urban freight policy in port neighborhoods within the cities (e.g. slums, favelas, cities. comunas) that cover a large portion of the population, with minimal infrastructure, a cash centric informal economy and acute security problems. 1.2 Urban Freight in the Developing World Besides the obvious implications to urban freight Cities in the developing world face the same movement in these developing cities (more congestion, challenges in dealing with urban freight as cities less infrastructure, more informality), these unique elsewhere, with three main differences. First, these characteristics create a salient emerging property for cities have grown at significant faster speeds and will urban freight. There is a large share of small, owner continue to grow. Between 1995 and 2005, the urban operated retail outlets that provide goods and services population of developing countries grew by an in urban areas in developing countries. Blanco and average of 1.2 million people per week, and is Fransoo [12] refer to these channels as ‘nanostores’. expected that, by the middle of the 21st century, it will These nanostores represent a much larger share of more than double reaching almost 5.2 billion. Urban consumer product goods, upwards of 40% in Latin infrastructure and policies have failed to keep up with America and Asia. In Mexico City, for example, there this fast growth, and freight movements have to are over 100,000 nanostores, an average of 200 people compete with much more constrained land and road per nanostore [13]. Unlike modern retail channels in space. North America and Europe, nanostores are family owned and operated, cash based, with very limited Second, the level of density of cities in the developing product assortment and shelf space, a small world is orders of magnitude higher than high-income geographical market area and with lack of processes economies (see Table 1). Combined with the lack of and technology, besides a personal mobile phone. road infrastructure, this increased density leads to Servicing these nanostores require small vehicles, congestion that makes mobility and accessibility frequent deliveries due to the small volume and lack of throughout the city much harder. shelf and storage space. There are no widespread studies, but it is not uncommon for a single nanostore, Table 1 Urban density of a sample of 84 cities worldwide. of less than 20-30 square meters, to receive over 30 Source: [11] deliveries per week [13]. These levels of logistics Density activities make the prominence of urban freight in Region (person/ha) developing cities even larger than cities in high- China 146 income countries. Low-Income Asia 204 Latin America 75 Africa 60 Middle East 119 4 2 STATE OF THE ART IN URBAN FREIGHT There is an extensive body of literature related to urban freight research in North America, Europe and Japan including urban freight in port cities. An extensive review, focusing in the US and the EU, can be found in [3] and [14]. Besides infrastructure investments, Giuliano and Dablanc summarized the most common urban freight strategies, along with an assessment of their effectiveness and applicability to both the EU and the U.S. This comprehensive list, included in Table 2, is organized in four major categories: flows in the urban core (e.g. downtowns), metropolitan wide flows (e.g. truck vehicle-miles-traveled), environmental impacts (e.g. pollution) and freight hubs (e.g. ports). They argued that the most effective strategies were the following:  Off-hours deliveries. This strategy seeks to shift truck activity out of the peak traffic periods and reduce congestion and emissions. However, few examples of large-scale successful implementation exist since it requires changing hours of operation and coordination of shippers, drivers and most importantly receivers. There are many point examples of successful projects (e.g. Barcelona), but there is only one large-scale policy project in New York City that is currently under development.  Voluntary programs. These are private-public partnerships aiming at engaging the freight actors to agree on voluntary operating rules and targets to improve urban freight. Cities like London and Paris have decades of successful experience in managing programs. They are also very common in the U.S.. 5 Table 2 Summary of urban freight strategies and its effectiveness and applicability to the U.S. and EU. Source [14] 6 Fig. 2 Framework to understand the various levels of analysis of the urban freight system. Source: Author adapted from [15]  Local planning policy. Where cities have established and the entities that generate the demand (e.g. urban planning processes and institutions, adding shipper and driver). freight standards on loading/unloading zones, parking, storage areas and hours of operation to  Accommodation of Rail. Urban rail intersections urban development improve the interaction disrupt both freight rail traffic (lower speeds) and between freight and the cities. Paris, London, vehicles (stopping for large trains) at rail crossings. Tokyo and Barcelona are examples of developed Reducing at-grade intersections improves flow but city and metropolitan institutions with long term requires significant capital investments. The 20- urban freight plans. Tokyo and Barcelona have mile Alameda Corridor in Los Angeles remains the gone as far as too add strict freight guidelines into showcase project in the U.S. where 200 at-grade new real estate developments. railroad crossings were avoided.  Road pricing. The goal of road pricing is to manage  Efficiency standards. These have proven to be the congestion in major roadways using dynamic most effective tools for reducing environmental pricing. It has not been implemented in the U.S. but impacts of urban freight. The “Euro standards” and it is increasingly being used in Europe and Asia. Its the U.S. CAFE standards are widely known and are effectiveness in reducing truck flows is still increasingly raising the bar on truck environmental undetermined due to the asymmetry between the emissions. entity paying the price (e.g. truck owner or driver) 7  Low-emission zones. These are urban areas in which On the private sector side, companies like DHL or UPS a minimum standard for environmental constantly invest in information technology and better performance is set. Freight vehicles that do not planning and logistics systems to improve their meet the standard are excluded from the zone. operations in urban areas. There has not been any LEZs have been established in several European major large-scale adoption of information cities including London, Copenhagen and Milan, technologies tailored to urban freight, beyond reporting significant reduction in PM and NOx improvements of logistics operations in the private emissions. sector (e.g. vehicle routing).  Port gate pricing. The goal is to use pricing to shift truck usage of port gates to hours with less traffic. 2.1 A System View of Urban Freight The main example is the PierPASS program in California charges a fee for every container moved The list of initiatives presented before tackle the urban in or out the Los Angeles and Long Beach ports freight problem at multiple levels. A more between 8 and 5 pm. This has resulted in shifting comprehensive framework of the urban freight system 30% of the traffic to off-peak hours. is needed to further understand why are these policies  Truck emission reduction programs. Drayage trucks, more or less effective, but most importantly, to adapt used in moving containers and cargo short them to a wider set of cities. distances between ports and other facilities, are often more polluting than long distance trucks. The A system view of the urban freight system is presented ports of Seattle and Oakland, for examples, have in Figure 2. At the lowest level of the system, we have offered incentives to truck owners to accelerate the the delivery or pick-up. This is the moment where the use of cleaner fuels and to replace aging equipment. actual commodity reaches (or leaves) its destination (origin). This is the most visible part of urban freight:  Ocean vessel emission reduction programs. Ocean when the driver stops the vehicle, loads/unloads the vessels are the largest contributor to PM emissions boxes and gives it to the customer. Tens of thousands in ports. Since ocean vessels are not subject to local of these interactions happen daily. All the decisions regulations, European and U.S. have developed are within the influence of these few actors spread incentive programs to reduce speed, use cleaner across the city, and are heavily influenced by the city fuels and minimize waiting times near the port. physical topology (e.g. lanes, congestion, parking spaces, curb, enforcement). To reach its destination, It is important to highlight that some of the more the driver follows a route that generates multiple commonly discussed policies such as restrictive traffic “trips” in the city. This route may have as little as 3 and parking regulations, although effective to certain stops or as many as 100, depending on the city, degrees, have proven difficult to scale due to the commodity and company. The driver is often complexity of strict enforcement, but most responsible of making all the route decisions, importantly, because cities have no control over the navigating the city and following guidelines provided demand of pickups and deliveries. Ultimately, shippers, by the transportation operator. The size of the vehicle, drivers and customers, find a way to circumvent the congestion and road and zone restrictions heavily restriction by other means with worse consequences influence the route operation. This routes are often (e.g. use of private vehicles, double parking). Another completed within a day, in some instances doing popular academic recommendation is consolidation multiple of them depending on the type of business. and integrated city logistics planning. These aims at reducing truck traffic by combining pickups and But these routes are part of a much larger distribution deliveries from various companies serving the same network, a level up in the system that includes multiple area. Due to the multiple actors required, these are facilities, vehicles, drivers and warehouse operators. often successful at small-scale, at the private level or In most cases it also includes more than one company, as part of larger voluntary programs. coordinated by a single responsible party: the delivery company. The execution and coordination of the routing and the delivery/pick-up across a city is often 8 referred to as “last-mile” operation. These operations communication. For example, the City of London are revised and planned weekly or monthly intervals. continuously creates pamphlets and guides to educate Up to this point, most of the management and and influence delivery/pick-up activities. decision-making is done by individuals that work and live in the city. Low-emission zones (LEZ) and road pricing, directly affect last-mile operations. They often face resistance The distribution network is part of a much more since they require re-designs of distribution networks complex logistics system. This third level may or may from all affected private actors, contracts between not be planned and controlled by individuals that live them and start involving managers that do not have in the city. But their decisions shape the distribution direct interaction with the urban context beyond its network: how to manage inventory, where to locate market potential. Their outcome is uncertain and are facilities, which companies operate the distribution slower to design and implement. network, how to service the various customers and how to plan for the changing patterns of demand. It Voluntary programs, at the city or at the port, aim at constantly balances much-larger cost-benefit trade- engaging multiple stakeholders operating in an urban offs than the . Decisions and policies are revisited area, and drive change in hundreds of logistics every six to 18 months, depending on the complexity systems without affecting the urban economy. They and cost of the change. are often precursors to specific policies (such as LEZ) and try to recognize the diversity of the supply chains The logistics system, its distribution network, the involved. They require long-term commitment from all delivery routes and the final delivery is all managed actors and require strong institutional support and mostly by a private actors focused on achieving their public-private partnerships. corporate goals (e.g. a brand owner, a wholesaler, a retailer, a logistics provider and a truck owner). The combination of thousands of logistics systems together, 2.2 Selected Case Studies are the ones that enable the urban freight economy, the next level up in the urban freight system. Each of Several European projects (see [16],[17] and [18]) the companies that deliver/pickup goods across the have focused on documenting successful urban freight city share the city infrastructure, competes for talent, policies and case studies. In this section we highlight a resources and customers, and creates value and few that are illustrative of the state of art of urban externalities. They all operate under the common freight policy around the world. market and regulatory conditions, infrastructure, land- use restrictions and policies. London: Planning & Guidance Documents Finally, beyond the urban economy, these logistics systems are embedded in global and national supply The Transport For London (TfL) Freight Unit leads the chains. Decisions are made outside the scope of the freight plan for 33 boroughs of the city. Besides active urban context and trade-offs involve global priorities multi-stakeholder programs, including a logistics with local constraints (e.g. where to locate recognition program, it publishes several booklets to manufacturing plants, where to source products from). help all urban freight stakeholders improve freight logistics. These publications include detail guidance Using this urban freight system framework, we can and sharing examples of best practices. Figure 3, for revisit some of the effective policies. Off-hour examples, shows a diagram with detailed deliveries, traffic regulations and port-gate pricing, specifications of the space required around a loading tackle the delivery/pick-up operation. Here the focus vehicle from one of the TfL guides. These diagrams is on influencing the interaction between the driver help both real estate developers and city planners and the customer. The interventions are simple (e.g. a design adequate infrastructure. establishing loading/unloading zone) but due to the large amount of actors affected they require extensive 9 used by public transport, freight loading/unloading and private vehicle parking. During peak hours exclusively buses and taxis use the lanes. In between peak hours they are used for short term parking of cars and freight vehicles (max. 30 mins). At night and over the weekends, they can be used for regular parking. The estimated cost per lane was of 500,000 Euros, with an estimated three-year payback time. Fig. 3 Space Requirements in meters around a loading vehicle. Strong enforcement and dissemination, was a key Source: [19] component of the success of this project. TfL also disseminate best practices. Kentish Town, a dense urban area in the city of Camden, underwent a review of all freight loading/unloading areas to simplify and streamline operations. Figure 4, shows Kentish town easy to use inventory of parking areas and regulations that was distributed to all businesses, included in a TfL guide. Fig. 5 Variable Message Signs in multi-use lanes. Source: Ajuntament de Barcelona Paris: Urban Mode Shift The repurpose of obsolete (or underutilized) infrastructure, has also been used to improve urban freight. The most well known project is the Fig. 4 Kentish Town loading and pay map. Source: [19] collaboration between French retailer Monoprix and the city of Paris that shifted distribution from road to Barcelona: Flexible Road Infrastructure rail. Instead of using standard trucks to replenish its stores in Paris, Monoprix now uses a rail connection to Flexible use of road infrastructure is another strategy move the products in bulk from its distribution center was successfully implemented in the city of Barcelona. to an urban rail terminal. The goods are then As part of a long-term plan to improve urban mobility, distributed in shorter delivery routes using Clean the city of Barcelona successfully transformed 5.5 kms Natural Gas (CNG) powered vehicles. Beginning to end, of traditional roadway into multi-use lanes. These this project took three years, an investment of 10 lanes are controlled by Variable Message Signs (see million Euros by the Paris City Council in upgrading Figure 5) to allow for the same infrastructure to be the rail terminals and infrastructure and special 10 financing to help purchase the CNG vehicles. Although there was a significant environmental benefit from Seattle: FAST Corridor this initiative (36% reduction in PM, 47% reduction in CO2) the logistics cost per pallet increased between There are three ports in the Seattle metropolitan area 26% and 32%. that are expected to move 8 million TEUs by 2020. In 1998, after a four-year collaboration process, the Tokyo: Freight Consolidation Freight Mobility Roundtable (a private-public voluntary organization), proposed the creation of a The Shinjuku area is one of the busiest in Tokyo with FAST corridor that will streamline freight movement more than 130,000 workers and more than 20 high- to/form the ports. Over 25 infrastructure projects rise buildings. In a private sector initiative, supported were identified including grade separations at by the city of Tokyo, a group of 35 office supply rail/road crossings and truck access. To date, the delivery companies got together to create an urban project has invested more than USD$500 million in consolidation center: instead of delivering to each of developing the FAST corridor [20]. the high-rise buildings individually, they created a third-party logistics operator to consolidate all the deliveries in a small 330 m2 warehouse (i.e. a private urban freight consolidation center). Deliveries are then sorted and distributed using specially designed trucks and equipment that can efficiently deliver the goods in the high-rise building environment. The new company, Shinjuku Mantenro, established collaborations with the buildings in the area to allow for efficient parking and access to elevators to improve productivity. Although no financial details are available, the private initiative is growing and is estimated that has removed over 50 trucks per day Fig. 6 Sample FAST Corridor Projects. Source: [20] from the road while delivering half a million packages per year. Valparaiso: Reshaping the Hinterland Los Angeles: Smoothing Traffic in Ports One of the challenges of port cities is the proximity, and often the “enclosure”, of the port hinterland to the A concern in port cities is the queuing of trucks city. The port of Valparaiso in Chile, for example, is outside the port gates waiting to load/unload completely surrounded by the city which some of its containers. Besides congestion, this creates significant cliffs considered World Heritage sites. By 2006, over environmental emissions. Although legislation was half a million trucks were accessing the narrow streets approved by the California Assembly to establish of Valparaiso to reach the port. After a public bid, a penalties for missed appointments in port gates, it was private operator constructed 11 kilometers of tunnels ineffective to change port operations. and highway to decouple the port truck access with the urban infrastructure. A logistics and operational Instead, the Ports of Los Angeles and Long Beach, center, ZEAL, was built outside the city where all the started in 2005 a voluntary extended hours program customs processes are performed before reaching the known as PierPASS. They assessed a Traffic port terminals. This effectively move hinterland Management Fee (approximately $120 per 40-foot operations outside the dense urban area. The project, container) on containers moved between 8 am and 5 required over USD$21 million dollars in investments pm. Fees collected were used to pay for additional over a two year horizon. In addition to the physical capacity over the weekends. The ports reported that infrastructure investments, the private operator almost 30% of the traffic moved to nights and designed electronic gate management systems to weekends. 11 manage the flow of trucks from the logistics terminal to the port facilities. Mumbai Dabbawalas The dabbawalas are a cooperative of delivery of home prepared meals in India. They are well known in their field of logistics for achieving beyond six sigma level of accuracy in their operations (1 error in 16 million deliveries) despite working with low education workforce, minimal management and no technology. From an urban freight perspective, their success is due to leveraging the public infrastructure in Mumbai. Every morning, lunch boxes are collected by bicycle and foot and transported, via multiple transfer points, using the public rail transport. The dabbawalas’ logistics system involves 25 km of public transport and 10 km of footwork with multiple transfer points. Fig. 7 ZEAL logistics platform relative to the port of Since the majority of the journey involves public Valparaiso. Source: www.puertovalparaiso.cl transport, the timing of the dabbawalas is dependent on Mumbai’s suburban rail network. The dabbawalas use the rail network very effectively by employing 3 APPLICABILITY TO DEVELOPING CITIES simple, straight routes, mostly north-south, and limit The majority of the strategies described in the sorting to a few central points [22]. previous section, were developed and implemented in high-income urban cities. Most of them are still Gammarra District. applicable in cities and port cities in the developing world. Voluntary programs, developing of local The Gamarra district in Lima, is one of the largest planning freight policies, efficiency standards and wholesale and retail areas of Perú, mostly composed transfer directly. For port cities, improving port of informal merchants. It covers an area of 60 hectares operations using port appointment systems, gate with 17,000 nanostores and generating 60,000 jobs. pricing and voluntary emission reduction programs All the logistics in and out of the Gamarra district are for oceans and vessels are sensible strategies. managed and organized by a private business cooperative. Loading/unloading areas and schedules Other policies are less effective due to the unique have been designated in the area by community nature of the developing urban cities. For instance, off- consensus and a network of 400 manual porters move hour deliveries require changes in operation hours for merchandise throughout the district using specially shippers, drivers and receivers. The large number of designed hand trucks. Although the area is chaotic due nanostores makes this very complex or with very to the high volume of trade, and lacks any urban limited impact: nanostores have a single owner that planning and municipal management, the urban will very unlikely be willing to receive shipments at logistics solution was extremely effective in removing night, not to mention the risks in moving freight in all vehicular freight traffic from the district [18] and poor neighborhoods. Road pricing is also difficult to creating a de-facto LEZ. There are however, spillover implement. There is a lot of informality in the impacts to the surrounding neighborhoods that are transportation sector that makes these solutions much not addressed. harder to deploy, and politically even more challenging. There are also some salient examples of innovative solutions that illustrate the potential of improving freight in very complex urban environments. 12 need interventions to smooth their interface with the city. These freight plans could also include urban freight operation guidelines geared towards private fleet operators that interface with the port to foster efficient operations. 3. Context specific urban freight studies. Most cities can’t answer how many vehicles are engaged in commercial activities, the number of deliveries or the freight patterns of establishments in the city. Development of robust methodologies and data repositories (see an example Figure 9), will support city freight plans and enable better planning and execution by private actors. Technological platforms should be evaluated to disseminate the information Fig. 8 Uniformed porters in Gamarra District. Source: [18] widely, probably leveraging “smart city” initiatives, fashionable in developing cities today. Well documented case studies applicable will help accelerate knowledge transfer between cities and foster communities of practice. 4. Developing Urban Logisticians. Both private and public sectors need to understand the urban freight 4 RECOMMENDATIONS system (see Figure 2) and its interactions. Investing in developing urban logisticians is of paramount Partly due to environmental concerns, freight has importance to seed the talent needed to support gained more attention from European and North freight plans and adequate last-mile operations. This American authorities. There is a rich set of case needs to be done both at the public level and private studies and documented initiatives addressing urban levels, in collaboration with academic institutions freight. The experiences of high-income cities and port and trade associations. cities have proven to be complex and tailored to the 5. Financing of voluntary programs. Voluntary specific urban context. Based on these experiences, initiatives have proven successful to advance below are some recommendations of priority areas to solutions tailored to complex urban contexts. Very invest in developing cities and port cities to improve often, these voluntary initiatives require financing urban freight: and/or investments to scale their solutions. Cities 1. City Freight Plans. All large-scale successful solutions and governments should participate in co-financing in urban freight have started with strong freight these pilot initiatives to seed innovation in their plans. These plans need to be developed by cities. authorities in consultation with the private sector. 6. Multi-use Infrastructure. Most cities in the These plans require long-term funding mechanisms developing world do not have additional space for at the metropolitan or city level, driven by technical new urban infrasrtructure. Creative ways to staff. Supporting cities to create strong “urban increase utilization of existing infrastructure for freight” units that drive the planning process is a freight (e.g. use parking lots for freight operations), pre-requisite for the robust urban freight policy. leverage new transit infrastructure (e.g. allow Adequate staffing is required. For example, cities freight in bus lanes) or transform abandoned like Bogota or Rio de Janeiro only have 1 or 2 people infrastructure (e.g. urban rail) needs to be part of (often part time) in charge of managing all the the investment portfolio of city freight plans. freight dimensions of cities of millions of people. 7. Logistics land-use. Urban freight will always need 2. Port freight plans. Ports seldom have long-term space for warehousing and cross-docking activities. freight plans that include the impact in their As land becomes scarce in developing cities, land- surrounding urban areas. These freight plans should initially focus on identifying urban corridors that 13 use plans need to explicitly incorporate logistics space differentiated from “commercial” use.. 8. Freight Emission Standards. In order to mitigate pollution from urban freight activities, cities should design freight emission including incentives to adequately dispose of aging fleets. Fig. 9 Prototype Urban Logistics Atlas. Source: [13] Urban population in developing countries will continue to grow [10]. There is urgency and an opportunity to accelerate the adoption of innovative urban freight solutions to guarantee a harmonious development process in cities in the developing world. 14 REFERENCES of the First EU-U.S. Transportation Research Symposium, May 30-31, 2013. [1] United Nations, “World Urbanization Prospects [15] Mckinnon, A., “Logistics Efficiency in Urban Areas,” The 2011 Revision,” New York, 2011. Presentation at the First EU-U.S. Transportation [2] L. 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