Graduate School of Architecture, Planning and Preservation, Columbia University, New York, April 19 2011 Freight and the City: An Ambiguous Relationship Jean-Paul Rodrigue Associate Professor, Dept. of Global Studies & Geography, Hofstra University, New York, USA Van Horne Researcher in Transportation and Logistics, University of Calgary, Canada Lets Meet the Couple… Problem Partners barely know oneanother. Uncertain about the extent and depth of the relationship. Partners “misbehaving”. Potential Solutions As is. Divorce. Counseling. Well, it could be worse… Divorce is Not an Option… Multi-Nodal Nodal Core activities Peripheral activities Central activities Central area Major transport axis Why City Logistics is Receiving a Growing Level of Attention? Globalization (fragmentation of production) Congestion (better usage of existing urban infrastructures) Energy & Environment (mitigating externalities) Urban Transport: Assets versus Liabilities Assets (Freight Transport) Privately owned (profit driven). Low entry costs (wages and rates subject to market forces). Value added role (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. The AND & IN of the Freight / City Relationship Freight AND the City Freight IN the City The city as a unit of production, consumption and distribution. Strategies to insure urban freight distribution (city logistics) A - GLOBALIZATION AND MATERIAL FLOWS THE DRIVERS OF GLOBALIZATION GLOBAL SUPPLY CHAINS CONTAINERIZATION The Drivers of Globalization Integration Production Transportation Transactions Regulatory chains. Supply chains. Transport chains. Offshoring. Containerization. Information chains (ICT). Harmonization of regulatory regimes. Global production networks. Transborder transportation. Capital for investments. Trade agreements. Credit for transactions. Global Maritime Container Transport System Offshoring Costs / time / reliability Internalize efficiency Commodity Chains and Added Value High Globalization Added value R&D Sales / Service Marketing Branding Distribution Design Concept Manufacturing Low Commodity chain Logistics Supply Chains: Alternating First and Last Miles Logistics Chain 1 Extraction LC 2 Processing Transport Chain 1 LC 3 Fabrication TC 2 Logistics Chain 4 Assembly TC 3 Distribution TC 4 Retailing TC 5 The Container: An Ubiquitous Transport Unit… … Adapted to a Wide Variety of Supply Chains Configuration of a Maritime Container Terminal Rail Road Container crane Administration Gate Repair / maintenance Truck loading / unloading Chassis storage 1 km Loading / unloading area Port Elizabeth Intermodal Complex, Port of New York Configuration of an Intermodal Rail Terminal Repair / maintenance Gate / Administration Chassis storage 1 km Rail Track Operations Storage Yard Operations Gate Operations BNSF Logistics Park Terminal, Joliet, Illinois Warehousing, Cross-Docking and Transloading Distribution Center Suppliers Receiving Sorting Shipping Customers Coping with Scarcity through Density: Hong Kong International Distribution Center FREIGHT AND THE CITY THE MATERIAL CITY THE GATEWAY CITY LOGISTICS AND LAND USE The Material City: Supply Chains and City Logistics Multinational corporations. Cities as production zones. Intermodal Terminals Freight forwarders. Cities as freight distribution zones. Logistic Zones Cities as consumption zones. World’s Major Gateway Systems, 2006 39 Gateway Regions 90% of the World’s Freight Transport Pearl River Delta: 16.7% China’s Special Economic Zones: Freight Transnationalism and Urbanism Freight Distribution Dominating the City: Evolution of the Port of Rotterdam Raritan Center (Freight Village), New Jersey Raritan Center Heller Industrial Park Port Raritan FREIGHT IN THE CITY (CITY LOGISTICS) URBAN DISTRIBUTION CHAINS URBAN MOBILITY DUALITY CHALLENGES TO CITY LOGISTICS Main Urban Freight Distribution Systems Chain Characteristics Independent retailing Small scale retailing activities. High frequency of deliveries (3 to 10 times per week). Use of own-account delivery vehicles; mostly small to medium sized. Limited freight reception facilities (the street as the delivery platform). Chain retailing Large stores and shopping centers. Provision of parking space and loading bays. Consolidated deliveries (large trucks). Reliance of third-party logistics services providers (urban distribution and outsourcing). Food deliveries Specialized supply chains with goods that are often perishable. Cold chain logistics; used heavily by fast food chains. Outdoor (central) markets (mostly in developing countries). Parcel and home deliveries Specialized parcel companies also involved in home deliveries. Large freight integrators (consolidation and deconsolidation of shipments) with a network of distribution centers. Fleet of delivery vehicles (small and medium-sized). Construction sites Construction and renewal of urban infrastructure. Different suppliers according to the construction phase. Large volumes and heavy trucks. Garbage collection and disposal Collection and disposal of wastes generated by daily urban activities. Reverse logistics and recycling. Elements of City Logistics Scope A Distribution Center Urban Logistics Zones Suburbia B Central City C A D Urban Freight Distribution Centers Urban Freight Stations Mitigation Strategies for Urban Freight Distribution Strategy Advantages Drawbacks Night deliveries Less congestion and faster deliveries. No conflicts with commuting. Organization of labor and work shifts. Potential community disruptions (e.g. noise). Extended delivery windows More delivery options and less impacts at peak hours. Organization of labor and work shifts. Usage of urban freight distribution centers Better usage of delivery assets. Less congestion. Additional costs and potential delays due to consolidation. May not well service consignee delivery requirements (e.g. time). Local freight stations Less delivery parking. A single consolidation / deconsolidation location. Deliveries from freight station to consignee. Management costs for the freight station. Adapted vehicles Less impact on local congestion. Easier to find a parking spot. Environmentally friendly vehicles. More journeys for shipments larger than the load unit. Additional costs. Designated delivery parking areas Better access to consignees. Less Less parking space for passenger vehicles. disruptive deliveries. Typical Car and Truck Trips Distribution by Time of the Day 14 12 Trucks Cars 10 8 6 4 2 0 1AM 3AM 5AM 7AM 9AM 11AM 1PM 3PM 5PM 7PM 9PM 11PM 100 Most Congested Highway Intersections in the United States, 2006 Characteristics of Urban Deliveries from a Sample of French Cities Delivery Duration Parking Conditions 3% 4% 7% 9% 11% 39% 12% 50% 15% 20% Double-parked 28% Other infringements Along sidewalks Less than 5 min 5 to 10 min Over pedestrian areas 10 to 15 min 15 to 30 min Private space More than 30 min Delivery area SOGARIS Urban Logistics Zone, Marseille Motomachi UCC Employees Unloading a CNG Truck Electrically Assisted Delivery Tricycles, Paris Containerization and Urbanism…