MERCI INCENTROCOMO& BRESCIA ECOLOGIS: SUCCESSFULBESTPRACTICE TRANSFERS
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1 MERCI INCENTROCOMO& BRESCIA ECOLOGIS: SUCCESSFULBESTPRACTICE TRANSFERS FROMCITYPORTOPADOVA Carlo Vaghi BESTFACT Workshop, Brussels 29/01/2014
2 ITALY CITYPORTO AND SIMILAR INITIATIVES Italy as the country of medium sized cities Every city has own urban logistics regulation More than 170 Limited Traffic Zones are in operation Attempts to issue a common regulation for urban distribution are either ineffective or nonbinding (e.g. Lombardy Region s Guidelines for Urban Distribution, issued 2013) Some 40 city logistics studies and projects have been developed in the last 10 years. At least 10 city logistics services are or have been operational. Some services, once considered as best practices, ended due to lack of funding or demand. 2
3 CITYPORTO AS A BEST PRACTICE BUSINESS MODEL (see BESTFACT Workshop December 2012) CityportoPadova(above deliveries per year) is nowadays a reference business model for medium-sized cities, replicated with different success degrees in other 5 cities Cityportois the goods distribution service in the City of Padova, managed by Interporto Padova, in operation since Deliveries for the inner city centre of Padua ( sq.m.) are performed through a Urban Distribution Center (at the Interporto), where goods are sorted by destination and delivered by low emission vehicles (CNG). 3
4 CITYPORTO-A BEST PRACTICE AND ITS SUCCESS FACTORS Anticipated conclusions Not every UCC(Urban Consolidation Centre) based model is successful, even if fostered by the City through a specific regulation Success factors showed by Cityporto have to be simultaneously in place: Stakeholder involvement concertation process Full support by the Municipality - specific regulatory scheme Industrial plan focused on financial sustainability (reached in 2007) Participation on a voluntary basis Strategic periurban location of the UCC platform Reliability and neutrality of the platform manager 4
5 URBANLOGISTICS AND URBAN LEGENDS Only Cityporto vehicles can enter the LTZ in Padova! NOT TRUE! Cityporto vans have a wider time window for loading/unloading and can enter reserved lanes for buses Express couriers will never use Cityportosince they have already efficient distribution platforms. At least they will entrust only difficult deliveries in the historical centre! NOT TRUE! nearly 40% of last-mile deliveries managed by Cityportois on behalf of an express courier 5
6 THE COMMON(AND SUCCESSFUL) BUSINESS MODEL Stakeholders agree through a FRAMEWORK AGREEMENT on: regulations (implicitly accepted while signing the F.A.) Reciprocal supply of specific assets Creation of a Newco (not necessary in all cases) Chamber of Commerce The City UCC manager FrameworkAgreement (plus NEWCO in some cases) Service manager is defined in the F.A. Service manager ICT Cross docking LPT holding Owner Vehicles 6
7 MERCI INCENTRO ANDECOLOGIS Merci in Centro Como and Ecologis Brescia are two trials of the same UCCbased city logistics business model Como and Brescia are two medium sized cities in Lombardy: Como: a very important tourist city across the Lake, pop Brescia:the second largest city in Lombardy pop , 5300 shops, of which 900 bars and 700 restaurants 7
8 MERCI INCENTROCOMO Merci in Centro is the neutrallast-miledelivery service basedon a periurban UCC located in a strategic position near the motorway The service was initiated by the City of Como through its in-house company CSU, owner of the vehicles and manager of UCC facilities and cross docking operations The service isoperatedby2 hybridvans So far, the service were not supported by a fostering regulatory scheme bythe City 8
9 COMO AS A PECULIAR LOGISTIC CITY Convalle : Como is surrounded by three valleys and the lake City Centre UCC 9
10 COMO AND ITSLIMITEDTRAFFICZONE(ZTL) ZTL Ordinance issued the concept of priority to pedestrians within the ZTL (very important for tourism) 19 categories and regulations for access! Time windows Morning ( ) Afternoon ( ) Narrower time window for self-suppliers Morning ( ) (de facto) Free access granted to postal operators (29 in Como!) No distinctions between third party and own account transport Free access for electric and hybrid vehicles
11 COMO AND ITSFREIGHT TRAFFIC 180 vans mixed vehicles enter the ZTL daily(average) Itappearsthatvansenterthe ZTL withoutegressinguntilthe end ofthe day Morning Afternoon
12 MERCI INCENTRO ANDSMARTFUSION SMARTFUSION(FP7) project runsa demonstrationin Como (tostart in 2014) Como demonstration is based on four elements that run in parallel: Use of the UCC, and setup of conditions to revamp Merci in Centro (permanent) changes in the regulation for accessing the LTZ Use of IVECO electric vehicle under business conditions; on the vehicle a Profiler will be installed, providing information on the battery status test PTVrouting system that calculates least polluting trip for electric vehicles based on geographic conditions (slopes), traffic conditions, etc. 12
13 MERCI INCENTRO ANDSMARTFUSION A two-step concertationprocesswasorganised, participatedby25 stakeholders: DMF(Design Monitoring Framework) methodology was used The goal ofthe concertationwastwofold: agree on conditions for get Merci in Centro more attractive for deliveries Agree on new regulations for urban logistics in Como 13
14 RESULTS OF THE CONCERTATION PROCESS The stakeholders agreed on the following regulatory and logistics aspects: Location of UCC: Como Docks (location currently used by Merciin Centro) or, alternatively, a location nearby that guarantees neutrality and economic feasibility. The current management by the public company CSU is considered as a factor enhancing neutrality. Range of services by UCC: collection/pick-up (besides delivery) desired by stakeholders (suggestions on collection of laundry from ho.re.ca. and reverse logistics). Last-mile delivery price: some stakeholders estimated 2,50-3 Euros/100 kilo as a suitable and competitive market price. Note that this tariff is not compatible with the current cost structure of Merci in Centro. PPP: limited availability of stakeholders for patronage. In case of financial contribution, the common view is that only start-up costs shall be covered. 14
15 RESULTS OF THE CONCERTATION PROCESS The stakeholders agreed on the following regulatory and logistics aspects: To increase competitiveness of UCCservice it should be checked if storage area for shopkeepers could be made available at UCC. Shopkeepers were generally favorable to labeltheir commitment to the delivery service using an UCC. They recognisedthe advantage to receive consolidated deliveries. Suitable goods categories: general cargo and small parcels. Regarding demonstration it was suggested to consider perishable products as well. Availability of Como City Council to use UCCservice for the delivery of goods to the city hall, also during the demonstration. 15
16 ECOLOGISBRESCIA THEBUSINESS MODEL wc Steering Eco-Logis is a urban distribution service operational in the urban area of Brescia, focusing on the historical city centre and its Low Traffic Zone (LTZ). The manager is Brescia Mobilità, an in-house company of the City of Brescia, in partnership with OMB Inter-national (Logistics Manager), Cooperativa Facchini Bresciani (Personnel Manager), Consorzio Brescia Mercati S.p.A. (Depot owner). The service is operational since 2012 and was motivated by the goal to reduce the traffic congestion and pollution of Brescia city centre. Drivers, warehouse mgmt. 16
17 ECOLOGISBRESCIA THEFLEET The service is provided by 3 full electric vehicles (5-15 m 3 and kg capacity), operated by Cooperativa Facchini Bresciani's drivers. Their maintenance is provided by OMB International. All vehicles are equipped with satellite tracking & tracing devices. Each delivery can be traced also via web, in a site accessible to clients and operators.
18 ECOLOGISBRESCIA THE PLATFORM Eco-Logis is based on a 400 m 2 wide Urban Consolidation Centre located in the general wholesale market of Brescia (very near both a motor-way exit and the city centre). The depot is endowed by 3 loading bays, and temperature controlled cells are available for a possible extension of the service to the distribution of perishable goods
19 ECOLOGISBRESCIA THE FOSTERING REGULATION Eco-Logis vehicles are entitled to access the Brescia LTZ freely, with no time window limitation, whilst all other vehicles must follow a time window rule for access, loading/unloading. The specific access restriction policy has been issued by the Municipality on 12/11/2012 and it is foreseen that the time window will become progressively narrower. Now the access for loading/unloading is allowed from Monday to Saturday, from to and from to Before 12/11/2012 After 12/11/2012 After 01/03/2013 All vehicles issuing a permit enter the LTZ Time windows to enter LTZ: Mo-Fr : Sat: Time windows to enter LTZ: Mo-Sa : Sat: The plan foresaw even narrower time windows from 01/09/2013, but the change of the City Government suspended this regulation phase
20 ECOLOGISBRESCIA THE(FUNDAMENTAL) PROMOTION not only stickers, but a concrete commitment by shopkeepers
21 ECOLOGISBRESCIA THEMARKET The number of deliveries is rapidly increasing since the start of operations. Eco-Logis performed about 5,500 deliveries in 2013 The average monthly performance boomed to 950 deliveries after August 2013 (5 parcels per delivery avg.), allowing a forecast of about 12,000 deliveries in The panel of Eco-Logis clients include forwarders and logistics operators such as CEVA, Fercam, Artoni, GEFCO, Arco, MTN, Tardini, and fashion brands like Zara and Coin
22 ECOLOGISBRESCIA THEBENEFITS TARGET Eco-Logis is expected to decrease the number of vehicles entering the city centre by 4,220 in 5 years, which equals to a decrease in total distance driven by all goods vehicles of 284,000 km. As concerns environmental benefits, emission savings of 31 tonnes of CO 2 and 19 kg of particulates PM 10 are foreseen. These forecasts were made before the service start-up. Nowadays, Eco-Logis reports a mileage performance of 16,000 km by its electric vehicles
23 THANK YOU FOR YOUR ATTENTION Carlo Contatti: Via Lattuada, MILANO Tel Fax Via San Basilio ROMA Tel Fax
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