Challenges for CBD Freight in Sydney s Transformation. Michael Stokoe 11 October 2016
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1 Challenges for CBD Freight in Sydney s Transformation Michael Stokoe 11 October 2016
2 CBD Coordination Office Functions include: Communications Operational planning: traffic management and contingency planning Strategic and land use planning (including development approvals) Freight planning - deliveries and servicing Business and community support (i.e. activation during periods of disruption) Facilitating special events
3 CBD Transformation
4 Tomorrow s Sydney Responding to growth: Sydney s population is expected to leap by more than 2.1 million people in the next 20 years - about 170,000 more than predicted only two years ago. Transport for NSW is overseeing the largest transformation of the Sydney CBD transport network in decades to address it. The demand: Over 630,000 trips are made to the city centre daily. 67% by public transport and 20% by car. This is forecast to increase by 25% (155,000 trips) by Over 1.26 million trips are made within the city for work, education, shopping, leisure and city living each day. These trips will increase by 35% to 1.7 million by ,000 jobs will be created in the city centre over the next 20 years.
5 Developing Sydney 1 Carrington, Brookfield Office Properties Quay Quarter Tower, AMP 333 George St, Charter Hall
6 Capacity improvement
7 Construction zone activity 16 zones currently active 8 more zones active by December
8 Travel demand management: Travel Choices An Olympic style travel demand management program. Primarily focused on people movement. The 4Rs ring true for freight, too.
9 Our Sydney CBD Freight Challenge
10 City logistics The process for totally optimising the logistics and transport activities by private companies in urban areas while considering the traffic environment, traffic congestion and energy consumption within the framework of a market economy. Taniguchi, Thompson, Yamada and Van Duin (2001) McKinsey estimates that the roll out of city logistics principles is up to four times more efficient than building road infrastructure (2010).
11
12 City logistics on our streets Provedores Shop fitting Bilge pumping Significant refurb/repair jobs Couriers Floral deliveries 12
13 Why is there such a significant freight task? In one small part of a CBD street we found there was a consumer choice of 230 different types of bread for sale. Bread by the numbers 1 side of the street in a 220 metre CBD block 21 shops and cafes selling bread 35 bread suppliers 80 deliveries each day Diversity, catering to all tastes and daily choices. Delivery of social benefit. Now multiply by every other product, service and competitor the city offers. This is what makes cities great! The number of CBD businesses selling food and drink increased by 13.9 per cent between 2007 and 2012 to a total of Compare the supply chain implications of diversity, fragmentation and choice.
14 Managing CBD freight and servicing Aims and horizons 1. Maintain productivity and sustainability throughout the transformation 2. Promote efficient freight and servicing practices to create a lasting legacy 3. Accommodate future grown 2015 Transformation period 2030 Stakeholders Economic Commercial Social Environmental Guiding principles 1. Encouraging industry driven change 2. Support and actions required by government Framework 3. Communication & engagement 1. Problem definition 2. Development of an evidence base Facilitation Trials Policy 4. Design of future solutions Ongoing business success, enabling growth Outcomes Efficient supply chain models supporting stakeholder requirements Efficient transport network operations 14
15 Problem definition and development of an evidence base
16 Supply chain structures Service definition may be set by various parties... including marketing departments. Next day AM is a typical service requirement regardless of the nature of the good. This leads to immense competition for space during the morning peak. Property managers play a key gate keeper role controlling who can access their loading docks.
17 On-street loading zone assessment for freight and servicing Approximately 3.2 million loading zone button push transactions per year. Peak period 9-11am exceeds operational capacity. Infrastructure projects reduced capacity by 12% last year more reductions are likely. 17
18 Key behavioural observations Legal Illegal Productive Delivery with 30 minute turnover, no waiting, no double parking, no circulating. Using a loading dock or car park. Back of the clock delivery. Overstaying a 30 minute slot due to delays at business (such as waiting for security check). Making several deliveries from one spot (on street or in loading dock). Colluding to allow overstaying to finish the job. Using a bus lane or no stopping zone as buffer capacity. Non-productive Stopping in a loading zone to buy food or coffee in an approved vehicle type. Driving around the block rather than blocking a lane while waiting. Queuing at loading dock entry. Internet shopping delivered to CBD offices. Private car parking in loading zones. Non-commercial SUV/ute stopping for private use activities (vehicle type is legal but trip purpose is not). Blocking a bus lane, cycle lane or intersection while queuing for a loading dock. 18
19 Law breakers?
20 Free loading zones a tragedy of the commons? Who gets what space? Who gets priority? It is in the interests of the users of a commons to manage it prudently. Does compliance work? Yes and no...
21 Why use loading zones rather than a dock? Your customer doesn t have a dock. Your truck doesn t fit (height, length). Your customer (the tenant) doesn t manage access to the dock, the property manager does. You have deliveries to make to 151 and 155 xyz street. Both have docks. Parking in the street means you can access both customers easily. Getting to the dock requires going into a one-way street system. You need to create a booking. You don t like admin/it doesn t suit your operating method. The dock closes at 3pm.
22 The challenges for freight efficiency LCVs are highly flexible for small just in time deliveries. But: Energy LCVs use approximately 21 times more fuel than articulated vehicles to move one tonne of freight one kilometre. Social cost LCVs take up 13 times more road space than an HGV for the equivalent amount of freight. LCVs may appear less individually intrusive, collectively they have a significant impact on road capacity.
23 The challenges for large vehicles Providing network access. Providing dock access. Maintaining access for retailers through the construction phase and into end state. Assessment of swept paths for accessing docks to inform construction.
24 Off-street loading docks Self sufficiency is a requirement for all new developments. Only developed for the associated building. Little/no sharing. Is the space valued versus maximising leasable space? Scissor lifts are increasingly seen as the answer for confined space developments. Does building access policy require use of the dock? What is the value of serviceability for a building?
25 Developing Sydney 1 Carrington, Brookfield Office Properties Quay Quarter Tower, AMP 333 George St, Charter Hall
26 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Construction traffic 2,000 1,800 1,600 1,400 Average daily heavy vehicle movements major CBD projects Circular Quay & The Rocks Wynyard & Barangaroo City South 1,200 1, We are investigating methods to best manage this traffic. 26
27 Construction traffic Pitt Street/Martin Place Circled the block four times at 8am on a November morning. Kent Street Circling the block and impeding traffic as planned practices.
28 Finding solutions Framework 1. Problem definition 2. Development of an evidence base 3. Communication & engagement Facilitation Trials Policy 4. Design of future solutions
29 Communications and engagement Provision of up-to-date information Give us information, give us time to plan. Handcrafted list of over 750 stakeholders. Over 60 operational communications since September Frequent communication with a broad variety of stakeholders. Information about the network mysydneycbd.nsw.gov.au provides loading zone and parking station locations. Working with businesses to identify parking opportunities. Data to publish. 29
30 Freight and servicing trials and activity FOCUS Courier efficiency Courier hub trial in Goulburn Street car park a viable option that industry can replicate. Tradie parking Encouraging building managers to provide/promote off-street parking for the tradies servicing their buildings. 3+ hours Waste operators Code of Practice Developing improved work practices that reduce traffic impacts and improve operations. Promoting retimed activity Working when there is more kerbside space available. 30
31 Approaches: courier hub Joint initiative with the Council of the City of Sydney. Off-street parking, secure cages and lockers for deliveries. Activity with couriers demonstrates there are viable alternatives that can be adopted to efficiently get goods into and around the CBDs The most common operator has 44 vehicles and bike couriers visiting per day (August 2016). 60% of movements are by bike. At full capacity, we estimate the hub could save 26,000 kilometres within the CBD (and more across greater Sydney) and reduce loading zone dwell time by 4,600 hours annually. Current use is approximately 25% Other couriers have established their own individual courier hubs.
32 Courier productivity assessment from the hub Testing the hub as: An intermodal point A city based hub A consolidation point Bonds Couriers Despatch Manager While it is difficult to empirically judge, there is a very strong service benefit to our CBD customers due to the use of pushbikes.
33 Approaches: retiming activities Extending loading zones to midnight to enable late evening deliveries. Testing the ability to schedule less time-critical deliveries from peak periods to off-peak periods.
34 Retiming activities Tests conducted at a TfNSW office Substantial productivity gains can be made from operating overnight. In this case productivity increased by x6 and mileage decreased by x5. Productivity gains for us as the client too by this operation being out of hours. The challenge is typically how both parties establish a win-win outcome.
35 Noise assessment responsible retiming Conclusion: peaks in noise are typically bin self noise and the way they are robustly handled. Less noise from the actual vehicle. There are still several areas for improvement.
36 Policy and Design of Future Solutions
37 Better design of loading docks New buildings are required to be self sufficient, not reliant on on-street space. Accessibility for larger vehicles. Opportunities for local area hubbing. Lease income from operators. Improved service outcomes for building tenants. Could enhance the buildings green credentials and rating Requires view to be changed that this space generates value to tenants...
38 Better management of kerbside loading space Less space needs to accommodate more volume into the future. More space will (temporarily) be required to support construction. Not every building has a loading dock. Detecting wrong doing is not the easiest task. Future: increasing requirement to work in pedestrianised areas.
39 CBD land use and infrastructure planning Central Sydney Planning Strategy (draft - July 2016) Loading and servicing actions Precinct-based approach to commercial vehicle management, including open access docks. Create small delivery consolidation points for last mile delivery by foot, cycle or electric vehicle. Transport for NSW new Metro stations Investigating a precinct-based approach to loading docks. Can these be used to service the local area efficiently? Encourage storage, particularly in retail to reduce the number of (small) consignments. Loading on widened footpaths, at low pedestrian volume periods e.g. at night. 39
40 Global developments and trends Europe Consolidated freight deliveries by electric vehicles Freight tram (Dresden) Urban courier deliveries Often these are motivated by energy/environment and are not commercially sustainable. 40
41 Global developments and trends Disruptive technologies/micropreneurship Urban freight facilities Tokyo Drones/robotics Westfield Sydney vehicle booking management 41
42 Conclusion so far With 12% less kerbside capacity, the network is still working. Operators tell us they are doing OK. Operators have innovated in various ways. There has been an increase in retiming and adaptive behaviour. Disruption isn't substantial enough to instigate change? Should wholesale change be expected? Lots more work to do: Construction traffic impact Property solutions that enable efficiency Servicing/tradies Off-street management Delivery innovation Efficient last metre logistics.
43 Thank you
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