Factors Influencing the Performance of Urban Consolidation Schemes

Abstract

Various urban consolidation centres (UCC) have been implemented in recent years in order to improve logistics performance while at the same time reducing the negative environmental and socio-economic impacts of urban deliveries. However, many UCCs have struggled to operate on a commercial basis and are either terminated or depend on government subsidies. Literature has identified many factors influencing the environmental performance as well as the economic feasibility of urban consolidation schemes, including range and type of products handled, location and spatial coverage of the UCC. The purpose of the paper is to analyse the relevance and significance of the key factors on the environmental and economic performance. The paper takes a case study approach, analysing a pilot project of consolidated last mile deliveries in the city centre of Gothenburg. The findings suggest that the improvement potential of innovative technology enabling zero-emission last-mile distribution is only marginal. Organisational changes enabling a separation of feedering trip and last-mile trip have a much bigger improvement potential, even in case conventional technology is used for last-mile deliveries. The relative importance of organisational changes in comparison to innovative technology increases with city size and level of congestion on the citywide road network. The paper discusses the practical implications and theoretical contribution of these findings.