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Sustainable and Smart Urban Freight Transport

Sustainable and Smart Urban Freight Transport. José Holguín-Veras , William H. Hart Professor Director of the Volvo Research and Educational Foundations’ Center of Excellence for Sustainable Urban Freight Transport jhv@rpi.edu. Transportation is important because of…. Positive impacts:

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Sustainable and Smart Urban Freight Transport

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  1. Sustainable and Smart Urban Freight Transport José Holguín-Veras, William H. Hart Professor Director of the Volvo Research and Educational Foundations’ Center of Excellence for Sustainable Urban Freight Transport jhv@rpi.edu

  2. Transportation is important because of… • Positive impacts: • 10% of GDP is transportation • 1/4 of USA workers are on either transportation or logistics • The most common profession among males is Truck Driver • Negative impacts: • Consumes: 28.5% of energy and 67.9% of petroleum • Produces: 54% of carbon monoxide, 36% of nitrogen oxide, 22% of volatile organic compounds, 1.4% sulfure dioxide • Overcoming global warming, achieving a sustainable economy, and enhancing economic competitiveness requires efficient transportation systems • Ironically, we have overlooked the important role that freight transportation could play…Why??

  3. The Efficiency Paradox • William S. Jevons’ “The Coal Question” (1865) concluded: • If demand is (long-term) elastic, lower prices increase consumption • We need a holistic approach to energy efficiency… • Technology is part of the solution, not the solution http://en.wikipedia.org/wiki/File:PSM_V11_D660_William_Stanley_Jevons.jpg#file

  4. Key components of a holistic approach • Behavior modification • We (users, consumers, businesses, etc.) have to change the way in which we do things • Research helps understand how best to accomplish this • Technologies: • Needed to reduce the consumption rates, mitigate/ remediate the damage produced by economic activity, manage the use of resources, etc. • Redesign the economy and urban environments • Sustainability (or lack of) is a design problem Our work touches these three key components

  5. What Could the Public Sector and Academia Do? The Short Answer is: A Lot…

  6. Range of interventions (from NCFRP 38) • Infrastructure Related Interventions • Traffic Management • Logistical Management • Vehicle Related Interventions • Pricing, Incentives, Taxation • Demand Management • Land Use Management • Governance Supply Operations Demand Policy

  7. Downtown Downtown Carriers Carriers JDS a) Current condition b) With JDS doing the last leg of deliveries Logistical Management • Pick-up/Delivery to Alternate Destinations • Joint Delivery Service / Urban Consolidation Centers • Intelligent Transport Systems, Improve last leg

  8. La Petite Reine • Source of local employment, engages in labor re-training & socially responsible practices • Ally of companies interested in sustainability • Vehicles equipped with batteries to assist pedaling • Could use bicycle lanes, able to enter narrow streets and pedestrian areas, and to park in front receivers

  9. Muni Meters in NYC

  10. The Off-Hours Delivery Project

  11. Part of a project that has been, at times… • A science mystery • A political thriller • A melodrama • A comedy • A Greek tragedy • A good drama with a happy ending…

  12. The experience with time of day pricing • Theory and empirical evidence agree that cordon time of day pricing are of limited effectiveness in moving urban delivery traffic to the off hours • 2001 Port Authority of New York and New Jersey Time of Day Pricing Initiative • 20.2% of carriers changed behavior, though mostly by increasing productivity (not by reducing facility usage) • Only 9.0% of the sample increased rates, increases were relatively small, about 15% • 69.8% of the carriers that did not change behavior indicated it was due to “customer requirements” • Almost no change in facility use • The same was found in London

  13. (This is the solution preferred by most receivers) (These are non-feasible solutions) (This is the solution preferred by most carriers) The decision about delivery time • Is made jointly between receivers and carriers • 40% receivers, 38% receivers+carriers, 22% carriers • Let’s take a look at the payoff matrix • The first sign represents the impact on carrier and the second the impact on receiver The fact that more than 90% of deliveries are made in the day hours clearly show who has the power…

  14. There is a market failure • Markets typically find the most efficient outcome • When they do not, there is a market failure rationale for public sector intervention • Off-hour deliveries are beneficial to Society (+)Huge environmental impacts due to less pollution (+)Carriers / Regular hour travelers (cars, buses, trucks) benefit (-)Increased noise at night could be easily mitigated (-)However, receivers accrue additional costs • The market failure: carrier savings are not large enough to compensate for the receiver costs • The solution is to either: • Compensate the receivers for additional costs, or • Develop technologies/systems to allow receivers to do OHD at lower costs (so that compensation could work)

  15. Project Concept

  16. Interlocking components • Demand modeling/behavioral/economic components • Analyses of most promising industry segments • Freight trip generation analyses • Technology component • GPS to assess performance (cell phones, own systems) • Network modeling component • Mesoscale traffic model to assess local impacts • Regional model to assess networkwide impacts • Industry/Agency outreach component • To get feedback from all involved • Small scale pilot test component • To assess real life impacts… • JHV aged twenty years

  17. Pilot Test Results

  18. Pilot Test • Initial efforts delayed by Wall Street collapse, skepticism on the part of the industry…initially a huge challenge because of lack of precedents • Original plan: Sysco and Whole Foods • Foot Locker/New Deal Logistics asked to join test • Three separate stages to accommodate them: • Foot Locker (10 stores)/NDL (Oct. 2 -Nov.14, 2009) • Whole Foods (four stores) (Dec. 28, 2009-Jan. 31, 2010) • Sysco (twenty one stores) (Dec. 21, 2009-Jan. 23, 2010) • About 35 receivers, 20 trucks/vendors • Half doing staffed OHD • Half doing unassisted OHD

  19. Participants in Pilot Test

  20. Regular vs. Off-Hour Deliveries

  21. Typical results from satisfaction surveys • Whole Food Vendors: 1.55 • Participating drivers: • Travel speeds = 1.33 • Congestion = 1.11 • Parking = 1.11 • Stress levels = 1.11 • Time to deliver goods = 1.38 • Time to complete the route = 1.44 • Driver’s feeling of safety = 1.86 • Sysco’s customers: • Impression of off-hour deliveries = 1.50 • How likely are you to accept off-hour deliveries= 1.42 Scale: 1= Very favorable, 5= Very unfavorable

  22. Average space mean speeds More than twice as fast

  23. Average service times More than three times as fast

  24. After the end of the pilot • All of the receivers doing staffed OHD reverted back to the regular hours • Almost all the receivers doing unassisted OHD remained in the off-hours • The reason: reliability of OHD • “Our locations will continue to receive ‘night drops’ even though this program has ended as our managers now favor the dependability of night drops vs. late day time deliveries. Thanks again for the program.” Nick Kenner, Managing Partner, Just Salad LLC

  25. The Economic Bottom Line

  26. Economic Impacts • Implementing various forms of off-hour delivery policies in Manhattan leads to: • Travel time savings to all highway users of about 3-5 minutes per trip • Travel time savings to carriers that switch to the off-hours of about 48 minutes per delivery tour • Savings in service times (per tour) could be in the range of 1-3 hours • Depending on the extent of the policies, economic savings are between $100 and $200 million/year in travel time savings and pollution reduction

  27. Environmental Pollution Reductions

  28. How the Adventure Ended…

  29. A Huge Success…Widely Reported in the Press

  30. The Impacts of the Project… NYC adopted off-hour deliveries as part of its sustainability strategy!

  31. The Impacts of the Project… • In June 2012 the Federal Highway Administration (FHWA) and Environmental Protection Agency (EPA) issued $450,000 in grants for small to medium size cities to implement off-hours goods movement /delivery programs based on the NYC pilot • Numerous cities are considering off-hour delivery programs: Boston, Washington, Atlanta, etc.

  32. Awards • ITS-NY (Intelligent Transportation Society) 2011 Project of the Year in Freight Management • Numerous research awards: • Robert E. Kerker Award • Milton Pikarsky MS Award to Ms. Brenda Cruz • Best Paper Award for UTC Region II • Student of the Year Award to Mike Silas • etc

  33. Ongoing Work

  34. Ongoing work • USDOT/RITA provided funds for a larger implemen-tation project focusing on: • Unassisted deliveries: • Technologies/systems that enable OHD without the need for staff of the receiving business would produce the same benefits as regular OHD, at minimal cost • To address the liability concerns of receivers • Large Traffic Generators: • Large buildings/establishments generate hundreds of truck trips per day • About 80 such buildings 4% of the truck traffic • Adding large establishments  8% of truck traffic • They could implement OHD very cost effectively and without inconveniencing the receivers

  35. Chief conclusions • Removing the constraints imposed by receivers (either by providing financial incentives, or using un-assisted OHDs) works as it is • More effective than freight road pricing • A truly win-win-win-win-win policy: • Benefits regular hours travelers • Benefits the environment, improves quality of life • Benefits the business community, enhances economy • Noise impacts could be easily mitigated electric trucks, low-noise truck technologies/practices • Benefits participants in OHD • Political appeal, implementable as a voluntary program

  36. Some references

  37. References, project website Off-hour delivery project final report: http://transp.rpi.edu/~usdotp/OHD_FINAL_REPORT.pdf Project related papers: Silas, M. and J. Holguín-Veras (2009). "Behavioral Microsimulation Formulation for Analysis and Design of Off-Hour Delivery Policies in Urban Areas." Transportation Research Record: Journal of the Transportation Research Board2097: 43-50. Brom, M., J. Holguín-Veras and S. Hodge (2011). "Off-Hour Deliveries In Manhattan: Experiences Of Pilot Test Participants." Transportation Research Record(in press). Holguín-Veras, J., K. Ozbay, A. L. Kornhauser, S. Ukkusuri, M. Brom, S. Iyer, W. Yushimito, B. Allen and M. Silas (2011). "Overall Impacts of Off-Hour Delivery Programs in the New York City Metropolitan Area." Transportation Research Record (in press). Behavior: Holguín-Veras, J., N. Pérez, B. Cruz and J. Polimeni (2006a). "On the Effectiveness of Financial Incentives to Off Peak Deliveries to Manhattan Restaurants." Transportation Research Record 1966: 51-59. Holguín-Veras, J., M. A. Silas, J. Polimeni and B. Cruz (2007). "An Investigation on the Effectiveness of Joint Receiver-Carrier Policies to Increase Truck Traffic in the Off-Peak Hours: Part I: The Behaviors of Receivers." Networks and Spatial Economics 7(3): 277-295. 10.1007/s11067-006-9002-7 Holguín-Veras, J., M. A. Silas, J. Polimeni and B. Cruz (2008). "An Investigation on the Effectiveness of Joint Receiver-Carrier Policies to Increase Truck Traffic in the Off-Peak Hours: Part II: The Behaviors of Carriers." Networks and Spatial Economics 8(4): 327-354. 10.1007/s11067-006-9011-6 Holguín-Veras, J., Q. Wang, N. Xu, K. Ozbay, M. Cetin and J. Polimeni (2006b). "Impacts of Time of Day Pricing on the Behavior of Freight Carriers in a Congested Urban Area: Implications to Road Pricing." Transportation Research Part A: Policy and Practice 40 (9): 744-766. Theory: Holguín-Veras, J. (2011). "Urban Delivery Industry Response to Cordon Pricing, Time-Distance Pricing, and Carrier-Receiver Policies " Transportation Research Part A: Policy and Practice 45: 802-824. Holguín-Veras, J. (2008). "Necessary Conditions for Off-Hour Deliveries and the Effectiveness of Urban Freight Road Pricing and Alternative Financial Policies." Transportation Research Part A: Policy and Practice 42A(2): 392-413. Holguín-Veras, J. (2010). Approximation model to estimate joint market share in off-hour deliveries. Annual Meeting of the Transportation Research Board.

  38. Thanks! José Holguín-Veras, William H. Hart Professor Director of the Volvo Research and Educational Foundations’ Center of Excellence for Sustainable Urban Freight Transport jhv@rpi.edu

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