URBAN FREIGHT

TRANSPORT AND LOGISTICS

An overview of the European research

and policy

EUROPEAN
COMMISSION
CONTENTS
FOREWORD 1

1 DEFINITION OF THE SUBJECT 2

2 RESEARCH NEEDS 3

3 RESEARCH PROGRAMMES 5

4 RESEARCH RESULTS 7

5 EUROPEAN POLICY IMPLICATIONS 13

6 FUTURE RESEARCH DEVELOPMENTS 15

7 REFERENCES 17

This publication was produced by the EXTR@Web consortium on behalf of

DG Energy and Transport. The information in this document has been collected by
partners in the project on the basis of material provided by DG TREN and project
partners.

We would like to thank Professor Michael Browne and Dr Julian Allen from the
University of Westminster, UK for contributing to the review of the manuscript.

While the information contained in this brochure is correct to the best of our
knowledge, neither the consortium nor the European Commission can be held
responsible for any inaccuracy, or accept responsibility for any use made thereof.

Additional information on transport research programmes and related projects is

available on the Transport Research Knowledge Centre website on the European
Commission’s Europa server:
http://ec.europa.eu./transport/extra

In addition, a public e-mail enquiry service is available at:

[email protected]
Information on the wider transport activities of the European Union is available on
the internet. It can be accessed through the Europa server:
http://ec.europa.eu./dgs/energy_transport/index_en.html

Manuscript completed by Damian Stantchev and Tony Whiteing, ITS (University of

Leeds), in July 2006.

© European Communities, 2006

Photos: courtesy of DHL (p.4) and iStock.com (p.16)

Reproduction is authorised provided the source is acknowledged.

Printed in Belgium
 URBAN FREIGHT TRANSPORT AND LOGISTICS

FOREWORD

This document provides an overview of

research results from the EC’s Fourth and
Fifth Framework programmes and a series of
national research projects in the area of urban
freight transport and logistics. It also discusses
policy implications and requirements for future
research.

The adoption of best practice methods offers

the most promising opportunities for urban
logistics operations to become both more
efficient and more environmentally sustainable.
Such best practice methods include:

• the use of more environmentally-friendly

alternatives to current urban freight
transport practices through improved
fuel efficiency and the use of alternative
fuel vehicles;

• the use of information and communication

technologies (such as RFID and vehicle
routing software);

• the possibility to improve deliveries to urban

areas through the use of urban distribution
networks and consolidation depots.

Full benefits are unlikely to be achieved,

however, when such proposals are put into
practice in isolation, and it may well be more
sensible to consider them as a wider package
of measures. This topic has therefore been
explored in the light of the need for integrated
solutions, which pull the above-mentioned
policy measures together and help eliminate
the obstacles to achieving more effective
and sustainable urban freight transport and
logistics practices. Roles and responsibilities of
the various actors and stakeholders have also
been considered as an additional element of
analysis.

1
1DEFINITION OF THE SUBJECT
Urban freight transport and logistics urban freight transport deals primarily with the
operations are concerned with the activities of distribution of goods at the end of the supply
delivering and collecting goods in town and chain, many deliveries tend to be made in small
city centres. These activities are often referred loads and in frequent trips, thus resulting in
to as ‘city logistics’ as they entail the processes many vehicle kilometres.
of transportation, handling and storage of
goods, the management of inventory, waste The urban environment is characterised by
and returns as well as home delivery services. high settlement and population densities and
high consumption of goods and services. In
Often many of these processes, or parts of such environments traffic infrastructure and
them, are undertaken outside urban areas but the possibilities for its extension are both
they still have impacts on urban operations. limited and unsustainable. This dichotomy
Therefore, freight transport and logistics between demand and limitations of the
operations in urban areas cannot be viewed urban environment has resulted in significant
and studied in isolation but rather in the problems associated with urban freight
context of the entirety of supply chains that transport. The most commonly mentioned are
typically cross the geographical boundaries of congestion, pollution, safety, noise and carbon
urban areas. creation. In fact, the transportation of goods
accounts for 40% of air pollution and noise
The growing significance of urban freight emissions (COST321, 1998). The combined
transport and logistics is related to increased effects of these problems are both economic
population and sustained economic growth and societal, in that they not only reduce the
in urban areas. Goods transport in cities efficiency and effectiveness of urban freight
represents from 10 to 18% of road traffic transport and logistics operations but also
(COST321, 1998). As the majority of the impact on the well-being of a nation by
population in Europe lives in urban areas and decreasing the quality of life of citizens and
the bulk of industrial production is despatched through detrimental effects on health.
to these areas, the result is an increased
demand for freight transport. Furthermore, as One would expect that, because of its
importance, this topic would have been given a
more central role in European policy making.
However, despite its significance and the
problems associated with it, relatively little
attention has been paid by researchers and
policy makers until recently. Indeed, especially
in the first half of the 1990s, “in the documents
that the Commission has published to support
the making of a common European transport
policy, issues of city logistics have in fact been
only rarely mentioned” (PORTAL, 2003, p.7).
European policy documents concentrating
specifically on urban freight transport and
logistics remain relatively rare.
 URBAN FREIGHT TRANSPORT AND LOGISTICS

2
RESEARCH NEEDS
Improvements to the urban
environment through the
more environmentally friendly
use of freight transport
vehicles
There is a need to identify the most suitable
types of vehicles for urban freight and logistics
operations. Key areas for consideration relate
to the most appropriate size of vehicles to be
used and the type of fuel they require. Many
issues such as pollution, carbon creation, noise
and safety must all be considered. There is a What restrictions should be applied to urban
problematic trade-off between the size and vehicle movements according to vehicle
capacity of the vehicles and the numbers of type and size? Should financial penalties or
vehicles that will be required to fulfil logistical incentives be used to influence the choices
needs. The type of fuel is important not only made by vehicle operators? Should night-
for fuel consumption and hence emissions of time deliveries be encouraged to reduce
pollutants and greenhouse gases but also, from congestion impacts and, if so, how can potential
the point of view of noise although, of course, noise problems be ameliorated?
urban noise levels are affected by the handling
systems used as well as by the operation of the
engine. There is a need for research into how Improved deliveries to urban
the use of environmentally friendly vehicle areas through the use of urban
technologies can be encouraged or enforced.
distribution networks and
consolidation depots
Perhaps the greatest potential for environmental
improvement in urban logistics relates to the
improved consolidation of the many small loads
prior to delivery into the urban centre. What,
then, constitute the best opportunities for the
rationalisation of urban logistics operations
through the use of consolidation depots, and
what are the limitations on their use? Why
has this seemingly attractive idea seen so
little success in practice to date? Who should
operate such facilities, and should their use be
mandatory or voluntary? What areas should they
serve? Is there potential to link the operation
of such schemes to transport modes other
than the lorry, for instance by locating urban

2 3
consolidation depots at, or close to, rail and a need for research to identify how they can
intermodal terminals or, as has been suggested be used to best advantage to improve the
in some cities, by using urban tram and light rail environmental performance of urban logistics
networks for freight operations? operations.

The use of information and The need to consider these

communication technologies proposals as a wider package
(such as RFID, vehicle routing of measures
software or load sharing There are many other issues which could
systems) be taken into consideration to improve the
performance of urban logistics operations, such
The logistics industry has already embraced a as driver behaviour and training, the role of the
wide range of information and communication receiver/customer in improving the
technologies and reaped major efficiency gains sustainability of urban freight, and the scope
as a result. This is almost certainly the area for improved policy
with the greatest ‘win-win’ potential, i.e. where
efficiency gains go hand in hand with
environmental benefit
through reduced
travel distances,
fewer vehicle

measures and enforcement

(both in terms of road freight and other
road users for moving and parked traffic). In this
brochure, however, attention is focused on the
three areas outlined above.

movements, better matching of vehicles to work These may produce significant environmental
and improved levels of load consolidation. benefits when introduced in isolation,
although all towns and cities are different and
In the future, Intelligent Transport Systems the potential benefits will vary from place to
will introduce many opportunities for better place. However, the potential benefits may be
management and control of urban logistics considerably magnified if all the possibilities
operations, for instance through the use of can be combined to produce the most effective
dynamic scheduling systems linked to overall package of measures for the area in
real-time traffic and road works information. question. This important aspect of the problem is
As the pace of development of such discussed further in Section 5.
technologies continues to increase, there is
 URBAN FREIGHT TRANSPORT AND LOGISTICS

3
RESEARCH PROGRAMMES
The European Commission projects within the CIVITAS II Initiative
such as CARAVEL, MOBILIS, SMILE and
SUCCESS
The following EU programmes and sub-
programmes have funded research projects The BESTUFS network is a notable example of
in the area of urban freight transport and research in this area. Its aim was to “establish
logistics: and maintain an open European network
between urban freight transport experts, user
• FP4 - Strategies for changing modal split groups/associations, ongoing projects, interested
(including transport means, organisation cities, the relevant European Commission
and operation) – projects such as UTOPIA Directorates and representatives of national,
regional and local transport administrations
• FP4 - Transition in multi-modal transport in order to identify, describe and disseminate
– projects such as REFORM best practices, success criteria and bottlenecks
with respect to the movement of goods in urban
• FP4 – Quality of the terminals – projects such areas.” (Huschebeck, 2004, p.3). Following its
as FV-2000 success, the BESTUFS II project was launched
in 2004 under the EU FP6 programme.
• FP4 – “Transport RTD Programme”
– projects such as IDIOMA
National programmes
• FP5 – Growth, KA 2 “Sustainable Mobility
and Intermodality” – projects such as The following are examples of national
BESTUFS and D2D; Demonstration research programmes across Europe. Many of
projects within the CIVITAS I Initiative these programmes, however, deal primarily
such as VIVALDI, TELLUS and MIRACLES with public transport rather than freight
and only individual projects within these
• FP5 – EESD, KA 4 “The City of Tomorrow programmes focus directly on the area of
and Cultural Heritage” – projects such as urban freight transport and logistics:
CITY FREIGHT
• Logistics Austria Plus (Austria, 1999-2003)
• FP5 – IST, KA 1 “Systems and Services for the
Citizen” (KA 1, Cluster 1 “Mobility and • Mobility and Transport (Germany, ongoing):
Intelligent Infrastructure for Transport”) Optimised Transport Logistics for Recycling
– projects such as GIFTS, MOSCA and and Waste Management sub-programme
eDRUL
• Flexible Transport Chain (Germany, 1997-
• FP5 – EESD, KA 6 “Economic and 2001)
Efficient Energy for a Competitive Europe”
– TRENDSETTER (a CIVITAS project) • Centre for Logistics and Freight Transport
(Denmark, 2001-2005)
• FP6 – “Sustainable Development, Global
Change and Ecosystems” thematic area -

4 5
• Ministry of Transport and Communication’s • Department for Transport (UK, ongoing),
R&D Projects Supporting Transport Policy Freight Best Practice and Freight and
(Finland, ongoing): projects within the ‘Goods Logistics Programmes. Examples of
Transport and Logistics’, ‘Transport of projects include ‘Alternative Delivery
Dangerous Goods’ and ‘Environment and Solutions – Nottingham Trial’ and ‘Urban
Vehicle Engineering’ themes. Consolidation Centres’ (Sustainable
Distribution Research sub-programme);
• VALO Real-time Logistics in Networks
(Finland, 2001-2004) • National Programme on Urban Goods
Transport (France, ongoing); French
• VINNOVA SP8 Innovative Logistics and Ministry of Transport, ADEME
Freight Transport Systems (Sweden)
• PIEK multi-annual programme into
delivery noise (The Netherlands)
 URBAN FREIGHT TRANSPORT AND LOGISTICS

4
RESEARCH RESULTS
Improvements to the urban
environment through the
more environmentally
friendly use of freight
transport vehicles
The ‘Best Urban Freight Solutions’ (BESTUFS)
European project has provided the following
recommendations on how best to improve
the urban environment through the more
environmentally friendly use of freight
transport vehicles. The recommendations
address the following areas:

and fuels, which the project has recommended

Size of vehicles to be undertaken by considering the US and
international experience.
The BESTUFS project identified the need
to use higher cubic capacity vans and more
specialist equipment (e.g. for the transportation The need for research into how the
of fragile and temperature sensitive goods). use of environmentally friendly
vehicle technologies can be
The use of more environmentally encouraged or enforced
friendly vehicle technologies The BESTUFS project has provided an insight
into the instruments that are required to
The BESTUFS project has highlighted the promote the use of environmentally friendly
environmental and noise reduction benefits vehicle technologies. The project suggested
of Compressed Natural Gas (CNG) and electric a set of encouragement measures to support
propelled vehicles. The lack of a comprehensive the use of innovative vehicle technologies,
CNG supply infrastructure in Europe, however, such as an exemption from access restrictions
has been identified as an obstacle to the more to the inner city for low emission vehicles.
widespread adoption of CNG vehicles. The Other promotional measures included the
project has also recommended an increase in demonstration of new vehicle technologies,
the share of alternative fuels and active support especially in authority-owned and -operated
for the development of environmentally fleets.
friendly vehicles for urban transport within the
subsequent Framework programmes. Other The summaries of projects on the next page
areas for improvement outlined by the project (p.8) are examples of research projects, which
are largely concerned with enhancing the complement and expand the above-listed
current understanding of alternative engines BESTUFS recommendations.

6 7
The CITY FREIGHT project targeted the problems of road freight transport in urban
areas by providing guidance to a range of interested stakeholders on the best practices
for analysing their city freight problems as well as for designing and implementing
integrated strategies to solve them. Such best practice recommendations include:
• reducing the noise emissions of off-peak deliveries;
• consolidation of consignments;
• combining freight traffic with passenger traffic within the cities to reduce the
demand for transport (e.g. through the use of Cargo Tram, electric and hybrid
electric vehicles, bicycle couriers and distribution by walking);
• integrating land use and transport planning.

Source: http://ec.europa.eu/transport/extra

The UTOPIA project aimed to provide project managers and policy-makers with
the necessary information base, tools and guidelines to support the introduction of
promising urban transport solutions based on cleaner vehicles. UTOPIA developed
four major outputs:
• an assessment of the most promising applications for cleaner vehicles and
supporting measures, from a city perspective;
• recommendations on policy actions at the European and national levels to promote
or facilitate market introduction and demonstration;
• a good practice guide to setting up and running pilot and demonstration projects,
aimed at potential project champions;
• a software framework (‘NAVIGATE UTOPIA’), which provides information and
assessment methodologies covering clean transport solutions.

Source: http://ec.europa.eu/transport/extra

The COST 321 project studied the design and implementation of innovative measures
to improve the environmental performance of freight transport in urban areas. It has
analysed how “air pollution, noise and energy consumption are reduced by optimising
the use of trucks in city traffic through the application of modern logistical devices
and appropriate administrative measures.” (PORTAL, 2003a, p.8) The project suggested
that the optimisation of urban freight transport should take into account the following
parameters:
• transhipment technology
• land use management
• conditional access for delivery service providers
• transport fleet composition
• infrastructure capacity
• locally convened development forms and programmes
• political drive and availability of money.

Source: http://www.eu-portal.net
 URBAN FREIGHT TRANSPORT AND LOGISTICS

Safety of urban freight transport and logistics technology. Currently, traffic information
practices is another area which needs data comes from different sources for
to be considered. An Irish study entitled which different content, formats and
‘Contributions to the Safety and Efficiency protocols are in use. Therefore, a
of the Multi-drop or Local/Short Haul common standard for all
Operations’ identified a number of constraints data was found to be of potential benefit;
and incompatible requirements that were
impacting on the safety and efficiency of the • To promote various ways of data
Urban Multi-Drop Delivery (UMDD) operations. communication (such as GPRS, UMTS,
Traffic levels, transport policy measures, radio frequencies, etc) and not to favour
ineffective regulation, customer demands, one communication standard as this will
internal management and work processes were allow finding cheaper solutions in the
identified as constraints affecting the ability future;
of the UMDD service to function safely and
efficiently (See: http://ec.europa.eu/transport/ • Most of the conclusions of previous
extra/web/index.cfm). research projects, such as COMETA,
FLEETMAP, SURFF or INTACT, regarding
standardisation issues in freight
The use of information and transport management systems were
communication technologies deemed valid. The development of web
(such as RFID, vehicle routing based technologies was pointed out as a
source of future solutions. The need for
software or load sharing flexible low cost technologies for urban
systems) freight transport standard data formats
for transport planning systems was also
Research into the use of information and outlined.
communication technologies has called for
actions towards standardisation (Huschebeck, The summaries of projects below and on the
2004). The BESTUFS project has recommended: next page (p.10) are examples of research
projects that complement and expand the
• To continue the standardisation activities above-listed BESTUFS recommendations.
related to traffic information data

The GIFTS project explored the use of telematics for the management of deliveries
and the intensive use of automated and computerised methods for handling of freight.
The outcome of the project was an open access Internet portal/e-marketplace providing
services to the logistics and freight transport industry in the European Union.
The project has implemented a web platform of services that is fully interoperable and
integrated with any ICT system. GIFTS provides applications for the operational (e.g.
tracking, tracing and monitoring of the door-to-door journey; aid in trip management;
tracking and tracing of goods; fleet management, etc.), as well as all the e-commerce
functions and insurance of a door-to-door freight transport chain (i.e. including order
matching, e-document transfer, e-payment, etc.).

Source: http://ec.europa.eu/transport/extra

8 9
The MOSCA project has developed a set of tools for improving the efficiency of door-
to-door transport of goods in urban areas. This set of tools offers services for shortest
path finding, on-line vehicle routing planning and urban shop delivery planning.
The MOSCA project has also addressed the issues of integration and interoperability
at European level. To achieve integration and interoperability at European level,
the project has called for the development of innovative tools and methods for the
management of freight deliveries in city centres at a European rather than national or
company level.

Source: http://ec.europa.eu/transport/extra

The D2D project, whilst not particularly focused on urban freight and logistics, has
demonstrated how to achieve efficiency within the transport chain with the assistance
of advanced information and communication technology. The main results of the
project comprise: a transport chain management system available as a web based
application on the Internet, a monitoring system, the efficient implementation of a
system integration tool (communication platform), simulation and service profiling
technology and tracking and tracing technology. The D2D system reduces the
complexity of organising the physical and information flows within the supply chain
and contributes to improved quality of life, health and safety of citizens by reducing
pollution and noise and relieving congestion.

Source: http://ec.europa.eu/transport/extra

The eDRUL project investigated and tested an innovative e-logistics platform and
services to manage freight distribution in urban areas. The project was specifically
designed with historic centres in mind. The online platform was tested as a working
pilot in two cities, Siena and Lisbon. A major success of the Siena pilot was the ‘Park &
Buy’ service, which enabled individuals who had walked into the pedestrianised city
centre to buy a heavy item and have it delivered to a collection point in their car park.
The booking and delivery to the car park was organised by the shop selling the item.
The shops involved (some 20 in all) were all enthusiastic supporters of Park & Buy, as it
enabled them to offer an additional service to customers.

Source: http://www.edrul.org
 URBAN FREIGHT TRANSPORT AND LOGISTICS

The use of urban distribution • The standard objection to UCCs is that

they will lead to increased costs in the
networks and consolidation delivery operation. It is therefore important to
depots discuss the wider implications of such
schemes with the road transport industry and
The following recommendations regarding retailers and to demonstrate that, by using
the use of urban distribution networks and such centres, costs in other parts of their
consolidation depots have emerged from the operation could be reduced. Such reductions
BESTUFS project (Huschebeck and Allen, could be achieved through less time
2005): being spent on (expensive) town deliveries,
shorter journey times and increased vehicle
• Publicly-organised Urban Consolidation utilisation, and the possibility of night-time
Centres (UCCs) do not have a good track deliveries (UCCs could be open when their
record in terms of implementation customers are closed).
and operation. For UCCs to be attractive
to companies and to be successfully • One of the key financial considerations is
set-up BESTUFS recommends that they how to allocate the costs and benefits
should be led and operated by one resulting from a UCC scheme as a whole
or several key commercial players that and not solely the cost impact in one
have identified the potential benefits of part of the supply chain or a single
being involved. Similarly, public funding player. This is not a simple matter and the
needs to be made available to pay for allocation of costs and benefits needs
the research work and pilot studies for to be the subject of a more comprehensive
any form of UCC that is not related and detailed study and ideally one based
to a major new property or commercial on a fully measured pilot project. BESTUFS
development. Without this funding such recommends setting up a study that would
UCC research and trials are unlikely to encompass both the financial costs / benefits
proceed. along the whole supply chain and the wider
issue of how to handle the environmental
• There is clearly a need for raising costs and benefits.
awareness (including success and failure
factors) amongst local authorities, • When a UCC scheme is being considered
retailers and transport operators to there is a need for the detailed measurement
enable them to add the UCC concept of the flow of traffic and goods in the
to their set of possible policy measures prospective location(s). This should be
for consideration. BESTUFS recommends followed by a period of consultation about
the active support of this awareness the precise nature of the UCC scheme to
building process. This should be done by be tested, and then an extended pilot that is
developing appropriate instruments managed and scrutinised by representatives
(e.g. UCC planning guidelines or tools) of all the potential players – the local
as well as training measures for urban authority, logistics companies, retailers and
freight planners. other users (at both a local and national
level), potential UCC operators, and
• BESTUFS recommends that governments environmental lobby groups.
should issue guidance to local authorities
as to where consideration should be The summaries of projects appearing on the
given to the establishment of UCCs when next page (p.12) are examples of research
major development proposals are being projects, which complement and expand the
considered and when town centres are above-listed BESTUFS recommendations.
being restructured.

10 11
The FV-2000 project has investigated the operations and internal organisation of freight
villages (FVs), particularly with respect to dangerous goods, and has measured the impact of
such structures on the environment. Three management tools, to improve working conditions
and security for freight village operators whilst increasing their awareness with regard to risk
factors, safety and the environment, have emerged:
• a Good Practice Code, in the form of a user-friendly handbook, addressing transport
and storage operations in FV areas,
• a Decision Support System (DSS) designed to help assess the risks associated with
handling dangerous and flammable goods;
• a Training Software Tool comprising technical guidelines for operators and providing
recommendations on communication, organisational matters, professional skills
and related training of staff, ultimately promoting the implementation of an
environmental management system in FVs.
Source: http://ec.europa.eu/transport/extra and http://www.eu-portal.net

The REFORM project has addressed the problems of congestion and pollution in urban
areas and has suggested that freight platforms (transhipment areas where many transport
companies (such as forwarders and logistic service providers) are located, and ideally,
where at least two transport modes are connected) can offer a solution to these problems.
The project has developed a handbook, with guidelines targeted at local authorities and
transport sector companies. The guidelines were successfully tested by computer simulation
at different European sites in Berlin, Brussels, Rome and Madrid. The project has demonstrated
that freight platforms can contribute to a reduction in urban traffic as a result of 1) an
increased co-operation between companies onsite which results in higher load factors and
a reduction of truck trips and 2) the provision of onsite services, which increases operational
efficiency. Freight platforms have also an overall positive economic effect as they increase the
competitiveness of the region concerned.

Source: http://ec.europa.eu/transport/extra and http://www.eu-portal.net

A UK study entitled ‘Urban Consolidation Centres’ was conducted “to identify the potential
for the development of consolidation centres that have as their principal objective the
alleviation of local environmental and traffic concerns in urban areas”. It has provided advice
to logistics providers and local authorities as to the viability of such initiatives, an area the
project has identified as being under-researched. The evidence gathered within the project
has identified the scenarios in which urban consolidation centres are most likely to be
successful:
• specific and clearly defined geographical areas where there are delivery-related problems;
• town centres that are undergoing a retailing regeneration
• historic town centres and districts that are suffering from delivery traffic congestion;
• new and large retail or commercial developments (both in and out of town);
• major construction sites.
Source: http://www.rmd.dft.gov.uk/project.asp?intProjectID=12079

The European project IDIOMA investigated the possibilities to improve the distribution of
goods within urban areas and between intermodal transport terminal/freight centres and
urban areas. This project demonstrated a variety of new technological applications and
distribution concepts, integrating as fully as possible intermodal transport, to achieve a
more environmentally friendly transportation of goods in urban areas in different European
countries.
Source: http://ec.europa.eu/transport/extra
 URBAN FREIGHT TRANSPORT AND LOGISTICS

5
EUROPEAN POLICY IMPLICATIONS
Over recent decades road freight, along with • The need to increase the share of alternative
other forms of motorised road transport, has fuels;
seen substantial growth in European urban areas. • The requirement to combine freight traffic
All these motorised forms of road transport, with passenger traffic to reduce the demand
while competing for limited space on the urban for transport. Actions should also be taken
road network, have contributed to increased to integrate collection and delivery work or
congestion, noise, pollution and accidents, which waste management and product
all decrease the quality of life in these areas. distribution to increase the level of vehicle
In the past, the actions taken to tackle these fill and reduce the number of vehicle trips.
problems were largely limited to controlling and Integrated planning of freight and passenger
restricting road traffic or building new roads. transport is also required;
More current approaches recognise spatial • The need to integrate land use and transport
planning and land management as important planning;
factors of urban freight traffic (CITY FREIGHT, • A direction towards integration and
2004). Particular emphasis has been placed on interoperability of urban freight transport
the use of best practice methods to make urban operations across Europe.
logistics operations safer, more efficient and
more environmentally sustainable (Huschebeck, The use of information and
2004).
communication technologies
European policy documents focussing (such as RFID, vehicle routing
specifically on urban freight transport and
logistics remain relatively rare. National research software or load sharing
programmes primarily deal with public transport systems)
rather than freight and only individual projects
within these programmes directly exploit the The research projects in this area have
area of urban freight transport and logistics. emphasised the need for standardisation
in freight transport management systems
A number of issues relevant to European policy and have demonstrated a range of decision-
makers have emerged from the review of the support tools to improve the efficiency and
research projects and address the following reduce the negative environmental impacts of
areas. freight transport operations in urban areas.

The importance of information and

Improvements to the urban communication technologies, such as RFID and
environment through the web platforms, was also demonstrated.
more environmentally
friendly use of freight The use of urban distribution
transport vehicles networks and consolidation
depots
The research projects in this area have
highlighted several issues:
• The trend in the use of bigger vehicles and The importance of the initial investigation
specialist equipment for the transportation stage was considered. To guarantee efficient
of goods in urban areas; and successful operations, urban consolidation

12 13
centres should be led and operated by The need to consider these
commercial players. Public funding, however,
should be made available to pay for the proposals as a wider package
research work and pilot studies in the setup of measures
stages. Roles and responsibilities of the
various actors and stakeholders are important The adoption of the best practice methods
factors for the success or failure of the urban listed in this section offers the most promising
consolidation schemes. The UK example has opportunities for urban logistics operations
shown that consolidation centres for airports to become both more efficient and more
or shopping malls have been instigated by environmentally sustainable. Full benefits are
companies but public sector authorities have unlikely, however, when any such proposals
been supportive. are put into practice in isolation, and it may
well be more sensible to consider them as
Other issues resulting from the research a wider package of measures. Hence, the
projects include: need for integrated solutions which pull the
above-mentioned policy measures together
• The need to raise awareness of the UCC and help eliminate the obstacles to achieving
concept, especially of the benefits from cost more effective and sustainable urban freight
reductions through the optimisation of other transport and logistics practices.
supply chain activities as a result of UCC
usage; An integrated approach to urban freight
• Increased co-operation and dialogue transport operations, for example, should take
between local authorities, logistics into account a range of measures including the
companies, retailers, potential UCC operators use of most suitably sized and environmentally
and environmental lobby groups; friendly vehicles with quieter engines,
• The availability of decision-support tools for powered by gas, electricity or a non-fossil
local authorities and transport sector alternative fuel.
companies such as examples of good
practice and training software; The same approach can also be adopted for the
• In order to maximise the benefits from promotion of the urban consolidation concept.
multimodal transport, in line with the Although the concept of urban distribution
EU policy of shifting the balance between networks and the use of consolidation depots
transport modes and freight integration, the is seemingly attractive, potential applications
choice of sites in close proximity to railways have received a somewhat mixed response
and waterways should be encouraged. from operators to date. Amongst the reasons
Furthermore, freight platforms, utilising quoted is the fact that “many operators seek
the benefits of multimodal transport, exemption from such schemes, usually on the
are acknowledged to have wider positive grounds that the goods they carry are highly
economic effects in addition to solving urban perishable, may contaminate other goods,
logistics problems. or require high levels of security” (Whiteing,
Browne and Allen, 2003, p.311). Operators
also fear losing control over the whereabouts
of their goods in the supply chain due to the
lack of information. RFID, which can provide
such information and therefore improves the
visibility and integration of operations in the
supply chain, may offer a solution to these
problems.
 URBAN FREIGHT TRANSPORT AND LOGISTICS

6
FUTURE RESEARCH DEVELOPMENTS
This brochure has reviewed research results integrating delivery operations with city
from the EC’s Fourth and Fifth Framework traffic management and control (FIDEUS).
programmes and a series of national research
projects in the area of urban freight transport To improve air quality and protect human
and logistics. It has not been possible, however, health, the London Low Emission Zone
to consider results from research projects in initiative has been proposed in the UK to
subsequent Framework Programmes as many accelerate the introduction of cleaner vehicles
of these studies have not been completed yet. and reduce the numbers of older, more
Expected results from CIVITAS II FP6 research polluting vehicles in the Greater London area.
projects such as CARAVEL, MOBILIS, SMILE
and SUCCESS are contributing to the following The use of technologies to improve urban
areas: freight and logistics operations is an area of
great potential for research. BESTUFS has
• the use of clean vehicles for freight, including acknowledged the importance of Intelligent
research into alternative and cleaner fuels Transport Systems (ITS) and has identified this
(CARAVEL, SUCCESS, MOBILIS); area as high amongst the priorities for future
research work in urban areas. “Furthermore,
• new concepts and policies for the local BESTUFS recommends the development of ITS
distribution of goods, involving new urban to support or enable urban freight transport
logistics organisation and management policies and measures, e.g. the management of
(SUCCESS); urban delivery space, co-operation among SME
and interfaces between long haul and urban
• helping accession countries to implement distribution.” (Huschebeck, 2004, p.25)
environmentally friendly technologies
(SUCCESS); At the same time, the BESTUFS project has
identified the following areas as under-
• efficient, clean and safe city distribution researched:
of goods (SMILE).
• The lack of results and experience from
Other current EU-funded projects into urban demonstration projects evaluating the
freight focus on: possibilities and potentials of Intelligent
Transport Systems (ITS) in urban areas on a
• Collection and dissemination of logistics European scale;
best practice knowledge across Europe
(BESTLOG); • The benefits of ITS in urban areas brought
about by integrating traffic management
• Innovative concepts for making urban systems with urban freight transport systems.
transport more efficient, competitive and
sustainable (NICHES); As far as consolidation centres are concerned,
research into the financial and environmental
• Logistics management methods that focus costs and benefits along the whole supply
on optimising vehicle load capacity, chain has been suggested. The apparent
improving transhipment operations and success of the scheme for the Broadmead

14 15
shopping centre in Bristol in the United Kingdom The BESTUFS project has recommended
may form the basis for such a study of the overall active support for the development of
benefits of an Urban Consolidation Centre. environmentally friendly vehicles for urban
transport within the subsequent Framework
Although there is ongoing research into the programmes and to enhance the current
use of cleaner vehicles and fuels, more research information base on alternative engines and
into the optimum size of vehicles and the fuels with knowledge drawn from the US and
onboard facilities is needed. The wide-ranging international experience.
Green Logistics project, recently launched
in the UK and funded by the Engineering and The BESTUFS project has also made a call
Physical Sciences Research Council (EPSRC) for for more demonstration projects to promote
the period 2006-2010, includes work modules the use of environmentally friendly vehicle
on urban logistics which will focus on the technologies, especially in publicly owned and
more effective and sustainable use of smaller operated fleets.
commercial vehicles in urban areas and also
on improved systems of reverse logistics and
waste management.

Glossary
CNG Compressed Natural Gas
EU The European Union
FP4 The European Union’s Fourth Framework Programme for Research, Technological
Development and Demonstration activities (1994-1998)
FP5 The European Union’s Fifth Framework Programme for Research, Technological
Development and Demonstration activities (1998-2002)
FP6 The European Union’s Sixth Framework Programme for Research, Technological
Development and Demonstration activities (2002-2006)
FV Freight Village
GPRS General Packet Radio Service
ITS Intelligent Transport System
RFID Radio Frequency Identification
SME Small and Medium-sized Enterprise
UCC Urban Consolidation Centre
UMTS Universal Mobile Telecommunications System
UMDD Urban Multi-drop Delivery
7
REFERENCES

• BESTLOG (Establishing a Dissemination and Promotion Platform for Logistics Best Practice),
http://www.bestlog.org/
• CARAVEL, http://www.civitas-caravel.org
• CITY FREIGHT project information available at http://ec.europa.eu/transport/extra
• COMETA (Commercial Vehicle Electronic and Telematic Architecture),
http://www.cometa-project.com/uk/ukproj0c.htm
• COST321 (1998) “Urban Goods Transport”, Final Report (Brussels, European Commission),
• eDRUL (e-Commerce Enabled Demand Responsive Urban Logistics), http://srvweb01.softeco.
it/edrul/Default.aspx?lang=en
• FIDEUS (Freight Innovative Delivery in European Urban Space), http://213.21.184.250/Fideus
• FLEETMAP (Fleet Mobile Application Protocol), http://www.ptv.de/fleetmap
• FV-2000 (Quality of Freight Village Structure and Operations),
http://www.freight-village.com/fv2000/
• Huschebeck, M. (2004) “BEST Urban Freight Solutions”, Deliverable D1.4: Recommendations for
Further Activities (IV), http://www.bestufs.net
• Huschebeck, M. and Allen, J. (2005) “BEST Urban Freight Solutions II”, Deliverable D1.1: BESTUFS
Policy and Research Recommendations I, http://www.bestufs.net
• London Low Emission Zone Initiative website, http://www.tfl.gov.uk/tfl/low-emission-zone/
• MOBILIS, http://www.civitas-mobilis.org/
• NICHES (New and Innovative Concepts for Helping European transport Sustainability ),
http://ange.archangelis.com/typo3/niches/
• PORTAL (2003) “Inner Urban Freight Transport and City Logistics”, PORTAL Transport Research
Material, www.eu-portal.net
• Schäffeler, U. (2003) Summary of Projects and Results from Topic Inner Urban Freight Transport
and City Logistics, www.eu-portal.net
• SMILE, http://www.civitas-initiative.org/project_sheet?lan=en&id=1
• SUCCESS, http://www.civitas-initiative.org/project_sheet?lan=en&id=4
• SURFF (Sustainable Urban and Regional Freight Flows), http://www.euroweb.net/surff/
• TELLUS (Transport and Environment Alliance for Urban Sustainability), http://www.tellus-cities.net/
• TRKC (Transport Research Knowledge Centre) website, http://ec.europa.eu/transport/extra
• ‘Urban Consolidation Centres’, http://www.rmd.dft.gov.uk/project.asp?intProjectID=12079
• UTOPIA (Urban Transport: Options for Propulsion systems and Instruments for Analysis),
http://www.utopia-eu.com
• Whiteing, T., Browne, M. and Allen, J. (2003) “City logistics: the continuing search for sustainable
solutions” In Global Logistics and Distribution Planning (Ed, Waters, D.) Kogan Page, London, pp.
308-320
Urban freight transport and logistics operations are concerned with the activities
of delivering and collecting goods in town and city centres. The EC’s Fourth and
Fifth Framework Programmes included projects undertaking research on this
issue. The topic has been explored in the light of the need for integrated solutions
that pull the best practice measures together and help eliminate the obstacles
to achieving more effective and sustainable urban freight transport and logistics
practices.

This brochure provides an overview of research results from the Fourth and Fifth
Framework Programmes as well as a series of national research projects in the
area of urban freight transport and logistics. It also discusses policy implications
and requirements for future research.