Walther Ploos van Amstel: future city logistics

1

City Logistics

Working on livable cities through
sustainable city logistics

Walther Ploos van Amstel

Professor of City Logistics
at the Amsterdam University of Applied Sciences (HvA)
Faculty of Technology
Urban Technology research program
September 2015

3

Content

1. Urban mobility
2. Measures for city logistics
3. International research
4. Supply chain perspective
5. City logistics as we head towards 2050
6. An integrated approach
7. Applied research
8. The future of sustainable city logistics

Copyright
Walther Ploos van Amstel
Amsterdam, 2015

This relatively new discipline has several different names in English, including urban freight
transport (UTF), urban distribution, city distribution, urban logistics, and city logistics.
I prefer the term "city logistics” and use that in this lecture and otherwise in my work.

4
Clean and sustainable cities are appealing places to live, to work,
to enjoy life, and – not least – to invest in.

I live right in the very center of Amsterdam and look out over the bustling square in
front of Central Station. Every day, around the clock, trucks and delivery vans drive
past my door to deliver shoes and put fresh fish on the table; they deliver packages
from web stores, they arrive with construction materials, and they pick up lots and
lots of garbage. It’s a wonderful sight if you enjoy transport as much as I do.

My neighbors aren’t quite as excited about transport, however. They complain
about the poor air quality, the lack of safety, and the inaccessibility of the
neighborhood. Irritation is also growing among the local business owners
themselves. Their customers are complaining... It’s really not much fun trying to
enjoy a cold beer at an outdoor café with all those trucks and touring cars
chugging by.

Good city logistics is important for the economic vitality and the appeal of cities. It
ensures that restaurants can serve their guests, that stores can offer the very latest
product range and that buildings can be renovated without delays.

Urbanization puts new demands on urban mobility. As customer demands evolve,
city logistics is becoming more and more finely meshed and more often just-in-time.
If no adjustments are made to current policy, city logistics will continue to grow.
City logistics needs to become smarter, cleaner, quieter, and safer, with faster flows.

The City Logistics research program will be conducting applied research on ways
to improve city logistics. In my inaugural lecture I will start by giving an
impression of the challenges in relation to city logistics in Amsterdam and other
cities. I will then give an overview of the themes for future research. In developing a
base of practical knowledge, we will be making use of an integrated approach on
the basis of a city logistics concept and the Business Model Canvas. Finally, I will
conclude by presenting the themes of this new research program.

Walther Ploos Amstel
Amsterdam, September 2015

5
1. Urban mobility

All around the globe, urban populations are growing. In the Netherlands, too, the
process of urbanization is taking place in many large, medium-size, and small
cities and in their immediate vicinity. The most highly urbanized region of the
Netherlands is commonly referred to there as the Randstad. Encircling the
country’s rural “Green Heart”, the Randstad includes the country’s four largest
cities: Amsterdam, Rotterdam, Utrecht, and The Hague (PBL, 2015). In an
interview in the Dutch daily newspaper Trouw, Amsterdam urban planner and
social geographer Zef Hemel predicted that Amsterdam’s population will reach
two million inhabitants by 2040 (Hemel, 2015). As a consequence of such growth,
more and more people will need to share the same space in the city (Groen Links
Amsterdam, 2011).

Policy-makers around the world are facing the challenge of keeping their
growing cities livable. Freight traffic plays an important role in that connection,
in both a positive and a negative sense. ALICE/ERTRAC (2015) estimates that
between 10 and 15% of all vehicle mileage driven in cities involves freight traffic.
Research in the US has shown a disproportionately strong increase in the share
of truck mileage driven within cities in the past 50 years, particularly by smaller
trucks: from 40% in 1966 to 60% in 2013. The increase has been particularly
steep in the past few years as consumers purchase more and more online
(Brookings, 2015).

Urbanization is placing new demands on urban mobility:
between 10 and 15% of all vehicle mileage driven in cities
involves freight traffic.

Mobility in Amsterdam
In the Uitvoeringsagenda Mobiliteit voor Amsterdam (“Implementation Agenda
for Mobility in Amsterdam”) from April 2015, city alderman Pieter Litjens
(Gemeente Amsterdam, 2015b) wrote (in Dutch):

Throughout the centuries, Amsterdam has held a special attraction for many people.
The city’s appeal has brought us many new Amsterdammers, unprecedented
dynamism, and economic and cultural prosperity. Its success is astonishing: each
year more and more people come to live, work, and study in Amsterdam. And
especially since the recent reopening of the city’s greatest museums, more and
more tourists are finding their way to our nation’s capital.

With each new day, Amsterdam is only getting busier and busier – but that also has
a downside. Cars, bicyclists, and pedestrians increasingly find themselves in each
other’s way, and the scarce public spaces in or near the city center are nearly
always full of people. Both the accessibility and the public spaces of Amsterdam are
under increasing pressure. To keep the city safe and easy to reach, and to keep
public spaces accessible and appealing, we are going to need to make some choices.
It is no longer workable to have cars and bikes and pedestrians and public
transport going everywhere at the same time. We need to accommodate the

6
increasing mobility in a heavily urbanized area such as Amsterdam primarily by
giving more room to pedestrians, bicyclists, and public transportation.

This Uitvoeringsagenda lists a number of measures aimed at creating more room
for loading and unloading and for optimizing regulations and enforcing those. It
mentions a Supply Committee (an initiative of the trade organizations MKB
Amsterdam, VNO-NCW, EVO, and TLN) that will make proposals for improving
accessibility and ensuring a better flow in the transport of goods. Topics that the
City of Amsterdam would like to gain more insight into include: slow traffic flows
(pedestrians and bicyclists), urban distribution and logistics, electric mobility,
automated transport, and mobility behavior. The City of Amsterdam is studying
these themes in collaboration with the following knowledge institutions: the
Amsterdam Institute for Advanced Metropolitan Solutions, the University of
Amsterdam (UvA), Vrije Universiteit Amsterdam (VU), and the Amsterdam
University of Applied Sciences (HvA).

In its Agenda Duurzaamheid (“Sustainability Agenda”), the City of Amsterdam
states its intention to improve the city’s air quality by stimulating the use of
zero-emission vehicles and introducing low-emission zones (Gemeente
Amsterdam, 2015a). A more regional focus in the distribution of products or an
expansion of the separate collection of waste streams will mean more mileage
for trucks. But that would come at the expense of greater accessibility and better
air quality, and it will call for new forms of urban distribution and the
consolidation of waste collection trips in the city. Agreements will be made with
trade organizations about ways to achieve zero-emission mobility. The subsidies
that are intended to stimulate zero-emission mobility will be continued to make
it possible to meet the air-quality standards.

The Stad in Balans (“City in Balance”) memorandum (Gemeente Amsterdam,
2015c) has also made the case for paying closer attention to city logistics. It calls
for smart, small-scale, and zero-emission urban distribution, including a greater
use of waterways.

7
Freight traffic is only one of the transport flows in the city, of course. It shares
the infrastructure with pedestrians, bicyclists and other two-wheeled vehicles,
private cars, taxis, and public transportation, and it shares the water with canal
excursion boats and pleasure craft.

Recent traffic surveys held on Amsterdam’s Ferdinand Bolstraat (Hogeschool
van Amsterdam, 2015a) show that some 80% of the freight traffic consists of
delivery vans (the remaining 20% concerns larger trucks and garbage trucks).
The main categories are (in order of importance) construction and installation,
hospitality and food service, and waste. There are also many parcel and store
deliveries. In addition there are the combined flows of people and material such
as service technicians, builders, and installers (Hogeschool van Amsterdam,
2015a). In Amsterdam’s bustling Haarlemmerstraat neighborhood, freight traffic
account for as much as 40% of rush-hour traffic, both in the mornings and in the
evenings (Hogeschool van Amsterdam, 2015f).

Most of the deliveries in the city are still made using carriers on own account or
dedicated outsourcing. City logistics, whereby a logistics service provider
consolidates freight flows from multiple shippers, is limited. The carriers on own
account enters the city from relatively short distances: about 25 miles on
average. In contrast, professional freight transport takes place over longer
distances: an average of 56 miles according to the transport statistics of CBS.
Studies on public procurement confirm these figures (Hogeschool van
Amsterdam, 2014, 2015c; Balm et al., 2015).

Amsterdam and innovations in mobility
Since July 2014, the City of Amsterdam has had a chief technology officer (CTO).
As an advisor and facilitator, the CTO has a flywheel effect, helping the city to
comprehend complex urban issues, to choose a focus, to connect different parties,
and to formulate an approach and strategies in the area of smart mobility, among
others.

Cities are under increasing pressure. People are migrating to the cities, where
they are eager to live, work, and enjoy themselves. This growth means added
pressure on the traffic and transport both within and to and from the city.
Amsterdam will continue to grow in the coming years, and so will the traffic and
transport there. As CTO Ger Baron puts it: “The big challenge is: how do we keep
Amsterdam accessible, ensure good air quality, and keep the public spaces
attractive, so that the quality of life in the city and the draw of the city will
improve?” (translated from the Dutch; source: Gemeente Amsterdam, 2015d).
As the most important trends, the CTO sees: the Internet of Things, the rise of
connected vehicles and smart infrastructure, capacity sharing, using real time
(open) data for precision-guided logistics alternative fuels.
The CTO matches urban mobility issues with the knowledge already present in
the city in projects such as the urban mobility lab (AMS Institute), ALLEGRO,
SELF STAD self-driving cars and bicycles. The Amsterdam University of Applied
Sciences (HvA) is involved in a number of these studies as a knowledge partner.

European perspective

8
The future of city logistics is being carefully considered at the European level
(ALICE/ERTRAC, 2015). Europe is a largely urban continent; some 359 million
people (72% of the total EU population) currently live in urbanized areas. The
share of the population that lives in cities continues to grow and will reach as
much as 80% by 2020. Cities are not only the places where goods are delivered,
but also where shipments originate. Outgoing transport represents between 20
and 25% of the transport mileage in urban areas, incoming freight amounts to
between 40 and 50%, and the rest both originates in and is delivered to locations
within the city itself (ALICE/ERTRAC, 2015). Waste transport also forms a
significant share of city logistics.

The transport of freight in cities leads to congestion, poorer air
quality, problems with noise and a lack of safety.

The transport of freight in cities with trucks and delivery vans leads to
congestion. Other problems include: poorer air quality, noise pollution, and a
lack of safety (MDS Transmodal, 2012; Taniguchi et al., 2015). In Europe, city
logistics is responsible for 25% of the transport-related CO2 emissions and 30 to
50% of the remaining transport-related air pollution (PM, NOx, etc.) Within the
OECD, the transport sector is the largest consumer of energy in general and of oil
in particular (OECD, 2015).

Even though the number of freight vehicles is limited, they are relatively more
often involved in accidents with pedestrians and bicyclists. As city logistics is
responsible for a significant share of the ambient noise in cities, it also
inconveniences residents during the night. The utilization rate of city logistics

9
vehicles is low. According to Transport for London, for example, delivery vans in
that city have an average utilization rate of about 38%. These negative
consequences of city logistics have a direct impact on the appeal and livability of
cities (ALICE/ERTRAC, 2015).

Smart and zero-emission city logistics should contribute to more
livable and appealing cities with cleaner vehicles that better
match the size of the city, but also to the consolidation of freight
flows and the use of waterways for transporting goods to and
from the city.

A more finely meshed network
The urgency to promote smart and zero-emission city logistics is growing. City
logistics is becoming more finely meshed and more frequent (Taniguchi et al.,
2015). And that, in turn, is putting increasing pressure on the city: there are
more shipments, involving more vehicles. A more finely meshed network is the
result of developments such as the following:

• The growth of omnichannel retailing, with home delivery and pick-up
points, the increase in sales transacted between consumers themselves,
and the sharing economy (Weltevreden & Rotem-Mindali, 2009; Visser et
al., 2014). Consumers who also want shorter delivery times and more
delivery options.
• The growth of e-commerce in B2B markets (Forrester, 2015).
• The return of stores from the outskirts of town to inside the city. Among
others, IKEA and Praxis are opening stores in the city (NOS, 2015).
• The faster exchanges of collections in retail stores, especially in the
fashion branch (Barnes & Lea-Greenwood, 2010).
• The rise of nano stores such as Albert Heijn To Go (Blanco & Fransoo,
2013).
• The growth of the inner-city renovation market in the construction sector
(RESIDE, 2015).
• The linking of return flows from the city with the circular economy (Soto
et al., 2015).
• The servicification of products, which leads to more service provision.
(Eckerdal, 2012).
• The growth of 3D printing, which leads to local production, which in turn
needs raw materials in small amounts (Janssen, 2014; Taniguchi, 2015).
• The growing number of urban seniors who need home care (Hogeschool
van Amsterdam, 2015b).

10
2. Measures for city logistics

Local and national authorities play an active role in regulating, coordinating,
facilitating, and stimulating city logistics (MDS Transmodal, 2012; Vlaamse
Ministerie van Mobiliteit en Openbare Werken, 2013; Quak et al., 2014b). Table 1
shows the measures that such authorities can take. Research is being done at the
European level on the effectiveness of measures for the various different
stakeholders (MDS Transmodal, 2015).

Measures Examples
Regulation Delivery windows
Vehicle restrictions
Low-emission zones
Market forces Internalization of external costs:
- pricing
- mobility points
- time-based charges (vignettes)
Subsidies for zero-emission vehicles, bicycle couriers, and
transport by water or rail
Fiscal policy
Spatial planning Redevelopment of (new) areas
Creation of pick-up points for e-commerce shipments
Loading and unloading facilities
Access for transport by water and rail
Facilitating urban consolidation centers
Charging infrastructure for electric vehicles
Infrastructure Loading and unloading facilities on the street
Loading and unloading facilities on the water or the rails
Parking locations for heavy construction traffic
Technology Intelligent transport systems
Dynamic traffic management
Green wave traffic signaling for heavy traffic
Virtual loading and unloading bays
Open data and local traffic control data
Other Granting of privileges
Enforcement
Consolidation of demand via urban consolidation centers and
coordinated (public) procurement
Certification of carriers
Management of construction logistics using the accessibility,
livability, safety, and communications (ALSC) framework
Subsidies for urban consolidation centers
Early-morning and late-night deliveries and stimulating silent
vehicles
Preferred routes for heavy freight traffic
Incentives for research programs, expertise development, and
business networks
Public-private partnerships

Table 1. Government measures with regard to city logistics
Stakeholders

11
The following are all stakeholders in sustainable city logistics (Macharis &
Bernardini, 2015):

• residents, who want to have clean air, safety, and no undue noise
• visitors, who come to the cities for recreation and do not want to find
streets filled with freight traffic
• companies, which depend on smooth logistics in order to run their
businesses
• shippers and transport companies, who bring goods into the cities day
after day, preferably at the lowest possible cost
• the government, which is responsible for the making sure the carries
responsibility for the draw of the city
• real estate owners, project developers and investors, who want to receive
a decent return on their investments in homes and commercial properties
• politicians, who want to be re-elected every four years.

City logistics in a historical perspective
The first plans for urban distribution centers in the Netherlands were developed
in the early 1990s. The consulting firm Coopers & Lybrand (Coopers & Lybrand,
1991; Van Aken et al., 1993) did research on urban distribution centers in
Maastricht, Amsterdam, and Alkmaar, among other locations. In subsequent
years, those studies were followed by stacks of reports on other municipalities,
including Breda, Oosterhout, Utrecht, and Amersfoort, on the Stadsbox (“City
box”) initiative (Groothedde & Rustenburg, 2003), on a cargo tram, beer boats,
and freight transport by canal in Amsterdam, on the work of Binnenstadservice
(a city logistics service center) in various municipalities, and on subsidies for
electric vehicles.

Quak’s dissertation (2008) provides an overview of the most important Dutch
initiatives and literature in this regard. He concludes (in Dutch):

The extent to which initiatives will be successful in practice depends on the
relationship between the initiators, the incentive to participate in initiatives, and
the dominant actors. If the initiator is not the most dominant actor, an initiative can
only be implemented successfully in practice if the actor who is supposed to change
his behavior actually stands to benefit from it. Another option is to legally oblige
that actor to adapt his behavior. Among local authorities, there is only limited
knowledge of the logistics operations of transporters. In the same way, transporters
know little about the issues regarding sustainability in cities. Moreover, the near
lack of any communication between transporters and local authorities means that
these public and private actors rarely ever get any real insight into each other’s
problems. An initiative is doomed to fail if its initiator is unable to estimate the
consequences of the initiative beyond the scope that he defined for it. Higher levels
of government are hardly ever involved in initiatives for a sustainable distribution
of goods. The initiatives described in the academic literature have not always been
successful in practice.

Cargohopper Amsterdam

12
In its first nine months, the four electric delivery trucks of Cargohopper
Amsterdam managed to deliver more than a million kilograms of freight, saving
the company 7,000 liters of diesel fuel.

“We are very happy with this result,” says Ron Klein Tiessink, director of
Cargohopper, on the website of trade journal Truck & Transportmanagement.
Since the delivery service began using electric trucks in March 2014, the
company has made nearly 34,000 deliveries. In the process, the concept has
more than proved itself, according to Klein Tiessink.

The electric urban distribution has prevented the emission of 18,400 kilograms
of CO2. At the same time, the emissions of particulate matter and nitrogen
compounds (NOx) have been reduced. Since Cargohopper consolidates its
shipments in a smart way, the company also manages to reduce the average
distance driven for each individual delivery. That means that the actual savings
in terms of fuel consumption and emissions are even higher.

Klein Tiessink thinks it’s a shame that there are still only seven of the
Cargohopper trucks he developed being used in Amsterdam, Enschede, and
Utrecht. He is pleased with all the attention it has received, but he would prefer
to see the market speed up its development. “Zero-emission urban distribution is
only going to work when it stops being something out of the ordinary. The latest
generation of heavier electric vehicles should be available for purchase from a
dealer.”

If the market would have a need for 700 trucks, it would already be possible to
scale up to series production, says Klein Tiessink. That is an absolute
prerequisite. Only then can the price come down far enough that companies
would be able to buy such a truck without a subsidy.

The Cargohopper director hopes that cities both in the Netherlands and
internationally will begin pursuing a common policy. “Only then will there be
sufficient demand for the right heavier electric trucks, which would make it
interesting for the industry to develop those.

Source: Truck & Transportmanagement, January 23, 2015

13
3. International research

On the European level, research is being conducted in programs such as Bestuffs,
Bestfact, Straightsol, Sugar, Smartfusion, Citylog, Civitas, Frevue (on electric
transport), CoE-SUFS, Lamilo, ALICE/ERTRAC and Smartset. Also elsewhere
around the world there are comprehensive research programs.

With regard to the evaluation of European pilot projects, Balm et al. (2014)
conclude:

The number of initiatives that aim to improve urban freight transport grow (sic)
rapidly. To make sure that the obtained results grow (sic) as fast as well, we should
make sure that we do the right things and that we know how (sic). To avoid wasting
money, effort, and time on implementing measures and initiatives that will not
(likely) be successful in the future, knowledge transfer across cities is very
important. The knowledge should be based on a transparent evaluation, identifying
the relevant impacts and measurable indicators that represent the key objectives of
all stakeholders. As there is not one problem owner of urban freight transport
issues (sic), such a thorough evaluation is often lacking.

On the evaluation of projects, Quak et al. (2014) claim:

Small scale, local demonstrations of which the outcomes are considered to be only
appropriate within a specific context occur quite often in the field of city logistics.
Various local demonstrations usually show a solution’s technical and operational
feasibility. These often subsidized demonstrations do not have long-term potential
due to the lack of thought on (sic) their business models, i.e. the financial feasibility.
To make a solution really work in practice a viable business model is required.

Vahrenkamp et al. (2013) conclude:

As a main result of the city logistic (sic) projects over the past 25 years one has to
state that traffic reduction and economic gains of consolidation were only small
(sic). The gains do not cover the costs the projects impose. To make the projects
economic (sic) feasible the cities had to carry a share of the cost. This was the case
for all Urban Consolidation Centre (UCC) solutions in the UK, France, Netherlands
and Italy. The weak position of UCC became evident when public money was
canceled and the UCC had to stop.

Many initiatives for city logistics started out with government
subsidies. When the government funding dried up, that would
often mean the end of the initiative as well.

14

Many projects failed
Unfortunately, most of city logistics projects have been unsuccessful and have
ended up dying a premature, quiet death. Generally speaking, there are five
reasons for this:

1. They were developed on the basis of the wrong data about city logistics.
Many initiatives focused on retail distribution, which accounts for only a
small share of city logistics and often already involves consolidation. Until
a few years ago, the major flows such as construction materials, waste,
and catering supplies remained out of the picture, which essentially
meant that no visible results were achieved in terms of improving city
logistics.
2. The proposed solutions were unattractive for the customers. As a result of
logistics consolidation centers (such as urban distribution centers) the
delivery ended up taking longer.
3. The city logistics solution ended up being more expensive for the shippers
than the existing solution. The entire chain – from the distribution center
all the way to the delivery in the city – was not well thought out. Solutions
were often only developed for the last mile on entering the city.
4. The business model for city logistics was not sound. And because the
business model was not sound, a critical mass was never achieved.
5. The local political situation proved volatile, which meant the local playing
field for city logistics changed every four years.

This brief analysis of the bottlenecks for city logistics also indicates the
conditions for successful future solutions:

1. Focus solutions on the major flows of goods within cities.
2. The receiving party should never be worse off in any case.
3. The solution should not be more expensive for the chain.
4. There needs to be a sound business model for city logistics service
providers.
5. There needs to be continuity in local and national policy in terms of city
logistics.

European vision for 2050
On the one hand, Europe needs to provide for the still-growing need for mobility
and freight transport, but on the one hand, it also needs to ensure a substantial
reduction in greenhouse gases and other harmful emissions as well as in noise
pollution (European Commission, 2011). The dependence on oil must be
decreased, while at the same time maintaining a high level of efficiency in the
transport system. This calls for radical changes in the system, based on smarter,
cleaner, and safer transport solutions.

ERTRAC (European Road Transport Research Advisory Council) and ALICE
(Alliance for Logistics Innovation through Collaboration in Europe) have put
together a roadmap for research on city logistics (ALICE/ERTRAC, 2015). The
aim of this roadmap is to set the research priorities in relation to city logistics. In

15
the logistics vision of ALICE, which covers the period until 2050, the main
ambition is the development of the so-called Physical Internet (Ballot et al.,
2014). To achieve that ambition, two proposed lines of research form the basis
for the logistics projects within the EU Horizon 2020 research program. These
are: a) sustainable and safe supply chains, and b) coordination and collaboration
in global supply networks. The research will focus on corridors, hubs and
synchromodality, city logistics, and information systems for connecting logistics
systems within the chain. The participants in ALICE are companies, research
institutes, national governments, and innovation partners. The roadmap
(ALICE/ERTRAC, 2015) has four objectives:

1. Decarbonization: energy efficiency can be achieved by making city
logistics more efficient (for example by consolidation deliveries) and by
using zero-emission and energy-efficient vehicle technology (Stanislaw et
al., 2014). One condition for the introduction of electric vehicles is the
implementation of a charging infrastructure with rapid charging points.
Smart city logistics concepts can compensate for the extra costs of using
electric vehicles for the transportation of goods by raising the utilization
rate, by reducing the number of miles driven and the number of empty
runs made, and by preventing hours from being lost.
2. Livability and the quality of the environment: the research is expected to
help improve the air quality in European cities and to reduce noise levels.
The factors contributing to local air pollution can differ significantly from
city to city, just as the relative share of transport as a cause of urban air
pollution also varies from place to place. The goal is to reduce particulate
matter by 80% and NOx by 90% in the period from 2010 until 2030. It is
possible to improve air quality by reducing the emissions of the vehicles
themselves by applying higher emission standards, by using smart city
logistics concepts, and by local traffic management. The reduction of noise
emissions in connection with city logistics is important due to its impact
on the health of the citizens. Quieter vehicles will make it possible to
make deliveries at night. This will require not only a reduction of the
noise level of the vehicles themselves, but also of the noise from the
loading and unloading of goods.
3. Reliability: city logistics is only effective when the goods are delivered to
the expected delivery point and at the expected delivery time. With
regard to business-to-business (B2B), the percentage of effective
deliveries is already around 95%. For business-to-consumer (B2C)
deliveries in the urban environment, that is currently only 70% to 75%.
The reliability will need to improve substantially with an eye to the fast
growth of e-commerce (Van Duin et al., 2015; EY, 2015).
4. Safety: there is growing concern about the number of injuries and
fatalities involving trucks and more vulnerable road users in the urban
environment. The European Union has ambitious goals in relation to
traffic safety. Some cities have already adopted Vision Zero as their policy
objective. The roadmap focuses research on infrastructure, vehicles, and
human behavior. Besides traffic safety, there is also attention for safe
deliveries with less theft and damage.

16
4. Supply chain perspective

In the effort to realize these objectives, city logistics should be seen as a link in
the logistics chain, with the end user as the primary end point (which, based on
the notion of circularity, is also a potential new starting point). A holistic
approach should be followed in order to understand what can be done upstream
to optimize the logistics chain and to have it link up with city logistics.

City logistics lies at the end of an integrated logistics chain: from
field to fork.

Three technological developments in transport and distribution are going to
fundamentally change the existing distribution networks: the Trans-European
Transport Networks (TEN-T), the autonomous trucks that will carry goods safely
and reliably across the TEN-T, and the innovations in warehouse automation.

1. TEN-T: international transport links.
In the framework of the TEN-T program, the European Commission has
designated ten international transport links – the “core network corridors”
– that are to be fully built up and improved with EU funding through 2030.
These concern innovative transport links on water, rails, and roads.

The aim is to further strengthen the European transport infrastructure –
and the intelligent transport and traffic management systems that go
along with that – and to lower transport costs in the process. On these
safe and robust core network corridors, goods can find their way –
uninterrupted, but especially also reliably – between Europe’s major
production and consumption areas. This is the preferred network of the
future.

2. Platooning: autonomous driving.
Unmanned trucks are getting closer and closer. The use of wireless
technology to connect to a road train – a manually steered lead truck with
a column of vehicles behind it – is already technically possible. These road
trains are going to need to have sufficient volume and frequency. That will
require enormous distribution centers where logistics service providers
can consolidate transport flows from different sectors of industry to
deliver – with a high frequency and great reliability – to distribution
centers downstream in the chain, closer to major consumption centers:
urban consolidation centers. Those DCs will need to be strategically
connected with these nodes of the TEN-T network.

3. Dark stores: robots in warehouses.
Faster, more frequent and more finely meshed delivery calls for the
mechanization of order-picking activities in distribution centers: dark
stores. With new technology such as Amazon’s picking robots, automatic
case picking, RFID, GS1 standards for things like pallet labels, dock-and-

17
roll, and pick-by-voice, the productivity in distribution centers is
increasing in leaps and bounds. Distribution centers where employees
gather 900 to 1,200 order lines an hour are no longer exceptions. Those
investments can only be earned back in distribution centers with
sufficient scale.
Ten years ago, experts still thought that distribution centers couldn’t be
any larger than 50,000 square meters. Warehouses larger than that were
thought to be less efficient. In the meantime, recent examples from
Zalando, Action, Nike, and Zara have shown that efficient distribution
centers can easily be as big as 150,000 to 300,000 square meters.

The distribution centers of the future will be located at strategic points within
the TEN-T network. They will consolidate freight flows from many shippers and
have fully mechanized internal processes. The distribution centers will be
interconnected with advanced systems for the minute-by-minute planning and
steering of the operational processes with transport management, warehouse
management, and traffic management: sense and respond. Control towers will
see to the tactical coordination of the flows of goods and capacities in the
distribution network: predict and prepare.

These developments will have consequences for the city logistics at the end of
the logistics chain and thus also for local spatial planning (Dablanc, 2014). More
and more often, urban consolidation centers on the edges of cities will be the
points where slow mobility, aimed at efficiently consolidated freight flows, turns
into valuable personalized mobility, aimed at the needs of the receiver.

The pressure to improve the air quality in urban areas is an important incentive
for the use of electric vehicles. That means that more shipments are being
transferred to these electric vehicles at consolidation centers within or around
the city.

An urban consolidation centers functions as a lynch pin and pivot point in the
logistics chain for physical, information, and financial flows, but that only works
properly with a corresponding organizational structure. Important ingredients
for the organization model are the neutral director’s role that can serve the

18
interests of every shipper, transporter, distributor, and receiver, and the national
coverage of uniform services combined with local situation (Guis, 2014). This
transfer-of-goods function needs to be integrated into the logistics chain with
multiple parties. Different business models, new processes, and technologies will
need to be investigated and implemented. The city logistics systems are
becoming more and more integrated with both horizontal and vertical
collaboration between parties. Such a development needs to have attention for
intermodal and multimodal solutions for city logistics (for example the shipping
of products via inland waterways to the edges of the city).

More and more vehicles are connected with each other and with road authorities,
for example via cooperative intelligent transportation systems (ITS-C). With
traffic management, this can result in better freight traffic flows.

Finally one should not forget that the freight traffic in cities is the result of the
behavior of customers in those cities. The development of the city and the
lifestyle of the people who live there both have a major impact on city logistics.
Factors such as the development of teleworking, an aging population, housing,
and the growth of omnichannel retail have major consequences for city logistics
(ALICE/ERTRAC, 2015). Digitization may also offer opportunities to put the
client behind the steering wheel in organizing city logistics more efficiently.
AH.nl allows customers to choose a delivery time themselves. By charging
different prices for the different delivery times (ranging from €4.95 to €12.95),
AH.nl leads its customers by the hand through the logistics process. And in doing
so, AH.nl is managing to optimize its own home-delivery process quietly and
dynamically.

19
5. City logistics as we head towards 2050

The ALICE/ERTRAC (2015) report contains 12 roadmaps that were developed
for the research themes for the coming decades:

1. Identifying and assessing opportunities in urban freight.
2. Towards a more efficient integration of urban freight in the urban
transport system.
3. Understanding the impact of land use on urban freight activities.
4. Enabling more efficient movements of goods through the management of
the infrastructure.
5. Improving the interaction between long distance freight transport and
urban freight.
6. Better adapting the vehicles to innovative urban freight delivery systems.
7. Value creation logistics services and more efficient operations.
8. E-commerce implications: Direct to consumer deliveries and functional
logistics services.
9. Reverse logistics and transport of waste and recycling material.
10. Designing and operating urban freight delivery infrastructures.
11. Safety and security in urban freight.
12. Cleaner and more efficient vehicles.

Netherlands 2020–2025: Green Deal Zero Emission Urban Logistics
The Top Sector Logistics’ 2016–2020 multiyear program (Topsector Logistiek,
2015) also gives attention to city logistics. The collaboration between all the
different parties involved in city logistics is currently most evident within the
Green Deal Zero Emission Urban Logistics (GDZES) program. The basis of the
GDZES lies in the Agreement on Energy for Sustainable Growth. That Agreement
states (in Dutch): “In 2014, parties intend [...] to conclude a Green Deal about
zero-emission city logistics that will facilitate and give direction to regional
pilots.” In this context, zero-emission city logistics refers in any case to the
reduction of CO2 emissions resulting from city logistics to zero, but preferably
also to the reduction of NOx, particulate matter, and noise emissions in the city
centers resulting from city logistics to practically zero.

Parties to the GDZES have the goal of achieving emission-free deliveries in city
centers by 2025. These parties include the Dutch national government,
municipalities, industry associations, knowledge institutions, shippers, transport
and distribution companies, fuel suppliers, and vehicle producers. By means of
Living Labs, parties are working together to come up with workable operational
solutions. The projects have to do with vehicle technology, the use and loading of
trucks, and the initiation of innovative city logistics projects.

With its action line for city logistics, the Top Sector Logistics wants to connect
with this Green Deal. Considering that city logistics has a major impact on the
accessibility and the broader quality of life in the city, both of which form the
focus of the current Dutch government’s Agenda Stad (“Urban Agenda”), the
action line for city logistics will form a link to that agenda.

20

While there has been no large-scale production of zero-emission vehicles to date,
electric delivery vans are already available and the first heavier, custom-made
zero-emission trucks are already in use. In addition, prototypes of hybrid
vehicles are being developed that can use conventional fuels on the motorways
but travel emission-free for the “last mile” within the city. Despite the great
diversity in load types and the resulting diversity of technical specifications for
vehicles, relevant developments are currently under way for all types of supply
vehicles that are being used on a large scale, each one proceeding at its own pace.
As logistics concepts are scaled up further, the parties to the GDZES want to
boost the development, availability, reliability, and affordability of zero-emission
vehicles. By now there are many opportunities for electric vehicles in connection
with city logistics (Stanislaw et al., 2014) and their use is being monitored
(Nesterova et al., 2013; Pelletier et al., 2014; Hogeschool van Amsterdam, 2015d).

Besides the use of zero-emission vehicles, a reduction in the number of vehicles
needed to bring supplies to the city is another important objective. Some goods
already enter the city in efficient ways. That is especially the case where logistics
professionals and companies have organized the (consolidation of) freight flows
with transport on their own account, as with the stocking of supermarkets and
chain stores. Also the distribution of e-commerce shipments is continually being
optimized by the larger logistics parties, thanks in part to the sound agreements
that are being made with receivers (Van Duin et al., 2015).

In contrast to the efficient flows, by far most transport movements are known to
work with a low utilization rate or only enter the city to deliver small shipments.
New city logistics concepts and more extensive consolidation make the use of
zero-emission vehicles and/or the use of clean vehicles with a high utilization
rate in lieu of low emissions for those transport movements potentially feasible
and are therefore in line with the GDZES objectives. Amsterdam has it’s own deal
with local business organization and research institutions called ‘Slim en Schoon’.

21
The action line for city logistics aims to reduce CO2 emissions by 5,000 kilotons
of CO2 per year. Achieving zero-emission city logistics through a combination of
better technology and more efficient logistics will require organizational,
technological, social, financial, and legal adjustments. This variety of factors to be
overcome, in combination with the many different interests of stakeholders,
demands an innovative approach.

The first phase will start the moment the Green Deal enters into force and run
until 2020. In this initial phase, the Green Deal will focus on demonstrating or at
least making plausible, via Living Labs, that zero-emission city logistics is
feasible, from a technical, economic, and enforcement perspective, for a specific
logistics flow. In the second phase, which runs until 2025, the Green Deal will
focus on scaling up the demonstrated concepts.

There are also links with other part of the Top Sector such as the application of
knowledge from the 4C roadmap (for cross chain control centers), the
development of new business models, and the implementation of digital
exchanges of logistics information with the Neutral Logistic Information
Platform or NLIP (Topsector Logistiek, 2015).

22
6. An integrated approach

Considering the Dutch and European ambitions, a lot of innovation will be
required of shippers, receivers, logistics service providers, and governments
when it comes to city logistics. In practice, the integrated logistics concept is
often used in dealing with such innovative logistics issues (Van Goor et al., 2014).
Local and supralocal government policy is another key factor in city logistics. For
that reason, government policy has been added to the integrated approach of city
logistics (see Fig. 1).

Figure 1: Integrated approach to city logistics (based on Van Goor et al., 2014).

External and internal objectives
In terms of the external objectives, it concerns linking up with the logistical
needs of the receiving party during the customer-experience cycle (pre-sales,
sales, and aftersales). In terms of the internal objectives, it concerns the costs
and the working capital that are involved in supplying the customers in the chain.
These are the framework conditions for setting up a distribution network.

Especially as a result of the digitization of customers and the changes in
customer behavior, these external objectives are changing (Shopping2020,
2014). Consumers are buying more online. With the advent of nano stores
(Blanco & Fransoo, 2013), shops are receiving smaller and smaller shipments
more and more often. To be able to compete with web stores, fashion retailers
are presenting new collections more and more often. E-commerce in the B2B
market is only now really starting to develop. As construction sites in cities get
smaller and smaller, supplies need to be brought in more often and delivered

23
right on time. In the future, seniors who want to keep living at home will get
customized healthcare logistics at home.

Processes
For deliveries to customers in cities, there are several types of possible
distribution networks:

• Directly from the shippers to the customer(s)
• Consolidation of freight flows of shippers upstream in the logistics chain.
• Consolidation of freight flows of multiple shippers and logistics service
providers downstream through urban consolidation centers
• Consolidation of freight flows of multiple shippers and logistics service
providers downstream through urban consolidation centers
• Consolidation of freight flows of multiple shippers via stores or pick-up
points within an urban area.

As an example, the possibilities for construction logistics are given in Table 2
(Quak et al., 2011).

Logistics
concept
Load characteristics Transport
characteristics
Solutions
FTL
thick flows
Initial phase of
construction projects
Sand, gravel, prefab
Direct delivery;
Out full, empty
back
Preferred network for
construction traffic;
Consolidation of extra-
urban traffic;
Multimodal
Integrated distribution
network
LTL
thin flows
Pallets (load carrier) Trucks not fully
loaded (low
utilization rate)
Innovative construction;
Consolidation at the
source;
Consolidation at an urban
consolidation center;
Outsourcing of
construction logistics
Parcels Parcels Trucks not fully
loaded (low
utilization rate)
Consolidation at the
source;
Consolidation at an urban
consolidation center;
Outsourcing of
construction logistics;
Mobile storage container
(construction finishing
box)
Rush orders Parcels Ad hoc, rush
(very low
utilization rate)
Outsourcing to courier;
Collection points
Returns Clay, rubble,
construction waste
Out empty, back
full
Preferred network for
construction traffic;
Consolidation of extra-
urban traffic;

24
Multimodal
Integrated distribution
network;
Combicontainer for
moving things to and
from the site.

Table 2. Distribution networks for construction logistics (Quak et al., 2011).

Then there is the question of which modality or modalities are used for transport
within the distribution network (e.g. cargo tricycle, delivery van, truck, or boat)
and which fuel technology is used.

Important factors in setting up a distribution network include: the company’s
strategy, the customer demands that the company wants to respond to, the
desired degree of flexibility, the margin on products, the production cycle, and
the product characteristics such as value density and packing density that
determine the distribution costs (Van Goor et al., 2014).

Planning and control
Tactical and operational planning and control ensure that the shipments reach
the receiver on time and with the appropriate use of resources. Planning and
control concerns decisions about the deployment of personnel and the
scheduling of vehicles and warehouse processes, but also about the charging of
electric vehicles. In terms of city logistics, this planning and control covers the
entire chain, often involving multiple parties that work together. Data alignment
in logistics chains is a condition for the sharing of planning data.

Information and communications technology
The tactical and operational planning and control requires data about the
shipments, the available capacities, and the routes: transport management

25
systems (TMS). These systems are increasingly linked with local traffic systems
of the government that give relevant information about traffic using open data.
Giving road users tailored driving recommendations can contribute towards a
better flow of traffic, and road users will also be prepared to adjust their driving
style on the basis of those recommendations. Soon the receiver will get real-time
information about the shipment and its expected arrival time and can even
change the delivery address while the shipment is already under way.

A trend in the development of ICT is the advent of location-based applications,
agent-based software, and systems for the exchange of freight between
companies (and increasingly also between private individuals). Well-known
applications include Uber and GoGoVan.

Logistics organization
In terms of the logistics organization, it concerns the way in which the tasks for
the planning and control of the transport flows are anchored in the organization,
the competencies of the employees involved, and how parties in the logistics
chain work together.

Local government policy
Local government policy determines the playing field by means of delivery
windows, vehicle restrictions, the arrangement of public spaces (including
loading and unloading bays), late night and early morning distribution, low-
emission zones, the amount of space that is available for logistics consolidation
centers, the available charging infrastructure for electric vehicles, the number of
quays that are available for the loading and unloading of boats, and the open data
that is made available for local traffic control and dynamic traffic management
aimed at improving the flow.

Supralocal government policy
Among other things, supralocal government policy determines hours-of-service
regulations, vehicle specifications, and the availability of open data for dynamic
traffic management.

An integrated approach to city logistics also requires a careful
consideration of the business model. There is no future for
solutions based entirely on subsidies.

Earning money with city logistics
One of the problems in the implementation of new concepts for city logistics is
the lack of a business model: they don’t earn any money. As Quak & Balm (2014)
put it:

26

Small scale, local demonstrations of which the outcomes are considered to be only
appropriate within a specific context occur quite often in the field of city logistics.
Various local demonstrations usually show a solution’s technical and operational
feasibility. These often subsidized demonstrations do not have long-term potential
due to the lack of thought on their business models, i.e. the financial feasibility. To
make a solution really work in practice a viable business model is required.

The use of business models such as Canvas (Osterwalder & Pigneur, 2010;
Turblog, 2011; Pauli, 2014) can support the development of a business model.
The Business Model Canvas is a powerful instrument to identify the business
model in a transparent and comprehensible way (see Fig. 2). In city logistics,
these business models also often have characteristics of public-private
partnerships.

Figure 2. Business Model Canvas (Quak & Balm, 2014).

27

Checklist for the Business Model Canvas

1. Customer Segments
What specific customer groups does the company want to serve? What are the
needs of those customer groups?

2. Value Proposition
What distinctive value does the company offer? What problems does the
company help to solve? Those can be both the current and the future needs. Why
should these customers do business with the company (and not with someone
else)? This is the value proposition.

3. Customer Relationships
How does the company maintain contact with the various customer segments?
How does each aspecific customer segment want the company to maintain
contact with them? Which type of contact is the right one and the most cost-
effective for each segment?

4. Channels
How are (groups of) customers kept abreast of the range of services offered?
How do they best experience the value proposition? How can they buy and get
the range of services offered?

5. Revenue Streams
How does the company earn money? And in the future? How can it develop
supplementary sources of income?

6. Key Resources
Which resources are essential to create the value proposition? To maintain
customer relationships? To get new customers?

7. Key Activities
Which core activities are essential to create or strengthen the value proposition?
To maintain customer relationships? To get new customers?

8. Partners
Which private and public partnerships are essential to make or co-create the
offer ? Which partners are crucial to ensure even more success?

9. Cost Structure
Which costs are essential to ensure that the business model will work? Which
resources and core activities are the most costly? Which costs are fixed, and
which are variable?

28
7. Applied research

The Faculty of Technology at the Amsterdam University of Applied Sciences
(HvA) has a research program that extends beyond the faculty itself: Urban
Technology. As one of the spearhead programs of the HvA, Urban Technology
focuses on researching, designing, and realizing smart solutions for the
challenges that major cities will face in the future. In this broad research
program, the Faculty of Technology works together with two other faculties at
the HvA: Economics and Management and Digital Media and Creative Industries.

The broader Logistics research program focuses on two themes that are closely
connected with Metropoolregio Amsterdam (MRA), the umbrella organization of
municipalities that form the Amsterdam metropolitan area: Mainport Logistics
and City Logistics. The Logistics research program at the HvA is closely
connected to the national Centre of Expertise Logistiek (“Center of Expertise for
Logistics”), of which the HvA fulfills the role of secretary, and with the regional
KennisDC (“Knowledge Distribution Center”) in Amsterdam.

Within the Urban Technology research program, the City Logistics research
program is linked to the research theme of Smart Mobility & Logistics. The focus
lies on designing technological solutions for sustainable mobility to ensure the
city remains accessible and connected. The research program is also linked to
the showcase project E-mobility and City Logistics, in which researchers in the
Smart Mobility & Logistics and Smart Energy Systems programs are working
together on the smart use of electric vehicles for urban distribution in the
Amsterdam metropolitan area.

Applied research within the Faculty of Technology
Technology helps to create the world of tomorrow. That will require research
that is related to practical applications and problems in practice. Applied
research contributes to the improvement and innovation of professional practice,
to the quality of professional education, and to the quality of teachers and
students. In addition to preparing students to be knowledgeable professionals,
conducting applied research is one of the core activities through which the
Faculty of Technology at the HvA is helping to create the world of tomorrow.

Applied research differs from classic theoretical research in that it investigates
practical issues from the field and involves a close cooperation with the
professional practice. The research is nevertheless methodologically sound and
in line with academic knowledge. Indeed, the added value of applied research
lies in the fact that bridges the gap between theoretical knowledge and day-to-
day professional practice.

29

Applied research has four characteristics:

1. It is rooted in professional practice
The strength of applied research lies in large part in the way it is set
up and carried out: in close cooperation with professional practice via
networks and collaborative relationships. The research being done at
the Amsterdam University of Applied Sciences (HvA) has a clearly
recognizable regional dimension thanks to its connection with MRA’s
Kennis- en Innovatieagenda (“Knowledge and Innovation Agenda”).

2. It forms a bridge between science and professional practice
One of the objectives of applied research is to translate scientific
knowledge into professional practice. It is through research that the
practical applicability of scientific insights is put to the test and made
concrete. As such, applied research plays an important role in
increasing the readiness of new technologies with an eye to their
market introduction. In the process, applied research not only draws
from the body of knowledge but also adds new knowledge to that.

3. It is methodologically sound
Applied research uses sound methods and meets the current
standards in terms of validity and reliability. In addition, it tries to
make the results generalizable as much as possible. Part of the
research takes place in collaboration with research universities, other
universities of applied sciences, and knowledge institutions such as
the Netherlands Organisation for Applied Scientific Research (TNO).

4. It has an impact on society
Applied research contributes to the professionalization and innovative
force of industry and government bodies. This active contribution has
a visible impact that underscores the social engagement of the Faculty
of Technology at the HvA.

Research also takes place in the classroom setting.
In the Faculty of Technology, research is carried out by professors, teachers with
a research task, doctoral candidates, and students, in collaboration with and at
the request of professionals in the field.

30

Research on City Logistics
The City Logistics research program focuses on the following themes:

E-mobility and City Logistics
In the framework of the showcase project E-mobility and City Logistics,
potentially promising sectors are being identified in terms of the electric
transport of both goods and people. For city logistics, for example, the
possibilities for parcel deliveries and the distribution of goods to hotels,
restaurants, and cafés are being studied. Researchers are looking into which type
of charging infrastructure is needed to facilitate and encourage businesses to use
electric transport, but also investigating how best to achieve that. In addition, the
day-to-day use of electric transport by businesses is being monitored.

E-mobility and City Logistics research project
The rise and necessity of electric transportation is dependent on numerous
factors such as technical possibilities, acceptance, government policy, costs and
benefits, the environment, business risks, and data. For that reason, the project
focuses on various aspects within five different work packages (WPs).

WP1. Inventory of transport flows
Which types of vehicles deserve to have priority (with an eye to achieving better
air quality)? And in which transport flows are those vehicles used? Those flows
include the delivery of supplies to restaurants, cafés, and hotels, parcel
deliveries, the collection of waste, the stocking of retail stores, and the provision
of maintenance services and municipal services, but also construction logistics
flows. It makes sense to distinguish between and prioritize the different
transport flows on the basis of local bottlenecks within the city. Result: a multi-
criteria table including a ranking of transport flows.

WP2. Feasibility analysis in case studies
What are the opportunities, obstacles, and conditions for electric transport for
the important sectors based on their supply profile, costs and benefits, and user

31
experience, among other things? Result: detailed insight into the opportunities,
obstacles, and conditions for a successful transition to electric transport.

WP3. Development of a charging infrastructure for city logistics
What type of charging infrastructure will be necessary in the Amsterdam
metropolitan area to facilitate and encourage the use of electric transportation?
To what extent can a substantial part of city logistics (electric transportation) be
serviced with a limited basic infrastructure (i.e. hotspots)? Where are those
hotspots situated? Which requirements do the hotspot charging points need to
meet? Result: maps of hotspots in Amsterdam (based on various growth
scenarios) and a specification of requirements for hotspot charging points.

WP4. Monitoring
A thorough evaluation will be essential in order to be able to identify the
obstacles, the opportunities, and the conditions for success in terms of the use of
electric transport. It will contribute to the accumulation and transfer of
knowledge. What are the experiences of companies, drivers, automobile
manufacturers, and municipalities? How should we record and share the lessons
learned? Considering the growth in the number of electric transport pilots in the
logistics sector (including PostNL, Nissan, and Heineken), the need for
(consistent) monitoring for the sake of evaluation and the exchange of
knowledge is great. Research question: How do you set up a consistent
monitoring framework? Can we develop a standard protocol? In addition, the
existing capacity for monitoring (the use of charging points) can be used to study
and optimize the charging behavior of logistics service providers. Result: a
monitoring protocol and multiple evaluative studies.

WP5. Design studies
How will the design of vehicles, charging solutions, and logistics concepts look in
the future? This comprises multiple subprojects dealing with subquestions
stemming from WP2, WP3, and WP4. Result: the design and construction of
prototypes in MRA’s own testing ground.

Public procurement
Local authorities are among the largest employers in the Netherlands. Their
training courses, departments, and services are spread across hundreds of
locations throughout their territory. Every day, those locations are supplied with
paper for printers, food and beverages, maintenance products, cleaning supplies,
paving stones for sidewalks, and much, much more (Balm et al., 2015). And every
day, those locations also produce considerable waste flows. This leads to a huge
number of small-scale deliveries in cities and many trucks and delivery vans at
the door. Some 5 to 10% of the deliveries in cities are thought to have a public
institution as their destination.

This research project analyzes whether or not that supply could be made
smarter and cleaner by consolidation freight flows at the suppliers’ or at urban
distribution centers, by having them delivered at night or by organizing

32
deliveries by boat via canals. The focal points of this project on public
procurement are the collaboration with suppliers, the kinds of information that
are provided to support the decision-making process, and the purchasing
behavior of public organizations (Hogeschool van Amsterdam, 2014 and 2015c).
This research project is being carried out in collaboration with the UvA/HvA
Facility Services, the City of Rotterdam, and the City of Amsterdam.

Construction logistics
To facilitate further research on smart, zero-emission construction logistics, a
number of research topics have been formulated (Van Merrienboer, 2013):

• The development of calculation models that contractors and bidders can
use to compare alternative distribution network during the bidding phase
and during the collaboration with subcontractors, suppliers, and logistics
service providers.
• The realization of paperless processes in the chain of contractors,
subcontractors, suppliers, and logistics service providers (and principals).
• Gain-sharing and cost-sharing models between contractors,
subcontractors, and suppliers in connection with joint logistics operations
such as logistics hubs and outsourcing to logistics service providers.
• The linking of the Building Information Model (BIM) to the tactical and
operational logistics planning in the construction chain.
• Using the most economically advantageous tender (MEAT) procedure.

This research program is taking place in collaboration with the Utrecht
University of Applied Sciences, the UvA/HvA Facility Services, TNO, Amsterdam
Smart City, and construction-industry trade organization Bouwend Nederland,
among others.

Food for the City
In collaboration with the Mainport Logistics research program, a research
program dealing with food has been developed. The themes covered in this
program include the sustainable logistics and processing of food in the

33
Amsterdam metropolitan area, closing food systems loops, making urban
farming initiatives more effective, and doing spatial planning for urban farming
(Van der Schrier & Levelt, 2015). Topics that are also relevant but that will only
be dealt with in a later phase include how the demand for food will look in the
future (considering demographic developments and consumer trends) and how
food security can be guaranteed in the event of disasters or other emergencies in
the region.

E-commerce
The effects of web stores on urban mobility are currently being studied in a
collaboration with the Online Entrepreneurship research group of the Faculty of
Economics and Management (Weltevreden & Rotem-Mindali, 2009).

Dealing with stakeholders
When it comes to traffic in the city, everyone is an expert with an often
unvarnished opinion. When the plans for the “shared space” setup for bicyclists
and pedestrians behind Amsterdam’s Central Station were presented in August
2015, for example, more than 88% of the local Amsterdam TV channel (AT5)
viewer though it was a bad idea. Even the experts were divided as to the
effectiveness of the setup and where best to apply the principle. That is hardly
very promising. Amsterdam is getting more and more crowded. To maintain a
balance in Amsterdam we will need to learn to share the space with each other –
and with our guests. Since actual practice involves so many different actors, a
good balance must be found, when weighing possible solutions, between
seemingly conflicting interests.

The Multi-actor, Multi-Criteria Analysis (MAMCA) enables researchers and policy
makers to evaluate various different alternatives (policy measures, scenarios,
technologies, etc.) in relation to the objectives of the various different actors who
are involved in the decision-making process. In this way, actors are explicitly
included in the analysis. As developed by Macharis (2000, 2005, and 2007) and
Macharis et al. (2016), the MAMCA method makes explicit the objectives of the
various parties involved, which leads to a better understanding of preferences of

34
all those parties. Involving important actors in the analysis will increase the
chances that the proposed solution will be accepted at the end of the evaluation
process (Van Duin, 2012).

Since actual practice involves so many different actors, a good
balance must be found, when weighing possible solutions,
between seemingly conflicting interests.

The MAMCA consists of two phases (Macharis, 2005). The first phase is primarily
analytical with the goal of gathering any information that is needed to carry out
the analyses. The second phase is the synthetic or operational phase and consists
of the actual analysis. The result is an evaluation of the various different
alternatives on the basis of the preferences of the actors involved. The analysis
provides a clear sense of the advantages or disadvantages of certain measures or
concepts from the perspective of the different groups of actors. This provides
very relevant information for implementation strategies and guidelines when
dealing with projects and problems related to mobility and transport. The
MAMCA method is now widely used in both research and education.

35
8. The future of sustainable city logistics

Clean and sustainable cities are appealing places to live, to work, to enjoy life,
and – not least – to invest in. Sustainable city logistics needs to contribute to
more livable and appealing cities with zero-emission vehicles that better match
the size of the city, but also to the consolidation of freight flows and the use of
waterways for the transport of goods to and from the city.

A successful approach will assume substantial flows of goods within cities:
construction, hospitality, waste, and parcel deliveries (to consumers, companies,
and institutions). In the future there will also be a sharp rise in the number of
deliveries made to seniors at home.

In designing city logistics solutions, one needs to have an overall and integrated
view of the (different actors’) objectives with regard to city logistics, the
distribution network, and the planning and control of that network, but also of
the processes and the information and communications technology for the
planning and of who does what in the organization. Local and supralocal
government policy is another key factor in city logistics.

Many initiatives for city logistics start out with government subsidies. However,
such initiatives often end as soon as the government money has been exhausted.
An integrated approach to city logistics means that the business model also
needs to be carefully thought out. There is no future for solutions based entirely
on subsidies.

Cleaner city logistics is about transport that is not only zero emission, but also
quieter and safer. It could involve electric cars and cargo tricycles, for example;
50% of the local-for-local shipments can be done with cargo tricycles
(Cyclelogistics, 2014). Logistics service providers are placing their bets on
bicycle couriers. Those won’t be cyclists carrying bags on their back, however,
but rather electric cargo tricycles with considerable load capacity. Some 1,000 to
2,000 of those couriers will soon be riding around in Amsterdam and you can
count on this development generating as much of a discussion as the current one
about whether or not motor scooters should still be allowed to use bicycle lanes.

Distribution by water is also a cleaner form of city logistics. PostNL is busy
developing floating depots that can enter Amsterdam by water, enabling
deliveries by cargo tricycle or small electric vehicles to customers in the city. Van
Keulen, an innovative construction materials wholesaler in Amsterdam, wants to
team up with Mokum Mariteam and Blom Dekschuitenverhuur (a barge rental
company) to supply construction sites from the water.

More than anything, sustainable city logistics is connected: the vehicles are
connected via the Internet of Things. There is currently a lot of experimentation
going on with dynamic traffic management systems. The metropolitan areas of
Amsterdam, Assen, and Helmond-Eindhoven are leading the way in that regard.
With “connected navigation”, trucks and delivery vans are provided with real-

36
time information about traffic congestion and green waves to entice them to opt
for particular routes that will result in fewer emissions and less nuisance for
residents. Traditional loading and unloading bays in a street, often occupied by
vehicles that don’t belong there, can be replaced by virtual loading and unloading
bays along the side of the street. Those would only become actual bays if vehicles
that are logged in to the traffic management systems request them. That would
prevent loading and unloading from taking place in the street and stopping the
flow of traffic.

And while there is certainly room for debate about the rise of companies like
Uber, one thing that sort of company is very good at is using data and intelligent
algorithms to determine where the hotspots in a city are and where to position
cars or have them drive to limit the amount of empty mileage as much as
possible. This ensures more efficient deliveries and less mileage. A lot can be
learned from such companies when it comes to sustainable city logistics.

New city logistics concepts need to be developed that will make customers feel
they are getting better service. Companies are actively working on that. In
addition, the technology involved in both vehicles and traffic management
systems needs to be developed further. There, too, hopeful developments can be
seen. And, finally, these concepts and techniques also need to be able to be
applied. There needs to be room for that, and – most of all – there needs to be
consistent government policy.

Market parties make investments in this kind of innovation for a period of at
least ten years. Policy changes along with the changing of the guard, and even
then, a city alderman might dilute ambitions under pressure from city council
members or complaining neighbors. Or ambitious policy may get throttled as
plans become more concrete. In Amsterdam, for example, a policy plan aimed at
getting 25% of the freight transports to take place by boats on canals became
impossible to implement as a result of the Bestemmingsplan Water (the city’s
zoning plan for water), which precluded any expansion of transport by water.
And in a number of cities, proposed low-emission zones were ultimately either
postponed or never even designated as such.

37

In the end, the key to future-oriented city logistics lies in enticing, encouraging,
and sometimes even pushing the market and in responding with an open mind to
whatever innovations may emerge from the market. And that particular key is in
the hands of the government.

Since in practice many different actors are involved, it is necessary to find a good
balance between seemingly conflicting interests when weighing possible
solutions. Businesses are more than eager to work on improving urban
distribution. A timely and unimpeded transport of goods to and from cities for
stores, hotels, restaurants, and cafés, construction sites, and residents will only
be possible as the result of a joint effort by the business community and
government bodies. Companies with a lot of activities in city centers should meet
more often with the municipalities so that knowledge about just-in-time urban
distribution can be included in policymaking and spatial planning, in the creation
of low-emission zones, in the formulation of new traffic regulations, or when
measures are taken to reduce emissions of particulate matter.

38
Literature

Aken, L. van, Chambre, P.E. de la, & Nederkoorn J.B.M. (1993). Stadsdistributiecentra
hebben een logistieke en een maatschappelijke betekenis, Bedrijfskunde, 65(1).
Deventer: Kluwer Bedrijfswetenschappen.
ALICE/ERTRAC (2015), Urban freight research roadmap, ALICE/ERTRAC Urban
Mobility WG.
Allen, J., Browne, M., Woodburn, A., & Leonardi, J. (2012). The role of urban
consolidation centres in sustainable freight transport. Transport Reviews, 32(4).
Anand, N., Quak, H., Duin, R. van, & Tavasszy, L. (2012). City logistics modeling efforts:
Trends and gaps – A review. Procedia – Social and Behavioral Sciences, 39.
Ballot, E., Montreuil, B., & Meller, R.D. (2014). The Physical Internet: The Network of the
Logistics Networks. Paris: La Documentation Française.
Balm, S., Browne, M., Leonardi, J., & Quak, H. (2014). Developing an evaluation
framework for innovative urban and interurban freight transport solutions.
Procedia – Social and Behavioral Sciences, 125.
Balm, S., Ploos van Amstel, W., Habers, J., Aditjandra, P., & Zunder T.H. (2015). The
purchasing behaviour of public organizations and its impact on city logistics.
Proceedings International Conference on City Logistics 2015.
Barnes, L., & Lea-Greenwood, G. (2010). Fast fashion in the retail store environment.
International Journal of Retail & Distribution Management, 38(10).
Binsbergen, A.J. van, & Visser, J.G.S.N. (2001). Innovation steps towards efficient goods
distribution systems for urban areas. Delft: Delft University of Technology.
Blanco, E.E., & Fransoo, J.C. (2013). Reaching 50 million nanostores: retail distribution in
emerging megacities. Beta Working Paper series 404.
Brookings (2015). New e-commerce entry Jet means rock-bottom prices … and more
city trucks, http://www.brookings.edu/blogs/the-avenue/posts/2015/07/28-e-
commerce-jet-city-trucks-tomer.
Brucker, K. de, Macharis, C., & Verbeke, A. (2013). Multi-criteria analysis and the
resolution of sustainable development dilemmas: A stakeholder management
approach. European Journal of Operational Research 224 (1) 2013.
Coopers & Lybrand (1991). Plaatsen van distributiecentra: definitiestudie en bijlagen.
Rotterdam: Ministerie van Verkeer en Waterstaat.
Coopers & Lybrand (1991). Plaatsen van distributiecentra: naar een bereikbare en
leefbare binnenstad van Maastricht – plan van aanpak. Rotterdam: Ministerie
van Verkeer en Waterstaat.
Cyclelogistics (2014). Cyclelogistics moving Europe forwards: Potential to shift goods
transport from cars to bicycles in European cities. Cyclelogistics.eu.
Dablanc, L. (2011). City distribution, a key element of the urban economy: guidelines for
practitioners. City Distribution and Urban Freight Transport: Multiple
Perspectives.
Dablanc, L. (2014). Logistics sprawl and urban freight planning issues in a major
gateway city. Sustainable Urban Logistics: Concepts, Methods and Information
Systems (pp. 49–69). Berlin, Heidelberg: Springer.
Duin, J.H.R. van (2012). Logistics concept development in multi-actor environments.
Delft: Delft University of Technology.
Duin, J.H.R. van, Goffau, W. de, Wiegmans, B., & Tavasszy, L.A. (2015). Improving home
delivery efficiency by using principles of address intelligence for b2c deliveries.
Proceedings International Conference on City Logistics 2015.
Eckerdal, K. (2012). ‘Everybody is in Services’: The Impact of Servicification on Trade
and Trade Policy. Presentation OECD Global Forum on Trade, 8 November 2012.
EIM (1989). Detailhandel en logistiek. Zoetermeer: EIM.

39
EIM (1990). Detailhandelstrends en hun logistieke gevolgen. Zoetermeer: EIM.
European Commission (2011). White Paper on Transport. Brussels: European
Commission.
EY (2015). The green mile? EY Netherlands.
Forrester (2015). US B2B eCommerce Forecast: 2015 to 2020. Forrester research report.
Gemeente Amsterdam (2015a), Agenda Duurzaamheid. Gemeente Amsterdam. March
2015.
Gemeente Amsterdam (2015b). Uitvoeringsagenda Mobiliteit. Gemeente Amsterdam.
April 2015.
Gemeente Amsterdam (2015c). Stad in Balans. Gemeente Amsterdam, May 2015.
Gemeente Amsterdam (2015d). https://www.amsterdam.nl/gemeente/volg-
beleid/innovatie/programma/smart-mobility/.
Goor, A.R., Ploos van Amstel, M., & Ploos van Amstel, W. (2014). Fysieke distributie:
denken in toegevoegde waarde. Noordhoff.
Groen Links Amsterdam (2011). Ruimte durven delen. Groen Links Amsterdam.
Groothedde, B., & Rustenburg, M. (2003). De economische haalbaarheid van de stadbox
in stedelijke distributie. TNO INRO.
Guis, E. (2104). Marktanalyse ontkoppelpunten, in opdracht van Ministerie van
Infrastructuur en Milieu.
Hemel, Z. (2015). Pleidooi voor flinke groei Amsterdam. Interview in Trouw, June 17,
2015.
Hogeschool van Amsterdam (2014). Leveranciersonderzoek Universiteit en Hogeschool
van Amsterdam, adviesrapport voor UvA/HvA Facility Services.
Hogeschool van Amsterdam (2015a). Verkeersobservaties Ferdinand Bolstraat,
adviesrapport voor Gemeente Amsterdam.
Hogeschool van Amsterdam (2015b). Senioren thuis (report by students of the City
Logistics minor program), June 2015.
Hogeschool van Amsterdam (2015c). Leveranciersonderzoek Gemeente Amsterdam,
adviesrapport voor Gemeente Amsterdam.
Hogeschool van Amsterdam (2015d). Evaluatie e-NV200 ‘Power to Amsterdam’ project,
adviesrapport voor Gemeente Amsterdam en Nissan Nederland.
Hogeschool van Amsterdam (2015e). Ontwikkelingen op de Nederlandse EV-markt,
adviesrapport voor RVO.
Hogeschool van Amsterdam (2015f). Adviesrapport Haarlemmerbuurt, adviesrapport
voor Ondernemersvereniging Haarlemmerdijk en -straat.
Hoofdbedrijfschap Detailhandel (1992). Bevoorrading van de detailhandel in
binnensteden: een studie naar de haalbaarheid en effecten van
stadsdistributiecentra. The Hague: HBD/IMK.
Janssen, G.R. (2014). Transportstromen verschuiven door toepassing 3-D, TNO
Publicatie 2014.
Macharis, C. (2000). Strategic modeling for intermodal terminals: Socio-economic
evaluation of the location of barge/road terminals in Flanders. (Doctoral thesis).
Brussels: Vrije Universiteit Brussel.
Macharis, C. (2005). The importance of stakeholder analysis in freight transport.
Quarterly Journal of Transport Law, Economics and Engineering, 8.
Macharis, C. (2007). Multi-criteria Analysis as a Tool to Include Stakeholders in Project
Evaluation: The MAMCA Method, in Haezendonck, E. (Ed.), Transport Project
Evaluation. Extending the Social Cost–Benefit Approach. Cheltenham: Edward
Elgar.
Macharis, C., Kin, B., Balm, S., & Ploos van Amstel, W. (2016). Multi-actor Participatory
Decision-making in Urban Construction Logistics. In Transportation Research
Board 95th Annual Meeting (No. 16-2337).

40
Macharis, C., & Bernardini, A. (2015). Reviewing the use of Multi-Criteria Decision
Analysis for the evaluation of transport projects: Time for a multi-actor
approach. Transport Policy, 37.
Macharis, C., Witte, A. De, & Ampe J. (2009). The multi-actor, multi-criteria analysis
methodology (MAMCA) for the evaluation of transport projects: theory and
practice. Journal of Advanced Transportation, 43(2).
MDS Transmodal (2012). DG MOVE European Commission: Study on Urban Freight
Transport, European Union.
Merrienboer, S. van (2013). Best Practices in Bouwlogistiek. Delft: TNO.
Nesterova, N., Quak, H., Balm, S., Roche-Cerasi, I., & Tretvik, T. (2013). Project FREVUE
deliverable D1. 3: State of the art of the electric freight vehicles implementation
in city logistics. TNO and SINTEF. European Commission Seventh Framework
Programme. http://frevue.eu/wp-content/uploads/2014/05/FREVUE-D1-3-
State-of-the-art-city-logistics-and-EV-final-.pdf Last accessed, May 19, 2014.
NOS (2015). Bouwmarkten rukken op naar stadscentra, http://nos.nl/artikel/2034720-
bouwmarkten-rukken-op-naar-stadscentra.html.
OECD (2015). Recent Energy Trends in OECD, OECD/International Energy Agency.
Osterwalder, A., & Pigneur, Y. (2010). Business Model Generation: A Handbook for
Visionaries, Game Changers, and Challengers. Hoboken, New Jersey: John Wiley
& Sons, Inc.
Pauli, G. (2014). De blauwe economie. Amsterdam: Nieuw Amsterdam.
PBL (2015). De stad verbeeld, PlanBureau voor de Leefomgeving.
Pelletier, S., Jabali, O., & Laporte, G. (2014). Goods distribution with electric vehicles:
Review and research perspectives. Technical Report CIRRELT-2014-44.
Montréal, Canada: CIRRELT.
Ploos van Amstel, W. (2013). Integrale visie op transport en logistiek in 2040, Preadvies
voor de Raden voor de Leefomgeving en Infrastructuur.
Ploos van Amstel, W., Balm, S. & van Merriënboer, S. (2015), A framework for tendering
based on EMAT approach to support sustainable urban construction logistics,
URBE 2015 October 2015
Quak, H. (2008). Sustainability of urban freight transport: Retail distribution and local
regulations in cities (No. EPS-2008-124-LIS). Erasmus Research Institute of
Management (ERIM).
Quak, H.J. (2012). Improving urban freight transport sustainability by carriers: Best
practices from the Netherlands and the EU project CityLog. Procedia – Social and
Behavioral Sciences.
Quak, H.J. (2014). Access Restrictions and Local Authorities’ City Logistics Regulation in
Urban Areas. City Logistics: Mapping The Future, 177.
Quak, H., Balm, S., & Posthumus, B. (2014). Evaluation of city logistics solutions with
business model analysis. Procedia – Social and Behavioral Sciences, 125.
Quak, H.J., Klerks, S.A.W., Aa, S., Ree, D.A. de, Ploos van Amstel, W., & Merrienboer, S.A.
(2011). Bouwlogistieke oplossingen voor binnenstedelijk bouwen (No. TNO-
060-DTM-2011-02965). TNO.
Quak, H., & Nesterova, N. (2014). Towards Zero Emission Urban Logistics: Challenges
and Issues for Implementation of Electric Freight Vehicles in City Logistics.
Sustainable Logistics (Transport and Sustainability, Volume 6) Emerald Group
Publishing Limited, 6, 265–294.
RESIDE (2015). A baseline scenario for energy efficiency renovations in Europe’s
residential buildings, RESIDE Project EU.
Schrier, A. van der, & Levelt, M. (2015). Logistics drivers and barriers in urban farming
projects: an international comparison of cases. Paper to be presented at the 7th
International AESOP Sustainable Food Planning Conference: Localizing Urban
Food Strategies, in Torino, October 2015.
Shopping2020 (2014). Shopping tomorrow. Shopping2020/Thuiswinkelorganisatie.

41
SMARTSET (2016), Experiences of a European project for cleaner, safer and more
efficient freight transport, Smartset Project publication
Soto, J., et al. (2015). How many urban recycling centers do we need and where? A
continuum approximation approach. Proceedings International Conference on
City Logistics 2015.
Stanisław, I., Kijewska, K., & Kijewski, D. (2014). Possibilities of Applying Electrically
Powered Vehicles in Urban Freight Transport. Procedia – Social and Behavioral
Sciences, 151.
Taniguchi, E., & Thompson, R.G. (Eds.) (2014). City logistics: Mapping the future. CRC
Press.
Taniguchi, E., Thompson, R.G., & Yamada, T. (2015). New Opportunities and Challenges
for City Logistics. Proceedings International Conference on City Logistics 2015.
Topsector Logistiek (2015). Meerjarenprogramma Topsector Logistiek 2016–2020,
Topsector Logistiek.
Transforum (2015). Urban mobility roadmap, Transforum
Turblog (2011). Transferability of urban logistics concepts and practices from a
worldwide perspective. Deliverable 2: Business Concepts and models for urban
logistics.
Vahrenkamp, R., & Berlin, L.C. (2013). 25 Years City Logistic: Why failed the urban
consolidation centres? (sic)
Visser, J., Nemoto, T., & Browne, M. (2014). Home delivery and the impacts on urban
freight transport: A review. Procedia – Social and Behavioral Sciences, 125, 15–
27.
Vlaamse Ministerie van Mobiliteit en Openbare Werken (2013). Wegwijzer voor een
efficiënte en duurzame stedelijke distributie in Vlaanderen. Vlaamse Ministerie
van Mobiliteit en Openbare Werken.
Weltevreden, J.W., & Rotem-Mindali, O. (2009). Mobility effects of b2c and c2c e-
commerce in the Netherlands: a quantitative assessment. Journal of Transport
Geography, 17(2), 83–92.

42
About the author

Dr. Walther Ploos van Amstel (born in 1962) is the professor of city logistics at
the Amsterdam University of Applied Sciences (HvA). From 2002 through 2009
he was a professor of logistics at the Netherlands Defence Academy (NLDA) in
Breda and Den Helder.

For over 25 years he as been active as a management consultant in the field of
logistics, supply chain management and international distribution. He is
primarily concerned with logistics process innovations, the introduction of
supply chain concepts into practice, intermodal distribution networks,
cooperation within logistics chains and networks, service logistics, sustainable
logistics, chain management, intelligent logistics concepts and risk management
in logistics chains. He completed his doctoral research on the performance of
logistics managers at Vrije Universiteit Amsterdam in 2002.

Among the other honorary positions he holds, he was chairman of the jury of the
Dutch Logistics Award of the Logistics Management Association (VLM), a
member of the jury of the Thuiswinkel Awards, a member of the expert group of
the Council for the Environment and Infrastructure (RLI) and a specialist partner
at the Inventory Management Competence Centre (IMCC). He also serves on the
board of a number of logistics service providers.

Walther Ploos van Amstel is a regular columnist for Logistiek.nl, Delaatstemeter
and Twinklemagazine, among other media. You might run into Walther working
as a house music DJ in his rare moments of free time.

Walther Ploos van Amstel: future city logistics

Recommended

Recommended

More Related Content

Similar to Walther Ploos van Amstel: future city logistics

Similar to Walther Ploos van Amstel: future city logistics (20)

More from Walther Ploos van Amstel

More from Walther Ploos van Amstel (20)

Recently uploaded

Recently uploaded (20)

Walther Ploos van Amstel: future city logistics