by Pablo Guerrero, Senior Transport Specialist, IDB. Presented at Transforming Transportation 2017.

1. www.TransformingTransportation.org
Impacts of Urban Congestion in Supply Chains
Pablo Guerrero, Senior Transport Specialist, IDB
Presented at Transforming Transportation 2017

2. Pablo Guerrero
Senior Transport Specialist
INTER-AMERICAN DEVELOPMENT BANK
Impacts of Urban Congestion in Supply Chains
Transforming Transportation 2017
January 13, 2017

3. Content:
1. Urban freight challenges
2. Methodology
3. Results

4. -
5
10
15
20
25
30
35
40
45
50
- 25 50 75 100 125 150 175 200
Motorization.Millionveh
Population. Million inhab
BR
MX
AR
CO
PE
CH
Relevance of cities:
Concentration and
urbanization
+60% of GDP
+80% population

5. Why congestion is important for supply chains?

6. Why congestion is important for supply chains?
Because it increases logistics costs in cities…

7. Why congestion is important for supply chains?
• Urban mobility is complex and is in high demand
• Large population to be served
• Excessive motorization, emissions, and fuel consumption
• Lack of freeways and low road capacity
• Large concentration of urban population in LAC
• Urban planning: “still a pending task”
Because it increases logistics costs in cities…

8. Why congestion is important for supply chains?
• Urban mobility is complex and is in high demand
• Large population to be served
• Excessive motorization, emissions, and fuel consumption
• Lack of freeways and low road capacity
• Large concentration of urban population in LAC
• Urban planning: “still a pending task”
Because it increases logistics costs in cities…
However, cities are key to any country logistics performance…

9. Why congestion is important for supply chains?
• Urban mobility is complex and is in high demand
• Large population to be served
• Excessive motorization, emissions and fuel consumption
• Lack of freeways and low road capacity
• Large concentration of urban population in LAC
• Urban planning: “still a pending task”
• Consumption centers
• Logistic nodes
• Industrial clusters
• Value-added and services
Because it increases logistics costs in cities…
However, cities are key to any country logistics performance…

10. The lack of urban
freight studies in LAC
restricts the ability to
manage and reduce
congestion

11. Content:
1. Urban freight challenges
2. Methodology
3. Results

12. Economic development:
Productivity & urban
mobility
Methodology congestion costs:
Design
Methodology implementation:
Local university
Implementing universities during pre-pilot face in
Barranquilla, Sao Paulo, and Santiago
Implementation Committee:
Coordination and decision
making
Example for Bogota DC, Colombia
Strategic alliance

13. Economic development:
Productivity & urban
mobility
Methodology congestion costs:
Design
Methodology implementation:
Local university
Implementing universities during pre-pilot face in
Barranquilla, Sao Paulo, and Santiago
Implementation Committee:
Coordination and decision
making
Example for Bogota DC, Colombia
Reliability and
comparability
Grounded on
stakeholders’
needs and
collaboration
Ensures
continuity, data
anonymity, and
further analysis
Strategic alliance

14. • Low cost
• Allows for continued data collection (every week or
month) and trend analysis
• First and Last mile assessment
• Comparative analysis of logistics and transport nodes
• Access roads or urban corridors
Methodology highlights

15. Methodology highlights
• Low cost
• Allows for continued data collection (every week or
month) and trend analysis
• First and Last mile assessment
• Comparative analysis of logistics and transport nodes
• Access roads or urban corridors

16. • Low cost
• Allows for continued data collection (every week or
month) and trend analysis
• First and Last mile assessment
• Comparative analysis of logistics and transport nodes
• Access roads or urban corridors
• Retail based (receivers and suppliers)
• “Basic goods” retail price as proxy of cost of living
• Own and hired fleets plus aleatory location
Methodology highlights

17. Premisas de la metodología
• Toma de datos dinámica y de bajo costo

18. 0
1
2
3
4
5
6
0 10 20 30 40 50 60
Time(Hours)
Distance (km)
Stops (break?, lunch?,
congestion?, delivery?,
receiver delays?)
Speed: about 20 kph
Speed:
about 2 kph

19. • Travel Congestion Index:
o TCI = (Actual delivery cost) / (Delivery costs
in free flow)
Impact
On supply chains
• Buffer Time Index (BTI):
o Buffer Time Index: the amount of extra "buffer"
time needed to be on-time 95 percent of the time
o Economic value of the BTI
Reliability
• Intrinsic VOT of cargo (I-VOT):
o I-VOT = (Opportunity cost of capital)*
(Average cargo value)*(Average Delays)
Impact
In the recipients
Results {methodology metrics}

20. Cities within the same
country will generate
a national model for
comparative analysis

21. Content:
1. Urban freight challenges
2. Methodology
3. Results

22. Barranquilla, Colombia Santiago de ChileSão Paulo, Brazil
Pilot application

23. Participating receivers and suppliers

24. Pilot application results

25. Pilot application results

26. Pilot application results

27. Congestion Cost Impact

28. Congestion Cost Impact

29. TCI Visualization

30. Fuel consumption

31. Fuel consumption

32. blogs.iadb.org/moviliblog
iadb.org/transporte
logisticsportal.iadb.org
@BIDtransporte
Thank you