# EUR-Lex - 52013SC0524 - EN

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# 52013SC0524

**COMMISSION STAFF WORKING DOCUMENT A call to action on urban logistics Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Together towards competitive and resource-efficient urban mobility /* SWD/2013/0524 final */**

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COMMISSION STAFF WORKING DOCUMENT

A call to action on urban logistics

Accompanying the document

COMMUNICATION FROM THE COMMISSION
TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL
COMMITTEE AND THE COMMITTEE OF THE REGIONS

Together towards competitive and
resource-efficient urban mobility

I.            Introduction: The
contribution of urban logistics to city life

Cities are places for the exchange of goods
and information which are at the heart of our economy and way of life. For
cities to be successful they need to optimise the exchange of goods and
information while remaining attractive places to live and work.

Urban logistics ensure that shops and businesses
are stocked, equipment is repaired, home deliveries are made, buildings are supplied
and waste is removed. Every place of activity requires deliveries and servicing
- if these logistic demands are not properly planned for urban logistics can be
inefficient (e.g. low load factors) and polluting.

Urban logistics[1] makes up a relatively small
share of urban traffic[2]
but makes a major contribution to the success of cities. Improving the
efficiency of the 'first and last mile' of deliveries is of particular important
for economic growth.

Europe's cities
continue to grow: 73% of Europeans already live in cities and cities generate
85% of European GDP and the level of urbanisation is expected to rise to 82% by
2050[3]. A growing urban
population combined with other trends (e.g. home delivery, ageing population,
e-commerce etc.) will lead to increased density and increased demand for goods
and services – with consequently significantly increased demand for urban
logistics.

II.           The
2011 Transport White Paper and policy background

The 2011 White Paper "Roadmap to a Single
European Transport Area – Towards a competitive and resource efficient
transport system"[4] gave significant
attention to urban transport and set the goal of achieving essentially CO2
free city logistics in major urban centres by 2030.

Recently the Commission submitted its
proposal to reduce CO2 emissions from new vans[5].  These new vans will
gradually enter the fleet of vehicles in the coming years. The Fuel Quality
Directive[6]
should make possible a 6% reduction in the lifecycle greenhouse gas emissions
from transport fuels by 2020. The Commission also set out a Clean Power for
Transport Strategy[7]
and proposed legislation[8]
that mandates the deployment of alternative fuel infrastructure in the upcoming
years much of which should be provided in urban areas – where the initial
business case and benefits would be greatest.

As part of the 2009
Action Plan on Urban Mobility[9]
(Action 19) an international conference on Urban Freight Transport[10] was held in Brussels on the 16th and 17th November
2010 which brought together a large range of stakeholders. Action 19 also
included a "Study on Urban Freight Transport"[11] to provide EU policy recommendations and was completed in April
2012. The conclusions of the conference and the analysis and specific policy
recommendations of the study have contributed to the contents of this strategy.

For many years the European research
programmes have been supporting research and dissemination into urban freight
vehicles and solutions. Several CIVITAS projects are focusing particularly on
urban city logistics, in testing innovative policy and technological solutions.
A wide range of best practices and case studies are available online for free[12].

The results of the 2012 online public
consultation on "The urban dimension of
the EU transport policy" and related expert
meetings revealed that urban logistics is a neglected area of urban transport
planning and that Information and Communication Technologies (ICT) have a
strong potential to improve urban freight operations.

The Commission's Communication on
e-commerce and online services[13] identifies the improvement of the delivery
of goods purchased online as one of the top five priorities to boost e-commerce
by 2015 – most of these deliveries are in urban areas.

The recent EC Green Paper on "An
integrated parcel delivery market for the growth of e-commerce in the EU"[14] states that "consumers increasingly look
for and resort to online purchases, notably across borders, there is a growing
need for a delivery system that meets their expectations and works smoothly to
facilitate their daily lives, thereby generating greater confidence in, and
increased use of, e-commerce. The performance and affordability of the delivery
system is also a key driver of the sustainability of the business models of
many SMEs and in particular of their ability to serve their customers". A critical
part of these delivery systems are the 'first and last mile' in urban areas. The
delivery dimension will also be followed up in a forthcoming roadmap[15].

III.         Urban logistics: main
issues

Congestion has a negative impact on the competitiveness
and environment of urban economies; it causes inefficiencies in logistics
operations and increases costs. The costs of the 'first' and 'last mile' of
supply chains are too high and present a barrier to growth of home delivery.

The environmental impacts of urban
logistics operations can be high contributing to air and noise pollution, road
damage and greenhouse gas emissions. Urban freight vehicles contribute
disproportionally to air and noise pollution. Due to the proximity and density
of people in urban areas the external costs of urban freight transport can be
high. On the positive side, efficient and functioning urban logistics
operations improve the delivery experience for consumers buying on-line, they
can lower delivery costs, and contribute to a sustainable development of
delivery solutions.

Urban transport emits approximately 23% of
transport CO2 of which about a quarter is urban freight (urban
freight is approximately 6% of all transport GHG emissions). Despite the
efforts of some cities and Member States, reducing these emissions will require
major efforts in the years ahead.

The short distances, regular start stop,
captive fleets and the large number of people exposed to the air and noise
pollution provide an opportunity for urban logistics to make an early and
significant contribution to optimising transport and foster the early and cost
effective introduction of new types of operations, technologies and business
models.

Figure: CO2 emissions from transport[16]

Whilst the 2011
Transport White Paper goal targets a reduction in CO2 emissions it is
important to acknowledge that such action will also lead to reductions in other
emissions such as NOx and PM which are too high in many urban areas
and are very harmful to human health.

Business trends (e-commerce, personalized
delivery, business to consumer) driven by technological developments are
leading to significant changes in behaviour and expectations.

Simple improvements in urban logistics such
as better mode and vehicle selection, improved load factors, route optimisation
and access to loading/unloading zones can be very cost effective and reduce the
cost of goods and services.

While there is a general consensus on the
problems of urban logistics and there is also widespread agreement on the
possible solutions to these problems the solutions are not implemented in a
systemic way. In a survey of Swedish cities 43% did not spend any time working
on freight transport issues despite 65% identifying freight transport as a
problem[17].

Urban logistics is heavily neglected[18] in
city and transport planning.

Lack of focus and strategy on urban
logistics

Few cities have a well-developed and comprehensive
urban logistics strategy. City authorities focus their attention and resources
on passenger transport and lack appreciation of the contribution urban logistics
makes to the city economy and the potential for working with urban logistics
stakeholders to improve urban logistics efficiency, reduce costs and negative
impacts. Despite its key role in the urban economy few cities have a clearly
identified official responsible for urban logistics.

For businesses,
operators, infrastructure and service providers to be able to plan properly
there needs to be a well-considered and stable long term vision for a city's
logistics. Some cities may decide to focus on reducing costs others on air
quality improvements, safety or reducing greenhouse gas emissions. But to be
effective the vision needs to be integrated with other urban policies, clearly
articulated and shared by all stakeholders. Urban Logistics is not properly integrated
into urban transport and economic development strategies.

Lack of co-ordination of urban
logistics actors

The majority
of urban logistics operations are carried out for and by private actors who
operate regularly in the same cities but without a meaningful dialogue with
city authorities. Inefficient operations are costly and when given the chance
operators and shippers are often keen to work with city authorities to identify
problems and work co-operatively to implement solutions. Without co-operation
and understanding amongst stakeholders it is not possible to implement long
term solutions to urban logistics problems.

Strategic
freight plan for the Paris region – Ile-de-France, FR

In 2012 the
broader Paris region 'Ile-de-France' launched it integrated freight strategy
for the period until 2025. The plan concerns the expected future logistics
demands of the Paris region and addresses not only the transport aspects but
also the other logistics functions such as organisation, storage and
transhipment. The plan sets out nine strategic actions to be taken, identifies
who will lead on each action and who the necessary partners are.[19]

Lack of data and information

In almost all cities there is a lack of
information and understanding of freight flows. What is being moved, where,
when, by who and by what means? Improving such information is important for the
economy.  The Green paper on an integrated parcel delivery market for the
growth of e-commerce in the EU (COM (2012) 698 final) and the roadmap for completing
the single market for parcel delivery have identified the need for increased
transparency and information for all actors along the e-commerce value chain as
a key objective and crucial action for improving parcel delivery operations and
boosting e-commerce.

Only by having good data is it possible to
improve operational efficiency and plan for the long term. There is also a lack
of easily available and useful information available to urban transport
operators about urban logistics policies, regulations and services. Local authorities
often have various restrictions on freight movements (e.g. noise, emissions or weight).
New and increasingly cost effective ICT technologies can help provide clear
information about possible routes, restrictions, parking, support services,
alternative solutions and administrative procedures and so can facilitate
access to urban areas and improve freight delivery efficiency. Such
technological solutions need to be interoperable along the whole (often
international) supply chain.

IV.         Urban
logistics solutions – what needs to be done?

Without the right vision and stable policy
framework it is difficult for operators to see a clear business case to make
the investments necessary to implement solutions to urban logistic problems. Clear
strategies for the management of urban logistics are needed at the national and
primarily local levels. These strategies need to set out clearly the objectives
and the measures that will be implemented to reach them. Implementation needs
to be monitored, plans need to be periodically reviewed and revised. For local
decision makers to provide the necessary support and focus, they need a deeper
and clearer understanding of the contribution urban logistics makes to the
economy. To improve urban logistics in the long term there needs to be better
definitions, data collection, monitoring and evaluation.

City authorities, regions, logistics
operators and businesses have a common interest to optimise city logistics –
but far too often they operate in isolation and without the necessary
co-operation and agreement.

Through bringing together the local actors,
as part of a Sustainable Urban Mobility planning, meaningful plans of action
can be developed.

A review of best practice shows that particular
attention should be paid at the following areas:

1. Manage urban logistic demand

Good land use planning and the widespread
use of 'service and delivery plans' can reduce the impacts and cost of urban
logistics (for operators and society as a whole) and are particularly important
for large sites (e.g. hospitals, office buildings, factories, city centres).

Simple actions by consumers and operators
can help manage the demand for urban logistics so as to improve service and
reduce costs. For example bundling outgoing shipments together to allow a
single collection or shifting some deliveries to off peak periods can improve
logistics efficiency and reduce costs. Concerted efforts by businesses in London during the 2012 London Olympics helped reduce congestion and delays – many
companies have since made their 'temporary' Olympic delivery changes permanent.

Promotion of Delivery and Servicing Plans – London, UK

Transport
for London (TfL) support operators of large sites in the city to develop and
implement site based 'Delivery and Servicing Plans' to improve logistics
efficiency and reduce congestion and emissions. TfL provides guidance and
advice so sites can prepare their unique plan addressing their specific delivery,
collection, service trips and waste removal needs. Sites are also encouraged to
ask their suppliers carriers to join the London Freight Operators Recognition
Schemes – another initiative in the London Freight Plan.[20]

2. Shift modes

Urban logistics remains dominated by road
transport. But analysis of freight patterns can identify certain flows (e.g.
light short distance or heavy regular flows) that can be more efficiently moved
to alternative modes of transport such as bike[21],
boat or rail.

Many different solutions have been tested
and are technically proven – but without the city authorities providing the
right framework conditions e.g. strategy, dedicated space, enforcement,
privileged access, planning conditions, free parking etc. good technical
solutions often struggle for economic viability even if they deliver overall
improvements.

Urban
deliveries by boat – Utrecht, NL

Since 2005 boats have been successfully delivering goods (including
frozen foods and beer) and collecting waste for businesses in the historic city
of Utrecht. Since 2010 an
electric, zero emission boat has been in use that can run for 8-9 hours on a
single charge. These solutions make use of existing spare capacity on the
canals and reduce road goods vehicle traffic in the city centre.

3. Improve
efficiency

Urban deliveries are often delayed by road
congestion and inadequate loading/unloading facilities which can significantly
increase the direct and indirect costs of urban transport, causes further
congestion and environmental consequences. Similarly poorly planned and/or
executed urban logistics can cause wider traffic delays e.g. if suitable
loading places are not available.

Better selection of modes and vehicles can
ensure that a transport solution is optimally matched with the shipments' and
the cities requirements.

Increasing the generally poor load factors
of existing urban freight vehicles can be a very cost effective way to reduce
costs and impacts.

New ITS solutions can help to optimise
routes, improve service and reduce costs and impacts. In the framework of the
e-Freight initiative[22],
attention will be given to the optimisation of information exchange for urban
freight transport as part of longer (international) logistics chains. Driver
training can also be a cost effective way to improve urban logistics with low
costs.

Management of truck parking – Rotterdam, NL

The
Rotterdam Fruitport is located next to a residential area, many truck drivers
make use of this area to park their vehicles, especially in the weekends
causing safety, noise and accessibility problems for local residents. Through
the use of intelligent transport system technologies Fruitport are now able to
manage the truck parking, reduce the parking in residential areas and regulate
the movement of lorries from the highways to the port area. An additional
expected outcome is that the measure is speeding up the handling/ processing of
orders.

4. Improved
vehicles and fuels

The operational
characteristics of urban logistics can often be suitable for the early introduction
of new types of vehicles and operational models (e.g. electric vehicles, off
peak deliveries). Improvements in vehicles can make urban logistics quieter,
safer, cleaner and more efficient.

The Commission adopted on 24 January 2013,
the "Clean Power for Transport Package", which is constituted by a Communication[23], an LNG action plan
and a legislative proposal[24].
The Communication sets out a comprehensive alternative fuels strategy for the
long-term substitution of oil as energy source for transport, comprising all
modes of transport. It provides a framework to guide investments and
technological development. The legislative proposal requires the implementation
of an EU-wide harmonised alternative fuels infrastructure, for the selected
fuels by 2020.

The clean power for transport initiative
will guarantee the deployment of alternative fuels infrastructure, in
particular electric recharging stations within urban areas. This will help
urban freight and logistics and fleets operators to use cleaner vehicles
to operate within cities and therefore contribute to the 'zero emission' target
for urban freight logistics in major urban centres by 2030.

The density and frequency of operations and
actors makes urban areas a particularly attractive place for the roll out of
alternative fuel infrastructure. The large number of actors in urban logistics
operating on a commercial basis makes it a very suitable sector for the uptake
of new but profitable business models – particularly if the right local policy
framework is in place.

While public budgets remain limited there
may be financial constraints to the implementation of some solutions - but many
of the solutions to urban logistics problems are cost effective and the
investment will come from the private sector. For example if cities limit
access to very low emission vehicles can ensure the deployment and operation of
alternative fuels vehicles and infrastructure may well be delivered by the
private sector.

To support this development the Commission has
just launched a large scale demonstration project 'FREVUE - Freight Electric
Vehicles in Urban Europe'[25]
which will demonstrate innovative urban logistics solutions in eight EU big
cities using electric vehicles.

V.        Next steps

The Commission has been providing support
for the preparation and dissemination of urban logistics best practice.
In particular the Best Practice Factory for Freight Transport (BESTFACT)[26] provides access to a
wealth of best practice experience[27]
and expertise. Over 70 urban freight case studies are available on the European
Local Transport Information Service.[28]
The support for urban logistics best practice will continue and more effort
is needed to increase dissemination and take up through focussed
activities on urban logistics. Ensuring the transferability is not easy -
the BESTLOG[29]
project identified the 10 steps needed in order for the 'transferability' of
best practices to take place. This can only be successful if city authorities
provide the right, stable framework conditions so that logistics operators will
have the necessary business case to 'take up' best practice.

The Commission will also prepare, with
experts, guidance documents that provide practical assistance on how to
improve urban logistics performance: e.g. Urban Logistics definitions, data
collection and evaluation methodologies, recommendations and Best Practices for
including urban logistics in Sustainable Urban Mobility Plans, treatment of
urban logistics in access restriction schemes, Delivery and Service Plans,
implementation of consolidated local urban delivery schemes, reducing CO2
emissions from urban logistics for cities and operators, and ITS solutions
supporting city logistics.

Joint procurement of low emission urban
freight vehicles has potential benefits for
operators, manufacturers and the environment. However the potential benefits
are often not easily foreseeable and significant effort is required to bring
actors together (in particular actors from different Member States) early
enough in their procurement processes to identify common specifications and
prepare the joint tendering processes.

The new horizontal EU legislation to
be adopted in 2014[30]
contains clear rules in order to facilitate this process. Additionally, the
life-cycle approach, introduced into procurement legislation by Directive
2009/33 (the 'Clean Vehicles Directive')[31]
has been incorporated into this new horizontal cross sector legislation. The
Commission will support projects to understand and facilitate joint procurement
of urban freight vehicles and review the scope of the 'Clean Vehicle Portal'
which was originally created to facilitate the application of the Clean
Vehicles Directive to bring information, and actors together.

Member States should consider ensuring
that urban logistics are given proper consideration in their national
approaches to urban mobility and in Sustainable Urban Mobility Plans. Member
States should also consider ensuring creating platforms for cooperation,
exchange of data and information, training, etc., for all actors of urban
logistics chains.

VI.         Conclusion

Efficient urban logistics is essential for
the economy and the quality of life in cities where most European citizens live
but is largely neglected in urban transport policy and planning. Despite the
general agreement on the problems, and in many cases the solutions, there is a
broad lack of attention to urban logistics issues.

This strategy, along with the accompanying Communication
on Sustainable Urban Mobility Plans, is a call for action at all levels to improve
the efficiency of urban logistics.

Improving urban logistics is an area where
early progress can be made towards the overall goal of reducing transports
greenhouse gas emissions 60% by 2050.

Urban freight policy can deliver cost
effective improvements at the local level and at
the same time make significant contributions to longer term European transport,
environmental and economic policy goals/objectives.

[1] 'Urban logistics' may be defined as meaning the movement of goods,
equipment and waste into, out, from, within or through an urban area.

[2] e.g. 18% of vehicle.km in London (Sources: Transport for London).

[3] DK, SE, BE, LU, MT and NL expected to have levels of urbanisation
over 90% by 2050.

[4] COM (2011) 144.

[5] Proposal for a Regulation of the European Parliament and of the
Council amending Regulation
(EU) No 510/2011 to define the modalities for reaching the 2020 target [of 147
gCO2/km by 2020 for newly registered vehicles] to reduce CO2 emissions from new
light commercial vehicles; COM (2012) 0394 final.

[6] Directive 2009/30/EC of the European Parliament and of the Council
of 23 April 2009 amending Directive 98/70/EC as regards the specification of petrol, diesel and gas-oil
and introducing a mechanism to monitor and reduce greenhouse gas emissions and
amending Council Directive 1999/32/EC as regards the specification of fuel used
by inland waterway vessels and repealing Directive 93/12/EEC; OJ L 140,
5.6.2009, p. 88. More details available from
http://ec.europa.eu/environment/air/transport/fuel.htm.

[7] Communication from the Commission "Clean Power for Transport:
A European alternative fuels strategy"; COM (2013) 017 final.

[8] Proposal for a Directive of the European Parliament and of the
Council on the deployment of alternative fuels infrastructure; COM (2013) 018
final.

[9] COM (2009) 490 – Action Plan on Urban Mobility.

[10] http://ec.europa.eu/transport/themes/urban/events/2010_11_16_urban_freight_en.htm.

[11] http://ec.europa.eu/transport/themes/urban/studies/doc/2012-04-urban-freight-transport.pdf.

[12] e.g. European Local Travel Information Service: www.eltis.org and
European Platform on Mobility Management: www.epomm.eu.

[13] "A coherent framework for building trust in the Digital
Single Market for e-commerce and online services", COM (2011) 942 final.

[14] COM (2012) 0698 final.

[15] Communication “A roadmap for completing the single market for
parcel delivery by mid-2015 – Build trust in delivery services and encourage
online sales”.

[16] Source: PRIMES and TREMOVE.

[17] Assessing knowledge and awareness of the sustainable urban freight
transport among Swedish local authority policy planners – Maria Lindholm and
Magnus Blinge, 2006.

[18] 83% of those who expressed an opinion did NOT agree that 'urban
transport planning give sufficient consideration to urban freight logistics' –
DG MOVE Public stakeholder Questionnaire 2012.

[19] http://www.driea.ile-de-france.developpement-durable.gouv.fr/IMG/pdf/DOS_Fret_IdF_-_horizon_2025_cle2d3e18-1.pdf.

[20] http://www.tfl.gov.uk/microsites/freight/delivery_servicing_plans.aspx.

[21] 25% of all urban goods could be delivered by bike.

[22] http://ec.europa.eu/governance/impact/planned_ia/docs/2013_move_001_e_freight.pdf.

[23] Clean Power for Transport: A European alternative fuels strategy,
COM (2013) 017 final.

[24] Proposal for a Directive of the European Parliament and of the
Council on the deployment of alternative fuels infrastructure, COM (2013) 018
final. This package is accompanied by a Staff Working Document on Actions
towards a comprehensive EU framework on LNG for shipping.

[25] http://frevue.eu.

[26] www.bestfact.net.

[27] The action responds to Recommendation 8 of the 2012 'Study on
Urban Freight'.

[28] www.eltis.org.

[29] www.bestlog.org.

[30] Proposal for a Directive of the European Parliament and of the
Council on procurement by entities operating in the water, energy, transport
and postal services sectors, inter-institutional file 2011/0439 (COD).

[31] Directive 2009/33/EU of the European Parliament and of the Council
of 23 April 2009 on the promotion of clean and energy-efficient road transport
vehicles, OJ L 120, 15.5.2009, p. 5.