Consolidation of Urban Freight Transport – Models and Algorithms

Urban freight transport is an indispensable component of economic and social life in cities. Compared to other types of transport, however, it contributes disproportionately to the negative impacts of traffic. As a result, urban freight transport is closely linked to social, environmental, and economic challenges. Managing urban freight transport and addressing these issues poses challenges not only for local city administrations but also for companies, such as logistics service providers (LSPs). Numerous policy measures and company-driven initiatives exist in the area of urban freight transport to overcome these challenges. One central approach is the consolidation of urban freight transport. This dissertation focuses on urban consolidation centers (UCCs) which are a widely studied and applied measure in urban freight transport. The fundamental idea of UCCs is to consolidate freight transport across companies in logistics facilities close to an urban area in order to increase the efficiency of vehicles delivering goods within the urban area. Although the concept has been researched and tested for several decades and it was shown that it can reduce the negative externalities of freight transport in cities, in practice many UCCs struggle with a lack of business participation and financial difficulties. This dissertation is primarily focused on the costs and savings associated with the use of UCCs from the perspective of LSPs. The cost-effectiveness of UCC use, which is also referred to as cost attractiveness, can be seen as a crucial condition for LSPs to be interested in using UCC systems. The overall objective of this dissertation is two-fold. First, it aims to develop models to provide decision support for evaluating the cost-effectiveness of using UCCs. Second, it aims to analyze the impacts of urban freight transport regulations and operational characteristics on the cost attractiveness of using UCCs from the perspective of LSPs. In this context, a distinction is made between UCCs that are jointly operated by a group of LSPs and UCCs that are operated by third parties who offer their urban transport service for a fee. The main body of this dissertation is based on three research papers. The first paper focuses on jointly-operated UCCs that are operated by a group of cooperating LSPs. It presents a simulation model to analyze the financial impacts on LSPs participating in such a scheme. In doing so, a particular focus is placed on urban freight transport regulations. A case study is used to analyze the operation of a jointly-operated UCC for scenarios involving three freight transport regulations. The second and third papers take on a different perspective on UCCs by focusing on third-party operated UCCs. In contrast to the first paper, the second and third papers present an evaluation approach in which the decision to use UCCs is integrated with the vehicle route planning of LSPs. In addition to addressing the basic version of this integrated routing problem, known as the vehicle routing problem with transshipment facilities (VRPTF), the second paper presents problem extensions that incorporate time windows, fleet size and mix decisions, and refined objective functions. To heuristically solve the basic problem and the new problem variants, an adaptive large neighborhood search (ALNS) heuristic with embedded local search heuristic and set partitioning problem (SPP) is presented. Furthermore, various factors influencing the cost attractiveness of UCCs, including time windows and usage fees, are analyzed using a real-world case study. The third paper extends the work of the second paper and incorporates daily and entrance-based city toll schemes and enables multi-trip routing. A mixed-integer linear programming (MILP) formulation of the resulting problem is proposed, as well as an ALNS solution heuristic. Moreover, a real-world case study with three European cities is used to analyze the impact of the two city toll systems in different operational contexts