Madrid is an important logistics hub, between the Atlantic and the Mediterranean TEN-T corridors. Madrid City Council is implementing several measures to improve air quality, such as restricting traffic in the city center. The Livng Lab will address real freight movement problems deriving from potential traffic restrictions to be enforced, by simulating and demonstrating the use of an urban consolidation centre (UCC), along with other mini centres and lockers, to deliver/pick up freight, using electric cargo bikes and vans. The UCC will be located in the surroundings of the border of ‘Madrid Central’ close to M-30 highway, which belongs to TEN-T, exploiting a parking lot.
LEAD strategies to be explored
- PPP schemes
- UCC, lockers, mini hubs
- Route optimisation engine
The Living Lab will explore:
- Efficiencies in using a UCC connected to the TEN-T to transfer cargo with EDVs and deliver to the city centre. The added value of using mini consolidation centres or lockers within Madrid Central to manage increased return shipments and the combination of both.
- The impact on vehicle flows and congestion before and after introducing the UCC and the EDVs. Using the route optimization engine in many-to-many and many-to-one scenarios, combining vehicles of different fleets. Assessing the improvement of environmental indicators.
- Alternative business models in terms of ownership of the consolidation centres, required agreements among different companies, PPPs.
- The possibility of using Blockchain technology for smart contracts.
- Cooperation mechanisms between public and private sector stakeholders (shippers, courier companies, retailers, municipalities) to ensure a sustainable model. Surveys and interviews to different players aimed at identifying new ideas for cooperation and evaluating the costs and benefits of implementation. The what-if scenarios will consider several disruptive business models such as the possibility of involving cycle logistics cooperatives and NGOs for last miledelivery. The ownership, management and regulation of the consolidation centre, mini centres and lockers will be defined as a clear innovation of the pilot.
- The economic efficiency and reliability for courier companies, and henceforth for clients, of using the LEAD strategies compared to conventional freight delivery approaches. The impact of alternative strategies for the clients in terms of cost and reliability. The social impacts for employees and retailers.
- Economic incentives, e.g. dynamic pricing for parking spaces.