March 3rd 2021
The main aim is to demonstrate and understand how to grow the business model of electric freight in urban logistics. The London implementation is run by a large parcel carrier specialised in B2B deliveries (TNT) and a small ‘last-mile’ carrier specialised in electric freight deliveries (Gnewt Cargo).
| BAU | TNT deliveries in London are performed by TNT (20 routes - diesel vans) |
| A1 | TNT deliveries in London are performed by Gnewt Cargo - no consolidation with other Gnewt Cargo volume (15 routes - electric vans) |
| A2 | TNT deliveries in London are performed by Gnewt Cargo - consolidation with other Gnewt Cargo volume in the same route/vehicle (20 routes - elctric vans - from multiple Gnewt Cargo depots) |
| A3 | TNT deliveries in London are performed by Gnewt Cargo - consolidation with other Gnewt Cargo volume in the same route/vehicle (20 routes - electric vans - from an optimised, single Gnewt Cargo depot) |
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Adoption Rate
Alternative 1 : 10%
Adoption Willingness
Alternative 1 : 100%
Feasibility
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Consultation
Duration
Facilitators
- Gnewt Cargo
- TNT
- Transport for London
- City of London
- University of Westminster
Lessons Learnt
- Fundamental to obtain real business data on the situation BAU, in order to compare the effects
- Business case A1 not profitable after 4 months
- Observation A1: Finding a single depot that is large enough is crucial but very difficult to acchieve. Once achieved, the business case should be profitable
- Business case A2 seems to be profitable after 7 months
- Business case of A3 was improving the situation, with a step change in February 2018 and the move of one depot to a larger facility
Barriers
- A1: Too big size of parcels to be distributed for the TNT B2C business, not suitable for small vans. Therefore, TNT was obliged to use urban trucks in addition to electric vans
- A2: Long debate and talks were necessary to convince the clients of Gnewt Cargo that it would be benefitial to complement the load of a TNT van with the load other clients.
- A3: The search for multiple depots in Central London is still ongoing and proven a very tenacious obstacle for growth. The change of one depot location has enabled an efficiency improvement.
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London
Population
Goods Volume
Congestion Level
FTE UFT
Road Density
Share of Commercial Vehicles
Land Use
Industry Characteristics
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Environment
Society
Transportation
Economy