Urban distribution centres: international models applicability to the inner city of Melbourne

Urban freight transport is an important aspect which focuses on the sustenance of life and economies of a given urban centre. It involves carriage of the waste which is generated in the cities as well as other goods. Despite the many benefits which are associated with this process, there exist various negative impacts such as emission of toxic gases. An example of this kind of gas includes greenhouse gas which is abbreviated as GHG. This leads to dire consequences which have huge negative impacts on the wellbeing of a city and lives of its residents. Melbourne City has been experiencing an accelerated rate of growth in the recent past and this has attracted more investors to venture into urban freight transport. This has contributed greatly in the development of new solutions in the industry Urban Distribution Centre (UDC) is viewed by many as a solution to address the environmental and liveability issues generated by freight transport in urban city centres. Some of these solutions include UDC which is a facility that deals with logistics and it is usually located close to a city, more specifically near the Central Business District (CBD) or a shopping centre that it serves. Several freight transport firms deliver goods to that facility and from which combined deliveries are executed within the city, CBD or shopping centre. Although the literature has identified sustainability as one of the key success factors for the implementation of UDC, limited research exists on developing a business model and a framework that considers sustainability issues associated with UDC. Therefore, the aim of this research is to develop a framework for an urban distribution centre that considers the sustainability aspect, particularly its applicability to Melbourne context.

To achieve the research aim, firstly the GHG emissions generated by different modes of transport are predicted using a data set of over 20 years via multivariate regression and double exponential smoothing model. The results show that the introduction of electric vehicles and plug-in hybrid vehicles can reduce significant GHG emissions. Secondly, from 77 UDCs', two UDCs cases (the City of London UDC and Paris-La Petite Reine) that have already been implemented in other countries were examined in order to discuss their potential applicability to Melbourne. By analysing two UDC experiences and discussing models and relevant features and elements that may be transferable to Melbourne context, found that certain business models would likely work best in Melbourne City than others. Finally, a business case model and a framework are proposed for the implementation of a successful UDC in Melbourne.