Many city governments are focusing on decarbonizing and decongesting transport. Road space is being reallocated to prioritize cycling, public transport and public spaces. Meanwhile, demand for road space from delivery vehicles is increasing. Local and regional governments are responding by influencing delivery practices through regulation, infrastructure, kerbside management and other incentives. Regulation City governments are increasingly using road-user charging to manage inner-city traffic, targeting congestion, emissions or both. These schemes vary, often based on vehicle size or emissions. For example, Transport for London’s Congestion Charge overlaps with Low Emission Zones (LEZ) and Ultra Low Emission Zones (ULEZ).41 Europe has more than 320 LEZs,42 while cities such as Oslo and Kyoto have implemented road-user charging.43 Some cities, including Santa Monica and Shenzhen, are planning or have already implemented Zero-Emission Zones (ZEZ) as extensions of LEZ schemes.44 Other methods, such as low-traffic neighbourhoods or localized pedestrian zones, aim to limit vehicle access, including for delivery vehicles. Low-traffic neighbourhoods prioritize pedestrians and cyclists and offer easy public transport access, as seen in London and Barcelona,45 while localized pedestrian zones are widespread throughout the world. In Detroit, the city government enabled fast-tracked planning permissions for logistics pilot projects to speed up innovation in last-mile deliveries. This approach allows for quick learning and implementation while maintaining an emphasis on inclusivity and safety.46 Infrastructure City governments are enhancing infrastructure to support last-mile operations while aligning with broader goals. Many are partnering with the private sector to create multi-tenant microhubs (see Section 2.3). Expanding fast-charging infrastructure for EVs is a priority, with many governments offering incentives for deployment of charging points. In Shenzhen, 26% of logistics vehicles are electric, with local authorities aiming to expand EV adoption and provide charging points at scale.47 New infrastructure can be costly and require permits, causing delays. Reusing existing infrastructure can mitigate these costs. Waterways are being explored as alternatives to road transport for last-mile deliveries. DHL and UPS are piloting this in London and New York, using waterways for the mid-mile and zero-emission vehicles/bicycles for the final leg.48 Supported by the Port of London Authority, DHL removes 200,000 trucks from London’s roads annually through river freight.49 Similarly, Oslo collaborated with car manufacturers and infrastructure providers to establish a robust network of EV charging stations.50 City-led initiatives, such as zero-emission zones and shared charging infrastructure, must complement private sector-driven efforts such as electric fleets, e-bikes and parcel lockers. Involving stakeholders from the project definition stage is critical to success.51 Kerbside management Kerbside management effectively redistributes urban space and mitigates issues such as double parking by delivery vehicles. One study of commercial vehicle traffic in Seattle indicates that circling while searching for a parking space adds an average of 2.3 minutes to each delivery.52 Kerbside management strategically allocates space for efficient use by various stakeholders, including dedicated zones for deliveries, ride- hailing PUDO, waste collection and bicycle/scooter parking. Smart kerbside management further enhances this by dynamically repurposing kerb space based on demand. In New York City, smart kerb technology is being introduced to meet the growing demand for deliveries, waste collection and new transportation modes such as e-bikes and scooters.53 Key considerations for developing smart kerbsides include data integration, enforcing compliance, managing competing priorities for space, and technology infrastructure costs. City-led initiatives, such as zero-emission zones and shared charging infrastructure, must complement private sector- driven efforts such as electric fleets, e-bikes and parcel lockers.2.4 City government interventions Dynamic kerbside management BOX 5 Impact on Urban Health and Grid Smarter Cities piloted the innovative Kerb-Dock project in partnership with the London Borough of Southwark. The initiative looked at a dynamic kerbside management system to allocate and share space in congested areas among multiple users through a bookable system. Grid Smarter Cities believes they will find this more cost-effective than the annual charge for parking tickets and will also benefit from increased reliability of deliveries. In the areas in which the scheme has already been rolled out, delivery firms have experienced a 21% efficiency saving in their last-mile deliveries to urban areas. This is alongside a 6.6% reduction in nitric oxide and nitrogen dioxide (NOx) emissions from all road transport, a 5.8% reduction in fine particulate (PM2.5) emissions and a 4.6% fall in carbon dioxide (CO2) emissions.54 Transforming Urban Logistics: Sustainable and Efficient Last-Mile Delivery in Cities 15

Transforming Urban Logistics 2024