International Transportation (68) 1 | 2016 16 Cargo bikes - Sustainable logistics in Germany and beyond Environmental impact, CO 2 emissions, Mikro-Depot, urban freight system Still common in many places, especially in emerging and developing countries, cargo bikes were long considered ineicient and outdated. However, as urbanization accelerates and transport volumes continue to rise, cargo bikes and smart logistics concepts could be a viable part of the future. Authors: Kristin Eichwede, Michel Arnd T oday, urban areas are drivers of economic and social development. Continuing urbanization leads to increasing transport volumes, presenting new challenges to urban goods transport 1 . In developing economies, more than 50 % of all city road traic can be attributed to commercial freight movement 2 . Eicient urban freight systems are considered a prerequisite for urban regions to develop sustainably and stay competitive. 3 Goods transport within cities is often referred to as the “last mile” in the supply chain. Perceived to be most suitable to move goods within the complex urban grid, trucks and vans remain the dominant transport mode. They contribute massively to urban congestion and are often a threat to urban road safety. In addition, trucks have signiicant environmental impacts such as CO 2 , NO X , particulates (PM10, PM2.5, PM1) and noise emissions. 4 The transport sector accounts for 28 % of global fossil-fuel-related greenhouse gas (GHG) emissions and is the second largest polluting sector 5 . In 2012, commercial transport contributed 20 % to the total of transport emissions in cities and urban areas 6 . Therefore, promoting and implementing alternative and sustainable urban freight strategies is crucial for balancing the economic growth of cities with social and environmental externalities. 7, 8 Cargo bikes as a solution Still common in many places, especially in emerging and developing countries, cargo bikes were long considered ineicient and outdated - and were therefore neglected by planners and decision-makers. However, cargo cycling is in fact a vital part of the transport sector in many places. The UN Economic Commission for Latin America and the Caribbean (ECLAC) and the University of Gothenburg state that for Latin America “cargo bikes could be a viable solution for tackling some of the problems related to contemporary urban transport. From a technical point of view the concept is already feasible, however, since it has never really been considered, the norms or rules regarding the concept are not clear.” 9 In Europe, cargo bikes have experienced a revival in recent years, with freelance messengers commonly operating cargo bikes in urban environments 10 . In 2014, the Euro- Photo: Reiner Eidemüller BEST PRACTICE Urban Freight International Transportation (68) 1 | 2016 17 Urban Freight BEST PRACTICE pean Cycle Logistics Federation was founded. Cargo bikes innovation In light of the expected increase of urban freight volumes, many German authorities have set up measures to increase the share of cycling in urban freight. Logistics is an important part of the German National Sustainability Strategy 11 and sustainability, in turn, plays a vital role within the German National Logistics Strategy 12 . The state of Baden-Württemberg states in its cycling strategy that 5 % of deliveries within cities shall be done using cargo bikes by 2020. 13 The authorities in Munich support companies acquiring electric cargo bikes with up to 25 % of the cost resp. 1,000 EUR 14 . The German Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB) commissioned the DLR Institute of Transport Research to set up a study on the use of cargo bikes for urban logistics called “Ich ersetze ein Auto” (“I replace a car”). Technological developments, especially electric-power assisted systems, enable cargo bikes to carry greater loads and cover larger distances. 15 Aside from the big players, logistics startups have found new innovative business opportunities. For instance, the start-up Velogista ofers same-day goods delivery of up to 250 kg and one Euro-pallet, using electric cargo bikes (Figure 1). It ofers cargo bike hire including a driver on an hourly basis (28 EUR/ h) or an on-route delivery (4.50 EUR per stop). With its own hub in the center of Berlin, it can also deliver parcels and smaller goods as well as allow for permanent rerouting and lexibly accept new orders thanks to the use of smartphones. For the founder of Velogista, Martin Seißler, goods delivery per bike has several advantages: “We don’t need to pay for petrol, insurance taxes are lower, and the expenses for vehicle repair are very cheap compared to vans.” Set-up as a social business and cooperative, Velogista aims to pay fair wages and provide good working conditions. However, Mr. Seißler points out that he cannot compete with sub-subcontractors of DHL and other global delivery companies that “take only 80 cents per parcel”. Therefore, Velogista concentrates on business delivery for small merchants or organic vegetable box schemes, unless somebody wants to hire a full bike for some hours. In contrast, the end-customer is at the core of the business for the online marketplace Kiezkauhaus in Wiesbaden near Frankfurt (Figure 2). On an online platform, Kiezkauhaus enables users to pick goods from local stores and get their purchases delivered the same day, transported by cargo e-bikes. The shops pack shopping bags and hand them over to the drivers, who then deliver them. Items ordered before 2-pm arrive the same day, and Kiezkauhaus charges 5 EUR per order, independently of how many shops are included. For customers this combines the convenience of online shopping with the beneits of supporting local, independent merchants. The service convincingly combines social and regional components with ecological considerations and an individual service concept that is tailored to individual users. The incorporation of small and micro-suppliers, personal advisors and local vendors helps to reinforce local value chains. Both concepts, the Kiezkauhaus and Velogista, show the potential of cargo bike logistics to boost local retail and reduce unnecessary CO 2 emission from transport; inner city traic is reduced and the region beneits from commerce tax. The start-ups show the great innovation potential of cycling logistics. However, they also only focus on direct delivery within one region. Considering the large quantities of parcel deliveries by larger carriers, cities need to push ahead with solutions to implement sustainable delivery. Examples include services like GNEWT in London and La Petite Reine in Paris. The Austrian city of Graz even uses cargo bikes even for street cleaning 16 . A pilot project of the city of Hamburg and UPS has been in place since February 2015 and is aimed to test the efectiveness of Mikro-Depots and freight delivery by bike or on foot over a two-year period 17 . Mikro- Depots have developed as an innovative answer to ever increasing airand noisequality problems arising from goods deliveries in inner urban areas. The depots are usually containers, as is the case in Hamburg, but can also be commercial vehicles or suitable properties that act as an interim storage facility. A container holding up to 400 deliveries is therefore dropped of to a predeined location from which CEP services (Courier, Express and Parcel) then distribute their deliveries onwards on cargo bikes, e-bikes or by foot. In the evening, the container is returned to a larger logistic/ distribution center and restocked for the next day. Due to the success of the irst Mikro- Depot at Neuer Wall in Hamburg, particularly in terms of reduced noise and air pollution, three more stations are planned. The last-mile delivery solution consisting of cargo bikes in combination with Mikro- Depots is furthermore planned to be extended to Paris in the irst half of 2016 18 . UPS estimates that their solution saves approximately 500 stops of a diesel car that arise from the constant stop-and-go of inner-city traic and thus presents an attractive alternative for the French capital, where air quality and congestion become growing concerns (Figure 3). To further increase efectiveness in reducing inner-city traic, Mikro-Depots could be shared by diferent providers. Delivery could be done by vehicles that serve certain areas and would carry parcels of various parcel companies. Figure 1: Velogista ofers cargo bike hire including a driver on an hourly basis. Photo: Velogista IN BRIEF Advancement and obstacles for cargo bikes in urban freight Key hurdles  General lack of recognition of the positive impact of cargo bikes by the general public or government  Sector is very informal, reforms might be diicult and require a huge need for stakeholder interaction between the private and public sector  Lack of Mikro-Depots and infrastructure such as appropriate bike lanes, slow-speed zones and bicycle parking Key potentials  Low operating cost (inexpensive insurance and easier vehicle repair, no petrol cost)  Great lexibility and agility, smart and quick rerouting  New business models, also for small companies, e.g. Kiezkaufhaus  Common in many places and existing good practice and proven technical concepts  Range is extended by electric support International Transportation (68) 1 | 2016 18 BEST PRACTICE Urban Freight Cargo bikes in emerging and developing economies Whereas sustainable logistics and urban freight concepts are gaining more attention in the cities of developed countries, these are still in their infant stages in developing nations. However, there is an urgent need for eicient urban freight systems in developing countries as a prerequisite step for sustainable urban and regional development. In many places, the urban logistics sector is dominated by informality and “single owner - single store issues”, making it diicult to reform the sector 19 . Hagen et al. emphasize in their study on Rio de Janeiro that cargo bike concepts are widely used. Survey respondents see advantages for using bicycles instead of motorcycles and vans in agility (44 %), freight carrying capacity (24 %), cost (24 %) and environmental beneits (8 %). Hagen et al. conclude that “the most important perceived advantage is the ability to quickly deliver products with cargo bikes, and that environmental beneits are a low priority” 20 . For Rio de Janeiro, the authors attest cargo bikes an enormous role in the local economy. They appear to be crucial to the existence of the businesses themselves, as many small businesses would not be viable without this transport mode. However, a general lack of recognition by the general public or government of the important contribution to economic activity, urban ecology and livability is a great obstacle for cargo bike logistics. To foster the share of cargo bikes in modal split, Hagen et al. suggest increasing support for infrastructure as well as campaigns to improve road safety and comfort for cyclists through urban design strategies which encourage cycling. 21 Additionally, sustainable urban freight concepts successfully implemented in European cities carry potential that could be replicated in developing economies. In many ways, governments in developing and emerging countries can draw from existing experiences and lessons learnt in order to avoid costly mistakes when setting urban freight policy objectives. As sustainable freight solutions such as cargo bikes are not new in Latin America or Asia, particularly in the lower income segments of society, they ofer great potential. 22 Potential of cargo bikes for sustainable logistics Key factors to facilitate the development of sustainable urban freight in Latin America are presented by a study of Wilmsmeier, Johansson and Jallow (2015). These include the establishment of public-private partnerships, as well as city-logistics plans to bring urban freight to the forefront of discussions around urban development. Although urban freight, in contrast to public transport, is predominantly controlled by the private sector, stakeholder interaction between the private and public sectors as well as academics and non-governmental players has to be fostered. While cargo bikes might be much more widespread in the context of the local economy, they lack support by the general public and government. However, considering global warming, pollution and increasing awareness of the need to tackle congestion, the ecological and economic advantages of cargo bikes are part of a convincing solution for a sustainable future. Pilot projects and innovative ideas like Kiezkauhaus and Velogista integrate well with the existing cargo bike scene. They exemplify new business models that can contribute to a trend towards sustainable logistics, in which cargo bikes play an important role as progressive solutions. Overall, such business models can help to make the general public or governments more aware of the important contribution of cargo bikes to economic activity, urban ecology and livability. Lastly, pilot projects such as the Mikro-Depot concept in Hamburg are needed alongside suitable logistics infrastructure. Investments in suitable bike lanes and slow-speed zones, as well as appropriate bicycle parking are measures governments Figure 2: The Kiezkaufhaus online marketplace Screenshot: Kiezkaufhaus Figure 3: A pilot project in Hamburg has been in place since February 2015. Photo: Flor! an/ wikipedia.de International Transportation (68) 1 | 2016 19 Urban Freight BEST PRACTICE could take to increase the share of cargo bikes - in developing and emerging countries as well as in advanced economies. Educational campaigns could focus on cargo bikes in order to improve their conduct in the streets and their perception by the public. 23 If strong and efective policies and regulations are implemented, the subsequent eicient urban freight system can help to support sustainable urbanization and growth in advanced economies as well as developing countries ■ . 1 Wilmsmeier, Gordon; Johansson, Lisette; Jallow, David (2015): The complex urban freight puzzle; http: / / repositorio.cepal.org/ bitstream/ handle/ 11362/ 38960/ S1500737_ en.pdf? sequence=1 2 Herzog B.O. (2010): Urban Freight in Developing Cities, A Sourcebook on Freight in Urban Transportation; http: / / www.sutp.org/ files/ contents/ documents/ resources/ A_ Sourcebook/ SB1_Institutional-and-Policy-Orientation/ GIZ_SUTP_SB1g_Urban-Freight-in-Developing-Cities_ EN.pdf 3 http: / / mirror.unhabitat.org/ pmss/ getElectronicVersion. aspx? nr=3387&alt=1 4 Stefanelli, Tito (2015): Smart choices for cities - Making urban freight logistics more sustainable; http: / / www.eltis. org/ sites/ eltis/ files/ trainingmaterials/ civ_pol-an5_ urban_web-1.pdf 5 IEA 2012 6 Gruber, Johannes; Ehrler, Verena; Lenz, Barbara (2013): Technical Potential and User Requirements for the Implementation of Electric Cargo Bikes in Courier Logistics Services 7 Stefanelli (2015) 8 Eiichi Taniguchi, Russell G. Thompson (2015): City Logistics: Mapping The Future 9 Wilmsmeier et al (2015) 10 Gruber, Johannes; Kihm, Alexander; Lenz, Barbara, 2013: A new vehicle for urban freight? An ex-ante evaluation of electric cargo bikes in courier services 11 Press and Information Oice of the German Federal Government (2012): National Sustainable Development Strategy, 2012 Progress Report; https: / / www.bundesregierung. de/ Content/ EN/ StatischeSeiten/ Schwerpunkte/ Nachhaltigkeit/ Anlagen/ 201 2-06-07-fortschrittsbericht- 2 0 1 2 e n g l i s c h b a r r i e r e f r e i . p d f ? _ _ b l o b = publicationFile&v=2 12 German Federal Ministry of Transport, Building and Urban Development (2010): Freight Transport and Logistics Action Plan - Logistics Initiative for Germany; http: / / www.logistics-alliance-germany.com/ ileadmin/ user_upload/ Dokumente/ England/ downloads/ action-plan-freight-transport-and-logistic.pdf 13 Ministerium für Verkehr und Infrastruktur Baden-Württemberg (2016): Radstrategie Baden-Württemberg; http: / / www.fahrradland-bw.de/ ileadmin/ user_upload_fahrradlandbw/ Downloads/ RadSTRATEGIE_Baden-Wuerttemberg_web.pdf 14 Stadt München (2016): Förderrichtlinie Elektromobilität im Rahmen des Integrierten Handlungsprogramms zur Förderung der Elektromobilität in München (IHFEM 2015); https: / / www.muenchen.ihk.de/ de/ standortpolitik/ Anhaenge/ foerderrichtlinie.pdf 15 Gruber et al (2013) 16 Riedl, Bianca: Sauberkeit: Immer sauber bleiben, Jungs! ; http: / / blog.holding-graz.at/ sauberkeit-reinigungsdienst/ 17 Posttip: Mikro-Depots: Nachhaltige Paketzustellung; http: / / www.posttip.de/ artikel/ 20047/ mikro-depots-nachhaltige-paketzustellung.html 18 Reichel, Johannes (2016): UPS: Lastenrad-Mikrodepot- Modell auf Paris ausgeweitet; http: / / www.logistra.de/ news-nachrichten/ nfz-fuhrpark-lagerlogistik-intralogistik/ 6992/ maerkte-amp-trends/ ups-lastenrad-mikrodepot-modell-auf-paris-ausg 19 Wilmsmeier et al. (2015) 20 Hagen, Jonas; Lobo, Zé; Mendonça, Cristina: The Beneits of Cargo Bikes in Rio de Janeiro: A Case Study; http: / / ta.org. br/ contagens/ docs/ rio_cargo_bikes.pdf 21 Hagen et al (2015) 22 Wilmsmeier et al. (2015) 23 Hagen et al (2015) Kristin Eichwede Transport Policy Consultant, German Partnership for Sustainable Mobility (GPSM) and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, London (UK); contact@ german-sustainable-mobility.de Michel Arnd Transport Policy Advisor, German Partnership for Sustainable Mobility and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, Eschborn (DE) michel.arnd@ german-sustainable-mobility.de FACTS AND FIGURES About the German Partnership for Sustainable Mobility The German Partnership for Sustainable Mobility (GPSM) serves as a guide for sustainable mobility and green logistics solutions from Germany. As a platform of more than 130 stakeholders, the GPSM supports the transformation towards sustainability in developing and emerging countries. Friends of the German Partnership for Sustainable Mobility (GPSM) working on logistics are:  Altran | http: / / www.altran.com  Deutsches Zentrum für Luft- und Raumfahrt (DLR) | http: / / www.dlr.de/ dlr/ en/  cargobike.jetzt | http: / / cargobike.jetzt/ english/  eMO - Berlin Agency for Electromobility | http: / / www.emo-berlin.de/ en/  FH Erfurt - Department for Transport | http: / / www.fh-erfurt.de/ wlv/ vt/ studium/  Goduni | http: / / www.goduni.de/  Hamburg Port Authority | http: / / www.hamburg-port-authority.de/ en/ Seiten/ Startseite.aspx  hinterher.com | http: / / www.hinterher.com  Ingenieurbüro Vössing | http: / / www.voessing.com/  INPLAN | http: / / www.inplan.de/  INRIX | http: / / www.inrix.com  ITS Deutschland e. V. | http: / / www.its-deutschland.info/ pages/ en/ home.php? lang=EN  Kiezkaufhaus | https: / / www.kiezkaufhaus.de/  innoZ | http: / / www.innoz.de/ innoz.html  Lastenradler | http: / / www.lastenradler.de/  LNC | http: / / www.lnc-hannover.de/ home.html  SHIPPIES | http: / / shippies.co  Siemens | http: / / www.siemens.com/ entry/ cc/ en/  SMARTLANE | http: / / smartlane.de/ en/  SOTI | http: / / www.soti.net/  Steinbeis Innovationszentrum Logistik und Nachhaltigkeit (SLN) | http: / / www.sln-sinsheim.de/  Technische Universität Dresden | http: / / tu-dresden.de/ en  Uniconsult | http: / / www.uniconsult-hamburg.de/ en/  Verband der Automobilindustrie VDA | http: / / www.vda.de/ en/ index.html  VCD | http: / / www.vcd.org/  Verband Deutscher Verkehrsunternehmen e. V. (VDV) | http: / / www.vdv.de/  Velogista | http: / / velogista.de/