Challenges for CBD Freight in

Sydney’s Transformation Michael Stokoe

11 October 2016

CBD Coordination Office

Functions include:

• Communications

• Operational planning: traffic

management and contingency planning

• Strategic and land use planning

(including development approvals)

• Freight planning - deliveries and

servicing

• Business and community support

(i.e. activation during periods of

disruption)

• Facilitating special events

CBD Transformation

Tomorrow’s Sydney

Responding to growth:

• Sydney’s population is expected to leap by more than 2.1

million people in the next 20 years - about 170,000 more

than predicted only two years ago.

• Transport for NSW is overseeing the largest transformation

of the Sydney CBD transport network in decades to

address it.

The demand:

• Over 630,000 trips are made to the city centre daily.

• 67% by public transport and 20% by car. This is forecast to

increase by 25% (155,000 trips) by 2031.

• Over 1.26 million trips are made within the city for work,

education, shopping, leisure and city living each day.

• These trips will increase by 35% to 1.7 million by 2031.

• 100,000 jobs will be created in the city centre over the next

20 years.

Developing Sydney

1 Carrington, Brookfield Office Properties 333 George St, Charter Hall Quay Quarter Tower, AMP

Capacity improvement

16 zones currently active

8 more zones active by

December

Construction zone activity

Travel demand management: Travel Choices

An Olympic style travel demand

management program. Primarily focused

on people movement. The “4Rs” ring true

for freight, too.

Our Sydney CBD Freight Challenge

City logistics

The process for totally optimising the logistics and transport activities by private companies in urban areas while considering the traffic environment, traffic congestion and energy consumption within the framework of a market economy.

Taniguchi, Thompson, Yamada and Van Duin (2001)

McKinsey estimates that the roll out of city logistics principles

is up to four times more efficient than building road

infrastructure (2010).

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City logistics on our streets

Significant refurb/repair jobs

Bilge pumping

Floral deliveries

Couriers

Shop fitting Provedores

Why is there such a significant freight

task? • In one small part of a CBD street we found there was a consumer choice of 230

different types of bread for sale.

• Diversity, catering to all tastes and daily choices. Delivery of social benefit.

• Now multiply by every other product, service and competitor the city offers.

• This is what makes cities great!

• The number of CBD businesses selling food and drink increased by 13.9 per cent

between 2007 and 2012 to a total of 1484.

• Compare the supply chain implications of diversity, fragmentation and choice.

Bread by the numbers

1 side of the street in a 220 metre CBD block

21 shops and cafes selling bread 35 bread suppliers 80 deliveries each day

Communication & engagement Policy Trials Facilitation

Managing CBD freight and servicing

Economic Environmental Social Commercial Stakeholders

Aims and horizons

Framework

Outcomes

Guiding

principles

1. Encouraging industry driven change

2. Support and actions required by government

Efficient supply chain models supporting stakeholder requirements

Ongoing business success, enabling growth

Efficient transport network operations

1. Problem definition

2. Development of an evidence base

4. Design of future solutions

3.

1. Maintain productivity and sustainability

throughout the transformation

2. Promote efficient freight and servicing practices

to create a lasting legacy

3. Accommodate future grown

2015 2030 Transformation period

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Problem definition and development of an

evidence base

• Service definition may be set by various parties ... including marketing

departments.

– “Next day AM” is a typical service requirement regardless of the nature

of the good.

• This leads to immense competition for space during the morning peak.

• Property managers play a key gate keeper role – controlling who can access

their loading docks.

Supply chain structures

On-street loading zone assessment for

freight and servicing

• Approximately 3.2 million loading zone “button push” transactions per year.

• Peak period 9-11am exceeds operational capacity.

• Infrastructure projects reduced capacity by 12% last year – more reductions are likely.

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Key behavioural observations

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Productive Non-productive

Legal

• Delivery with 30 minute turnover,

no waiting, no double parking, no

circulating.

• Using a loading dock or car park.

• “Back of the clock” delivery.

• Stopping in a loading zone to buy food or

coffee in an approved vehicle type.

• Driving around the block rather than

blocking a lane while waiting.

• Queuing at loading dock entry.

• Internet shopping delivered to CBD

offices.

Illegal

• Overstaying a 30 minute slot due to

delays at business (such as waiting

for security check).

• Making several deliveries from one

spot (on street or in loading dock).

• Colluding to allow overstaying to

finish the job.

• Using a bus lane or no stopping

zone as buffer capacity.

• Private car parking in loading zones.

• Non-commercial SUV/ute stopping for

private use activities (vehicle type is legal

but trip purpose is not).

• Blocking a bus lane, cycle lane or

intersection while queuing for a loading

dock.

Law breakers?

Free loading zones – a tragedy of the

commons?

• Who gets what space?

• Who gets priority?

• It is in the interests of the users of a

commons to manage it prudently.

• Does compliance work? Yes and no ...

Why use loading zones rather than a

dock?

• Your customer doesn’t have a dock.

• Your truck doesn’t fit (height, length).

• Your customer (the tenant) doesn’t

manage access to the dock, the

property manager does.

• You have deliveries to make to 151

and 155 xyz street. Both have docks.

Parking in the street means you can

access both customers easily.

• Getting to the dock requires going

into a one-way street system.

• You need to create a booking. You

don’t like admin/it doesn’t suit your

operating method.

• The dock closes at 3pm.

The challenges for freight efficiency

LCVs are highly flexible for small “just

in time” deliveries. But: Energy

LCVs use approximately 21 times more

fuel than articulated vehicles to move

one tonne of freight one kilometre. Social cost

LCVs take up 13 times more road

space than an HGV for the equivalent

amount of freight.

LCVs may appear less individually

intrusive, collectively they have a

significant impact on road capacity.

The challenges for large vehicles

• Providing network

access.

• Providing dock access.

• Maintaining access for

retailers through the

construction phase and

into end state.

• Assessment of swept

paths for accessing docks

– to inform construction.

Off-street loading docks

• Self sufficiency is a requirement for all new developments.

• Only developed for the associated building. Little/no sharing.

• Is the space valued versus maximising leasable space?

• Scissor lifts are increasingly seen as the answer for confined space developments.

• Does building access policy require use of the dock?

• What is the value of serviceability for a building?

Developing Sydney

1 Carrington, Brookfield Office Properties 333 George St, Charter Hall Quay Quarter Tower, AMP

Construction traffic

• We are investigating methods to best manage this traffic.

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Average daily heavy vehicle movements – major CBD projects

Circular Quay & The Rocks

Wynyard & Barangaroo

City South

Construction traffic

Pitt Street/Martin Place

Circled the block four times at 8am on

a November morning.

Kent Street

Circling the block and impeding traffic

as planned practices.

Finding solutions

Framework

1. Problem definition

2. Development of an evidence base

4. Design of future solutions

3. Communication & engagement Policy Trials Facilitation

Communications and engagement

Provision of up-to-date information

• “Give us information, give us time to

plan”.

• Handcrafted list of over 750

stakeholders.

• Over 60 operational communications

since September 2015.

• Frequent communication with a broad

variety of stakeholders.

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Information about the network

• mysydneycbd.nsw.gov.au provides

loading zone and parking station

locations.

• Working with businesses to identify

parking opportunities.

• Data to publish.

Freight and servicing trials and activity

FOCUS

Courier efficiency

Courier hub trial in Goulburn Street car park – a viable

option that industry can replicate.

Tradie parking

Encouraging building managers to provide/promote

off-street parking for the tradies servicing their

buildings.

Waste operators’ Code of Practice

Developing improved work practices that reduce traffic

impacts and improve operations.

Promoting retimed activity

Working when there is more kerbside space available.

3+ hours

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Approaches: courier hub

• Joint initiative with the Council of the City of Sydney.

• Off-street parking, secure cages and lockers for deliveries.

• Activity with couriers demonstrates there are viable alternatives that can be adopted to

efficiently get goods into and around the CBDs

• The most common operator has 44 vehicles and bike couriers visiting per day (August

2016). 60% of movements are by bike.

• At full capacity, we estimate the hub could save 26,000 kilometres within the CBD (and

more across greater Sydney) and reduce loading zone dwell time by 4,600 hours

annually. Current use is approximately 25%

• Other couriers have established their own individual courier hubs.

Courier productivity assessment from the hub

Bonds Couriers Despatch Manager

“While it is difficult to empirically judge,

there is a very strong service benefit to

our CBD customers due to the use of

pushbikes.”

Testing the hub as:

• An intermodal point

• A city based hub

• A consolidation point

Approaches: retiming activities

Extending loading zones to

midnight to enable late

evening deliveries.

Testing the ability to schedule

less time-critical deliveries from

peak periods to off-peak periods.

Retiming activities

Tests conducted at a TfNSW office

• Substantial productivity gains

can be made from operating

overnight.

• In this case productivity

increased by x6 and mileage

decreased by x5.

• Productivity gains for us as the

client too by this operation

being out of hours.

The challenge is typically how

both parties establish a win-win

outcome.

Noise assessment – responsible retiming

Conclusion: peaks in noise are

typically “bin self noise” and the

way they are robustly handled.

Less noise from the actual

vehicle. There are still several

areas for improvement.

Policy and Design of Future Solutions

• New buildings are required to be self

sufficient, not reliant on on-street space.

• Accessibility for larger vehicles.

• Opportunities for local area hubbing. Lease

income from operators.

• Improved service outcomes for building

tenants.

• Could enhance the buildings green

credentials and rating

Requires view to be changed that this space

generates value to tenants ...

Better design of loading docks

• Less space needs to

accommodate more volume

into the future.

• More space will (temporarily)

be required to support

construction.

• Not every building has a

loading dock.

• Detecting wrong doing is not

the easiest task.

• Future: increasing

requirement to work in

pedestrianised areas.

Better management of kerbside loading

space

CBD land use and infrastructure planning

Transport for NSW new Metro stations

• Investigating a precinct-based approach

to loading docks.

• Can these be used to service the local

area efficiently?

Central Sydney Planning Strategy (draft - July 2016)

Loading and servicing actions

• Precinct-based approach to commercial

vehicle management, including open access

docks.

• Create small delivery consolidation points for

“last mile” delivery by foot, cycle or electric

vehicle.

• Encourage storage, particularly in retail to

reduce the number of (small) consignments.

• Loading on widened footpaths, at low

pedestrian volume periods e.g. at night.

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Global developments and trends – Europe

Freight tram (Dresden) Urban courier deliveries

Consolidated freight deliveries by electric vehicles

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Often these are motivated by energy/environment and are not commercially sustainable.

Global developments and trends

Urban freight facilities – Tokyo

Drones/robotics

Disruptive technologies/micropreneurship

Westfield Sydney – vehicle booking management

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Conclusion so far … • With 12% less kerbside capacity, the network

is still working. Operators tell us they are

doing OK.

• Operators have innovated in various ways.

• There has been an increase in retiming and

adaptive behaviour.

• Disruption isn't substantial enough to instigate

change? Should wholesale change be

expected?

• Lots more work to do:

– Construction traffic impact

– Property solutions that enable efficiency

– Servicing/tradies

– Off-street management

– Delivery innovation

– Efficient last metre logistics.

Thank you

Michael.Stokoe@transport.nsw.gov.au