Economic and risk factors of a transhipment system using electric cargo bikes for urban courier services

Abstract

The distribution of goods in urban areas is a major challenge for managers in the public and private sectors, due to population growth, high density in large urban centers and, in many cases, lack of planning in urban cargo transport systems. In this context, the objective of this paper is to propose a novel collaborative urban cargo distribution system for logistics service providers, based on a transshipment terminal and usage of electric cargo bikes, highlighting the main aspects to consider on estimating its beneficial economic and environmental impacts in terms of emissions and the risk factors of the investment. The evaluation of this solution may be based on applying simple vehicle routing heuristics for assessing the distance travelled, costs and emissions. Also, a more sophisticated cost model is proposed to estimate the economic viability and risks associated to the use of electric cargo bikes. Finally, risk aspects can be evaluated through a structured methodology including both qualitative and quantitative approaches.