1. Quiet & Efficient: The Business Case for Consolidation Centres Presenter: Mark Fell, TTR Freight in the City, London

2. Terminology Freight Consolidation Centres Urban Freight Centres Urban Consolidation Centres Sustainable Distributions Centres Smart Freight Centres Construction Consolidation Centres

3. What is freight consolidation? Parcel Carriers Retail DCs Factories or Warehouses Factories or Warehouses Urban Centre

4. What is freight consolidation? Parcel Carriers Retail DCs Factories or Warehouses Factories or Warehouses Consolidation Centre Urban Centre

5. ‘Retail’ Consolidation in the UK – history X Heathrow 2001 All airport terminals 240 retailers Non-retail as well 79% reduction in trips Mandatory as part of security requirement Meadowhal l 2003 Sheffield 96 retailers Stores good off-site and delivers when required Bristol 2004 City centre Over 70 retailers 77% reduction in trips Over 275,000 vehicle kms saved Now covers Bath Out of town location Voluntary participation

6. Business model Problem: Voluntary involvement of retailers as the focus does not provide a sustainable business model…. …. without continued local authority subsidy. Why? Retailer decision making is complex and time consuming Levels of throughput per store is often small Generally, larger stores and food retailers already utilise a very efficient logistics chain

7. A sustainable sustainable business model Target public sector users first: Shorter decision making tree Higher buy in to sustainability agenda Good business cases typically for user Then add in service offer to retailers / offices etc Combine broader medium term storage services Serve multiple urban centres Southampton’s Sustainable Distribution Centre, operated by Meachers with support from Southampton City Council serving South Hampshire

8. Capturing the social benefits The Net Present Value of social benefits over a five year window by benefit category for Shopping Centre scenarios Source: DfT Study 2010 – conducted by TTR with TRL How do we realise these benefits within a business model?

9. Thank you! Mark Fell Divisional Manager, Sustainable Mobility Transport & Travel Research Ltd Mark.Fell@ttr-ltd.com