Operations Research as a tool to investigate the effect of consolidation in Norwegian cities: A qualitative analysis

As a result of the constant growing economy, as well as urbanization and globalisation, a growing demand for freight transport can be observed. Due to the growing flow of goods, resulting from the expanding e-commerce options, and the need for daily delivers at local establishments, the need of urban deliveries is indisputable. Consequently, this causes strain on the urban road network, and the urban environment. The externalities linked to urban freight transport, has for long been well established. The social, economic, and environmental impacts from urban freight transport have all been directly linked to vehicle kilometres driven. As well as vehicle kilometres driven, congestion caused by the number of freight moving vehicles, and the unfavourable situations arising from loading/unloading activities, have given many policy makers a negative view on urban freight transport. Due to the negative externalities caused by urban freight transport, as well as an already limited space in urban areas, many initiatives to lower the number of vehicles in urban areas have been attempted. One type of initiative which have gained more attention in later years, is the introduction of urban consolidation centres. Although it has been proved a challenging task to make these initiatives financially viable, the successful initiatives have shown benefits to a reduction in externalities caused by urban freight transport. The aim of this thesis is to investigate the potential impact of forced consolidation on urban freight transport in a city with Norwegian characteristics. By utilizing operation research, two optimisation models are built, where one of them imitates a strict “business as usual” case, and the other represent the “forced consolidation” case. Furthermore, the latter model is run three times, each with a different consolidation centre location, to investigate the impact of the location. The numeric results produced from the models, indicates potential cost savings, in terms of vehicle kilometres travelled. Moreover, indications of a possible reduction in congestion, and loading/unloading activities is shown. In addition, the results also imply the importance of accessibility, and locating the urban consolidation centre outside of the city centre. Implications of this research should be approached with caution, as the models they are based on, are simplified greatly compared to a real-life scenario. Further research should, thus, be conducted on this subject, to determine the financial viability of such an initiative.