Delivering parcels through a metro-based underground network: an economic analysis

Abstract

This work proposes the introduction of an innovative method to deliver parcels within urban areas through a two- echelon logistic network, exploiting underground public transportation and cargo bikes. A model simulating the delivery of parcels through underground public transportation and cargo bikes is developed and applied to the city of Milan. Different scenarios, characterized by a different number of train stations activated and a number of daily orders, are investigated. Exploiting available capacity at subway trains reduces the impact of routing empty vehicles for the public infrastructure provider. Besides, as small, capacitated vehicles, cargo cycles allow having an average higher saturation, with the possibility of running multiple trips within the same day, lowering the impact of non-value adding returns for long-haul vehicles coming from outlying distribution centers. Alongside this, the usage of light vehicles and underground infrastructures help to significantly reduce transportation impacts. Overall, the solution proposed has the potential to radically innovate and improve urban last mile delivery under both economic and environmental perspectives. The present work proposes an innovative solution to deliver parcels, showing that it is sustainable from the logistics service operators' perspective