Combining pickups and deliveries in vehicle routing – An assessment of carbon emission effects

This paper studies the effect on carbon emissions of consolidation of shipments on trucks. New positioning and communication technologies, as well as decision support systems for vehicle routing, enable better utilization of vehicle capacity, reduced travel distance, and thereby carbon emission reductions. We present a novel carbon emission analysis method that determines the emission savings obtained by an individual transport provider, who receives customer orders for outbound deliveries as well as pickup orders from supply locations. The transport provider can improve vehicle utilization by performing pickups and deliveries jointly instead of using separate trucks. In our model we assume that the transport provider minimizes costs by use of a tool that calculates detailed vehicle routing plans, i.e., an assignment of each transport order to a specific vehicle in the fleet, and the sequence of customer visit for each vehicle. We compare a basic set-up, in which pickups and deliveries are segregated and performed with separate vehicles, with two consolidation set-ups where pickups and deliveries may be mixed more or less freely on a single vehicle. By allowing mixing, the average vehicle load will increase and the total driven distance will decrease. To compare carbon emissions for the three set-ups, we use a carbon assessment method that uses the distance driven and the average load factor. An increase in the load factor can reduce part of the emission savings from consolidation. We find that emission savings are relatively large in case of small vehicles and for delivery and pickup locations that are relatively far from the depot. However, if a truck visits many demand and supply locations before returning to the depot, we observe negligible carbon emission decreases or even emission increases for consolidation set-ups, meaning that in such cases investing in consolidation through joint pickups and deliveries may not be effective. The results of our study will be useful for transport users and providers, policymakers, as well as vehicle routing technology vendors.     

Agent based model for dynamic ridesharing

Dynamic ridesharing involves a service provider that matches potential drivers and passengers with similar itineraries allowing them to travel together and share the costs. Centralized (binary integer programming) and decentralized (dynamic auction-based multi-agent) optimization algorithms are formulated to match passengers and drivers. Numerical experiments on the decentralized approach provides near optimal solutions for single-driver, single-passenger cases with lower computational burden. The decentralized approach is then extended to accommodate both multi-passenger and multi-driver matches. The results indicate higher user cost savings and vehicle kilometers traveled (VKT) savings when allowing multi-passenger rides. Sensitivity analysis is conducted to test the impact of the service provider commission rate on revenue and system reliability. While short term revenue can be maximized at a commission rate of roughly 50% of each trip’s cost, the resulting drop in system reliability would be expected to reduce patronage and revenues in the longer term.     

Cost-saving properties of schedule coordination in a simple trunk-and-feeder transit system

The paper explores how the coordination of vehicle schedules in a public transit system affects generalized costs. We consider an idealized system that delivers its users to a common destination by requiring each to transfer from a feeder- to a trunk-line vehicle. Continuum models are used first to analyze cases in which the trunk-line vehicle schedule is given exogenously. We find that when feeder vehicles are dispatched in coordination with this exogenous trunk-line schedule, the reduction in user cost often outweighs the added cost to the feeder operation. In cases when the frequencies of trunk and feeder services can be established jointly, the models show that coordination can be Pareto improving, meaning that operator and user costs both diminish. Conditions that give rise to these cost savings are specified. Practical implications are discussed.     

Quantifying sustainable strategies for the construction of highway pavements in Illinois

The environmental and economic burdens of various pavement construction strategies are evaluated in this study. A partial life-cycle approach was used to determine the environmental and economic benefits of asphalt concrete and Portland concrete mix designs as well as pavement-related pay items. Approximately 920 designs were assessed to determine the upstream energy consumption and global warming potential (GWP) of producing these mixes. In general, it was found that transportation hauling distances as well as asphalt binder type and production imposed the greatest variability on the environmental and economic costs of the mixes. In many cases, these variabilities were seen to reduce some of the benefits from using increased recycled content. A similar analysis was performed for pay items where it was found that the contribution of environmental and economic impacts to a project followed a trend with upper pavement layers having the greatest impact, followed by subsequently lower layers, and finally earth exaction and preparation. A cost effectiveness (CE) analysis was then conducted for 18 sustainable strategies, the majority of which had, on average, cost savings as well as environmental savings for both energy and GWP at the mix design level. Overall, this study systematically used common reference units (i.e., mix designs and pay items) from the industry to assess general trends, inconsistencies, and implications from using sustainable strategies in pavement construction.     

The multi-port berth allocation problem with speed optimization and emission considerations

The container shipping industry faces many interrelated challenges and opportunities, as its role in the global trading system has become increasingly important over the last decades. On the one side, collaboration between port terminals and shipping liners can lead to costs savings and help achieve a sustainable supply chain, and on the other side, the optimization of operations and sailing times leads to reductions in bunker consumption and, thus, to fuel cost and air emissions reductions. To that effect, there is an increasing need to address the integration opportunities and environmental issues related to container shipping through optimization. This paper focuses on the well known Berth Allocation Problem (BAP), an optimization problem assigning berthing times and positions to vessels in container terminals. We introduce a novel mathematical formulation that extends the classical BAP to cover multiple ports in a shipping network under the assumption of strong cooperation between shipping lines and terminals. Speed is optimized on all sailing legs between ports, demonstrating the effect of speed optimization in reducing the total time of the operation, as well as total fuel consumption and emissions. Furthermore, the model implementation shows that an accurate speed discretization can result in far better economic and environmental results.     

Commercialising the management and maintenance of trunk roads in the United Kingdom

Public funding of new infrastructure from money raised through taxes or borrowing has been questioned globally in recent years. One alternative solution has been to finance major capital projects through Build, Operate & Transfer (BOT) schemes. In the United Kingdom, the Private Finance Initiative (PFI) has become established as the procurement method of choice for many projects and services in central and local government. It is a natural development of other changes in government administration which have been introduced over the past few years. Projects delivered in this way enable government to become a buyer of services on behalf of the public rather than a direct provider of those services to the public, taking advantage of private sector management skills and resources in their delivery. The PFI has demonstrated its ability to deliver value for money solutions in projects across a range of capital-intensive public services, but the greatest success in delivering projects has been in the transport sector. This paper outlines how the British Government's Highways Agency has restructured and commercialised the management and maintenance of the strategic road network for which it is responsible, and how it has been at the forefront of developing successful privately financed projects. The paper explains the Agency's particular version of BOT – Design, Build, Finance and Operate (DBFO) projects. These projects are delivering new and improved road construction and maintenance, providing better services to users of the country's strategic road network and achieving significant value for money savings for taxpayers.     

Energy efficiency and time charter rates: Energy efficiency savings recovered by ship owners in the Panamax market

This paper presents the first analysis on how financial savings arising from energy efficient ships are allocated between owners and those hiring the ships. This as an important undertaking as allocation of financial savings is expected to have an impact on the incentives faced by ship owners to invest in more energy efficient vessels. We focus on the dry bulk Panamax segment as it contributes to around 50 Mt (5%) of total CO₂ emissions from shipping in 2007 and therefore its importance in terms of environmental impact should not be neglected. The time charter market represents a classical example of the principal–agent problem similar to the tenant–landlord problem in the buildings sector. We discovered that on average only 40% of the financial savings delivered by energy efficiency accrue to ship owner for the period 2008–2012. The finding that only part of the savings are recouped by shipowners affecting their incentives towards energy efficiency could consequently have implications on the type of emission reduction policies opted at both, global and regional levels.     

Contracting in highway maintenance and rehabilitation: Are spatial effects important?

Highway agencies around the world strive to improve practices for infrastructure maintenance and rehabilitation, using project delivery policies that range from total ‘in-house’ responsibility to complete privatization, with a number of flexible contracting policies such as performance-based contracting, variants of design-build-maintain, and lane rentals among others between these two extremes. In this paper, we present a methodology that duly accounts for underlying spatial effects and estimates the expected cost savings of innovative contracting policies for highway maintenance and rehabilitation relative to in-house execution of these activities. Spatial econometric modeling is used to analyze highway contract data from 49 countries. We also investigate the marginal effects of key explanatory variables on contract cost savings using spatial multipliers. Our findings show that there are significant relationships between cost savings and contract characteristics, and that there is an apparent direct relationship between the average cost savings of contracts in a country and contract average cost savings and contract sizes in neighboring countries.     

Total cost analysis: An alternative to benefit-cost analysis in evaluating transportation alternatives

This paper explains the theory in support of total cost analysis (TCA) to compare transportation system alternatives. The full costs of each alternative are first aggregated, including travel time costs and monetizable environmental and social costs. Many costs which are considered on the benefits side of the equation in benefit-cost analysis (BCA) as "cost savings" are brought over to the costs side. Total cost differences among alternatives are then traded off against their estimated non-monetized benefits or impacts, just as a consumer trades off product quality against cost before deciding which product he or she will buy. One advantage of TCA over traditional BCA is that the concept of "total cost" is more easily understood by the public and by political decision-makers than BCA concepts such as "net present worth", "benefit-cost ratio" and "internal rate of return". A second advantage is that there is no suggestion that all "benefits" have been considered; decision-makers are free to use their own value judgements to trade off total cost against non-monetizable social, environmental and economic impacts, just as they trade off quality and convenience against cost when purchasing goods and services in their roles as consumers. The TCA approach is demonstrated in this paper through a case study of two systemwide alternatives for the Baltimore, MD urban area.     

The digital revolution and worthwhile use of travel time: implications for appraisal and forecasting

Savings in travel time and more specifically their monetary value typically constitute the main benefit to justify major investment in transport schemes. However, worthwhile use of travel time is an increasingly prominent phenomenon of the digital age. Accordingly, questions are increasingly being asked regarding whether values of time used by countries around the world based on their appraisal approaches are too high. This paper offers the most comprehensive examination of our theoretical and empirical understandings of international appraisal approaches and how they account for worthwhile use of travel time. It combines the economics perspective with wider social science insight and reaches the conclusion that past revolutions in transport that have made longer and quicker journeys possible are now joined by a digital revolution that is reducing the disutility of travel time. This revolution offers potential economic benefit that comes at a fraction of the cost of major investments in transport that are predicated on saving travel time. The paper highlights the challenges faced in both current and indeed potential alternative future appraisal approaches. Such challenges are rooted in the difficulty of measuring time use and productivity with sufficient accuracy and over time to credibly account for how travel time factors into the economic outcomes from social and working practices in the knowledge economy. There is a need for further research to: establish how improvements in the opportunities for and the quality of worthwhile use of travel time impact on the valuation of travel time savings for non-business travel; improve our understanding of how productive use of time impacts on the valuation of time savings for business travellers; and estimate how these factors have impacted on the demand for different modes of travel.     

Evaluation of fuel cell auxiliary power units for heavy-duty diesel trucks

A large number of heavy-duty trucks idle a significant amount. Heavy-duty line-haul truck engines idle about 20–40% of the time the engine is running, depending on season and operation. Drivers idle engines to power climate control devices (e.g., heaters and air conditioners) and sleeper compartment accessories (e.g., refrigerators, microwave ovens, and televisions) and to avoid start-up problems in cold weather. Idling increases air pollution and energy use, as well as wear and tear on engines. Efforts to reduce truck idling in the US have been sporadic, in part because it is widely viewed in the trucking industry that further idling restrictions would unduly compromise driver comfort and truck operations. The auxiliary power units (APUs) available to replace the idling of the diesel traction engine all have had limited trucking industry acceptance. Fuel cells are a promising APU technology. Fuel cell APUs have the potential to greatly reduce emissions and energy use and save money. In this paper, we estimate costs and benefits of fuel cell APUs. We calculate the payback period for fuel cell APUs to be about 2.6–4.5 years. This estimate is uncertain since future fuel cell costs are unknown and cost savings from idling vary greatly across the truck fleet. The payback period is particularly sensitive to diesel fuel consumption at idle. Given the large potential environmental and economic benefits of fuel cell APUs, the first major commercial application of fuel cells may be as truck APUs.     

Energy savings in light rail through the optimization of heating and ventilation

This paper discusses the potential for energy savings in heating and ventilation of light rail vehicles. We present the results of a detailed monitoring campaign on one articulated tram in Ghent, Belgium. The results give insight in the energy use for heating and ventilation in light rail as a function of ambient weather conditions. After several months of monitoring, changes in the HV strategy were implemented and the monitoring was continued. Based on this monitoring data, an energy-use model was constructed for HV both before and after the heating and ventilation strategy changes. These models then served as input for a Monte Carlo simulation, providing average energy savings over 1 year as a result of the optimized heating and ventilation strategy.     

Carsharing’s life-cycle impacts on energy use and greenhouse gas emissions

This paper examines the life-cycle inventory impacts on energy use and greenhouse gas (GHG) emissions as a result of candidate travelers adopting carsharing in US settings. Here, households residing in relatively dense urban neighborhoods with good access to transit and traveling relatively few miles in private vehicles (roughly 10% of the U.S. population) are considered candidates for carsharing. This analysis recognizes cradle-to-grave impacts of carsharing on vehicle ownership levels, travel distances, fleet fuel economy (partly due to faster turnover), parking demand (and associated infrastructure), and alternative modes. Results suggest that current carsharing members reduce their average individual transportation energy use and GHG emissions by approximately 51% upon joining a carsharing organization. Collectively, these individual-level effects translate to roughly 5% savings in all household transport-related energy use and GHG emissions in the U.S. These energy and emissions savings can be primarily attributed to mode shifts and avoided travel, followed by savings in parking infrastructure demands and fuel consumption. When indirect rebound effects are accounted for (assuming travel-cost savings is then spent on other goods and services), net savings are expected to be 3% across all U.S. households.     

Reducing the cost of peak hour transit service through contracting out service

Transit service contracting has responded to fiscal and financial woes of public transit agencies as the most uniquely attractive cost‐saving strategy at present. Most transit service contracting, however, has been in the traditional provision of entire fixed route bus service or commuter express bus service, and exclusive demand responsive service for the general public or for special disadvantaged population groups such as the elderly and/or the handicapped. This paper presents a new module in transit service contracting whereby the public and private operators jointly provide the peak service on the same route and at the same time. While the public agency provides the base demand of the service, the private provider provides the excess demand, both following the same schedules and similar service arrangements. In this paper, proposed service arrangements, costing and contracting procedures are discussed. It is also reported that substantial cost savings ranging from 32 to 57% with an average savings of 48% can be achieved if the excess peak hour bus transit service on highly peaked routes in public transit agencies is contracted to competing private operator(s).     

The effect of socio-economic factors on the value of time in commuting to work

It is important to specify accurately the dollar value assigned to time savings, since up to eighty percent of the benefits estimated to accrue from improvements in transportation systems are associated with savings in travel time. In this paper the economic theory of consumer choice is utilized to structure a model that is used to estimate how Value of Time (VOT) measures vary with community-related variables.Parameters for this theoretical model are empirically estimated using data from transportation surveys conducted in Ithaca and Syracuse, New York and Amherst, Massachusetts. The results confirm the validity of the theoretical model and suggest that leisure time, travel cost, and household income level, as well as community population, are important determinants of the marginal value of time. These models are particularly suited for transferring data results obtained in one community to another, thereby saving survey costs, since the resulting VOT estimates are based solely on underlying socio-economic variables and community characteristics that are known for most localities. The methodology is also useful for estimating different VDT's for particular population subgroups, like the elderly, which may be the focus of a particular transportation project.     

Deregulating the bus industry in Britain: a rejoinder

In our critique for the Buses White Paper, we argued that ‘competition for licences’ could achieve most of the benefits of competition without the major disadvantages of ‘competition on the road’. In response to the comments of Beesley and Glaister, we explain how comprehensive franchising of good and bad routes alike would encourage effective competition, whilst providing conditions for the transparent continuation of cross‐subsidy where that was the choice of the local authority in question. We correct their misrepresentation of our arguments on the desirability of cross‐subsidy and on the case for minibuses, and explain why we believe that such cost savings as are achieved will be mainly at the expense of staff or customer service. Finally, we restate the case for believing that a unified planned timetable will provide a better service for a given level of resources than will uncoordinated competitive services.     

Effects of providing total cost of ownership information on consumers’ intent to purchase a hybrid or plug-in electric vehicle

Energy-saving technologies have a difficult time being widely accepted in the marketplace when they have a high initial purchase price and deferred financial benefits. Consumers might not realize that, in the long-run, the financial benefits from reduced energy consumption offset much or all of the initial price premium. One strategy to address consumer misconception of this advantage is to supply information on the “total cost of ownership”, a metric which accounts for the purchase price, the cost of the fuel, and other costs over the ownership period. In this article, we investigate how providing information on five-year fuel cost savings and total cost of ownership affects the stated preferences of consumers to purchase a gasoline, conventional hybrid, plug-in hybrid, or battery electric vehicle. Through an online survey with an embedded experimental design using distinct labels, we find that respondent rankings of vehicles are unaffected by information on five-year fuel cost savings. However, adding information about total cost of ownership increases the probability that small/mid-sized car consumers express a preference to acquire a conventional hybrid, plug-in hybrid, or a battery-electric vehicle. No such effect is found for consumers of small sport utility vehicles. Our results are consistent with other findings in the behavioral economics literature and suggest that further evaluation of the effects of providing consumers with information on the total cost of vehicle ownership is warranted.     

The cost saving potential of carsharing in a US context

Carsharing is a vehicle sharing service for those with occasional need of private transportation. Transportation planners are beginning to see great potential for carsharing in helping to create a more diversified and sustainable transport system. While it has grown quickly in the US in recent years, it is still far from the level where it can deliver significant aggregate benefits. A key element to the potential growth of carsharing is its ability to provide cost savings to those who adopt it in favor of vehicle ownership. This research seeks to quantify these potential cost savings. The costs of carsharing and vehicle ownership are compared based on actual vehicle usage patterns from a large survey of San Francisco Bay Area residents. The results of this analysis show that a significant minority of Bay Area households own a vehicle with a usage pattern that carsharing could accommodate at a lower cost. Further research is required to indentify how these cost savings translate to the adoption of carsharing.     

Establishing car sharing services in rural areas: a simulation-based fleet operations analysis

Today, car sharing represents a generally accepted and widespread mode of individual transport. Car sharing providers operate their fleets effectively in many cities around the world. Surprisingly, rural areas don’t seem to have been considered in provider’s current expansion strategies. However, studies suggest that car sharing would have the greatest impact on improving sustainability and reducing traffic if it were offered nationwide. In this paper, we analyze the factors that prevent car sharing enterprises from developing their services in rural regions. Supported by a simulation model, we elaborate strategic implications on how to deal with potential hindrances such as lower demand or longer driving distances. For this purpose, a symbiosis of urban and rural car sharing services was analyzed. Our findings indicate a certain feasibility of rural car sharing development, while highlighting the positive effect it could have on car sharing demand in urban areas.

     

The utilisation and user characteristics of Uber services in London

ABSTRACT

Ridesourcing services such as Uber are nowadays a common feature within available transport options of many cities around the world (E.g. London & San Francisco). There has been much publicity about the potential impacts of ridesourcing services and how (or if) they should be managed or regulated without an objective understanding of who uses these services and why, as well as its current and future implications for public transport (PT).

Ridesourcing is part of a broader tech-driven, mobile app-based sharing phenomenon – the ‘sharing economy’ – which has disrupted traditional market models and industries, for example, the transport industry, where new players such as Uber have emerged and have quickly become part of the urban transport landscape. Uber has been at the forefront in disrupting the transport sector since its first launch in 2010 (San Francisco, USA). Since its launch, Uber has generated extensive media coverage and debate among policymakers, transport planners and transport authorities on how these services are affecting traditional transport modes such as buses and taxis. However, without objective empirical data – in terms of impacts on trip making characteristics, PT ridership and congestion – policymakers and transport regulators are yet to fully understand the real impacts ridesourcing services are having on the transport network.

This paper is part of broader research that aims to provide insights and empirical-based evidence on how Uber services are used (UberX and Uberpool) in London. A comprehensive survey was undertaken using a detailed questionnaire, issued to UberX and Uberpool users in London to gather detailed data on who uses the Uber services, why they use it and what are the trip purposes, in order to understand Uber user demographics and what effects (if any) Uber services are having on PT usage and trip making characteristics in London. The final findings provide important insights on Uber user demographics, trip purposes, types of trips replaced, impact on car ownership and why travellers use Uber services.