Seminar on “Urban Distribution Centres: Application of International Models to the Inner City of Melbourne”

Urban freight transport is vital in sustaining urban economies and life, since it carries the required goods and the generated waste in cities. Meanwhile, it also has several negative external impacts, especially a substantial proportion of greenhouse gas (GHG) emissions, which are considerably affecting the lives and well-being of local populations. The city of Melbourne is also expanding, which prompted stakeholders, who are directly and indirectly involved in the freight transport system, to explore more sustainable urban freight transport solutions. Urban Distribution Centre (UDC) is viewed by many as a solution to address the environmental and livability issues generated by freight transport in urban city centres. UDC is a logistics facility that is usually located close to a city, a CBD or a shopping centre that it serves. Several freight transport firms deliver goods to that facility and from which combined deliveries are executed within the city. Although the literature has identified sustainability as one of the key success factors for implementation of UDC, limited research exists on developing a business model and a framework that considers sustainability issues associated with UDC. Therefore, the aim of this project is to develop a framework for urban distribution centre that considers the sustainability aspect, particularly its applicability to Melbourne context. To achieve the research aim, firstly the GHG emissions generated by different modes of transport are predicted using a data set of over 20 years. The result shows that introduction of electric vehicles and plug-in hybrid vehicles can reduce significant GHG emissions. Secondly, case study of 76 UDCs’ is conducted with a rigorous set of criteria to select the UDC that is compatible within the Melbourne context. Finally a business case model and a framework are proposed for the implementation of a successful UDC in Melbourne.