Towards more sustainable vehicles for the last mile? Cycle logistics as a part of the solution

Fragmentation of freight flows is increasing in city logistics, generating more impact on the environment if transport remains organized according to the business-as-usual approach. Several solutions exist to improve the sustainability of freight transport in urban areas. Through an external cost-benefit analysis, this chapter explores the potential, in the context of City Logistics, of electric cargo bikes to reduce the impacts on climate change, air quality, well-to-wheel costs, congestion, accidents and noise. On the one hand, the results show that the highest external cost savings in a logistics environment with fragmented flows are generated where it is possible to replace exactly one light commercial vehicle with one electric cargo bike. On the other hand, the sensitivity analysis highlights the challenge electric cargo bikes face when volumes increase due to their limited capacity. Replacing one vehicle with multiple electric cargo bikes could especially impact external costs related to congestion where dedicated cycling infrastructure is missing. Still, if electric cargo bikes are used in combination with a network of hubs, these volumes can be further consolidated to the hub, generating important savings compared with a traditional distribution network.