Last mile operation

Introduction

Last mile operations are a key element for the design of transport chains. Last mile operations include transport in local hinterlands of ports and final legs of multimodal transport. It influences the performance and sustainability of transport chains through the port. This factsheet should support ports to strengthen last mile operations within and outside port boundaries as well as their position as integrated logistic hubs.

Value proposition

Improve hinterland accessibility
Strengthen the performance and competitive position of ports
CO2 reduction
Road congestion

Focussing on last mile operations by ports will improve the hinterland accessibility. Measures such as efficient organisation of last-mile operations and consideration of innovative transport concepts strengthen the performance and competitive position of ports. Last mile operations usually account for a large share of transport cost and emissions. Measures include a consolidation of cargo flows and more flexible operations to improve the performance and reliability of this part of the logistics. Moreover, the use of environmentally friendly vehicles and alternatives to road transport contribute to a mitigation of road congestion in port cities and increase the local acceptance of ports.

Port applicability

For all ports with transport serving the hinterland, last mile transport is an essential service element.

Groups of innovations

The design of transport chains with a shortening/modal shift of last mile transport.
The use of inland waterway and railway is extended further into the hinterland. This concept is often combined with the establishment of micro-depots and a consolidation of smaller sized shipments further into the hinterland (e.g. Magpie task 6.4). Micro-depots may include the self-service collection and dispatch of shipments by commercial shippers. New pipelines could be used to transport energy carriers and captured CO2 on the last mile from/to ports. In the long-term, hyperloops may be used to shorten last mile distances. The idea for hyperloops in port hinterlands is to potentially reduce the last mile distance by transporting large volumes of cargo (e.g. containers) at high speeds between port and inland hubs.
Advanced management can lead to more efficient last mile operation.
For example, within truck operations, the automatization of gate systems should be extended. Moreover, the implementation of slot management could manage last mile operation better.
New concepts, such as the spreading of road traffic to night hours
Strengthen the performance and reliability of last mile operations.
MAGPIE Spreading road traffic demo
Use of alternative means of transport
In the medium to long term, autonomous vehicles could be used in last mile road transport. Moreover, drones may be used at large scale in the medium to long term. Drones can be used for small sized shipments and are particularly well suited for rural areas or very urgent shipments. In road transport, the share of carbon-neutral operations with electric trucks and cargo bikes can be increased. Cargo bikes can improve last mile operations in inner cities with heavy traffic.
Flexible data-driven coordination and planning of last mile operations
The planning may become autonomous using digital platforms (e.g. Port Community Systems) and artificial intelligence for optimisation based on real-time data. This also allows monitoring of last mile operations, the tracking of shipments and virtual simulations for a better reliability. Machine learning could be used for disruption prediction.

Impact

Impact level per aspect
Impact	Level	Remark
GHG emissions and air pollution	Limited impact	Mitigation of emission through advanced planning, innovative concepts, zero-emission vehicles and modal shift
Noise reduction	Limited impact	Use of alternative modes and vehicles might contribute to the reduction of noise
Urban mobility	Medium impact	Urban mobility benefits from advanced planning, innovative concepts and modal shift
Efficiency and competitiveness	Medium impact	Better performance and reliability strengthen ports’ competitive position

Port characteristics

All ports serving the hinterland rely on last mile operations. Ports have a strong role by setting standards. Within port boundaries they can directly influence operations by traffic regulations and restrictions. In general, all innovative concepts and alternative modes/vehicles can be implemented. However, new infrastructure and/or equipment may be needed. For instance, innovations such as the hyperloop would require heavy infrastructure.

Barriers and enablers

Enablers

InfrastructureEnabler
The availability of sites is a critical issue both in ports and at inland locations. Sites are needed to establish hubs/consolidation centres for last mile operations and micro-depots. Micro-depots allow for more efficient last mile operation by bundling of cargo flows further into the hinterland.
EconomicEnabler
Economic There is an interest by ports to strengthen last mile operations to better serve the hinterland. Advanced (potentially autonomous) planning and innovative concepts can contribute to make last mile operation more efficient. Last mile road operation is dominated by trucks as a flexible and cheap transport mode. The higher cost and less flexibility of alternative modes compared to trucks is a barrier for modal shift to strengthen last mile operations. In consolidation centres and micro-depots, new business opportunities for ports may arise by establishing value-added services.
Stakeholder interactionEnabler
The implementation of innovative concepts in last mile transport is facilitated by the cooperation of port and transport stakeholders. Such a cooperation enables a larger scale of operation and contributes to the feasibility of innovative concepts and solutions.
Standards & regulationEnabler
Regulation with restrictions for conventional diesel-powered road transport, in particular in urban areas, may be a driver to make last mile operations more efficient by deploying innovative concepts and alternative modes/vehicles. Ports can set standards with respect to the consolidation and flexibility of last mile operations. Moreover, ports can influence last mile operations by managing truck slots.
TechnologyEnabler
Tools for advanced planning are available. They will be further developed for data-driven autonomous planning by the use of artificial intelligence. The use of real-time data will enhance the continuous tracking of cargo flows and optimisation of planning/operations. Technologies for autonomous operations (e.g. vehicles) and new means of transport can be enablers of more efficient last mile operations. However, the lack of regulatory frameworks for new technologies and the high investment requirements are barriers.

How to implement?

Step 1
Nw vehicles, increased flexibility and advanced planning
Ports, operators, terminals, cargo owners
Step 2
Consolidation of last mile operation
Ports, operators, terminals, cargo owners

Timeline

The arrow below represents the expected development of the TRL of last mile operation.

What should a port do in the next 3 years?

The port should focus on advanced planning, consolidation of cargo flows and innovative concepts such as road traffic spreading for last mile operations. Moreover, the sustainability of last mile operation by reducing emissions and other adverse impacts should be on the agenda.

Investment overview

In general, innovative concepts with more flexible last mile operations do not require substantial investment. This also applies to the implementation of more advanced and autonomous planning. For these measures, the focus is on a more efficient use of existing capacities. Larger investments are needed for new vehicles/means of transport or new equipment as part of innovative last mile concepts and solutions, although some, like drones, are not expensive. The establishment of micro-depots also requires large investments for site preparation and equipment. Other new infrastructure such as terminals for the consolidation of last mile operations or a hyperloop would require very large investment.

Stakeholder overview

Below is an overview of the required involved stakeholders. Key stakeholders with respect to last mile operations are port authorities, operators, logistic service providers and cargo owners/clients served. They have an interest in strengthening operations through the deployment of innovative concepts and solutions. Regulatory bodies are relevant to enable the use of new technologies. Moreover, authorities (e.g. port cities) may introduce restrictions on (conventional diesel-powered) truck transport which might be a driver for the implementation of new concepts and solutions in last mile operations.

Blue stakeholders are essential, white stakeholders are enabling

Knowledge base

MAGPIE Spreading road traffic demo: /products/spreading-road-traffic (opens in new tab)
Jazairy, Persson, Brho, Haartman, and Hilletofth, Drones in last-mile delivery: a systematic literature review from a logistics management perspective
Gkoumas, Hyperloop Academic Research: A Systematic Review and a Taxonomy of Issues, Appl. Sci. 2021, 11, 5951.