Investment in Greening Last-Mile Logistics: A Case Study

Abstract

AbstractBased on growing interest in sustainable solutions in last-mile logistics, one of the most promising investments is the electrification of commercial fleets to decrease the high level of pollution created by urban freight traffic. In this case study, vans that can be driven with a C1 European driving license are considered, mainly used in B2B deliveries to small shops and SMEs in city centres. The purpose of this research is to analyse the reasons behind the choice of switching the last-mile logistic service fleet to electric and its economic and environmental implications and to analyse the main barriers to its implementation. To do so, we use interviews from managers working in a successful Urban Consolidation Center (UCC) in Italy. The Italian energy infrastructure, the cost of electric vans, and the actual insufficient technological development of van batteries are the key issues highlighted in the interviews, but lower operating costs, lower fuel costs, a decrease in negative environmental externalities, possible institutional cooperation and better working conditions for couriers are the main features to consider in the switch to electric.