Investments in Electro Mobility for Freight Traffics in the Field of City Logistics: A Profitability Analysis

TitleInvestments in Electro Mobility for Freight Traffics in the Field of City Logistics: A Profitability Analysis
Publication TypeConference Paper
Year of Publication2014
AuthorsGries, S, Witte, C, Föhring, R, Zelewski, S
EditorBlecker, T, Kersten, W, Ringle, CM
Title of ProceedingsInnovative Methods in Logistics and Supply Chain Management
Conference LocationHamburg
ISBN Number978-3-8442-9878-9; 978-3-8442-9880-2
ISSN NumberISSN (print) 2365-4430, ISSN (online) 2365-5070
Keywordscity logistics, electro mobility, freight traffic, profitability analysis

Electro mobility is considered to be a pioneering trend in the field of road traffic
to reduce the emissions of greenhouse gases. Because of technical
restrictions, which limit the range and loading capacity of vehicles, electro
mobility is mostly discussed with regard to passenger cars. However, recent
developments raise the question whether electro mobility can be also used
promisingly for local freight traffics of the so-called "city logistics". Interesting
are especially transports on the “first” and “last mile” of supply chains with
combined transports. However, electro mobility has only then potential as a
future trend if the profitability of investments can be demonstrated.
The profitability of investments in electro mobility is being examined. The costs
of three diesel versus three similar electric commercial vehicles are calculated
for a typical case of application in city logistics. The analyses cover three
scenarios that represent alternative investment options for the application of
electro mobility: the complete purchase of electric commercial vehicles, the
partial purchase combined with renting the battery as well as the complete
vehicle leasing. Drive-specific features like e.g. the smaller range of electric
commercial vehicles compared to diesel commercial vehicles are especially
considered. It is shown that already today the regarded electric commercial
vehicles prove to be economically attractive in some of the examined
scenarios. Moreover, it is elucidated which expectable changes in future within
the circumstances of city logistics will promote investments in electro mobility.