Cargo bike delivery project

/ ACTIVE MOBILITY / DENSE URBAN / ELECTRIC VEHICLES /

Optimize parcel delivery via sustainable transport within a very dense, residential urban environment.

A PROJECT BY

The Colibri project, led by the City of Montreal and its partners, with delivery actors such as Purolator and other participants in sustainable delivery in Montreal, aims to optimize parcel delivery and reduce coexistence issues among users of public space in the central neighborhoods of the Island of Montreal from central transfer warehouses, such as the former Berri-UQAM urban station. The project focuses on sustainable and efficient transport solutions.

Project objectives

• Evaluate and test the technical capabilities of cargo bikes for parcel delivery in a dense urban environment;
• Demonstrate the benefits of establishing a transfer warehouse to reduce the circulation of large delivery trucks in the City;
• Acquire knowledge to define a sustainable goods delivery strategy in an urban setting;
• Develop implementation skills for these new delivery solutions.
• Reduce coexistence issues among users of public space

A two-phase project

The first phase of the project took off in June 2019 when the Ville‑Marie borough administration acquired the building of the former Berri‑UQAM urban station. The project then began with a recruitment process to identify companies interested in testing innovative practices in urban logistics and goods delivery. From the outset, Purolator expressed interest in being part of the initiative.

The pilot phase ran from September to December 2019. After a pause during the winter because the warehouse was not heated, activities resumed in the spring at full speed despite the COVID-19 pandemic.

By July, delivery volume reached 5,000 parcels per week, twenty times higher than in 2019. The warehouse had become a true operational center, fully functional. The focus shifted to the residential sector compared with the previous year. Results confirm that this mode of transport is particularly effective for this type of delivery, as it allows stops close to the door and quick departures (frequency). The fleet, composed of eight bikes, delivers mainly small and medium-sized parcels. Each courier averages between 80 km and 100 km per day.

Activities continued during the winter of 2020–2021. Operational performance was demonstrated regardless of the season. The warehouse continued to operate at full capacity, i.e. 5,000 parcels per week. The pilot project ended on December 31, 2020.

Today, the project has moved into Operations at Purolator, since the business model demonstrated its viability.

Together, let's support and accelerate innovation by sharing knowledge and best practices!

Pre-project methodology

Purolator wanted to be the first to test this delivery model in order to deploy it in other areas (currently under analysis) quickly while taking into account lessons learned during the experimental phase.

The Colibri project aligns with the City of Montreal's vision to reduce its carbon footprint (zero emissions by 2050) and accidents on its territory. The City intends, among other measures, to amend its regulations to reduce traffic and access for large trucks. In terms of urban logistics, it's: the right vehicle, in the right place, at the right time.

Before launching the pilot project, partners had to adapt the vehicles to comply with the standards and regulations of the Société de l’assurance automobile du Québec (SAAQ), notably regarding motorization and programming.

Funding

The funding for this project amounts to one million dollars.

Results obtained following Phase 1

Proven eco-responsible solution

The project demonstrated that cargo bikes are able to perform the same work as trucks, and do so at lower cost and in an environmentally responsible way, provided that:

• the cost of the building, i.e. the former Berri‑UQAM urban station, is not fully included;
• bulky parcels are transported by vans;
• routes are optimized;
• the parcel sorting/distribution step (bikes or vans) is taken into account, as it represents an additional handling stage.

Optimization and validation of technologies

Carrying out this pilot project made it possible to test and validate e-bike technologies, including towing capacity and the most effective distances covered in transporting goods within a dense urban environment and sometimes difficult weather conditions. Project partners collaborated to identify opportunities for improvement and quickly make necessary adjustments for an optimal level of efficiency. The use of bikes in urban centers has proven effective. The LSV (Low Speed Vehicle) serves as a complementary delivery means on the periphery of the zone.

Development of a supply chain

The success of this transport solution relies, among other things, on choosing simple and effective technologies, planning bike purchases in advance, the robustness and availability of components, access to a repair and servicing network for the bikes, and training couriers to enable them to repair the bikes themselves.

Lessons learned

Success factors

Importance of favoring a constructive approach focused on collaboration within the team.

Among other success factors are:

• Conducting a structured feasibility study during the preparatory phase;
• Carrying out tests to validate technologies and vehicle quality;
• Access to a warehouse in the heart of the City, under a rental arrangement (allows operational cost optimization)
• The choice of the mini-hub location is very important for the overall effectiveness of the solution;
• Warehouse heating for use during the cold season;
• Planning the procurement of bikes and parts in advance to avoid stock shortages;
• Evaluating all costs, notably maintenance fees which represent a large part of the budget;
• Setting up a bike repair and maintenance service, including training for couriers;
• Focus on hiring couriers with cycling experience;
• Ease of recruiting bike couriers;
• Consistency and stability of the team;
• Transparency and information sharing by all project team members;
• Speed and responsiveness of stakeholders;
• Connectivity and complementarity with other vehicles.

Practical advice for carrying out such a project

• Ensure financing is well planned in advance;
• Rely on strong political will that aligns with the objectives;
• Validate the choice of technologies and the supply chain (bikes and components) at least six months in advance;
• Provide for the possibility to customize the bike mechanics to optimize its performance in the field;
• Prepare the implementation of operations in advance;
• Provide a coordination mechanism between the teams involved;
• Anticipate recruitment challenges by highlighting the mode of transport, since it is easier to recruit bike couriers;
• Plan the necessary training to provide to couriers (bike repair and maintenance);
• Favor courier profiles with skills such as intrapreneurship, autonomy, knowledge of mechanics, etc.
• Take urban congestion into account (illegal parking, driver incivility, dangerous behavior, parcel delivery volume, etc.).

Next steps

This initiative has successfully demonstrated and tested this innovative concept. It fits well in an urban environment. It significantly reduces transport by large trucks in the city by focusing on delivery by cargo bikes, which are more environmentally responsible and efficient.

To encourage the emergence of solutions like this, the City of Montreal would benefit from reviewing its regulations related to infrastructure, taxes on truck traffic, and increasing the allowable load for cargo bikes (over 120 kg).

The City of Montreal worked on deploying a second site on Iberville Street (which will add five to six bikes to the fleet). A third site is also under development. It will include transfer stations where customers will have the option to pick up their parcel. These urban distribution centers have proven effective.

Purolator intends to replicate this model elsewhere in Canada at its other operational centers. The company still leases the warehouse from the City of Montreal until 2023.

The City of Montreal is acting as a pioneer on this issue. Vancouver is drawing inspiration from this experience to implement a similar project.

Other projects are also emerging. For example, Purolator has established a network of mini-hubs to provide delivery service to local businesses located on commercial arteries.

Envoi Montréal, an initiative of the Quebec Retail Council, presents a decarbonized urban, local and environmentally conscious delivery solution tailored to the needs of merchants on the Island of Montreal.

Furthermore, Canada Post is running a project similar to Colibri from a Montreal warehouse and FedEx is also interested in testing the concept.

Other cities, such as Toronto and Calgary, are in the process of deploying this solution. This practice, already well established in Europe, is set to expand in Canada.

Project partners

Project lead

• City of Montreal

Other stakeholders associated with the initiative

• Precicad(van manufacturer responsible for adapting vehicles to Purolator's needs)
• Purolator
• Kargo Electric Vehicles(supplies Purolator with bikes and low-speed electric vehicles in Montreal and Toronto)

Resources

Deepen your knowledge of the project:

• City of Montreal – Project Colibri, mini-hubs to decarbonize parcel delivery

Project contact person

Carbone Solidarity Cooperative (Coop Carbone)
Implemented by Jalon MTL, Project Colibri is now being deployed by the Carbone Solidarity Cooperative (Coop Carbone), to which the City of Montreal and Coop Carbone entrusted the project's deployment.