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CombattingCongestion:HowCitiesandCompaniesareInnovatingFirst-and
Last-MileTransport
INSIGHTREPORT
MARCH2025
Images:GettyImages,Unsplash
Contents
Foreword3
ExecutiveSummary4
Introduction5
CaseStudy1:Amsterdam,theNetherlands8
CaseStudy2:Dubai,UnitedArabEmirates10
CaseStudy3:Stockholm,Sweden12
CaseStudy4:HollySprings,Fayetteville,RaefordandGranbury,USA14
CaseStudy5:Varanasi,India16
ConcludingThoughts19
Contributors21
Endnotes22
Disclaimer
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CombattingCongestion:HowCitiesandCompaniesareInnovatingFirst-andLast-MileTransport2
CombattingCongestion:HowCitiesandCompaniesareInnovatingFirst-andLast-MileTransport3
March2025
CombattingCongestion:HowCitiesandCompaniesareInnovatingFirst-andLast-MileTransport
Foreword
PurushottamKaushik
Head,CentrefortheFourthIndustrialRevolution,
C4IRIndia
Mostcities,designedforthepast,nowstruggle
withgrowingpopulations,higherenergydemandsandevolvingtransportationneeds.Theoutdated
relianceonsingle-occupancyvehiclescontinuestoleadtocongestion,pollution,longercommutesandroadsafetyconcerns,allofwhichharmproductivityandreducequalityoflife.
Toaddresstheseissues,citiesmustadoptanew
mobilitymodelthatblendstraditionalandinnovativesolutions.Publicandsharedtransport,alongwith
walking,cycling,adoptionofelectricvehicles,
dronesandsmartwarehousing,canplayacritical
role.Astransportsystemsfacemountingpressures,thereisaclearneedforinnovativeapproachesthatensureefficientandsustainableurbanmobility.
Acrucialareaforinterventionistheoptimizationofthefirstandlastmileofurbanjourneys.Enhancingtheefficiencyandsustainabilityofthesesegmentscanprovidebetteraccesstomobilitysystems,alleviatecongestion,bolsterlocaleconomies,andimproveoverallhealthandqualityoflifeinurbanareas.
Thisreportpresentsuniquestrategiesfor
improvingfirst-andlast-miletransport,
showcasingglobalexampleswherepolicy,
technologyandinfrastructurehavebeenused
tocreatelesscongestedandmoreliveablecities.Thecasestudieshighlightedarebynomeanstheonlysolutionsneededtosolvecongestion,asa
rangeofinterventionsandapproachesareneeded.However,thesecaseshighlighttheinnovative
optionsatthedisposalofcitiestoalleviate
congestionthroughfirst-andlast-miletransport,andthepowerofpublic-privatecollaborationindrivingmeaningfulchange.
Alsopresentedinthisreportarethecollectiveeffortsofcitiesandcompaniesworldwidetoconfront
congestionandfostermoresustainableurban
environments.Throughsuchcollaborations,progresscanbemadetowardscreatingcitiesthatarenotonlymorenavigable,butalsobetterplacestoliveand
visit–healthierandmoresustainableforall.
CombattingCongestion:HowCitiesandCompaniesareInnovatingFirst-andLast-MileTransport4
ExecutiveSummary
Citiesandbusinessesaroundtheworldareadoptinginnovativesolutionstoaddressthechallengeofcongestion.
Urbantransportsystemsarefacingnewand
growingpressures.Increasingurbanpopulations,
changingbehavioursanddemandsaround
transport,andchangingsocietalpatternssuchasremoteandhybridworking,allposechallenges
tothetraditionaloperationoftransportincities.
Amongthebiggestchallengesfacingurban
transportiscongestion,underpinnedbytransportsystemsdominatedbysingle-occupancyvehicles
andlimitedurbanspace.Traditionalsolutions
totacklecongestion–suchaspublictransport,
sharedvehicles,walking,cycling,warehousingandpooleddeliveryvehicles–remainvitalinkeeping
citiesmoving.But,withchangingsocietalpatternsaroundtransport,innovativesolutionsareneededtotacklecongestion.
Thisreportfocusesonthechallengeofcongestionincitiesandexploreshowaddressingthefirstandlastmileoftransportcanmitigatethispervasive
issue.Pioneeringapproachesareshowcased
acrosstechnology,policyandinfrastructure,whichdemonstratethenecessityofinnovativestrategiestoenhanceurbanmobility.
Solutionslikemicromobility,data-driventransportmanagement,autonomousvehiclesandinnovativeinfrastructureprojectsarehelpingcitiesdeliver
efficientfirst-andlast-miletransportandreshapeurbanmobility.Theseinnovationsandmanymore
arenotonlyenhancingtheefficiencyofexistingtransportsystems,butalsofuture-proofingurbantransportandcontributingtomoresustainable,liveablecities.
Thediversityofsolutionsexploredinthisreport
reflectsabroadspectrumofinterventions,from
experimentalpilotstoprovenstrategiesthat
significantlyeasecongestionandenhancefirst-andlast-mileconnectivity.Theseinitiativesdemonstratethepotentialforcitiesofvarioussizesandcontextstotacklecongestioneffectivelyandhighlightthe
importanceofcustomizingsolutionstomeetlocalneedsandconditions.
Ascitiescontinuetograpplewithnew
challengesandever-changingtransportneeds,thereisaclearneedforcollaborationamong
stakeholderstodeliverefficientfirst-andlast-miletransportandaddresscongestion.Investmentsininfrastructure,theintegrationofevolving
technologiesandflexiblepoliciesdependonstrongpublic-privatecooperation.
Thisreporthighlightsinnovativeapproachestofirst-andlast-miletransport,contributingtothereimaginingofurbantransport.Embracingthesesolutionscancreatemoreaccessible,navigable,sustainableandhealthiertransportsystemsthatmeetthedemandsofmoderncities.
CombattingCongestion:HowCitiesandCompaniesareInnovatingFirst-andLast-MileTransport5
Introduction
Addressingcongestiondemandsinnovativeandfocusedfirst-andlast-milesolutionsforenablingsustainablemobility.
Citiesconstituteasignificantproportion
ofenvironmentalpollution,accountingfor
approximately60-80%ofworldwideenergy
consumptionandmorethan75%ofcarbon
emissions.1Oneoftheprimarysourcesofthese
emissionsisthetransportsector,whichcontributesapproximatelyone-quarterofallenergy-related
greenhousegas(GHG)emissions.2Since1970,
transportemissionshaveincreasednearlythreefold.Thesectorcurrentlyranksasthesecond-largest
contributortoglobalcarbonemissions,3withroad-basedtransportaccountingforaround75%of
alltransportemissions.4Inmanycities,transportaccountsforaboutone-thirdoftotalcarbon
emissions,5andwithothersectorssuchasenergyrapidlydecarbonizing,transportisthelargest
sourceofemissionsformanycitiesthroughout
theworld.Thecontinueddependenceoninternalcombustionenginevehicles,coupledwiththehighuseofsingle-occupancyvehicles,makestacklingemissionsfromtransportamajorchallenge.
Beyondthechallengeofemissions,transport
systemscharacterizedbysingle-occupancy
vehiclesmeanthatmanycitiescontinuetostrugglewiththeissueofroadtrafficcongestion.Congestionaddshundredsofhourstojourneytimeseach
yearinmajorcitiesaroundtheworld,causingbothlongercommutetimesanddelaystothedelivery
ofgoods,costingmillionsofdollarsinexcessfuelconsumptionandlossofproductivity.6,7Ontopofdelaysintraveltimes,congestionputspressure
oncitiesthroughinfrastructurestrain,decreased
qualityoflife,aswellasincreasedemissionsand
pollution.8Solutionsareneededtotackletheissueofcongestionandadvancethetransitiontomoreefficient,sustainabletransportationmodelsincities.
Localandnationalauthoritiesplayakeyrolein
addressingcongestion,withoneofthemost
effectivestrategiesbeingtheimprovementoffirst-
andlast-milejourneys.Firstandlastmilereferstothetransportationofgoodsorpeopleatthebeginning
orendpartofajourney,whichincities,areoften
majorcontributorstocongestionduetothehigh
numberofsingle-occupancyvehiclestypicallybeingused.Interveninginfirst-andlast-miletransportiscrucialforreducingcongestionandpollution9whileimprovingoveralltransportefficiencyincities.
Whilesharedtransport,publictransit,walkingandcyclingarevitalforreducingcongestion,citiesneednewsolutionstomeetevolvingurbantransport
demands.Acomprehensiveapproachacross
technology,policyandinfrastructureisrequiredtodeliverefficientfirst-andlast-milejourneys.This
reportexaminesarangeofinnovativesolutions,
fromprovenmethodswithclearimpactsto
emergingtechnologiesbeingtestedtoaddress
congestion.Manyofthesesolutionsaretheresultofpublic-privatecollaboration,whichiscrucialfor
developingeffectivefirst-andlast-mileinterventions.
First-andlast-milepassengertransport
Transportjourneysencompassthemovementfromone’sorigintothedesireddestination,whether
itbeforwork,medicalappointments,shopping,
educationalpurposes,orleisureactivities.When
travellingbypublictransport,thedistance
individualsneedtotravelfromthepointoforigintoatransitstopiscommonlyreferredtoasthefirst
mileofthejourney,whereasthedistancefromthearrivaltransitstoptothedestinationisreferredto
asthelastmileofthejourney.Effectivefirst-and
last-milesolutionsinpassengertransportplayavitalroleinfosteringaseamless,efficientandaccessiblepublictransportexperience,enablingpeopleto
easilyaccesspublictransportservices.
FIGURE1.
Typicalpassengerjourney
Firstmile
>
Lastmile
>
OriginDesitination
CombattingCongestion:HowCitiesandCompaniesareInnovatingFirst-andLast-MileTransport6
2.
FIGURE
Traditionalfirst-andlast-milesolutionsencompasswalking,cycling,privatevehicleuseandshared
mobilityservicessuchastaxis.However,emergingalternativessuchasmicromobility(e.g.e-scooters),ridesharingandon-demandpublictransportare
increasinglygainingtractionglobally.Inaddition,experimentalinitiativessuchaspilotprogrammesofautonomousvehiclesarebeingexplored
worldwide,offeringpotentialsolutionstoalleviateurbancongestion.
Typicallogistictransportationjourney
First-andlast-miledeliveryingoods/freighttransport
Thetermfirst-miledeliveryreferstothestartofthedeliveryportionofthesupplychainandthelastmiletotheendofthesupplychain.First-mileoperationsgetproductsfromthemanufacturerviaacouriertoacarrier.Last-mileoperationsfinishwhentheorderisdeliveredtothecustomer.10
Firstmile
>
Lastmile
>
OriginDesitination
Duetoincreasedtrendsinonlineshoppingand
homedeliveries,thenumberofdeliveryvehiclesoncitystreetshasgrownsignificantlyinrecentyears.
Paststudieshaveestimatedthatintheglobaltop
100cities,deliveryvehiclesmayincreaseby36%
by2030.Consequently,emissionsfromdelivery
trafficcouldincreaseby32%,withcongestionrisingbyover21%,equallinganadditional11minutesofcommutetimeforeachpassengeronadailybasis.11
Approximately70%ofdeliverycompaniesclaim
thatspeedandestimatedtimeofdelivery(ETD)arethemainchallengestheyfacetodaywhilemanagingcustomerexpectations.12Urbanfreighthasa
disproportionatelyhighimpactoncongestionandemissionsduetothenumberandsizeofvehicles.Amongthemainbarriersthatpreventmeeting
speedanddeliverytimepredictionsareroad
congestion,andpoortrafficroutingstrategies.Theconventionalformoffreightdeliveries,usinghighvolumesoftrucksandminivans,putssignificant
pressureontrafficcongestion,aswellascausinglocalairpollution,emissionsandconcernsaround
roadsafety.Arangeofsolutionsisbeingusedto
reducetheuseoftheselargevehiclesandalleviatecongestion,withalternativessuchase-cargobikes,smallelectricvehiclesanddeliverydronesholdingpromisetoreplacethesevehicles.Deployingthesesolutions,complementedbydefinedpublicpoliciesandnecessaryinfrastructure,willenableamore
sustainablemovementofgoods,tacklingtraffic
congestionandreducingthefootprintofdeliveriesoncitystreets.
Theanalysisapproach
Thisreportaimstoshowcaseinnovativeand
uniquesolutionsthatarebeingdeployedbycitiestoaddresscongestionnotsolvedbytraditional
first-andlast-miletransportationsolutions(i.e.walking,cycling,privatevehicleuse,shared
mobility,shareddelivery,warehousing,etc).Theselectionprocessforcasestudiesfollowedtheapproachoutlinedbelow:
CombattingCongestion:HowCitiesandCompaniesareInnovatingFirst-andLast-MileTransport7
FIGURE3.Approachtoaselectionofcasestudies
SolutionsBroadsolutionsassessedShortlistingcriteriaShortlisedcasestudies
Emergingsolutions
Public-Provate
collaboration
Diversecontexts
NorthCarolina,USA
Varanasi,India
Literaturereviewoffirst/lastmilesolutionssolvingtrafficcongestion
>
Identification
ofcasestudies
acrosseach
solution
>
Amsterdam,Netherlands
Stockholm,Sweden
Documentation
Dubai,UAE
>
Throughanextensiveliteraturereview,arange
ofsolutionsfordeliveringinnovativefirst-and
last-miletransportforbothpassengerandfreighttransportwereidentified.Over20solutionswere
shortlistedforinvestigation,withsixcasestaken
forwardforinvestigationinthisreport.Thefivecasestudieswereselectedtomeetfourkeyparameters:emergingorinnovativesolutionsbasedonuniquetechnology,policy,orinfrastructure;public-privatecollaborationunderpinningthesuccessofthe
solution;adiversegeographicalrepresentationofsolutionsfromdifferinglocationsandurbancontexts;andinformationavailabilityonthe
existingorexpectedimpactofthesolutionto
alleviatecongestionanddeliverefficientfirst-andlast-miletransport.
Itisimportanttonotethattheaimofthisreportis
nottopresentadefinitivelistoffirst-andlast-milesolutionsthatsolveon-roadtrafficcongestion,butrathertoshowcaseunique,innovativesolutions
fromacrosstheworldthathavecreated,orare
predictedtocreate,apositiveimpactintackling
congestionthroughinterventionstoimprovethe
efficiencyoffirst-andlast-miletransport.Assuch,solutionsinthecasestudiescoverarangeof
interventions–frompolicyandinfrastructuretodataandnewtechnologicalresponses.
CombattingCongestion:HowCitiesandCompaniesareInnovatingFirst-andLast-MileTransport8
CASESTUDY1
Autonomouswatertaxis
Amsterdam,theNetherlands
STATUS
Implemented
Overviewofmobilitychallenge
TheextensivecanalsysteminAmsterdamhashistorically
playedacrucialroleinthecity’sdevelopmenthavingbeenbuiltforvariouspurposes,includingtransportation,trade
anddefence.However,thehistoricinfrastructure,particularlythewallsandbridgesaroundthecanalsystem,isnowa
significantconcernforthecity.Theageanddesignofthesestructuresstruggletowithstandmoderntrafficdemands,
especiallyheavydeliveryvehicles.Asaresult,partsofthe
city’slegacyinfrastructurearedeteriorating.Thisissuehaspromptedtheneedformobilitysolutionsthatcanshiftsomeofthecity’strafficfromtheroadtothewaterwaysandalsoreducetheburdenofdeliveriesinthecity.
Anotherkeychallengeexistsforwaterways–alackofskilledshippers.SowhilemanymannedboatscurrentlyoperateonAmsterdamwaterways,scalingtheseoperations,ormakingthemmoreon-demandandflexibleinrouting,requires
driverlesssolutions.13
Solution:Roboatautonomouswatertaxiandsustainableinner-city
logisticscentres
TheRoboatinitiativewasacollaborativeresearcheffort
ledbytheAMSInstitute,involvingscholarsfromthe
MassachusettsInstituteofTechnology,DelftUniversityof
Technology,andWageningenUniversityandResearch
supportedbyWaternet,theCityofAmsterdamandthe
CityofBoston.14Theprojectsoughttoleverageemerging
technologytooptimizeAmsterdam’scanalsystemforbothfreightandpublictransport.Centraltotheprojectwasthedevelopmentofmodular,zero-emission,autonomousboats,aimedatrevitalizingthecanalsandthesignificanceofthe
canalswithinthecityscape.
ThefivekeyusecasesenvisagedfortheRoboatprojectwere:
1.Passengertransport:ThemostapparentuseofRoboatsisaswatertaxisorpassengershuttlevessels,providing
aconvenientandeco-friendlymodeoftransportationforresidentsandvisitors.Thenavigationcomponentinthe
systemcalculatesfrompathAtoBusingGPStechnologywiththemapofthelocalenvironment.
2.Logistics:Roboatsaretobeutilizedforlogisticsandtransportingvariousgoodstodifferentpartsofthecity,reducingtheneedforheavytrucksonthecity’sroads.
3.Datacollection:RoboatsequippedwithLiDAR
technologyandsensorscouldserveasvaluabletoolsforurbandatacollection.Forexample,waterqualitysensorscanprovidereal-timedataonthestateofAmsterdam’swaters,aidinginmonitoringandmanagingwaterqualityandenvironmentalconditions.
4.Flexibleinfrastructure:Themodulardesignofthese
autonomousboatsallowsthemtoself-assembleand
formtemporarystructures,suchasbridges.Thisfeaturecanbeespeciallyusefulforreducingtrafficcongestionduringrushhoursbycreatingadditionalpathwaysfor
vehiclesandpedestrians.
5.Wastecollection:Replacingcurrentroadtransport
forrefusecollectionalongstreetslinedbycanalswill
helpcleanupthestreetenvironmentandfreeupspaceonstreets.Replacingcurrentroadtransportforrefusecollectionalongcanal-linedstreetswillhelpcleanupthestreetenvironmentandfreeupspaceonthestreets.
Amsterdamisalsoinnovatingsustainablegoodsdeliveries.CTParkinAmsterdamCitystandsasthepioneering
multimodal,multi-levelinner-citylogisticscentreinthe
country,offeringstrategicconnectivitytourbanhubsvia
bothlandandwaterroutes.CTParkisstrategicallydesignedforlast-miledeliveriestodenselypopulatedregionsin
anemission-freemanner.15Withmorethan200charging
stationsforelectricvehiclesandotheremission-free
transportationoptions,itemergesasanoptimalhubforlast-miledeliveries.
Deudekom,aremovalcompanywithawarehousein
Amsterdam’sDuivendrechtarea,usesitswarehouseasacentralhubforconsolidatinggoodsdeliveriesaroundthecity.Italsoadvocatesforsupplierstoconsolidatedeliveriestoreducemileage,CO2emissionsandthenumberoftrips.Researchindicatesthaturbanlogisticsfacilities,suchas
microhubs,canenhancethecost-effectiveuseoflightelectricfreightvehicles(LEFVs)byreducingthedistancetocustomers.
Energiewacht,basedinHeemstede,installssmartenergy
metersintheAmsterdamregion.DuetoscarceparkingandheavytrafficinAmsterdam,mechanicswastesignificant
timeontravelandparking.Toaddressthis,amobile
hubiscentrallyparkedintheworkareathroughoutthe
dayforresupply.Thissystempotentiallysaves30%on
transportationcostsandreducesCO2emissionsby80%.
Nedcargo,oneoftheNetherlands’largestlogisticsserviceproviders,specializesintransportingfoodandbeverages.
CombattingCongestion:HowCitiesandCompaniesareInnovatingFirst-andLast-MileTransport9
riversystem.Roboat’ssystemcanidentifyallobjectsinthewaterandprovidesthisinformationtothecaptaintomakethecrossingsafer.Thecompanyalsosupplieditssystem
toashippingproviderandlocaloperatorinParisforthe
2024OlympicstohelpcarrypassengersacrosstheSeine.19Roboat’sprototypevehicleiszeroemissions,andthe
companyisseekingtoembedelectrificationasaprincipleofitsplanstoscalethetechnologyinthefuture.20
Roboat’sabilitytooperatesafelyandefficientlyindynamic
urbanenvironmentswithextensivewaternetworkslike
Amsterdamholdspromiseforfutureapplications.With
manycitiesacrosstheworldstillhavingcanalsasakey
featureofurbanform,autonomousrivertransportsolutions
suchasRoboatcouldholdpromisetoalleviatepressure
ontheroadnetworkandprovidesustainable,intelligent
transportforpassengersandfreight,strengtheningtransportconnectionsacrosscities.TheRoboatinitiativealsohighlightsthesignificanceofpublicprivatecollaborationindeploying
innovativetransportationsolutions.
Sustainabledeliverysolutionsandcongestionalleviation
canbeachievedthroughinnovativeapproachesinurban
logisticssuchasCTPark.Byestablishingmultimodalhubs
strategicallylocatedwithincitycentres,deliveryoperations
canoptimizeaccesstodenselypopulatedareaswhile
minimizingenvironmentalimpact.Incorporatingemission-freevehiclesandcharginginfrastructure,suchhubspromoteeco-friendlytransportationmethods.Additionally,byfacilitating
last-miledeliveriesefficiently,theycontributetoreducingcongestionandimprovingoverallurbanmobility.
Traditionallyusinglorriesforcitydeliveries,Nedcargofacedchallengesduetostricterenvironmentalregulationsand
safetyconcernsinnarrowcitystreets.In2018,studentsfromtheRotterdamUniversityofAppliedSciencesestablished
aconsolidationcentretodelivergoodstoNedcargo’s
customersintheinnercityofRotterdambydifferenttypes
ofLEFVs.Datarevealeda30%reductioninroundtriptimes,andmorethan90%reductioninCO2andNOxascomparedtolorries.Customersurveysalsoindicatedincreased
satisfactionwiththenewdeliverymethod.16
Impactandtakeaways
Sinceitsestablishmentin2015,theRoboatprojecthas
amassedasubstantialbodyofscientificknowledgethroughresearch,visualizations,experimentsandprototyping.
Thisplethoraofinformationencompassesautonomous
navigation,perception-controlsystemsandpotential
applicationswhereinRoboatscouldserveasanalternativeformofpublictransport.Thefirstprototypesweretestedin2017,withaseconddemonstrationtakingplacein2018.17In2021,onewatertaxiandonewastecollectionboatwerelaunchedforlivetestinginAmsterdamwaterways.18
Subsequently,Roboatofficiallylaunchedasastart-up
companyinearly2023withafocusonitsautonomous
system,whichcanbeinstalledinnew-buildboats,aswellasinexistingvessels.Amsterdam’spublictransportcompanyGVBusesthissystemforitsferryservicesacrosstheIJ
CombattingCongestion:HowCitiesandCompaniesareInnovatingFirst-andLast-MileTransport10
Taxitrafficmanagement
Dubai,UnitedArabEmirates STATUSImplemented
Overviewofmobilitychallenge
Taxiservices,aswithothersharedmobilityservices,are
widelyrecognizedasindispensablefirst-andlast-mile
solutionsinurbanareas,ensuringseamlesstransportation
andreducingdependencyonprivatecarswithincities.
However,challengesstemmingfromdisorganizedpassengerdemandandunpredictabledriverpatternshaveledtoan
unbalanceddistributionoftaxisinmanycities,particularly
duringpeaktraffichours.Consequently,passengerscan
experiencelongerwaitingtimesandincreasedfareswhiletaxidriversnavigatethroughcongestedtrafficlanes,leadingto
ademand-supplygap,longercommutetimesandincreasedstresslevels.Suchoperationalinefficiencyalsohampers
theincomeoftaxiserviceprovidersandunderminesoverallpassengersatisfaction,primarilyattributedtoprolongedwaittimesandtheinabilitytoaccesstimelyservicewhenrequired.
InDubai,acitythathasexperiencedsignificantgrowthin
recentyearsandcontinuestogrowrapidly,developinganefficienttransportsystemisapriority.Around60%oftripsinDubaiaremadebyprivatevehicles,21makingthegrowthofsharedandpublictransportservicesimportanttominimizecongestion.Theuseoftaxisandsharedmobilityservices
isontherise,witharound114millionjourneystakingplacein2023,an8%increasefrom2022.22Withtaxisbecominganincreasinglyimportantmodeoftransportinthecity,
managingthemefficientlyisapriority.
Solution:Dynamicheatmaps
TheDubaiRoadsandTransportAuthority(RTA)launched
theDynamicHeatMapsProgrammefortaxiswithTrapeze’sartificialintelligence(AI)technology,whichhighlightshigh-demandareasandpotentialpassengerconcentrations.
Theseheatmapsaredynamicallyupdatedusingreal-timedataanalysisthroughadvancedAIwithintheEnterprise
CommandandControlCenter(EC3)ofthecity.Alltaxis
areequippedwithsma
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