Towards sustainable urban logistics: Exploring the implementation of city hubs through system dynamics

The urban logistics system causes negative externalities, such as pollution, noise and congestion. This study focuses on city hubs as a concept to reduce these externalities by improving consolidation and adopting zero-emission vehicles. Our research employs system dynamics as a method to uncover the dynamics and mechanisms related to the barriers and potentials of city hub implementation in Stockholm from the perspectives of the Logistic Service Providers (LSPs), the receivers and the public sector. Moreover, a mixed method approach is used for data collection, allowing us to extract the knowledge from the real implementation case, co-create a qualitative model as a Causal Loop Diagram (CLD) with the stakeholders involved in the system, and generalise the model. The mixed method approach includes a group model-building workshop, literature review, existing city hub analysis and stakeholder interviews. The main result is a CLD, visualising the dynamics of the introduction of city hubs. The CLD explores three potential incentives and policies: (i) the receivers change address; (ii) shippers oblige LSPs to use the hubs; (iii) the public sector gives monetary incentives to LSPs. The CLD presented in this paper establishes a validated system structure for the urban logistic system and facilitates the policymakers’ understanding of the barriers to implementing city hubs and what policies could help their implementation. • System dynamics is used to uncover the dynamics of city hub implementation. • Different perspectives are considered, of LSPs, receivers and public sector. • A mixed method approach is used for qualitative data collection. • The CLD helps the understanding of what policies could help city hub implementation. • Three potential policies are proposed to promote city hubs implementation.