Evaluation of external costs in city logistics: Cost analysis of cargo and courier services

Transportation is a logistics function which is occurred as a result of production and consumption activities to overcome space and inevitably expands its volume as a result of increase in these activities. Growth in logistics sector without green logistics application is not sustainable. Primarily carbon dioxide (CO2) emitted by fossil fuels, un-green progress cause direct and indirect damages for both society and environment. Courier/Express/parcel (CEP) sector is focus of this thesis and it provides freight shipment services in cities that host %70 of population in developed countries by roadway which is least green transportation mode. Therefore, it requires green logistics applications. The purpose of this study is to evaluate external costs of CEP services and perform cost analysis of CEP services under condition of using intermodal roadway/railway transportation instead of only roadway. The statistical full cost model which is chosen for this study has been tailored for the transportation system of CEP operators and the scenario that is constituted with the help of literature is analysed with mathematical method. Used model allows to analyse full costs (sum of internal and external costs) for different transportation systems when related parameters are detected. According to the findings of the study, intermodal roadway/railway transportation reduces not only external costs but also full costs of CEP operators under distances of 80 km.