Effect of congestion charging policy on goods delivery by light truck in hanoi

VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY VU DUC BAO OANH EFFECT OF CONGESTION CHARGING POLICY ON GOODS DELIVERY BY LIGHT TRUCK IN HANOI MASTER’S THESIS VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY VU DUC BAO OANH EFFECT OF CONGESTION CHARGING POLICY ON GOODS DELIVERY BY LIGHT TRUCK IN HANOI MAJOR: INFRASTRUCTURE ENGINEERING CODE: 8900201.04 QTD RESEARCH SUPERVISOR: Prof KATO HIRONORI Dr PHAN LE BINH Hanoi, 2022 PLEDGE I assure that this thesis is original and has not been published The use of results of other research and other documents must comply with regulations The citations and references to documents, books, research papers, and websites must be in the list of references of the thesis I have read and understood the plagiarism violations I pledge with personal honor that this research result is my own and does not violate the Regulation on prevention of plagiarism in academic and scientific research activities at VNU Vietnam Japan University (Issued together with Decision No 700/QD-ĐHVN dated 30/9/2021 by the Rector of Vietnam Japan University) Author of the thesis Vu Duc Bao Oanh TABLE OF CONTENT TABLE OF CONTENT LIST OF TABLES i LIST OF FIGURES ii LIST OF ACRONYMS iii ACKNOWLEDGEMENT iv CHAPTER 1: INTRODUCTION 1.1 Background of study 1.2 Research objectives 1.3 Research questions 1.4 Scope of study 1.5 Study overview Chapter 2: LITERATURE REVIEW 2.1 Previous researches of congestion charging 2.2 Researches about impact to freight transportation 2.3 Researches about transport charging to freight transportation Chapter 3: METHODOLOGY 3.1 Survey procedure 3.2 Development of Hypothetical Mechanism 3.3 Questionnaire Surveys 10 3.4 Verification of Hypotheses 12 Chapter 4: FINDINGS AND DISCUSSION 13 4.1 Summarization of interviewing results 13 4.2 Factors effecting to congestion charging policy 15 4.3 Confirmation of hypotheses 18 4.4 Descriptive statistics of characteristics 20 4.5 Verification of hypotheses and discussion for Transportation Companies 24 4.6 Verification of hypotheses and discussion for Grocery stores 30 4.7 Discussion of Policy Implications 33 Chapter 5: SUMMARY AND RESEARCH REQUIREMENT 34 5.1 Findings from model estimation 34 5.2 Policy recommendation 34 5.3 Limitation of the research 34 Reference 36 Appendix 1: PRELIMINARY INTERVIEW COLLECTION 40 Transportation stakeholders 40 Grocery stores 52 Appendix 2: SURVEY QUESTIONAIRE 59 Appendix 3: DATA ANALYSIS MODELS 72 LIST OF TABLES Table 1.1 Congestion charging fee Table 3.1: List of organizations for preliminary interview 10 Table 4.1: Descriptive statistics for Transportation companies 20 Table 4.2: Expected changes of transport companies after CC policy is applied 20 Table 4.3: Descriptive statistics for Grocery stores 22 Table 4.4: Expected change in freight transport schedule in Transportation Company 24 Table 4.5: Expected change in driver’s wage in Transportation Company 26 Table 4.6: Expected change in yearly revenue in Transportation Company 27 Table 4.7: Expected change in product amount per trip in Transportation Company 28 Table 4.8: Expected change in schedule in Grocery stores 30 Table 4.9: Expected change product receiving frequency in Grocery stores 31 Table 4.10: Expected change in ordered product quantity in Grocery stores 32 i LIST OF FIGURES Figure 1.1: Traffic congestion in Hanoi Figure 1.2: Electronic Road Pricing in Singapore Figure 1.3: Congestion charging stations Figure 1.4: Study process of the research Figure 3.1: Preliminary interview with Construction companies Figure 4.1: Diagram on the impacts from congestion charging to transport companies16 Figure 4.2.: Diagram on the impacts from congestion charging to grocery stores 16 Figure 4.3: Expected change in schedule in Transport companies 22 Figure 4.4: Expected change in schedule in Grocery stores 24 ii LIST OF ACRONYMS TRANCONCEN: Transport Development Consulting Center CC: Congestion Charging CCP: Congestion Charging Policy DOT: Department of Transport iii ACKNOWLEDGEMENT Viet Nam is in the stage of developing, especially after the country has integrated in the World Trade Organization There are many foreign projects investing in Viet Nam with record capitals continuously broken However, most of them are still in the paper since our infrastructure is quite poor and backward; not meet the potential demand of developing economy Hence, building up the infrastructure, especially transport system plays a key role in being a firm basis to launch economic projects It is the fact that nowadays this filed badly need high-qualified engineers to get access to advanced technologies in order to build modern, high quality and aesthetic construction, making their remarkable contribution to our country in this open era In recent years, the government have been investing much finance to infrastructure; advanced constructing technologies are applied in Vietnam To put it into practice, knowledge about transport majors must be better and better, especially transport policy Aiming to satisfy demands of development, Vietnam – Japan University is opening its scope and raising quality of training After learning and gathering knowledge in Vietnam – Japan University, I conduct my graduation thesis about transport policy Directly guided by Prof Dr Kato Hironori and Dr Phan Le Binh, I have completed my thesis as soon as possible Because of this, I would like to express my deeply gratitude to the lecturers of the subject, especially Prof Dr Kato Hironori, Dr Phan Le Binh and Assoc Prof Dr Takeda Shinichi who double checked my thesis Also, I would like to thank all staffs in Master’s Program in Civil Engineering section and all CEOs in transportation providers, especially Mr Bui Hoang Tan (Laboratory Technician in Master’s Program in Civil Engineering section – VJU) and Mr Nguyen Xuan Tuan (President and CEO of Global Alliance Joint Stock Company), who supported me for my iv preliminary survey step Furthermore, I would like to thank my family for supporting me in data collection step for data analysis Although I have tried my best to conduct my thesis, it is not perfect as expected because of several reasons such as time shortage, knowledge ignorance, etc I wish to receive advices, remarks and suggestions from teachers and all of you Thank to you sincerely! v Appendix 2: SURVEY QUESTIONAIRE SURVEY OF IMPACT OF CONGESTION CHARGING POLICY TO GOODS DELIVERY BY LIGHT TRUCK IN HANOI INNER CITY (WEIGHTED 1.5 TONS OR LOWER) Dear Sir/Madam, My name is Vu Duc Bao Oanh, student of Master of Infrastructure Engineering in Vietnam – Japan University At the moment, I’m doing research for master thesis named ‘Effect of congestion charging policy on goods delivery by light truck (weighted 1.5 tons and lower) from outside 3rd ring road in Hanoi’ Please take time to answer this survey Thanks for your support DESCRIPTION OF CONGESTION CHARGING SCHEME IN HANOI There is research about car charging in Hanoi proposed congestion charging scheme in cars travelling to city center It includes: - Charging area: inside 3rd ring road (see in Fig.1) - Charging vehicles: Cars from outside ring road to inner city Charging fee will be according to (only charge in entry arrival, no charge in outer arrival) Electronic road pricing (ERP) technology (charging with unstoppable driving) doesn’t cause congestion inside toll gate, with automatically cars’ registration plate recognition (paying transport fine for vehicles with charging policy offence) 59 - Peak-hour fee (6.30am-9am and 4.30pm-6pm): 50,000 VND/ veh arrival for freight transport vehicles (cars, trucks) (it is not depended on vehicle load) - Night time (11pm – 4am): no charge - Normal time (other schedule): 30,000 VND/ arrival Fig.1: Congestion charging toll gates located around cordon line which is across into roads: Pham Van Dong - Nguyen Hoang Ton - Vo Chi Cong - Nhat Tan Bridge – Truong Sa - Dong Tru Bridge - Nguyen Van Linh – crossroad of Nation Highway & National Highway 1A - Thanh Tri Bridge – 3rd ring road - Nguyen Xien - Khuat Duy Tien - Pham 60 Hung - Pham Van Đong Toll gates will be located in all crossroad with 3rd ring road, with the direction from suburb to Hanoi center CLASSIFICATION QUESTION: Are you light truck (weighted ≤ 1,5 tons) transport providers or grocery store owners who receive products from outside 3rd ring road to inner city in Hanoi? a Transport providers transferring products from outside 3rd ring road to inner city in Hanoi (Come to Section 1) b Grocery store owners who receive products from outside 3rd ring road to inner city in Hanoi (Come to Section 2) Section 1: For light truck providers (weighted ≤ 1,5 tons) Please fill the answers for normal business period (before Covid-19 pandemic) Q1 Address of parking area or garage for trucks weighted ≤ 1.5 tons that are in service (show the list of addresses if there are more than address, please fill number, street, ward/town,district) Q2 Your organization type: a Foreign Direct Investment (FDI) b State-owned enterprise c Joint-venture Company d Co Ltd e Joint stock company f Private organization g Others (Please write down) 61 Q3 Total number of staffs working directly and mediatedly in freight transport by light trucks weighted ≤ 1.5 tons: a Under 10 b 10-20 c 21-30 d 31-40 e 41-50 f 51-100 g 101-200 h Other Q4a Percentage of product categories delivered from outside 3rd ring road to inner city by light trucks in total of product categories a year Under 20-40% 40-60% 60-80% Over 80% 20% For product mass For revenue For cost Q4b Yearly revenue from freight transport to inner city by light trucks weighted ≤ 1.5 tons: a Under 500 million VND b 500 million VND – billion VND c billion VND – billion VND d billion VND – 10 billion VND e 10 billion VND – 50 billion VND f 50 billion VND – 100 billion VND g 100 billion VND – 200 billion VND h Over 200 billion VND 62 Q5 Number of light trucks weighted ≤ 1.5 tons in service (veh) Q6 Average product volume for a trip that a light truck works in freight transport service (kg) Q7 Number of daily trips that a light truck weighted ≤ 1.5 tons works in freight transport service? Q8 Total travel distance that a light truck travels for all trips everyday (total veh*km (travelling to inner city) + veh.km (travelling back to start point or travelling back for new order delivery)) – please fill approximate number (veh.km)? Q9 Total time that a light truck travels per day (travelling to + travelling back) – please fill approximate number (min)? Q10 Percentage of time for travelling back to start point or travelling back for receiving new orders in a trip – please fill approximate number (%)? Q11 Time for loading & unloading and checking goods in each destination (min) - please fill approximate number (min)? Q12 Percentage of travel distance for trips without goods delivery in total trips for a day Q13 Number of destinations that a light truck has to travel for freight transport a day? Please fill recent transport price for trucks weighted ≤ 1.5 tons (Q14, Q15 & Q16): Q14: Transport price for renting trucks with travel distance of 50km as the assumption (thousand VND/trip) Q15: Transport price in product weight (thousand VND/ ton km)? Q16 Transport price in product volume (thousand VND/m3.km) 63 Q17 The percentage of weight of individual product types that are used in delivery by light truck from outside 3rd ring road to inner city: Under 20-40% 40-60% 60-80% Over 80% 20% Beverage Electrical devices Combined groceries Houseware Others Q18 Percentage of daily product volume delivered by light truck from outside 3rd ring road to inner city according to billing types: Under 20-40% 40-60% 60-80% Over 80% 20% For renting truck By weight (tons.km) By volume (m3.km) Others Q19 Cost for a trip that a light truck weighted 1.5 tons delivers to clients in the distance of 50km (thousand VND)………… 64 Q20 Driver’s wage for trip for good delivery by light truck weighted 1.5 tons in the distance of 50km (thousand VND) … … Q21 Fuel consumption for trip for good delivery by light truck weighted 1.5 tons in the distance of 50km (thousand VND) Q22 Maintenance cost for light truck weighted 1.5 tons in year (million VND) Q23 Percentage of unofficial cost % in trip in the distance of 50km………… Q24 Schedule in a day that clients often offer goods delivery by light truck weighted ≤ 1.5 tons in inner city? (fill the time) Q25 If you have to charge 50,000 VND per arrival in peak hour and 20,000 VND in normal time and don’t charge in night time (11pm-4am), will goods delivery schedule be changed (e.g earlier or later than current schedule for decreasing charging or no charge)? a Yes b No Q26 Assuming that this charging policy can improve transport in the toll gate, which can decrease by 20 minutes in delivery trip from 3rd ring road to inner city How much are you willing to charge for light truck weighted ≤ 1.5 tons in order to save this amount of time for delivery trip? (thousand VND/arrival)? Q27 In your opinion, what is the change in postage, cost and benefit from transportation business by light truck weighted ≤ 1.5 tons from outside 3rd ring road to inner city when congestion charging policy is applied? Much Slightly increase increase 65 Unchanged Slightly Much decrease decrease Products quantity for transferring to receivers Average number of trips in day Number of light trucks in transport providers Driver’s wage Q28 In your opinion, what are impacts of congestion charging to goods delivery by light truck from outside 3rd ring road to inner city? Much Slightly increase increase Unchanged Slightly Much decrease decrease Transportation postage Cost of trip Benefits from transportation Q29 In your opinion, if charging policy is applied, percentage of average travel distance per day will increase Section 2: For grocery stores C1 Address of your store/warehouse (number, street, ward/town, district) 66 C2 Inventory value in your store/warehouse in normal time in a year (million VND) C3 Inventory quantity in your store/warehouse in normal time in a year (tons) C4 Percentage of product categories delivered from outside 3rd ring road to inner city by light truck in total delivered product categories per year? Under 20-40% 40-60% 60-80% Over 80% 20% According to delivered products volume According to revenue According to cost C5 Product ordering frequency from providers outside 3rd ring road to inner city, or delivery for clients from outside 3rd ring road to inner city by light truck a Once per day b Once in every days c Once per week d Once in every weeks e Once per month f Other (please fill out) C6 Product volume for each order from providers outside 3rd ring road to inner city, or delivery for clients from 3rd ring road to inner city by light truck (kg/order) 67 C7 Product price for each order from providers outside 3rd ring road to inner city, or delivery for clients from 3rd ring road to inner city by light truck (VND/order) C8 Percentage of weight in individual product types that are often received from freight transport by light truck from 3rd ring road to inner city Under 20-40% 40-60% 60-80% Over 80% 20% Beverage Electrical devices Combined groceries Houseware Others C9 Percentage of product categories delivered from outside 3rd ring road to inner city by light truck according to types of postage determination Under 20-40% 20% Renting trucks According to tons.km According to m3.km Others 68 40-60% 60-80% Over 80% C10 When ordering from providers from outside 3rd ring road to inner city, or delivery for clients from 3rd ring road to inner city by light truck; what is average travel distance of light truck for a trip? (km) C11 Average cost for goods delivery from providers outside 3rd ring road to inner city, or delivery for clients from 3rd ring road to inner city by light truck (thousand VND/order) ……… C12 If charging by entry arrival, what is the change in cost for each delivery from provider outside 3rd ring road to inner city by light truck? a Unchanged b Decrease c Increase the amount equals to cost d Increase the amount higher than cost C13 Schedule in a day that you often get receipt or delivery for clients related to outside 3rd ring road to inner city by light truck a 5am-6am b Morning’s peak-hour (6am-8.30am) c Afternoon’s peak hour (4.30pm-6pm) d 6pm-8pm C14 If you have to charge 50,000 VND per arrival in peak hour and 20,000 VND in normal time and don’t charge in night time (11pm-4am), will goods delivery by light truck schedule be changed (e.g earlier or later than current schedule for decreasing charging or no charge)? a Yes b No 69 C15 If you have to charge 50,000 VND per arrival for congestion charging in freight transport by light truck from outside 3rd ring road to inner city, what is the change in ordered product quantity in each order (e.g Increasing product amount for each delivery to decrease cost in product unit)? a Unchanged b Decrease c Increase by 10% d Increase by 10-30% e Increase by 30-50% f Other (please fill out) C16 If you have to charge 50,000 VND per arrival for congestion charging in freight transport by light truck from outside 3rd ring road to inner city, what is the change in order frequency compared with without congestion charging policy? a Unchanged b Increase c Decrease C17 Assuming that this charging policy can improve transport in the toll gate, which can decrease by 20 minutes in delivery trip from 3rd ring road to inner city How much are you willing to charge for light truck weighted ≤ 1.5 tons for delivery trip? (thousand VND/arrival)? a Unwilling to charge (20 mins is b Under 30,000 VND/ entry arrival unsignificant) c 30,000-50,000 VND / entry arrival d 50,000-100,000 VND / entry arrival e Other (Please fill out) 70 C18 Product price, cost and benefit in your business in your store/warehouse for products delivered by light truck Much Slightly increase increase Unchanged Decrease Much Decrease Transport cost Selling product Profit/1 trip Thank you for your support! Since this survey is aimed for research only, all of your information will be secured Name of interviewee:…………………………………………………………………… Mobile:………………………………………………………………………………… Organization name:……………………………………………………………………… Working position:……………………………………………………………………… 71 Appendix 3: DATA ANALYSIS MODELS Expected changing schedule Variables Address Sig -0.0193 ** Organization type Co Ltd 0.3717 No of staffs 0.0277 Number of light trucks -0.0583 Product mass for a trip -0.0016 Daily travel distance for a light truck (km) -0.0125 ** Average number of destinations for a day Frequent delivery schedule Expected product amount a trip Expected product amount per trip Coef Variables Coef y>=4 -0.0589 y>=5 -1.5051 y>=5 -1.5051 Address -0.8377 Address -0.8377 Organization type 0.0319 Organization type Co Ltd 0.4926 Co Ltd No of staffs 0.0317 Number of light trucks -0.0501 Daily travel distance for a light truck (km) -0.0013 -1.0855 Average number of destinations for a day 0.2184 ** Frequent delivery schedule 0.0959 No of observation 0.216 0.377 0.0319 Number of light trucks -0.0501 Product mass for a trip -0.0012 Daily travel distance for a light truck (km) -0.0013 Average number of destinations for a day 0.2184 ** Frequent delivery schedule 0.0959 No of observation 55 R-square Likelihood chi2 *** p