Probing the feasibility of establishing urban freight consolidation centre in the indian scenario - a case of Indore

Abstract

Urban freight logistics is under growing strain from expanding urban populations, the surge in e-commerce, and rising environmental concerns. In countries like India, these pressures are intensified by infrastructural constraints, fragmented supply chains, and policy inertia. This thesis explores the potential of Urban Consolidation Centres (UCCs) as a transformative solution for building sustainable urban freight systems. It focuses on Indore, a rapidly growing Tier-2 city that illustrates the challenges and opportunities tied to urban expansion, logistical inefficiencies, and sustainability goals in Indian cities. UCCs act as centralized hubs where goods from various suppliers are consolidated and dispatched for coordinated last-mile delivery. Global experience highlights their success in reducing delivery vehicle traffic, optimizing routes, lowering emissions, and promoting low-emission transport modes like electric cargo vehicles. By decoupling freight flows from fragmented supplier operations, UCCs contribute to greater system efficiency and improve urban resilience in the face of changing environmental, regulatory, and market conditions. Despite their global success, UCCs remain underutilized in India due to regulatory ambiguity, land acquisition challenges, operational uncertainties, and the lack of a unified urban freight policy. This thesis addresses these barriers using a comprehensive, multi-method approach suited to India’s socio-economic and infrastructural context. Indore is chosen as a case study for its growing population, active freight corridors, and ongoing investments in metro systems, ring roads, and smart city projects. The research integrates primary data—including freight origin-destination surveys, traffic counts, stakeholder interviews, and warehouse inventories—with secondary data from planning documents and national logistics policies. Spatial and operational feasibility is evaluated through network analysis, freight heat mapping, and logistics clustering. Tools such as Multi-Criteria Decision Analysis (MCDA) and location-allocation modeling support site selection, while the Analytical Hierarchy Process (AHP) ensures stakeholder priorities and governance considerations are reflected in the assessment. By linking urban planning, logistics innovation, and environmental priorities, this thesis proposes a forward-looking framework for redesigning last-mile delivery systems. It offers a scalable and practical approach to fostering more efficient, sustainable, and resilient urban freight ecosystems—aligned with national programs like Gati Shakti, the Smart Cities Mission, and the National Logistics Policy.