Planning systems will need a shakeup to cater to skyrocketing demand for straight-to-consumer logistics, according to a new research paper prepared by Macroplan and launched by the Property Council.
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Three key takeaways:
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Planning for the urban freight revolution starts a new conversation about the “F-word” – a word that is not well understood and demands attention from planners, says Property Council Western Sydney director Ross Grove.
Online shopping, the “Uber economy”, click-and-collect and home-delivery of groceries were already gaining a foothold before COVID-19 struck, Grove notes. But shifting consumption patterns are permanently altering the mix of conventional retail, online and delivery services.
“We need to ensure our planning systems change to reflect this reality,” Grove says.
“In the not-too-distant future we could see empty shops take on a new life as local distribution points, 24/7 delivery times extended and made permanent, and improved guidelines to account for more home deliveries in new developments.”
The paper offers 11 key actions to kick-start the urban freight revolution. Among these are changes to planning requirement to permit multistorey warehousing and vertically-integrated fulfillment, distribution and micro-depot solutions within mixed-use and business zones.
Another is to promote dual function of existing premises. Grove says empty shopfronts could repurposed as community distribution points, for instance.
“Reactivating these places for the new economy will take pressure off our existing supply of industrial land, which is presently in high demand.”
Changes to employment zones are also important. “Our current approach to zoning was made for a more traditional economy, and prohibitions on low-impact logistics in town centres are now holding back innovation in how businesses are permitted to serve their customers.”
Daniela Vujic, Macroplan’s general manager of planning, says a lack of land supply for freight and logistics uses in the Greater Sydney region meant some companies were turning to other cities, like Melbourne, where serviced land supply was available.
“Sydney is riddled with a lack of flexibility to use appropriate spaces, such as retail and commercial spaces for last mile delivery, handling and storage,” Vujic notes.
“Consumers have increasingly time-sensitive delivery expectations, and this means we need to create opportunities for a more localised distribution framework.”
The number of freight vehicles on the roads is also an area to be addressed, with an additional one million light commercial vehicles than 20 years ago, Vujic notes. “If we don’t start providing for localised distribution points this number will continue its exponential growth, increasing both the number of kilometres travelled, and the cost of small-scale deliveries.
“Our planning system needs to modernise to prepare us for the changing global and consumer trends, and our research paper sets out a roadmap for making it happen.”
Download Planning for the urban freight revolution, which was sponsored by Frasers Property, ISPT, ESR, LOGOS, One Five One Property, Charter Hall and the Property Council.