A holistic approach to introducing a light electric freight vehicle (LEFV) system in a historic urban environment: The case of Quito

In this paper we propose a comprehensive approach for introducing a first/last mile system based on Light Electric Freight Vehicles (LEFVs) in the historical centre of Quito (Ecuador). The approach includes four crucial steps for successful launching and establishment of a LEFVs system. The first step considers organizational aspects by proposing a number of alternative cooperative business models. In the second step, the LEFVs fleet mix problem is defined as a Multicriteria Decision Making Problem (MCDM) and solved by the Analytic Network Process (ANP). The third step includes the problem of optimal micro hub location as well as the problem of optimal routing of LEFVs. The micro hub location problem is modelled as a capacitated p-median problem and solved by an exact solution algorithm. The problem of optimal LEFVs routing is defined as the capacitated pickup and delivery with time windows addressed by a web-based optimization tool. The fourth step includes an assessment of the existing policy framework and proposing a set of additional legal instruments for facilitating the LEFVs market uptake. Based on the proposed four-step approach, the first/last mile system is currently being implemented in the historical centre of Quito. The initial results appear promising regarding the success of the new LEFVs first/last mile system.