Abstract for: Smart City Logistics: A First Perspective on Modeling Cargo Sous Terrain

This paper uses the methodology of system dynamics to reconstruct the business model of Cargo Sous Terrain (CST). CST is a logistics underground system for any kind of small-component goods. Production and logistics sites will be connected to urban centres by tunnels. The main business is to transport freight between different hubs. Furthermore, it provides insights about the impacts of scenarios and policies on important key variables. The causal loop diagram (CLD) is based on data about CST and our own assumptions. It includes rivals which compete with CST. When rivals have attractive offers, this has a negative effect on the attractivity to use CST. Therefore, it is important to stay competitive through appealing pricing and short waiting times. Another important issue are the financials. CST gets a credit of CHF 100 Mio. from which about CHF 60 Mio. can be paid back within 10 years. Total revenues are dependent on the price per package which is defined by CST itself. High prices lead to a delayed lower attractiveness and instantly to more revenues. To simulate costs of CST, multiple factors are included.