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Sustainable Transport - What It Delivers 14<br />

The ‘Last Mile’ Challenge<br />

When considering the transport landscape in<br />

any part of the globe, special attention must be<br />

paid to the ‘last mile.’ Transporting goods via<br />

rail, truck, ship or aircraft can be efficient and<br />

cost-effective. However, when goods arrive at a<br />

high-capacity freight station or port, they must<br />

then be transported to their final destaination. This<br />

last leg of the supply chain is often less efficient,<br />

comprising a significant portion of the total cost to<br />

move goods. This has become known as the ‘last mile’<br />

logistics challenge. The ‘last mile’ is also a conundrum<br />

for passenger transport, one that will need to be<br />

addressed to achieve sustainable transport.<br />

Inclusive Transport for Low-Density Rural Areas<br />

in Chile<br />

The ‘last mile’ is a challenge everywhere, but it is<br />

particularly acute in the rural context in developing<br />

countries, where the ‘last mile’—the distance from a<br />

transport hub—may, in fact, be a hundred miles or more.<br />

Communities in rural areas of developing countries are<br />

often completely disconnected from the major roads, rail<br />

lines, and public transport options that enable access to<br />

the economic and social activities and opportunities in<br />

cities. Addressing these circumstances will be needed<br />

in order to fulfil the 2030 Agenda for Sustainable<br />

Development promise to ‘leave no one behind.’<br />

Demographic changes<br />

In some parts of the world, the population is shrinking<br />

and aging, while, in other parts, it is growing rapidly and<br />

getting younger. For example, the median age in 2015<br />

in Germany was 46.5 years while in India it was 27.3. 24<br />

Many German cities, especially in the eastern part of<br />

the country, have experienced significant population<br />

declines after reunification, posing the opposite<br />

transport challenges to those experienced in Indian cities<br />

where the population is growing every year.<br />

Demographic trends at both ends of the spectrum have<br />

consequences for transport. Broadly speaking, issues of<br />

accessibility and proximity are crucial in particular for<br />

elderly people, while younger generations are driving<br />

trends including the “sharing economy” and other<br />

approaches dependent on smart phone connectivity.<br />

However, these trends vary according to the region and<br />

level of development, and all policy decisions must take<br />

account of the specific context.<br />

Global supply chains and trade routes<br />

Transport of goods and people is becoming an<br />

increasingly global activity, with research and<br />

development, raw material sourcing, design, production,<br />

Chile is a country of contrast. 87% of its population<br />

lives in high density urban areas with an average<br />

of 6,000 people per km2, while more than two<br />

million people are living in rural areas with an<br />

average density of 3 people per km2. For the rural<br />

population, access to opportunities and services<br />

in urban areas such as healthcare, education and<br />

other services at a reasonable price and travel<br />

time is an issue of social inclusion. The Chilean<br />

Ministry of Transport and Telecommunication<br />

implemented a ‘connectivity subsidy program’ to<br />

assure transport to all people to these<br />

opportunities and services. The annual inclusive<br />

transport investment of about US$60 million<br />

translates to an average subsidy of US$2.66 per<br />

passenger and trip. The connectivity subsidy<br />

program has created a more competitive<br />

environment for transport operators serving rural<br />

areas and has enabled, for example, inclusive<br />

waterborne transport in extremely low-populated<br />

areas in the southern parts of Chile and free bus<br />

transport for handicapped children from remote<br />

areas throughout the country.<br />

(See page 66 for all case study references)<br />

Connected to Recommendations: 1, 2, 4, 8<br />

and marketing potentially each located in a different<br />

country, or in several different countries. 25<br />

National governments and private sector entities are<br />

preparing for the challenges and opportunities arising<br />

from more globalized supply chains, including through<br />

trade facilitation via regional integration, and the creation

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