Parcel Lockers - July 2024 Early Market Engagement

The purpose of this Prior Information Notice (PIN) is to notify the market of forthcoming market engagement event to help determine future strategy.

Transport for West Midlands (TfWM) is the public body responsible for transport strategy and coordinating the transport network in the West Midlands. We are an executive body of the West Midlands Combined Authority (WMCA). We work in close partnership with the seven constituent authorities of the WMCA to achieve our aims to reduce traffic, improve access, and electrify transport.

One of our key policies is to make the most of the transport network and ensure it operates efficiently (TfWM 2023, p.40). As part of this, we're committed to working with freight and logistics operators to ensure that transport network supports more efficient, safe, sustainable, and reliable movement of goods.

Our work in this area has highlighted the increasing importance of parcel delivery to the residents and businesses of the region. Nationally, parcel volumes grew consistently between 2016 and 2019, before jumping by 45% during the pandemic (Ofcom 2022). Today, volumes are still significantly above pre-pandemic levels.

This growth has largely relied on the conventional to-door delivery model. However, the inefficiencies of this model are well known (e.g. road capacity, parking, and pollution). TfWM is driven to tackle these negative impacts, while strengthening access to eCommerce, improving the public realm, and increasing the quality of the stops and stations on our public transport network.

Parcel lockers are an intervention with strong potential to help us achieve these aims. This is because lockers are:

- More efficient than to-door delivery in terms of both emissions and distance travelled. - Popular among users, with high customer satisfaction ratings. - A valuable service in stations, mobility hubs, stops, and the public realm. Provision of lockers in the region is already growing. TfWM recognises and values the steps that parcel locker operators have already taken to reduce the impact of last-mile delivery by developing their own parcel locker networks in the region over the last decade. However, there is still significant potential for provision and usage to grow.

Importantly, TfWM has found that fewer than 2 in 10 people live within 3 minutes' walk of a locker. Research has suggested that this travel time is the point at which lockers become a comparable substitute to-door delivery.

TfWM and the wider WMCA is well placed to take action to overcome these challenges given its control of land on the public transport network, and its strong links with constituent authorities who control housing, the public highway, and other sites in public ownership.

Additional information: We have been exploring the opportunity to utilise these partnerships and assets for parcel locker deployment since 2021. During this time, we have benefited greatly from the input of suppliers in shaping our understanding of the parcel sector and plan. We have also gained broad-based support for action among political stakeholders and officers at both the WMCA and constituent authorities. We are now inviting suppliers to participate in a further round of market engagement to: - Refresh knowledge gained during previous engagement exercises. - Obtain feedback on two different approaches to collaboration (concession and partnership). - Understand what information suppliers will require in order to bid for the opportunity. To commence this process, TfWM is releasing an Expression of Interest to engage with potential suppliers to help inform our approach to the potential delivery of Parcel Lockers within the West Midlands - including understanding how contractually a potential agreement between ourselves and Parcel Locker provider could work.

TfWM will be undertaking an online event on the 10th July 2024 at 2pm for potential suppliers that are interested in assisting TfWM with their future strategy and, subject to decisions, would be interested in a potential procurement within this programme. This will be followed up by a supplier questionnaire, which will assist the TfWM with their decision making. Interested parties should register through Bravo, and search for project_878/pqq_223 and express interest in attending the event via the message function under pqq_223 no later than the 4th July 2024 12:00. Your registration will ensure that you will receive the relevant details for the online event and any future correspondence regarding this project. Please note, the information in this document represents TfWM's current plans and may be subject to change prior to a potential tender publication. TfWM reserves the right to amend or change all and any aspects discussed in this exercise.

This PIN is not a call to competition and the TfWM is not bound to enter into any procurement activity because of it. All procurement activity is subject to TfWM priorities, funding and any or all procurement activity is subject to change at the Authority's absolute discretion.