Exploring the future of microhubs in last-mile logistics
Urban logistics plays a pivotal role in the smooth functioning of supply chains, shaping everything from the timely delivery of goods to the overall efficiency of urban mobility systems. As cities grow, the need for innovative logistics solutions becomes increasingly critical, not just for economic success but also for reducing congestion, emissions, and improving sustainability. Although urban logistics accounts for 10-20% of vehicle traffic, it makes up more than 25% of transportation-related emissions, for reasons such as idling, congestion, or using highly consuming large vehicles.
The traditional methods of urban freight management are being outpaced by the dynamic demands of modern cities. Enter sustainable logistics: a holistic approach that integrates green fleets, optimised routes, and flexible microhub systems, reducing environmental impact while enhancing delivery efficiency and complying with Sustainable Urban Mobility Plan regulations.
To dive deeper, this insight focuses on establishing a common definition for microhubs as the term is often misused or used interchangeably with other concepts such as delivery lockers or urban consolidation centres. Additionally, the insight will showcase examples from three different Horizon Europe projects that are testing microhubs to find innovative uses and processes that can be replicated across European cities.
The challenge with microhubs is that, as a recently popular term, it is often used mistakenly to coin distinctive characteristics of urban logistics interchangeably, causing confusion as to what a microhub really is. A microhub is a small physical space, often within the city centre or its proximities, purposely implemented to provide a variety of urban freight management uses, including charging stations, safe parking for vehicles, fleet sharing, battery swapping, and goods transhipment from larger vehicles that come from outside the city into smaller low-emission vehicles (i.e. cargo bikes or light electric vehicles) that transport the last-mile delivery. These are the main uses in logistics microhubs, but they are not comprehensive, as microhubs across Europe encompass other additional features and often vary in processes and uses.
Microhubs are called as such because they tend to be small in order to fit in available spaces in densely populated areas. Spaces large enough for a microhub are often hard to find in city centres, but creative public space allocation in railway land and public transport stations – promoting intermodality – as well as public-private partnerships in shopping malls, markets, and car parks, have opened more possibilities for microhubs to emerge. Nonetheless, governments and municipalities need to facilitate the implementation of microhubs through enabling regulation as well as establishing public procurement practices.
In some cases, microhubs are shared amongst competing delivery companies and other stakeholders, effectively becoming agnostic microhubs that successfully reduce both the number of delivery trips and the distance, as well as maximise vehicle capacity. This improves public health by decreasing the risk of accidents and therefore having safer streets, and also allows for public space reallocation that can enhance active travel and overall create healthier streets. Technological innovations such as the Physical Internet concept are implemented in microhubs to foster trustful collaboration amongst partners and maximise vehicle capacity/trips efficiency through bundling up deliveries. The 'physical internet' is an innovative concept that reimagines global supply chains and last-mile logistics by taking inspiration from the seamless flow of information on the internet. It envisions a highly interconnected and efficient transportation and logistics network, designed to enhance flexibility, scalability, and sustainability in the movement of goods.
Microhubs are fundamental to promote greener and more efficient forms of urban logistics as well as the optimisation of public space. By using existing infrastructure, microhubs are increasingly replicable in different urban contexts and can gradually grow to create a distribution network that meets local demand.
To provide practical examples of microhubs being tested around Europe, this insight brings best practices from three Horizon Europe projects that make up the Sustainable Last-Mile Logistics Cluster.
A microhub for eco-friendly deliveries in Logroño
In Logroño, the rise of e-commerce has brought about an increase in traffic congestion and carbon emissions, challenging the city's sustainability goals.
To address these, Logroño has introduced a microhub in its pilot, as part of the broader Decarbomile project (2022-26), funded by the European Union's Horizon Europe program, whose objective is to promote and implement innovative solutions for carbon-neutral last-mile logistics. Logroño is one of the four Living Labs, alongside Nantes, Hamburg, and Istanbul, participating in this initiative.
Located in the basement of the local San Blas Market, the microhub serves for storage purposes mainly for the market stalls and nearby shops. At this transfer point, parcels are transhipped from lorries to electric cargo bikes, while a range of additional services are being planned to enhance the hub’s functionality. These additional services include reverse logistics to support the consolidation of waste recycling from businesses that use the microhub, and a community delivery service aiming to leverage the hub for consolidating essential goods to dependent individuals. This last-mile microhub allows all the participating stakeholders – business owners, logistics operators, and the local community – to access a range of benefits through eco-friendly last mile deliveries.
The pilot, designed to reduce emissions and congestion, paves the way for broader adoption of sustainable urban logistics practices. The introduction of the microhub and associated sustainable delivery methods is anticipated to significantly reduce traffic congestion, lower noise levels, and decrease carbon emissions in Logroño's city centre. By shifting to cargo bikes and optimising delivery routes, the city aims to enhance air quality and promote a more liveable urban environment. The project's collaborative approach, involving local businesses and large logistics companies, sets a precedent for public-private partnerships in Logroño's sustainable urban logistics.
The pilot also has an impact on local policymaking as it will help in the development of the SULP, identifying how urban space can be optimised to improve quality of life.
Combining microhubs with lockers in Bologna
Bologna's last-mile deliveries are affected by the physical constraints of the city centre together with its high density, which pose serious congestion and pollution issues. Added to this, there is a tendency for incompliance and unruliness with the existing low emission zone restrictions.
This challenge was addressed in Bologna's pilot within the framework of the URBANE project. The project operates through four Living Labs: Helsinki, Bologna, Valladolid, and Thessaloniki, demonstrating efficient, replicable, and socially acceptable innovative last-mile delivery solutions. URBANE seeks to support the transition toward effective, resilient, safe, and sustainable last-mile transport.
Bologna’s pilot tested three microhub lockers around the perimeter of previously established Nearby Delivery Areas. The microhub lockers allow for the transhipment of freight from conventional vans to Light Electric Delivery Vehicles. It is worth noting that the microhubs look like a typical parcel locker, but functions as a microhub in that it is used for the transhipment of B2B goods rather than for parcel pick-ups in a B2C fashion.
This innovative pilot demonstrated the effective role of stakeholder collaboration as well as the productive use of digital twins to enhance operational efficiency and decision-making capabilities.
Establishing Micro-consolidation centres and mobile depots in Athens
Athens is grappling with a twofold urban logistics challenge—traffic congestion that slows deliveries and rising air pollution that threatens public health.
The city is trying to grapple this challenge through its pilots as part of the GREEN-LOG project, which is an initiative aimed at transforming last-mile urban logistics through sustainable, efficient, and socially responsible delivery solutions. The project operates in five Urban Living Labs across Europe: Athens, Barcelona, Flanders, Oxfordshire, and Ispra. By fostering collaboration between city authorities, logistics providers, research institutions, and technology partners, GREEN-LOG is paving the way for greener, smarter, and more resilient urban freight solutions aligned with European sustainability goals.
The Athens Living Lab will introduce microhubs with the functionality of micro-consolidation centres (MCCs) and mobile depots at predefined stops around the city centre, optimising last-mile deliveries through a collaborative logistics network. The demonstration will integrate a white-label electric vehicle, operated by a single driver that handles deliveries for both ACS and FedEx, reducing redundancies and improving efficiency. Additionally, the use of smart parcel lockers will be promoted to facilitate parcel deliveries, enhancing urban logistics sustainability. The initiative is implemented in cooperation with the City of Athens IT Company, fostering a multi-stakeholder approach to urban freight solutions.
By rethinking urban deliveries, these efforts aim to create a cleaner, smarter, and more sustainable logistics network for Athens, in line with European green mobility goals.
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