Rethinking City Logistics: Sustainable Consolidation in Industrial Areas

When discussing urban logistics, the focus often lies on parcel deliveries to consumers—a trend that the rise of e-commerce has amplified. Yet, cities are also home to industrial zones with manufacturers and producers who have very different logistics needs. These areas depend on the timely delivery of bulky, perishable, or production-critical goods. Despite their importance, urban industrial regions have been largely overlooked in the conversation on sustainable city logistics.

A recent case study in Berlin’s Motzener Strasse industrial zone aims to change that. Between April 2023 and March 2024, a consolidation system for goods deliveries was piloted without relying on public regulation. A strong internal need drove the initiative: delivery inefficiencies were already causing significant challenges for local businesses. This real-world implementation provided valuable insights into what it takes to create a functioning and sustainable delivery system in an industrial setting.

From this project, fourteen best practices were identified, grouped into four key phases:

  1. Stakeholder management and engagement
  2. Design of the urban logistics system, including processes and business models
  3. Implementation planning
  4. Monitoring and evaluation

One key takeaway: collaboration is essential. In Berlin, the receivers, their local business association, and the Urban Consolidation Center (UCC) operator drove the project. Public authorities weren’t involved, yet the system moved forward, though at a slower pace. A major barrier turned out to be logistics service providers (LSPs) themselves. Large operators resisted mixing parcel handling with pallet-based logistics, revealing unexpected operational hurdles.

The long-term success of the system depends on continued participation by receivers. Without sufficient shipment volume, services can’t be priced competitively. Public regulation, political vision, or financial incentives might have accelerated the process and helped embed environmental priorities from the start, but this case shows it’s possible to start without them.

This study contributes practical, implementation-focused insights for logistics managers and city planners working in or with industrial zones. While based on a single case, it highlights the need to integrate industrial areas into broader urban logistics strategies. Future research could build on these findings to create scalable roadmaps and extend consolidated delivery models across entire metropolitan regions, linking retail, hospitality, households, and industrial zones into one cohesive logistics ecosystem.

Source: Quiter, D., Engelhardt, M., Malzahn, B., & Seeck, S. (2024). Best practices for implementing sustainable urban logistics – the case of freight consolidation for a Berlin industrial area. Transportation Research Procedia, 90, 854-862. https://doi.org/10.1016/j.trpro.2025.06.051

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