Madrid Citylogin - Urban logistics micro-hubs
Madrid, Spain · Citylogin, in collaboration with the City of Madrid, CITET, EIT Urban Mobility, and several European urban mobility and innovation programmes
The initiative has positioned urban logistics as a strategic component of sustainable urban planning. It has demonstrated that decentralized microhub systems can reduce delivery-related traffic, promote low-emission transport alternatives, and integrate urban freight distribution into climate and mobility policies. The initiative has also influenced discussions on public space management, low-emission zones, urban space allocation, and sustainable mobility planning.
Highlight
Transforming urban logistics through capillary microhub networks, collaborative operations, and digital tools that reduce congestion, emissions, and inefficiencies in last-mile freight distribution.
Extended description
The rapid growth of e-commerce and on-demand delivery services has significantly increased environmental and spatial pressures associated with urban freight transport.
In dense cities such as Madrid, traditional last-mile delivery models generate congestion, air pollution, noise, inefficient vehicle circulation, and increasing competition for public space and loading zones.
Madrid is developing a new generation of urban logistics systems based on distributed microhubs and the principles of capillary logistics.
Instead of relying exclusively on direct deliveries from large peripheral logistics centers to urban neighborhoods, the model introduces intermediate consolidation hubs located closer to final delivery areas. Goods arriving from regional logistics systems are reorganized and redistributed using low-emission transport modes such as electric vans and cargo bikes.
The concept of capillary logistics is central to this initiative. Similar to biological capillary systems, it replaces large centralized flows with dense distributed delivery networks capable of serving urban areas more efficiently while minimizing environmental impacts. Logistics infrastructure becomes integrated into the urban fabric rather than operating outside it.
The initiative has evolved progressively through several interconnected innovation projects in which Citylogin has played a strategic role:
LEAD Project (Plaza España): Development of a digital twin operating from an underground logistics microhub located beneath Plaza España, making use of previously unused underground infrastructure.
Microhubs 4.0 Project (AEIS & CITET): Creation of an interoperable network of technology-agnostic urban microhubs. This phase demonstrated the importance of public-private collaboration and coopetition to develop connected and decarbonized logistics systems.
EIT Urban Mobility Projects (STANDTRACK & LUCID):
STANDTRACK: Development of a common identification language for parcels together with a cooperative management platform.
LUCID: Development of a collaborative optimization platform allowing different logistics operators and independent couriers to cooperate more efficiently through shared geolocation and optimization tools.
DISCO Project (EU Horizon): Integration of municipal databases and logistics operators' databases to enable collaborative urban logistics scenarios to be developed, operated and evaluated.
Operationally, microhubs consolidate deliveries from multiple operators before distributing them through electric cargo bikes and small electric vehicles, reducing duplicate trips into city centres, lowering emissions and improving delivery efficiency.
Beyond emissions reduction, the initiative redefines logistics as a component of sustainable urban mobility policy, improves compatibility between logistics and public space, reduces traffic pressure and noise, and creates new opportunities to integrate logistics infrastructure into climate-oriented urban planning strategies.
Demonstrated metrics
Pilot implementations and associated European studies demonstrate:
21% reduction in kilometres travelled per route achieved through the LEAD digital twin project.
Reduction in delivery vehicle circulation.
Lower last-mile emissions.
Reduced diesel vehicle activity in dense urban districts.
Increased use of cargo bikes and electric vehicles.
Higher delivery consolidation rates.
Improved route efficiency.
Reduced congestion and pressure on public space.
European studies also indicate measurable reductions in:
Congestion.
Greenhouse gas emissions.
Delivery times in dense urban areas.
Pressure on loading and unloading zones.
Real impact
The initiative has positioned urban logistics as a strategic component of sustainable urban planning.
It has demonstrated that decentralized microhub systems can reduce delivery-related traffic, promote low-emission transport alternatives, and integrate urban freight distribution into climate and mobility policies.
The initiative has also influenced discussions on public space management, low-emission zones, urban space allocation, and sustainable mobility planning.
Implementation location & date
Madrid, Spain.
Developed progressively through pilot projects and operational deployments throughout the late 2010s and 2020s, particularly within the MOVE21, SCALE-UP, LEAD, Microhubs 4.0, STANDTRACK, LUCID, and DISCO European innovation programmes.
Similar cases elsewhere
Comparable initiatives include:
Paris
London
Antwerp
Amsterdam
Bogotá
São Paulo
Several Asian megacities implementing urban freight consolidation systems.
The modular structure allows adaptation to:
Dense urban centres.
Low-emission zones.
Cities facing logistics congestion challenges.
Metropolitan distribution systems.
Collaborative last-mile delivery networks.
Awards & recognition
Urban Logistic Pioneer Award (ALICE, Brussels, October 2025): Awarded to Citylogin for the LEAD project and its fully electric underground microhub in Madrid, highlighting the use of the digital twin and a 21% reduction in kilometres travelled per route.
Innovation Collaboration Excellence Award (CITET, July 2025): Recognising Citylogin's long-term contribution to innovation in last-mile logistics, including Microhubs 4.0 and STANDTRACK.
Last-Mile Distribution Innovation Award (Logística Profesional, 2022/2025): Awarded for Citylogin's pioneering work in Urban Freight Distribution and capillary logistics.
National Sustainable Mobility Award – Service Category (Spain, May 2021): Awarded with the support of the Spanish Ministry of Transport, CONAMA Foundation and the Royal Academy of Engineering for its economically viable and environmentally sustainable logistics model.
enerTIC Awards Nomination: Microhubs 4.0 was selected as a benchmark project for improving energy efficiency and digitalizing urban freight flows.