The role of Public Private Partnerships for Unlocking Sustainable Urban Logistics

Our newest Deliverable (D5.1) presents a comprehensive overview of nine sustainable business models developed across our four Living Labs: Istanbul, Hamburg, Nantes, and Logroño. Additionally, it gives insights into the methodology applied and the process of co-creation to create the results. Each business model was developed around a concrete use case, ranging from urban consolidation centres to cargo bike delivery networks and waterborne logistics.

Each use case analysis includes:

• Defined value propositions and results from stakeholder surveys
• Time-to-market assessments and long-term scalability potential
• Insights into cost structure, revenue potential, and economic viability
• Evaluation of success factors, operational risks, and governance models

At the heart of the business model development of WP5 is the recognition that logistics innovation cannot be driven by the private or public sector alone but that it requires collaboration, shared vision, and mutual investment. Therefore, our business model development process began with a clear principle: cities are key enablers of sustainable logistics. Municipalities are the most stable actors in urban ecosystems, which gives them a crucial role in ensuring continuity, legitimacy, and long-term implementation. That’s why the Kick-Off workshops in September 2023 focused on identifying value from the municipal perspective, setting the foundation for models that align with public objectives and can scale sustainably.

Public-Private Partnerships (PPP) play a critical role in driving the decarbonisation of urban logistics in the Living Labs. Literature consistently highlights PPPs as a mechanism for building resilient, adaptive logistics systems that are both economically viable and socially beneficial. Their power lies in enabling the public sector to provide strategic oversight, policy support, and infrastructure—while allowing the private sector to bring in innovation, capital, and operational agility.

DECARBOMILE living labs provide some great examples for that:

• The Istanbul Metropolitan Municipality (IMM) supports private operators with the access to urban land for logistics use—often a major barrier in dense cities—by facilitating the development of an urban consolidation centre operated by MIGROS and Iletmen.
• Hamburg demonstrated the importance of network building and regular dialogue between public and private actors to overcome siloed planning. The city acted as a connector, enabling dialogue and knowledge exchange.
• Logroño’s urban consolidation centre serves as an example of how PPPs can serve as enablers, allowing small local businesses to access platforms, tools, and market visibility that would otherwise be out of reach.
• Nantes municipality acted as a regulatory navigator, supporting private innovation through legislative guidance and a forward-thinking urban logistics strategy.

If you’re interested in diving a bit deeper and exploring all nine business models and our co-creation approach, you can access the full Deliverable through the link below.

📄 Read the full deliverable here:

Picture: results from the first BM-Canvas co-creation WS from Istanbul