In 2021, the e-commerce industry in Germany generated sales of around 87 billion euros, an increase of around 20% compared to the previous year. The more interesting figure for logistics companies: 4.5 billion parcels were delivered last year - also a significant increase. "There is no indication that this trend is slowing down. You can see where things are heading in other countries where it has long been common practice to order groceries online," says Dr. Hendrik Thamer, CEO of the five-year-old tech company Cellumation.

What is convenient for consumers is becoming an ever greater problem for German city centers. The increase in delivery traffic is clearly at odds with the population's growing need for sustainability and the idea of car-free city centers. One much-discussed solution is microhubs, central transshipment points near city centers where parcels are consolidated and then delivered using zero-emission vehicles.

Many projects failed

To date, most attempts to implement this concept have suffered from a glaring economic problem. This is despite the fact that they are often subsidized due to their benefits for the urban climate and in terms of sustainability. Microhubs do not pay off: one could come to this conclusion if one looks at the projects of recent years. This is due to scarce and therefore very expensive logistics space in urban locations and the high number of staff required to manually sort parcels.

For these reasons, most pilot projects die as soon as the often generous funding from state governments or local authorities comes to an end. This is not least due to the fact that CEP service providers and other logistics companies usually rely on isolated solutions instead of cooperation with different players. There seems to be too much competition and the desire to distinguish themselves with innovative concepts. This approach has so far made it largely impossible for microhubs to establish themselves in cities.

Cooperation and suitable areas required

The levers for solving this problem are clearly identifiable. It is time that urban transshipment points are no longer conceived as innovative studies, but as long-term solutions for urban goods delivery. This requires all relevant players - CEP service providers as well as local retailers - to pull together and shoulder the project together. It also requires more creativity and flexibility in the selection of suitable properties in order to reduce costs.

London shows how this can work. The British capital aims to become climate-neutral by 2030. In order to achieve this goal, car traffic in the metropolis is being increasingly restricted. This is forcing parcel delivery companies to transfer shipments to microhubs and deliver them using cargo bikes. Logistics service providers find the necessary space in former parking garages or supermarkets. This would also be conceivable for German cities, where similar traffic restrictions could occur in the future.

Manual sorting does not pay off

However, the classic intralogistics model for microhubs, which has been used in almost all projects to date, is unsuitable for many potential properties. Currently, parcels and goods at urban transshipment points are largely distributed manually to the respective routes. However, manual sorting takes up a lot of space and usually requires several dozen employees, who are hard to find in logistics.

The solution is automation: in future, compact and powerful "sorting machines" could solve the space, cost and personnel problems on the last mile. "Most critics, who generally distrust microhubs, do not even consider the option of automation. Basically, the intralogistics part of this model is completely underestimated. The advances that will make the concept profitable tomorrow are already taking place here today," says Hendrik Thamer.

Göttingen as a pioneer

What the microhub of tomorrow could look like has been on display in Göttingen for a few months now. There, the logistics service provider Grünfuchs-Logistik has opened a central transshipment point in a former furniture warehouse. At the heart of the hub is the cv.Bulksort sorting system, measuring just 6 square meters, with connected cv.GO modules for diverting goods. The cv.GO conveyor all-rounder achieves a maximum change of direction in 0.2 seconds without mechanical stops.

The shipping items are chaotically thrown into the system, automatically sorted into intelligent routes and then delivered using cargo bikes and e-scooters. Not only e-commerce shipments are processed. Local retailers are also involved in the project and are tapping into a new sales channel with same-day delivery via Microhub. "In Göttingen, we have set up the first automated Microhub in Germany. We see the facility as a model for other German cities. There is a great need for automated solutions on the last mile, especially in cities with millions of inhabitants such as Berlin and Hamburg," explains Thamer.

Automation as the key

In future, there will be microhubs in all major cities where shipments from various sources are consolidated and delivered emission-free. This will relieve the burden on local authorities, for whom the growing online trade represents an increasing challenge. In contrast to the current model, the microhub of tomorrow will be equipped with automated conveyor technology, which minimizes space and personnel requirements. This solves the current economic efficiency problem of central transshipment points.

This article appeared in issue 3/23