Urban logistics: taking the last mile underground

Major cities, from Los Angeles to Paris, from Berlin to London, vary greatly in their dimensions and population density. Yet the challenges of urban logistics remain the same: how can orders be best shipped from warehouses to customers? Eco-friendly solutions for the last mile, such as cargo bikes and e-scooters, have already taken to the streets and sidewalks. However, there is one, central issue. In most metropolises, there is simply not enough space for logistics centers, i.e. the staging points for the final leg of the journey. With this in mind, the French capital is experimenting with a major project – and looking at expanding underground.

British and French real estate investment trusts Segro and Icade have their sights set on Gare des Gobelins – specifically, on revitalizing the 1903 train station, located in the 13th arrondissement in southern Paris. Currently only the mezzanine between the street and the station – which ceased operation in 1993 – is in use, as storage space for retailers in the abutting the Parisian Chinatown. This corner of the capital, with its 1970s vibe, has been avoided by many Parisians. The corresponding Segro and Icade project “Reprendre Racines” (“Reviving roots”) was chosen by the French national railway company SNCF and the City of Paris, which issued a call for construction proposals as part of the “Reinventing Paris 2” competition. The plan is to establish two office buildings, with a total area of some 14,000 square meters. This will provide space for both local start-ups and larger companies in the region. There will be special facilities for sports, plus climbing equipment and basketball courts, urban greenhouses and a 1.3 hectare garden.

Buzzing with life on the surface – and with logistics below

The project will also breathe new life into the unused subterranean areas. For example, Segro has plans for a 75,000 square-meter logistics center where the former train station was located. While revamping the entire site, the developers are committed to high environmental and wellness standards: they plan to install charging infrastructure for electric vehicles and delivery tricycles, plus recycling points and a bike repair center.

“The growth in e-commerce is driving demand for logistics space in major urban centers where land for development is scarce,” states Laurence Giard, French managing director at Segro. “The underground logistics center we envision at Gobelins station is a new, innovative model for the provision of such space in one of the most densely populated cities in Europe.”

Its implementation will demonstrate whether logistics solutions can find room in urban environments in the future – by going underground.

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