Edinburgh Council is considering setting up 'consolidation centres' in a bid to cut deliveries into the city centre - with plans to use the trams and even barges on the Union Canal to haul freight into the Capital.
The facilities, which act as depots to sort multiple businesses goods into one vehicle for the final mile or so of delivery, have been set up in cities across Europe in a bid to tackle congestion.
Scott Arthur, the council's transport convener, confirmed officials are now investigating the feasibility of creating two centres in Edinburgh.
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He said: "If it's self-financing and companies engage with it we'll absolutely do it.
"We're looking at there being a consolidation centre in Leith in the port area and also Hermiston Gait."
Cllr Arthur explained there are "a lot of the delivery vans with quite little inside them".
He added: "So we're looking at places where these companies can come together, put all their deliveries in one vehicle and that vehicle does the deliveries.
"You might have a company that's expecting deliveries from three or four different suppliers on one day, and if they're all intercepted at the Hermiston Gait depot, they can all go into one vehicle and then out to multiple companies.
"These companies themselves are going through a transition as well.
"It's about taking vehicles off the road and doing things a bit differently."
And the new scheme may not be limited to loading the freight on to other vans, as the transport chief revealed consideration is being given to making use of Edinburgh's waterways and tramlines too.
"We're also looking at using train to bring more freight into the city and also the tram to bring freight into the city perhaps from the airport," Cllr Arthur said, adding the tram would most likely be used to transport "higher value items".
He continued: "Having the terminal at Hermiston Gait, as well as giving that connection to the tram as well as the train, also connects to the canal so we're also looking at options of using the Union Canal to bring things in."
Plans for distribution hubs are still in the early stages and it's not known if the council would run them itself or bring in contractors.
An update will be given to members of the transport committee on Thursday (December 8).
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