Milan’s Fashion District, one of the city’s notoriously exclusive and at the same time busiest areas, is preparing to face one of the most complex logistical challenges of recent years: the new Limited Traffic Zone (ZTL), planned for 2025.
The legislation aims to reduce traffic and emissions, but has raised several issues among logistics operators and retailers. In this article, we explore the state of the art of the legislation, the criticisms that have emerged, the solutions that have been envisaged and the key role of technology in making logistics more sustainable in accessing micro hubs, Lockers and Pick-up Points.
The new ZTL regulations for Milan’s Fashion Quadrilateral: objectives and critical issues
The new ZTL regulation for the Fashion Quadrilateral aims to limit access to unauthorised vehicles, reducing rush-hour traffic and improving air quality. The intention is ambitious: to reduce air and noise pollution, promote sustainability and encourage the use of more environmentally friendly means of transport.
However, the introduction of these restrictions has raised concerns among Milan’s logistics operators and traders, who fear a negative impact on their daily activities.
But what does the new ZTL regulation provide for in detail? Let’s find out.
The measures of the new ZTL regulations for Milan’s Fashion Quadrilateral
The resolution of the Milan City Council no. 555 of 09/05/2024 stipulates that the new Limited Traffic Zone (ZTL) called ‘Quadrilatero della Moda’ will be active 24 hours a day, every day, with access and circulation prohibited for all vehicles, except for specific exceptions.
Subject to registration, the following are excluded from the ban: residents and domiciled persons with a parking permit, owners of garages or parking spaces in the ZTL, those who have reserved a space in the garages present, service vehicles of maintenance companies, craftsmen and fitters who provide occasional services (who are allowed 50 entries per year), taxis and NCCs with up to nine seats, and, finally, vehicles for emergencies, special transport, postal services and public utilities.
Moreover, in view of the activities in the area linked to the most important fashion houses that organise events of national and international appeal, there are some exceptions for vehicles used to support events, subject to authorisation by the local police and only for the time strictly necessary. To these are added the cars of guests going to hotel facilities, as well as those in support of car-valet activities (i.e. the service of taking custody, parking and subsequent return of the vehicle, offered by some businesses and accommodation facilities).
As far as freight transport is concerned, the regulations stipulate that access for traditional vehicles is only allowed during the night. During daylight hours, therefore, access would only be allowed to electric vehicles and cargo bikes. More specifically, there are exceptions from 2 to 8 a.m. and from 4 to 6 p.m. for the transport of perishable foodstuffs, every day for the time strictly necessary for loading and unloading, and for vehicles of traders, from 2 to 10 a.m. for home delivery of products purchased online.
For the first year, in order to accompany the process of getting to know the measure and while waiting for the garage operators to develop parking space reservation systems, vehicles will be allowed to pass through the ZTL for 15 minutes, a time considered to be congruent with crossing the area without stopping or parking in the parking facilities. Motorbikes and mopeds will also be allowed free access for the first year.
The ZTL will be monitored via nine electronic gates, with software and management systems developed to control transits.
Concerns arising from the introduction of the new ZTL regulations
However, the main critical issues concern the management of last-mile deliveries, in particular with regard to the transport of goods in a high-density area with limited traffic.
In addition, some operators expressed doubts about the ability of vehicles to adapt to new technologies, such as electric vans, and about the difficulties of transition for small and medium-sized companies, which could face significant increases in the transport costs they have to face.
Finally, there is the issue of the need to ensure security during the transport by cargo bikes of products with a high economic value that are vulnerable to theft or damage.
The extension of legislation: a step back to consider more effective solutions
As a result of the technical difficulties and concerns that have arisen, the Milan authorities have decided to postpone the introduction of the ZTL initially scheduled for January 2025, postponing the implementation date until a later date.
The postponement could provide an opportunity to explore more sustainable and effective alternatives, leveraging innovative solutions that can mitigate the impact on logistics operations without compromising the environmental objectives of the legislation.
The hypothesised solutions: Decoupling hubs and pick-up points
One of the most promising solutions on the table for administrations is the implementation of an agnostic freight decoupling hub, therefore accessible to multiple couriers and last milers. Under this model, carriers could leave bulkier loads at the Hub and pick up smaller parcels for delivery by electric vans or cargo bikes. Adopting this solution would ease traffic congestion in central areas, thus reducing the number of traditional vehicles accessing the LTZ and contributing to the sustainability of urban transport.
In parallel, the introduction of Lockers and Pick-up Points was identified as a key solution to optimise Last Mile Logistics.
Automated Lockers and Pick-up Points in the central Milan area allow consumers to collect their parcels at the points most convenient to them, thus reducing the need for home deliveries and consequently improving the efficiency of logistics operations and reducing the environmental impact of deliveries.
The benefits for residents, traders and logistics operators
Benefits for residents
From the residents’ point of view, the new ZTL and the logistical solutions envisaged will bring significant improvements in the quality of life. The citizens of Milan have welcomed the regulation with interest, certain that the decongestion of Milan’s Fashion District is a very favourable and appreciated aspect.
Reducing traffic and CO2 emissions will help to make the air cleaner and reduce noise, a cause of noise pollution. Freer pedestrian areas and fewer vehicles on the road will also improve the safety and usability of public spaces, and encourage the use of sustainable means of transport such as bicycles and public transport.
Benefits for traders
For traders in the Fashion District, the possibility of optimising deliveries through Pick-Up Points and Locker systems will lead to a reduction in operating costs related to logistics management and returns.
With the use of a freight decoupling hub, it will also be possible to focus on more efficient deliveries, reducing the number of delivery attempts and improving the punctuality of shipments. This also means greater customer satisfaction, as customers will be able to pick up their parcels where and when they are most convenient, according to their needs and habits, with greater flexibility.
Benefits for logistics operators
Logistics operators and couriers will also certainly benefit from smoother and more sustainable logistics. The heart of the discussion between operators and the administration today is to find a balance between legislation, implementation timeframes and the prompt realisation of urban mini-hubs that will be accessible without overcharging and burdening logistics flows.
Strengthening the networks of Locker and Pick-up Points will also reduce the costs of transport and failed delivery attempts. With a well-organised network of Pick-up Points, it is now possible to reduce the number of vehicles on the road in congested areas, lowering fuel consumption and CO2 emissions. In addition, these systems increase efficiency and reduce the risk of congestion on the roads by optimising delivery routes.
A virtuous example: the case of Bologna
A successful example of implementing innovative solutions for sustainable urban logistics is the Municipality of Bologna.
With the support of GEL Proximity, the city has in fact launched an experimental project, within the framework of the European TRANSCEND project, based on the creation of agnostic hubs strategically positioned in the city centre in areas already defined by the Sustainable Urban Logistics Plan (PULS). These hubs, accessible to different logistics operators and designed to optimise the management of last-mile deliveries, facilitate the transfer of goods from traditional vehicles to electric vehicles or cargo bikes, thus promoting the use of alternative and more sustainable vehicles.
The technology provided by GEL Proximity plays a crucial role as an orchestrator of logistics processes, integrating the various actors in the transport chain, monitoring delivery flows and analysing different data sources in real time. Find out more here.
Within the TRANSCEND project, the Bologna experiment is considered a ‘Lighthouse Living Lab’, i.e. it serves as a replicable model in other European cities for the creation of sustainable and scalable logistics solutions.
The role of GEL Proximity: technology at the service of urban logistics
GEL Proximity, with its platform integrating over 300,000 Pick-up Points and Lockers already active throughout Europe, is therefore one of the key players in supporting the process of adapting urban logistics to new local and European regulations. The role of GEL Proximity technology, with its role as a logistics orchestrator, may prove to be key in the definition of new urban models that focus on the construction of agnostic micro-hubs, both physical and automated.
The technological approach offered by GEL Proximity facilitates optimisation of the last mile of deliveries, improving efficiency and reducing environmental impact. Our solutions help eCommerce, hauliers, logistics operators and administrations manage deliveries in a more agile and sustainable way, adapting perfectly to new requirements such as those imposed in Milan’s Fashion District.
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