A new parcel delivery hub will soon be installed at Friarsgate Car Park as part of a 12-month trial.
The hub, located in Winchester, will test the use of electric cargo bikes to complete local deliveries to homes and businesses, aiming to reduce congestion and improve air quality in the city centre.
Parcels will be delivered to the hub by van and then transferred to the bikes for final distribution.
The project is a partnership between Solent Transport, Winchester City Council and Decarbon Logistics Solutions, a Volofleet portfolio company.
It forms part of the Department for Transport-funded Solent Future Transport Zone programme.
Cllr Kelsie Learney, cabinet member for the climate and nature emergency, said: "The parcel delivery hub project is an exciting step towards making our air less polluted and our roads less congested, while still ensuring residents and businesses can efficiently receive deliveries.
"Trialling better ways of moving goods in the City Centre is one of the ways in which we can go greener faster and help shape a healthier and more sustainable Winchester."
Construction will begin on Tuesday, October 7, with the lower deck of Friarsgate Car Park closed for approximately two weeks during the build.
The hub will use 14 parking spaces, leaving 58 spaces available for public use.
The facility will include secure storage and charging stations for up to 10 electric cargo bikes, unloading areas for delivery vans and welfare facilities for staff.
The University of Portsmouth will support the project by monitoring its environmental and operational benefits.
The hub is expected to begin operations in November.
Residents will be kept informed about progress and any temporary disruptions during construction.
The hub will not function as a parcel drop-off point for sending parcels.
At the end of the trial, the hub will be removed and the car park will be returned to its original state.
Lessons learned will be reported to the Department for Transport and used to inform how similar projects might be implemented in Winchester in future.