Rapid urbanization and the accelerated demand for e-commerce have resulted in a substantial increase in deliveries in many cities. There is an urgent need to reduce emissions from freight vehicles in urban areas to lessen climate change and improve the health of citizens. Hyperconnected City Logistics (HCL) combines the concepts of City Logistics (CL) and the Physical Internet (PI). City logistics involves implementing solutions for minimizing the social and environmental impacts of freight in cities while maximizing the economic benefits of goods distribution in urban areas. The Physical Internet transforms independent freight systems into more open, collaborative, and integrated networks. This involves shared use of resources and facilities, including freight vehicles and warehouses. PI networks involve the transshipment of goods at terminals (PI hubs) to increase network efficiency by improving consolidation levels of vehicles. The capacity and performance of vehicles can be matched to demand to promote a range of vehicle types to be utilized. This can increase the viability of alternative fuel vehicles and micromobility for last-mile distribution. Digital Twins provide an effective modeling and simulation platform for facilitating the implementation of HCL, including assisting the exchange of goods at PI hubs to increase levels of coordination and enhancing the utilization of loading space, which can reduce vehicle delays and improve the system’s reliability. Specifically, spatially enabled Digital Twins enable integration and harmonization of multi-dimensional data (2D, 3D, real-time). These capabilities, integrated with modeling and simulation methods, will provide a robust decision support tool for the optimization of HCLs. The synergy of PI, CL, and Digital Twins promises to revolutionize goods transportation through interconnected and efficient networks. This optimizes goods flow, providing real-time assessments of factors like traffic patterns, delivery routes, and hub utilization affecting transportation efficiency. Embracing this approach provides stakeholders with insights into the interconnected nature of city logistics, fostering a sustainable and responsive supply chain. This chapter describes how spatially enabled Digital Twins can be developed to improve the performance of urban distribution systems incorporating micro-consolidation centers, loading zones, and intermodal terminals (rail and road).