Cargo bikes are undergoing a renaissance in Germany as companies attempt to battle city congestion and pollution.

The bikes were popular at the start of last century before the car dominated transport, and in the past five years they have regained popularity as a means of moving light freight.

The German government wants to see more freight moved by cargo bike instead of truck or car and spends more than 80 million euros every year supporting cycling infrastructure.

Transport ministry spokeswoman Birgitta Worringen says more than three-quarters of all journeys in Germany are less than 10 kilometres and cargo bikes can deliver all sorts of uses.

"It's a good means of transport which doesn't make any noise or pollution," she said.

To that end the government supported a 100,000-strong conference in Hamburg last year using cargo bikes for promotion and catering.

Ms Worringen says afterwards the transport ministry developed a guide.

"I think Australia, you also have big events you can use this guide also to take some examples," she said.

Logistics company UPS is on board and is using cargo bikes for deliveries in six German cities.

Spokesman Lars Purkarthofer says the cost is similar to trucks, but cargo bikes come into their own in the "last mile" of delivery.

"This is back to our roots, a concept we recently deployed in order to address congestion issues in town centres and take our part in terms of responsibility for sustainable practices," he said.

But it is not all easy riding.

"One very common challenge is to organise the process in a sound way. You need a parking spot for a truck or container, then takeover volume you deliver by bike. You cannot drive from outside the city to city centres," Mr Purkarthofer said.

Cargo bike promoter Christoph Schulz says there are also problems with bicycle infrastructure.

"Some cycle paths are quite narrow. There is a space problem - not only on bike paths but where to put your bicycle at home or when you get to the company," he said.

Business and government will need to pedal harder if cargo bikes are to ride their way into the mainstream.