ICONET will explore and create innovative Physical Internet (PI) network services that optimise cargo flows against costs and environmental performance. The project will be based on Governance policies and Service Level Agreements (SLAs) and constantly and fully aware of network operations and status. ICONET will create a proof of concept that would allow PI analysis and experimentation and serve as a reference for future PI operations supporting open hyperconnectivity, governance, audit trail, e-Commerce, and end-to-end tractability for all aspects of the logistics chain. The concept will be deployed in 4 Living Labs designed to validate PI Capabilities and recognise quantifiable and measurable efficiency in best route calculations, end-to-end “packet” flow through the logistics chain, and global pipeline efficiency. ICONET's results will be available in the form of easily deployable cloud services based on open and non-proprietary technologies, a PI Reference Architecture based on open standards and a Demonstrator PI Case Study enabling interested parties to analyse key PI scenarios.