Dynamic technological development is forcing modern businesses to conduct in a dynamic way and also in accordance with variable terms of doing business. All of this represents the requirement for the further existence of companies and businesses. The traditional way of business management cannot result in a success. Zagreb Holding d.o.o. (Ltd.) is one of the largest General Partnership - public enterprises in Croatia that is responsible for handling city utility services. Zagreb Holding is in possession of great material and finance resources which purpose is to offer the best service possible to the residents of the City of Zagreb and also to the legal persons that operate in Zagreb. Business processes, the logistics structure of the Zagreb Holding's subsidiaries and it's associated companies are continuously subjected to improvement in order to act faster and to achieve better finance result. This paper gives a closer view of the current state on some of the major city companies, such as Čistoća , Robni terminali d.o.o., and Vodoopskrba i odvodnja d.o.o. This paper also contains recommendations for improvements in city companies - especially, when it comes to Robni terminali d.o.o. that are being in the direct contact with real economic sector that demands services that are increasing the value of goods – more specifically, trough logistics; transportation of goods, warehousing process and insurance of goods. Nowadays logistics is understood as transportation, distribution, and trading and that goods are taking an active role in all of the stages of the process.In fact, logistics is becoming more of a multidisciplinary science that has many more technical and economic activities in its self then just transportation. The idea that Zagreb Holding was founded on, was to decrease expenses of companies that handle City Utilities of Zagreb and in the same time to ensure maximum environmental protection as well as protection of the public interests of the community.In this paper it will be explained how does subsidiariesge operate. Key Words: Development, Logistics, Transport, Distribution