An automated storage and retrieval system includes a plurality of storage container handling vehicles. Each vehicle includes a vehicle body, a thereto connected wheel assembly configured to guide the vehicle along the track system, a container picking device for releasably attaching to a storage container, which include one or more arms. The configuration of the container picking device is such that it is movable between a first lifting position enabling the container picking device to lift at least one storage container from a position outside the horizontal extent of the vehicle body and a second transport position enabling the container picking device to hold the at least one storage container at least partly inside the horizontal extent of the vehicle body.