diff --git a/kiwi/system/uri.py b/kiwi/system/uri.py
index 996aebe1..b9b95cbc 100644
--- a/kiwi/system/uri.py
+++ b/kiwi/system/uri.py
@@ -46,7 +46,7 @@ class Uri(object):
         URI, repository location, file
 
     * :attr:`repo_type`
-        repository type name, rpm-dir, rpm-md, yast2
+        repository type name, rpm-dir, rpm-md, yast2, container
 
     * :attr:`mount_stack`
         list of mounted locations
@@ -73,7 +73,8 @@ class Uri(object):
             'iso': True,
             'dir': True,
             'file': True,
-            'suse': True
+            'suse': True,
+            'obsrepositories': True
         }
 
     def translate(self):
@@ -99,6 +100,12 @@ class Uri(object):
             return self._obs_project(
                 ''.join([uri.netloc, uri.path])
             )
+        elif uri.scheme == 'obsrepositories':
+            return self._suse_buildservice_path(
+                name=''.join([uri.netloc, uri.path]),
+                fragment=uri.fragment,
+                urischeme=uri.scheme
+            )
         elif uri.scheme == 'ibs':
             return self._ibs_project(
                 ''.join([uri.netloc, uri.path])
@@ -111,7 +118,9 @@ class Uri(object):
             return self._iso_mount_path(uri.path)
         elif uri.scheme == 'suse':
             return self._suse_buildservice_path(
-                ''.join([uri.netloc, uri.path])
+                name=''.join([uri.netloc, uri.path]),
+                fragment=uri.fragment,
+                urischeme=uri.scheme
             )
         elif uri.scheme == 'http' or uri.scheme == 'https' or uri.scheme == 'ftp':
             return ''.join([uri.scheme, '://', uri.netloc, uri.path])
@@ -210,15 +219,29 @@ class Uri(object):
             )
         return obs_distribution
 
-    def _suse_buildservice_path(self, name):
+    def _suse_buildservice_path(self, name, urischeme, fragment=None):
         """
         Special to openSUSE buildservice. If the buildservice builds
         the image it arranges the repos for each build in a special
         environment, the so called build worker.
         """
-        return self._local_path(
-            '/usr/src/packages/SOURCES/repos/' + name
-        )
+        bs_source_dir = '/usr/src/packages/SOURCES'
+        if self.repo_type == 'container':
+            if urischeme == 'obsrepositories':
+                local_path = os.sep.join(
+                    [bs_source_dir, 'containers/_obsrepositories', name]
+                )
+            else:
+                local_path = os.sep.join(
+                    [bs_source_dir, 'containers', name]
+                )
+            if fragment:
+                local_path = ''.join([local_path, '#', fragment])
+        else:
+            local_path = os.sep.join(
+                [bs_source_dir, 'repos', name]
+            )
+        return self._local_path(local_path)
 
     def __del__(self):
         for mount in reversed(self.mount_stack):
diff --git a/kiwi/xml_state.py b/kiwi/xml_state.py
index 313b02c8..9cf69c1f 100644
--- a/kiwi/xml_state.py
+++ b/kiwi/xml_state.py
@@ -19,6 +19,7 @@ import re
 import copy
 import platform
 from collections import namedtuple
+from six.moves.urllib.parse import urlparse
 
 # project
 from . import xml_parse
@@ -1129,30 +1130,32 @@ class XMLState(object):
 
     def translate_obs_to_ibs_repositories(self):
         """
-        Change obs:// repotype to ibs:// type
+        Change obs repotype to ibs type
 
         This will result in pointing to build.suse.de instead of
         build.opensuse.org
         """
         for repository in self.get_repository_sections():
             source_path = repository.get_source()
-            if 'obs://' in source_path.get_path():
+            source_uri = urlparse(source_path.get_path())
+            if source_uri.scheme == 'obs':
                 source_path.set_path(
-                    source_path.get_path().replace('obs://', 'ibs://')
+                    source_path.get_path().replace('obs:', 'ibs:')
                 )
 
     def translate_obs_to_suse_repositories(self):
         """
-        Change obs:// repotype to suse:// type
+        Change obs: repotype to suse: type
 
         This will result in a local repo path suitable for a
         buildservice worker instance
         """
         for repository in self.get_repository_sections():
             source_path = repository.get_source()
-            if 'obs://' in source_path.get_path():
+            source_uri = urlparse(source_path.get_path())
+            if source_uri.scheme == 'obs':
                 source_path.set_path(
-                    source_path.get_path().replace('obs://', 'suse://')
+                    source_path.get_path().replace('obs:', 'suse:')
                 )
 
     def set_repository(self, repo_source, repo_type, repo_alias, repo_prio):
@@ -1504,7 +1507,7 @@ class XMLState(object):
         """
         derived_image = self.build_type.get_derived_from()
         if derived_image:
-            return Uri(derived_image)
+            return Uri(derived_image, repo_type='container')
 
     def _used_profiles(self, profiles=None):
         """
diff --git a/test/unit/system_uri_test.py b/test/unit/system_uri_test.py
index 520f885c..7f9eef9f 100644
--- a/test/unit/system_uri_test.py
+++ b/test/unit/system_uri_test.py
@@ -131,6 +131,16 @@ class TestUri(object):
         assert uri.translate() == \
             '/usr/src/packages/SOURCES/repos/openSUSE:13.2/standard'
 
+    def test_translate_suse_buildservice_container_path(self):
+        uri = Uri('suse://project/repo/container#latest', 'container')
+        assert uri.translate() == \
+            '/usr/src/packages/SOURCES/containers/project/repo/container#latest'
+
+    def test_translate_buildservice_obsrepositories_container_path(self):
+        uri = Uri('obsrepositories:/container#latest', 'container')
+        assert uri.translate() == \
+            '/usr/src/packages/SOURCES/containers/_obsrepositories/container#latest'
+
     @patch('kiwi.system.uri.MountManager')
     @patch('kiwi.system.uri.mkdtemp')
     @patch('kiwi.system.uri.Path.wipe')