Toll Group: AU$67m Heavy Electric Fleet Secures Green Future
Toll Group is making significant strides in its decarbonisation journey, with a substantial AU$67m (US$43.8m) investment in battery electric heavy vehicles and charging infrastructure.
This move not only aims to reduce emissions drastically but also positions the company as a frontrunner in pushing Australia's logistics into a more environmentally friendly era.
With a storied history spanning more than 130 years in the transport, shipping and supply chain sectors, Toll continues to innovate. Employing more than 16,000 individuals across 500 locations worldwide, this subsidiary of Japan Post now serves more than 20,000 clients in 150 countries.
Its move in fleet electrification represents one of the largest corporate endorsements of EV technology within Australia's heavy transport sector and is very much aligned with Toll's commitment to environmental responsibility in logistics.
Transforming Toll's fleet
The investment includes plans for 28 advanced battery electric heavy vehicles and plans to establish no fewer than 30 charging stations across eight client sites and two of Toll's own facilities.
The expansion includes 10 Volvo FM electric prime movers and 18 Volvo FE electric rigid trucks, with a direct capital layout of AU$20.3m (US$13.3m).
This initiative is significantly bolstered by a AU$9m (US$5.9m) contribution from the Australian Renewable Energy Agency (ARENA) through its Driving the Nation Programme.
This funding highlights a shared commitment to decarbonising the logistics chain between Toll and ARENA.
Alan Beacham, Toll's Managing Director, says: “The funding from ARENA supports an important part of our broader strategy to optimise the environmental sustainability of our operations and we’re delighted to be supporting our customers through a shared commitment to decarbonising their supply chains without needing to rely solely on carbon offsets.”
Partnerships help reduce carbon footprints
The incorporation of this new battery electric fleet will mainly support third-party logistics for prominent clients including Coca-Cola Europacific Partners, Woolworths, Bluescope and Origin Energy.
With this move, Toll is set to become the largest operator of battery electric heavy vehicles within Australia's third-party logistics sector.
The expected rollout commencing next February aims to cut Toll’s fleet emissions by 1,810 tonnes of CO₂ every year.
The venture is a broader part of combating emissions from the transport sector, which is accountable for nearly 20% of Australia’s total CO₂ discharge.
ARENA CEO Darren Miller says: “Transport accounts for about one-fifth of Australia’s CO₂ emissions, with heavy vehicles a significant share of the transport emissions pool, emphasising why ARENA is focusing in this area of greatest impact.”
Electrification of heavy-duty transport is vital as demand for logistics and transport services continues to grow.
Building supportive infrastructure
Toll is also meticulously planning to provide actionable data on the usage realities of a battery electric fleet in typical logistic settings.
The efforts go beyond solely reducing emissions; they are critical in understanding energy needs, charging requisites and the logistical nuances of operating battery electric heavy vehicles.
Operational factors such as route planning, payloads and duty cycles will be under rigorous assessment.
Our Australian fleet is undergoing a major transformation. While we’re committed to electrification, we’re also investing more than AU$200m (US$130.6m) to upgrade 25% of our fleet with more fuel-efficient vehicles, delivering emissions reductions of 5-10%.
Fully transitioning to electric isn’t feasible overnight, but by combining electrification with these more efficient models, we’re doing everything we can to reduce our environmental impact and support our customers.
Darren also points out that although the heavy vehicle market for battery electric technology has advanced significantly in recent years, there are still “significant hurdles including upfront costs for operators, challenges with charging technology and infrastructure, as well as the lack of real-world data”.
Toll intends to take these challenges head-on, providing a model for others in the industry to follow.
The company is also partnering with RMIT University to evaluate project outcomes, aiming to share valuable insights through a published report which promises to aid other logistics and transport firms looking towards electrification.
As the Australian logistics industry progresses towards addressing its carbon footprint, Toll is undoubtedly leading the charge towards sustainable development in a world increasingly aware of carbon impact.
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