Toll Group has announced it will put $67 million AUD (approx. €41.2 million) into the rollout and running of 28 battery electric heavy vehicles.
The investment, which will also include the establishment of 30 new charging ports across eight customer sites and two Toll facilities, is part of the company’s commitment to decarbonising its transport logistics operations.
The Australia-based global logistics company will add 10 Volvo FM electric prime movers and 18 Volvo FE electric rigids to its fleet, with an upfront capital expenditure of $20.3 million.
Australian Renewable Energy Agency (ARENA) has committed $9 million to the project under its Driving the Nation Program, representing a significant portion of the incremental cost between acquiring and operating electric versus diesel vehicles.
Toll Group Managing Director, Alan Beacham, said the project was one of the largest corporate investments in heavy electric vehicles in Australia, putting Toll at the forefront of the country’s logistics decarbonisation efforts.
“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,” he said.
“We’re excited at the prospect of expanding electrification across a larger portion of our fleet over time.”
The fleet of battery electric vehicles will be integrated into Toll’s third-party logistics operations. The roll-out with customers is expected to commence from February next year and is projected to abate 1,810 tonnes of CO2 emissions per annum from Toll’s total fleet emissions.
ARENA CEO, Darren Miller, said the heavy transport sector has an important role to play in reducing the environmental impact of moving goods.
“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,” he said.
“We know that customer demand across different modes of transport will continue to increase, with the transport sector expected to become Australia’s largest source of emissions by 2030.”
The project will provide critical insights into the integration of electric trucks within Toll’s logistics operations, including energy requirements for charging and operational considerations such as route planning, payload and duty cycle management.
In other news, DHL has announced the opening of its first fully automated warehouse in Poland.