The eHGV Journey
TransitionWise helps logistics companies develop and execute a robust transition roadmap for their HGV fleet, its associated operation and depot infrastructure to a fully electric future, whilst managing cost and minimising risk.
Timeline
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The UK government has stated that the sale of non-zero-emission HGVs ≤ 26 tonnes will be banned from 2035, whilst those > 26 tonnes will be banned from 2040. This change will involve a significant amount of transition planning and consideration for logistics operators, hence those that start taking steps sooner rather than later will see the benefits. Those who do not may be left behind.
Cost
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Whilst HVO and other biofuels can reduce emissions for existing HGVs and provide a short-term bridge, the total cost of ownership (TCO) for electric HGVs is rapidly falling and will soon undercut diesel, especially when the right focus is put on access to low cost, reliable electricity. It all comes down to working out how best to phase the transition, bearing in mind that electric HGVs will become cheaper to own and operate than diesel ones within the next few years and for some use cases already are.
Operational Challenges
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The footprint of logistics is changing as well, with new warehouses often located in purpose-built logistics parks, close to freight terminals and the many megawatts of power required for charging vehicles.
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Whilst the deadlines are a few years away, significant consideration must be given to selection of vehicles and chargers, the design of new operational setups and their implementation. With the right advice and expertise, it is perfectly possible to select vehicles with the right capability for the duty at hand, whilst designing and implementing efficient, cost-effective infrastructure.
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Finally, integration with digital systems, to organise the movement of shipments, whilst optimising alignment of charging slots both at the depot and on the road becomes key. These are all aspects that need focus now in order to be in a competitive position as the change gathers momentum.
Opportunity
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Whilst some of the challenges may sound complex, those who work out their business case and invest sensibly in eHGV will ultimately reap the rewards. They will be in a competitive position as the shift to electric logistics picks up pace, winning business from customers who are increasingly environmentally conscious. First movers will also secure power within a stretched network and build experience operating in the new business environment.
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Ultimately there will be a tipping point where diesel HGVs will be more expensive to run and will not make sense for businesses to own or lease, thus getting in ahead of that point will enable logistics operators to build a stronger position.
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Talk to TransitionWise now and we can get you on the right track.
