Logistics company to receive $20 million for electric truck fleet

LOGISTICS company Team Global Express is to receive more than $20 million in funding for 60 new electric trucks.

The Australian Renewable Energy Agency (ARENA) committed $20.1 million to the vehicle electrification project on behalf of the Australian government.

ARENA’s Depot of the Future project aims to integrate battery electric vehicles within Global Express’ transport and logistics operations.

The funding is expected to cover the deployment of 60 battery electric delivery vehicles and charging infrastructure within the logistics company’s Express Parcels fleet at a Western Sydney depot.

ARENA CEO Darren Miller said he expects the project to provide insight into the costs and operational aspects of transitioning Global Express’ wider fleet to zero-emissions vehicles.

“Importantly, our goal is for the heavy vehicle industry to learn from this project as others consider their transition pathway,” Mr Miller said.

“Operating a fleet of battery electric heavy vehicles will help to address some of the key barriers to adoption, including overcoming the higher upfront purchase price, and uncertainty of integrating electric vehicles into existing operations at scale.

“Understanding these barriers will help to build market confidence around EV technology and show that the transition to heavy electric vehicles is possible.”

Christine Holgate, group CEO of Team Global Express, said the trial would enable employees to be trained to charge, drive and optimise electric vehicles. She thanked ARENA for the opportunity.

“I am proud Team Global Express was chosen after an extensive process was undertaken by ARENA, throughout which they have been incredibly supportive,” she said.

“As part of the trial we will be working closely together to share the knowledge we gain and we look forward to providing this vital information for the benefit of the transport and logistics sector.”

The overall Depot of the Future project costs $44.3 million. ARENA’s contribution adds Team Global Express’ own $24.2 million investment in the project.

It includes the purchase and operation of 24 Daimler Fuso eCanters (light rigid vehicles), 36 Volvo eFLs (medium rigid vehicles) and charging and site infrastructure to enable vehicle integration into the depot.

ARENA said the project would generate insights on the impact on fleet management, delivery routing and infrastructure requirements when a large fleet electrifies a material proportion of its operations.

Team Global Express expects to start receiving the electric vehicles from early 2023, over an 18 month period.

Team Global Express was called Toll Global Express until September this year, when it announced it would drop the Toll branding.

Private equity company Allegro Funds acquired Toll Global Express from Japan Post – the parent company of Toll Group – in September 2021.