“Key turning point:” Express freight giant makes biggest order for electric trucks in Australia

Australian freight giant Team Global Express has made the biggest order for electric trucks in Australia after landing a $20 million deal with the Australian Renewable Energy Agency to fund the purchase.

The deal involves the purchase of 36 medium duty electric trucks from the Swedish based Volvo Trucks and another 24 light rigid e-canter battery electric trucks from Daimler Fuso, along with the charging infrastructure for its Sydney transport base.

The purchase orders represent the biggest single electric truck order for Volvo and will be the biggest electric truck trial in Australia, if not the world.

The ARENA funds will account for nearly half of the $44 million costs of the truck and the investment in the Bungarribee parcels depot in western Sydney, which will include 63 chargers (16 Kempower 120kW fast chargers and 47 Jet Charge 22kW AC chargers).

Team Global will also install a 1MWh battery at the site, and add more rooftop solar – probably around 500kW – to the 400kW system that already exists. It will contract further grid consumption from wind and solar suppliers.

The Volvo FL Electric trucks – which will be delivered early in 2023 – will be equipped with four 66kWh battery packs for increased range and improved charging performance. The FL Electric utilises a 600-volt single motor electric drive system as well as a 2-speed automated transmission.

The trucks will be fitted with 10-pallet van bodies and will become a part of the company’s Sydney metropolitan pick-up and delivery fleet.The trucks have a gross mass of 16,000kg and a payload of 5,500kg.

The Fuso eCanter is designed for local distribution in high-density urban areas and uses six liquid-cooled lithium ion batteries with 82.8kW/h of electricity that feed a permanent magnet synchronous motor.

Team Global Express was once part of the logistics giant Toll Holdings but was sold to private equity company Allegro in September last year.

“Today is an important step toward progressing Australia’s pathway to reduce scope 1 emissions and secure a net zero future,” said CEO Christine Holgate, the former boss at Australia Post.

“This is the first project of its scale in Australian logistics, as such we are in a unique position to work closely with ARENA to share the knowledge we gain and provide this vital information for the benefit of the entire transport and logistics sector.”

The ARENA grant will help bridge the gap between the cost of battery electric trucks and diesel trucks, which in the case of these two models are two or three times more expensive.

The total spend on the project is $44 million, including charging and other site infrastructure that will help power the electric express parcels fleet based at the Sydney depot.

The 16 120kW DC fast chargers – provided by Jet Charge – will be located next to the driver canteen to allow them to be topped up during meal and drinks breaks, while the slower chargers will be used to charge the fleet overnight.

“By collaborating with ARENA (the Australian Renewable Energy Agency) we have been able to make a big commitment to making our cities better places to be and contribute to a happier, healthier society,” said Heather Bone, the director of ESG for Team Global Express

Volvo Trucks has been one of the leaders in the shift to electric heavy transport, and was the first to begin series production of heavy duty electric trucks at its Gothenburg factory in September.

“We are extremely happy to see a valued customer such as Team Global Express take such a significant step towards zero-emissions transport,” says Paul Illmer, the vice president of emerging technology business development at Volvo Group Australia.

“Importantly it’s also a show of faith in our ability to deliver electric transport solutions that are efficient, productive and dependable business solutions.

“Electromobility doesn’t have to be a compromise and ultimately, I feel we will prove this and more as these trucks take to the streets during 2023.”

It is the second major initiative from the federal government on electric vehicles in the last week, following the $20.5 million committed by the Clean Energy Finance Corporation to support discount loans for electric vehicle purchases made through Taurus Motor Finance.

ARENA CEO Darren Miller said the project is an important next step to reduce emissions from heavy vehicles and will provide valuable insights into the costs and operational aspects of transitioning the wider fleet to zero emissions vehicles.

“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,” he said.

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

Federal energy minister Chris Bowen described the deal as a key turning point in the shift to EVs – good for drivers, and good for the local community.

“I live next door to the largest industrial estate in the southern hemisphere, and I’ve seen the level of exhaust that come from delivery trucks on the highways that cross Western Sydney,” he said.

“Moving to EV trucks will be a much-welcomed step for the community. At the same time, helping businesses save money on petrol costs can facilitate expansion and growth, which means more jobs for Western Sydney.”