Toll Group: Investing in EVs for Australia's Green Future

The road to sustainability is a long and winding one, with a sizeable toll to pay along the way. With that in mind, Australia's Toll Group is stepping up its game with a whopping AU$67m (US$43.8m) investment in battery-electric heavy vehicles and charging infrastructure.

The group, owned by Japan Post, is making this commitment not only with the aim of slashing emissions, but with the aim of establishing itself as a leading force in the sustainable future of Australian logistics.

Toll has more than 130 years of expertise in transport, shipping and supply chain solutions and today it boasts in excess of 16,000 staff across 500 locations worldwide, operating in 150 countries and serving more than 20,000 clients.

With this new investment, Toll is set to make one of the largest corporate investments in EV technology that Australia has ever seen.

So, what kind of difference will this money make?

An electrifying expansion

The deployment of AU$67m (US$43.8m) includes the acquisition of 28 battery-electric heavy vehicles, trucks that are used for logistics. As well as that, at least 30 new charging stations are set to be installed across eight customer sites, as well as at two of Toll's own facilities.

New additions to the fleet will include 10 Volvo FM electric prime movers and 18 Volvo FE electric rigid trucks, with an upfront capital commitment of AU$20.3m (US$13.3m).

The Australian Renewable Energy Agency (ARENA) is also making strong contributions, injecting AU$9m (US$5.9m) into the project through its Driving the Nation Programme. This fund is going to cover a pretty substantial part of the additional costs necessary in upgrading to electric.

The collaboration between Toll and ARENA are indicative of the team effort it's going to require to decarbonise the logistics sector, so these are encouraging developments.

“The funding from ARENA supports an important part of our broader strategy to optimise the environmental sustainability of our operations," says Alan Beacham, Managing Director of Toll Group.

"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.”

The criticality of strategic partnerships in the sustainable transition

This transition to a battery-electric fleet is not only going to help Toll's own pursuit of net zero, but its clients as well.

These clients - including Coca-Cola Europacific Partners, Woolworths, Bluescope and Origin Energy - will all feel the benefit of Toll's investment on their Scope 3 ledgers.

With this new investment, Toll is set to become Australia’s largest operator of battery electric heavy vehicles within the logistics sector. The rollout is slated to begin in February 2025 and it's expected to reduce Toll's fleet emissions by 1,810 tonnes of CO2 yearly.

This move is part of a larger initiative to address the emissions associated with the transport sector, which accounts for about 20% of Australia's total CO2 emissions.

ARENA CEO Darren Miller is keen to highlight the importance of decarbonising the sector. He 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.”

As the demand for logistics and transport services rises, the necessity of electrifying heavy-duty transport becomes increasingly urgent.

Building robust infrastructure

This project is not only about transitioning to an electric fleet but also about understanding the real world logistics implications of doing so; Toll is looking at the bigger picture.

The group is aiming to gather and analyse data on energy needs, charging requirements and operational logistics related to battery-electric heavy vehicles, which should give their project a more holistic form of sustainability.

Route planning, payloads and duty cycles will all be meticulously monitored in this process, as Toll looks to optimise the use of its vehicles.

Despite the advancement in heavy vehicle battery electric technology, challenges remain such as high upfront costs, issues with charging technology and infrastructure, and a lack of real operational data.

Darren notes that 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 plans to collaborate with RMIT University to evaluate this project comprehensively. The results will be compiled in a report that will provide valuable insights for other logistics and transport companies, encouraging broader adoption of low-emission vehicles across the sector.

As the logistics industry in Australia strides towards lower emissions, Toll’s proactive approach exemplifies the industry's potential for sustainable growth in a world that's increasingly aware of its carbon footprint.

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