Logistics firms accelerate EV adoption amid high diesel prices, but heavy trucks lag behind
Some are holding back on electrifying their heavy fleets due to the limited availability of charging infrastructure designed for larger vehicles.
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SINGAPORE: Singapore's logistics sector is accelerating its shift towards electric vehicles (EVs), with demand driven by soaring diesel prices and growing pressure from customers to reduce emissions.
While the EV adoption has increased for vans and lorries, the transition remains slower for heavy goods vehicles.
Some logistics companies say they are holding back on electrifying their heavy fleets due to the limited availability of charging infrastructure designed for larger vehicles.
SHIFTING GEARS TO GO ELECTRIC
Rising and volatile diesel prices – fuelled by recent disruptions in global energy markets – are eating into operating margins, prompting more firms to explore electric alternatives.
EV supplier Hong Seh Group told CNA that demand for electric vans, minibuses and light-duty lorries has been growing steadily.
The company, interpreting data from the Land Transport Authority, noted that such vehicles comprised about 25 per cent of all vehicle registrations last year. Just six months into this year, this figure has hit 33 per cent.
“The vehicles have gotten better,” said Mr Edward Tan, executive director of Hong Seh Group.
“(There is) more technology inside them … The safety features, which are provided within the vehicles to protect not just the passengers but also the asset of the vehicle itself, have also increased.”
The company said customers are attracted by lower running costs, with fuel savings helping to reduce operating expenses by as much as half.
“With going electric, it saves you money,” said Mr Tan, noting that the government offers incentives to support businesses making the transition.
“This helps us lower our cost of the purchase of the vehicle to that of a comparable (internal combustion engine) vehicle, and sometimes makes it even cheaper."
For logistics provider Call Lade Enterprises, cost savings were a key factor behind its decision to begin electrifying its fleet.
Its chief sustainability officer Ryan Hoo said persistently high diesel prices, triggered by the Middle East conflict that broke out in late February, have made long-term planning more difficult.
“We really do not know when this will end, and we don't know when the price will come down,” said Mr Hoo.
“For operators like us, especially in today's climate, the fuel price has hiked up, our cost planning, our operating margins have been affected quite a bit.”
But economics is only part of the equation.
Mr Hoo said more customers are demanding greener supply chains and lower carbon emissions from their logistics partners.
Companies that fail to meet these expectations risk losing business opportunities and contracts.
So far, around half of Call Lade Enterprises' van fleet runs on electricity.
LACK OF SUITABLE CHARGING INFRASTRUCTURE
The transition becomes far more challenging when it comes to heavy goods vehicles.
Industry players say the biggest obstacle remains the lack of suitable charging infrastructure.
There are currently a limited number of charging facilities capable of supporting large trucks carrying loads of more than 50 tonnes, and charging times can take up to six hours.
“We cannot afford to have downtime,” said Mr Hoo. “We cannot afford to have our truck queuing up to be charging, waiting for it to be fully charged before we commence our operations again.”
Until charging infrastructure at key logistics nodes becomes more widespread and reliable, the company said it cannot justify the operational risks involved in switching its heavy vehicle fleet to electric.
To become more self-sufficient, it is exploring plans to install more charging points at heavy vehicle parking spots over the next three to five years.
Observers believe it will take time for the heavy goods vehicle segment to catch up, but they see encouraging signs.
Advances in battery technology, for example, are already significantly extending vehicle range, they told CNA.
Association of Small and Medium Enterprises (ASME) president Ang Yuit said: “I know that there are different ministries in the government looking at high-speed charging heavy vehicle charging locations that would then help mitigate this situation.”
He also called for simpler regulatory processes to support electrification, including certifying more suppliers to retrofit equipment.
Mr Ang added that broader grants and a wider range of support schemes could further accelerate EV adoption across the logistics sector.
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