Team Global Express will use the low-cost finance to deploy more than 300 assets, including light, medium and rigid battery electric trucks, courier vans, hybrid refrigerated trucks and mobile charging unit infrastructure across sites in Melbourne, Sydney and Queensland over the next three years.
The Clean Energy Finance Corporation (CEFC) finance will make significant inroads in the emissions profile of what is considered one of Australia’s hardest to abate sectors, heavy transport, and will also support Team Global Express customers in reducing the Scope 3 emissions associated with their transport needs.
“As a nation heavily reliant on logistics and heavy transport, we face an urgent need to decarbonise our transport supply chain network to ensure we don’t get left behind globally. Freight and logistics play an essential role in the everyday life of all Australians, and our economy depends on transport to keep it moving,” CEFC Chief Executive Officer Ian Learmonth said.
The CEFC commitment is part of a broader $190 million lending facility with commitments from leading Australian and international financiers including Commonwealth Bank Australia, IFM Investors, Daimler Trucks Financial Services, and Income Asset Management.
“Transport emissions account for 21% of all emissions in Australia, and as our economy continues to decarbonise, transport is likely to become the largest sources of emissions by 2030,” Learmonth said.
“We know that international jurisdictions are already moving to electrify their vehicle fleets, As a nation heavily reliant on logistics and heavy transport, we face an urgent need to decarbonise our transport supply chain network to ensure we don’t get left behind globally. Freight and logistics play an essential role in the everyday life of all Australians, and our economy depends on transport to keep it moving.”
“The CEFC concessional finance is helping lower one of the significant barriers to the wider take up of electric trucks – upfront vehicle costs – which means this investment will bring an unprecedented number of new electric trucks onto our roads, replacing emissions-intensive internal combustion engines.”
Team Global Express Group CEO Christine Holgate said: “Team Global Express is pleased to work with the CEFC as we embark on the further electrification of our vehicle fleet.
“Team Global Express operates across all four transport modes of air, road, rail and sea, and this funding will allow us to further integrate our leading Australian network and introduce products and services that our customers across Australia will benefit from.
“We know our long-term success is dependent on our ability to operate sustainably, adapt to changing conditions, and partner across the supply chain to strengthen our focus on ESG. Our mission is to be Australia’s most sustainable national logistics solutions partner.”
The CEFC investment builds on a joint Team Global Express and ARENA Depot of the Future project to assess the impact on fleet management, delivery routing and infrastructure requirements when a large fleet electrifies a material proportion of its operations.
Rory Lonergan, CEFC CIO – Infrastructure and Alternatives added: “The need for electrification of road transport goes beyond cars. Without decarbonising the wider transport sector, we will not be able to reach our net zero targets by 2050. As a key industry player in this sector, the leadership demonstrated by Team Global Express to decarbonise its business has the potential to significantly accelerate the uptake of electric trucks in Australia, setting an example for other freight, logistics and fleet businesses to support the take up of battery electric vehicles.”
While heavy vehicles make up only approximately 4% of the road vehicle fleet, they account for 25% of all road transport fuel consumed in Australia, with light commercial vehicles, trucks and buses accounting for around 8% of Australia’s total greenhouse emissions.
There are more than 1 million registered heavy vehicle units in Australia, with road transport the dominant form of freight for the majority of commodities produced and/or consumed in Australia, forming an essential part of Australia’s supply chain.
The higher upfront costs of electric trucks can be double the cost of diesel equivalents. However, the electrification of articulated and rigid trucks could save Australia some $233 billion in costs associated with air pollution, greenhouse gas emissions, noise and water pollution by 2050.
The CEFC has committed more than $62 million to the electrification of Australia’s vehicle fleet, helping finance more than 5,500 electric vehicles. Together with third party capital, this has helped deliver new investment exceeding $400 million.
Notable CEFC investment commitments include helping finance Australia’s first electrified bus fleet and increasing EV infrastructure with backing for JETCharge. CEFC capital is also contributing to an Ark Energy initiative to decarbonise heavy transport.
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