Last-mile delivery specialist ANC has snared $12.8 million in funding from the Australian Renewable Energy Agency (ARENA) to accelerate electrification of its vehicle fleet.
Over the next two years “Project Spark”, at a cost of $37 million, will spearhead deployment of 112 electric vehicles and charging stations across Australia, making significant progress towards the company’s goal of electrifying 30 per cent of its last-mile delivery fleet by 2028.
The Bella Vista, NSW-based company – which manages a network of owner-drivers to provide last-mile delivery services to some of Australia’s most iconic retail brands, including IKEA, JB HI-FI, The Good Guys, Bunnings, Who Gives A Crap, Temple and Webster, and William Sonoma – already has 27 EV’s in its fleet as part of a test and learn program, including a mix of electric Pantech trucks, LDV vans and tuk tuks.
Under its contract with IKEA, ANC – along with All Purpose Transport in Queensland and King’s Transport in NSW – is required to transition to zero-emissions delivery by 2025.
ARENA CEO Darren Miller says “Project Spark” marks its first foray into last-mile delivery and builds on the agency’s investments in the electrification of road freight and logistics, buses and ports.
“The breadth of innovation in ‘Project Spark’, across both supply and demand-side measures, is commercially astute, practically workable and very exciting,” he says.
“It promises to kick-start a step change in electrifying LMD in Australia by lowering the total costs to own and run electric trucks, which in turn boosts the numbers of zero-emission vehicles on our roads.
“The project demonstrates use cases for BEV trucks in LMD operations, tackling constraints that have so far made it hard for the industry to transition away from internal combustion engine vehicles.
“Ultimately, this project is about educating owner-drivers and countering the misperceptions out there. We are confident that the future for a low-emissions LMD industry is in BEVs.”
Currently, owner-drivers considering BEV trucks face higher capital costs, limited access to charging infrastructure, costly and complex private charging options, and constrained revenue potential.
ANC designed “Project Spark” to leverage commercial and technological levers to lower the total cost of ownership (TCO) of BEV trucks for owner-drivers, supported by a range of partners including CarBon, Origin, SpotLumos and others.
The company’s proposal to offer discounted trucks with leasing options, improve battery-charging and vehicle-utilisation models, and unlock new revenue streams aims to resolve these challenges.
On the supply side, ANC’s negotiations with vehicle manufacturers, its review of owner-driver contracts, and improved leasing terms translate into longer contracts for owner-drivers who can then lease discounted BEV trucks at lower interest rates and smaller repayments.
To further accelerate the switch to BEVs, ANC will also incentivise drivers to make the switch from ICE to a BEV truck through a range of incentives designed to cover the TCO gap.
For “green” revenue, ANC will offer consumers and clients the option of paying a “green upcharge”, like buying carbon offsets with airline tickets, for a guaranteed sustainable delivery.
ANC clients can also divert advertising spend to pay for allocated delivery trucks to be wrapped in their livery for “brand carry”.
To unlock another revenue stream, ANC will assess deploying BEVs for overnight and night-time deliveries in residential areas, a service previously limited due to the noise of diesel engines.
ANC CEO Joe Sofra says this ARENA grant is a vote of confidence in the company’s vision for a “cleaner, greener future”.
“With this support, we will expedite the deployment of battery-electric vehicles, reducing emissions and leading the charge towards a zero-emissions delivery ecosystem.
“We are poised to make a substantial impact on the market, and more importantly, on the environment. We thank ARENA for their support in helping ANC drive this pivotal shift in the industry.”
Recognising the need for the right operational infrastructure, ANC’s EV roll-out program will also include installation of 112 charging stations to power the fleet. This strategic charging infrastructure will be used to support day-time operations and ensure optimal vehicle uptime and reliability.
ANC Chief Growth and Sustainability Officer, Mo Abbas, adds: “Our commitment to lead the energy transition transcends fleet conversion and includes a pursuit to find innovative ways to solve urban gentrification challenges, overcoming resistance to change and routing for the shortest possible route to customer to reduce carbon emissions.”
Related story: Creative Thinking Puts IKEA On Track To Net Zero
HVIA Seeks Workforce Development Group Volunteers
HVIA is calling for volunteers to join a new working group targeted at skills, workforce development and training. In recent…
Previous Article
NHVR Release Tipper Code Updates, Rollout Timetable
The National Heavy Vehicle Regulator has revealed the staged implementation dates for the revised J4 Tipper Body Design Code. The…
Next Article