New Funding Deal Electrifies TGE Transition

Team Global Express has secured $190 million in low-cost finance to accelerate electrification of its operations, including deployment of more than 300 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 funding has been committed by a range of lenders, including the Clean Energy Finance Corporation (CEFC), Commonwealth Bank, IFM Investors, Daimler Trucks Financial Services and Income Asset Management.

CEFC CEO Ian Learmonth says the funding 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.

“Transport emissions account for 21 per cent of all emissions in Australia, and as our economy continues to decarbonise, transport is likely to become the largest sources of emissions by 2030,” he says.

“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 can be double the cost of diesel equivalents) – 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 says the funding will allow the company to further integrate its leading Australian network and introduce products and services that our customers across Australia will benefit from.

TGE’s ‘Depot of the Future’ project will see nearly one-third of the fleet at its depot in Bungarribee in western Sydney transition to electric trucks

“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.

At a cost of $44.3 million, the jointly funded project will see nearly one-third of the fleet (36 Volvo FLs and 24 Fuso eCanters) at its depot in Bungarribee in western Sydney transition to electric trucks.

The landmark project has also required heavy investment in charging infrastructure, including 47 slow chargers and 16 fast chargers.

Rory Lonergan, CEFC CIO – Infrastructure and Alternatives, says 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 four per cent of the road vehicle fleet, they account for 25 per cent of all road transport fuel consumed in Australia, with light commercial vehicles, trucks and buses accounting for around eight per cent of Australia’s total greenhouse emissions.

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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