Last mile delivery provider ANC has partnered with ORIX to provide their contractors with a model which is making them to be the first wave of delivery drivers with electric commercial vehicles.
Speaking at an event in Sydney during November, Joe Sofra, CEO at ANC Delivers, challenged other logistics businesses to step up and prioritise the electrification of their fleets. He said that partnerships with like-minded customers and suppliers will allow them to overcome the real and perceived barriers to electric vehicle adoption.
“Our model is predicated on a flexible and scalable fleet of delivery professionals, which is why it’s imperative that we give due consideration to their economic engine and to address their concerns,” said Sofra.
“Our partnership with ORIX seeks to improve access to EVs on a capital-light basis, and demonstrate that the cost to adopt EVs versus brown becoming more comparable.”
“In the past 12 weeks, we’ve introduced eight new electric vehicles into our fleet. And it now means we have 10 working electric vehicles, four trucks, four vans, and two Tuk Tuks. And that is just the start.”
“Our own EV journey was sparked by our relationship with one of our customers IKEA, which has a global goal to provide all of its customers with zero emissions deliveries by 2025. And that makes sense. Fleet electrification is the perfect match for our industry.
“EVs are ideal in cities and stop and go situations. They reduce air and noise pollution. And they have lower maintenance costs, which means significant cost savings over the fleets working life. But most critically, they help address the demand by consumers and communities for more sustainable options.
“Getting sustainable vehicles on the road is our primary focus. With our sights set firmly on other adjacencies that could also accelerate that transition to a low carbon environment. We are not yet a green organisation. But we are serious about leading the sector to act on zero emissions.
“It can’t be denied that there are various challenges to achieving this vital milestone, particularly the provision of charging infrastructure and the supply of vehicles. And the economics are perfectly aren’t structured yet. But that shouldn’t prevent action. That’s why it’s important to have the buy in of governments and to forge strong partnerships with like minded companies, like we have with IKEA.
“We don’t want to sit idly by and wait for the perfect economic environment to accelerate our EV goals. We could end up missing the boat, or in this case, the truck, van or Tuk Tuk.
Reggie Cabal, CEO at ORIX, also spoke at the event. He indicated that many businesses in Australia are keen to progress with electric vehicles and decarbonise their operations. Though the lack of light duty and heavy duty electric commercial vehicles in the market means many are in a holding pattern while they come to terms with the operational and infrastructure issues that a fleet of EVs will bring.
“There are still many challenges, and cost is always at the forefront. However, we are embracing newer, more flexible solutions that allow our partners like ANC to benefit from a capital-light model to allow zero emission assets in a low risk environment, setting themselves up for the smooth transition to EV if they choose,” explained Cabal.
“To help customers achieve this, we work with them to create a bespoke opportunities in experiencing the operational practicalities of this new technology in your fleet. This allows customers to pretty much take an e-trial to test and assess the operational practicalities of EVs and hybrid vehicles in real life in their business operations.
“This approach helps mitigate the key issues of access to stock, range anxiety, driver acceptance and cost of entry in order to help inform how humans can work with businesses throughout the life.
“The practical application of experience in EVs in your operation is critical, as opposed to the theoretical application. And that’s why the steps that help ANC introduce a SEA battery electric pantec truck otherwise known as BESTe, into their fleet for their customer is so vital.
“Taking action to decarbonise our fleet and help customers on the same journey is very important. And partnering with like-minded organisations will certainly help overcome barriers, and create greener, more sustainable outcomes. It benefits everyone. That’s where ORIX can help in a partnership with ANC in as proof of work can be achieved.”
