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financing options that extend up to ten years.
The discussion then turned to the state of refrigerated vehicles in South Africa. Kelly of the RFA was asked if any efforts had been made to establish the number of refrigerated vehicles registered and operating in the country. The response revealed a gap in data:“ We don’ t know how many refrigerated trucks are out there.” He explained that while strict controls exist for vehicles leaving the country, tracking the vehicles on local roads remains challenging.
Kelly pointed out that the NaTIS database provides some insights, as it includes information on vehicle registrations. However, many refrigerated vehicles may not be identifiable if they are classified merely as closed body trucks without specific refrigeration tags. The complexity of tracking also stems from the fact that refrigeration units are often treated as part of the load rather than the vehicle itself.
The RFA is exploring various energy alternatives to fossil fuels, particularly diesel.“ The reality is that diesel will not disappear in the next five years. In fact, internal combustion engines will likely remain a fixture for another 20 to 25 years. This extended reliance on diesel is accompanied by advancements in emissions standards, moving from Euro 5 to Euro 6 engines, which aim to reduce noxious gases but still grapple with carbon emissions.”
When discussing the present capabilities of electric trucks, Kelly emphasised the limitations.“ Currently, electric vehicles available in South Africa lack the torque and power required to transport loads of 56 tons or more. The available electric trucks are capped at 46 tons, which includes the weight of the vehicle, trailer and payload. Additionally, the size of the batteries can alter the vehicle’ s length, complicating compliance with legal load combinations.”
Moreover, the cost of electric trucks presents a significant barrier to adoption.“ Today, an electric vehicle can cost three
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times as much as a diesel counterpart,” Kelly noted, highlighting that in addition to the vehicle purchase, operators must also invest in charging infrastructure.“ If you plan to drive beyond 300km, you’ ll need to install charging stations at your departure point and potentially every 300km along your route,” he added.
“ If you drive from Johannesburg to Durban, there are eight fuel stations but only one charging station at Harrismith, which is limited to an eight-hour charging time. This lack of accessible, efficient charging options poses a barrier for freight operators looking to adopt electric vehicles.”
Kelly pointed out that the logistics of charging electric trucks remain a challenge.“ Charging stations are costly— around R2.5 million each— and they require a high power supply. If a truck is on an eight-hour trip to Durban, it will need an equivalent charging time, which creates significant downtime,” he stated. This reality makes long-distance travel with electric trucks impractical at the moment.
EXPLORING ALTERNATIVE SOLUTIONS
The RFA is not solely focused on electric vehicles. Kelly mentioned ongoing research into hydrogen vehicles and recent explorations in various countries.“ We have sent teams to the US, Europe and Australia to investigate emerging technologies,” he said. Despite recent developments in hydrogen-powered engines, he noted that they are not yet seen as the definitive solution for the freight industry.
He emphasised the ongoing research into what is needed for a successful transition, including the timeframe and costs associated with swapping traditional vehicles for electric ones.“ The banks are also involved in this research, assessing the viability of different energy options,” he added.
“ There isn ' t a one-size-fits-all solution. There are multiple alternative energy options being considered, and we must look at all of
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them,” he stated. He warned against singling out any particular manufacturer or technology, as the industry is still in the exploratory phase.
“ Short-haul operations are seeing success with electric vehicles, especially for lighter loads. In contrast, the heavier loads required for long-haul trucking still necessitate the torque provided by diesel engines. As technology advances, we expect more reliable and affordable options to emerge, but for now diesel remains essential for heavier freight,” he added.
The discussion highlighted both short-term and long-term opportunities for integrating electric vehicles into logistics. The panel pointed out that significant progress is being made in the last-mile delivery space, where two- and three-wheeled electric vehicles are becoming increasingly prevalent.“ Logistics partners who are ahead of the curve are already taking advantage of these quick wins.”
A central theme of the discussion was the pressing need for decarbonisation.“ Commitments towards 2030, 2040 and 2050 regarding scope one, two and three emissions are driving the conversation,” Tahinduka said. With increasing pressure from stakeholders to align with sustainability goals, the logistics sector is urged to reevaluate its carbon emissions and sustainability strategies.
The panel concluded that while the shift to electric vehicles and alternative energy sources presents challenges, it also offers numerous opportunities for innovation and improvement in the logistics industry. By taking advantage of quick wins and planning for the future, stakeholders can work towards a more sustainable and efficient transportation ecosystem.
Tahinduka also discussed the growing importance of carbon credits and the bank ' s establishment of a carbon trading platform. This initiative connects carbon asset owners
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While strict controls exist for vehicles leaving the country, tracking the vehicles on local roads remains challenging.
with offtakers, catering to the increasing demand for long-term carbon credits contracts. He noted that different assets can command varying prices in the global market, presenting a significant opportunity for businesses to capitalise on their sustainability efforts.
The burgeoning market for carbon credits presents financial incentives for companies adopting sustainable practices.“ There is a lot of carbon credit trading happening, particularly under Article Six, where countries align on carbon credit transactions,” explained Tahinduka. This alignment opens up new opportunities for funding and support, allowing logistics companies to benefit financially while reducing their carbon footprint.
He also highlighted their commitment to facilitating access to low-interest financing for green initiatives.“ If we can tap into concessional funding, we can pass those savings down to our customers. This trickledown effect is crucial for making electric vehicle adoption more financially viable for logistics operators.” CLA
All images by Freepik
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