PETALING JAYA: The electrification of freight transport in the country took another baby step forward when Nestle Malaysia used an electric lorry to move ingredients from its plant in Negri Sembilan to Singapore, marking the start of cross-border logistics handling heavy loads without using any diesel.

In collaboration with Nestle Malaysia’s key partners – Swift Haulage Bhd and Trumas Damai Freight Sdn Bhd, Shell Malaysia and Volvo Trucks – and supported by the Transport Ministry and Road Transport Department, this initiative entails the usage of electric lorries to transport Milo ingredients between its Chembong factory in Negri Sembilan and the company’s facility in Jurong, Singapore.

“By covering 280km per trip and with an average of 1,750 trips annually, this groundbreaking initiative has the potential to reduce carbon emissions by some 1,000 tonnes annually. The company aims to procure four additional electric lorries within the next six months, with the aim of transforming the route into a 100% green lane,” Nestle Malaysia said in a statement.

Overall, Nestle Malaysia is delivering on its environmental commitments, with total CO2 emissions being already 25% lower than its 2018 baseline as of the end of 2023, two years ahead of its initial plan, and remains on track to reach a 50% reduction by 2030.

“This pioneering initiative reflects Nestle’s constant dedication to delivering operational excellence while advancing on our sustainability journey,” said Juan Aranols, CEO of Nestle Malaysia.

In February, FedEx Express, a subsidiary of FedEx Corp, announced the launch of the company’s first cross-border delivery trial from Malaysia to Singapore using an electric vehicle as part of its continuous exploration of ways to reduce its carbon footprint.

The journey was made by a Maxus eDeliver 7 from a FedEx station in Shah Alam to a FedEx facility at Changi Airport in Singapore, covering a total distance of 406km, with the estimated reduction of tailpipe CO2 emission for this trial journey at approximately 100kg, compared to diesel-powered vans.

“FedEx is using this trial as an initial assessment of the operational effectiveness for future cross-border pick-up and delivery operations. The insights gained will be pivotal in shaping the future of FedEx operations, which will not only benefit the environment, but also help improve the efficiency of its fleet, while providing excellent service to its customers.

“Our efforts to reduce emissions throughout our business means we need to think strategically about all of our ground operations, not just last-mile delivery,” said Kawal Preet, president, Asia Pacific, Middle East and Africa region at FedEx.

The trial marks an important milestone for FedEx as it works towards its goal to transform its entire global pickup and delivery fleet to zero-emission electric vehicles by 2040 through a phased approach. In May 2023, FedEx added two EVs to its fleet in Malaysia for parcel pick-up and delivery operations within the Klang Valley.

“Making this cross-border attempt with a zero-tailpipe emissions vehicle goes beyond a logistical achievement, and represents a bold step in beginning to redefine industry standards,” said Woon Tien-Long, managing director of FedEx Express Malaysia.

“Recognising vehicle electrification as a key area in this effort, the company has set the goal of operating an all-electric global parcel delivery fleet by 2040. To achieve this, FedEx Express intends to purchase 50% of all new delivery vehicles as electric by 2025, and 100% by 2030,” added Woon.

Another major courier company, DHL Express, is also into electrification, with 61 EVs in its Malaysian fleet as it target of electrifying 60% of its fleet by 2030.

Fleet electrification is a key carbon reduction measure of DHL Group’s Sustainability Roadmap as it invests seven billion euros in the current decade on the path to net-zero carbon emissions. The company has 29,200 EVs operating across its international network, of which 27,800 are involved in pick-up and delivery.

All the above mirrors the broader move by hauliers all over the world, especially in developed countries, to go electric as part of climate impact mitigation.

On Nestle’s move, Transport Minister Anthony Loke said this green logistics initiative to go electric for cross-border transportation aligns with Malaysia’s national objective of reducing carbon emissions and promoting sustainable transportation solutions.

“I urge more companies to follow Nestle’s lead in embracing responsible and innovative technologies that can minimise environmental impact while supporting operational efficiency.

“Initiatives such as this bring us one step closer to realising a more sustainable low-carbon future for Malaysia and attaining our target of nett-zero emissions by 2050,” he said.

Malaysian utility company Tenaga Nasional Bhd (TNB) is also into the game, having acquired a fleet of Maxus electric pickups.

In a statement, it said it is accelerating its transition to EVs with the deployment of 98 new units, comprising 78 electric pickup tucks and 20 electric vans, bringing the total number of EVs in their fleet to 127.

“Malaysia’s leading energy company is pioneering a bold step towards a sustainable future by committing to electrify 30% of its operational fleet by 2030 as part of an extensive carbon reduction strategy. This strategic move is in alignment with Malaysia’s ambitious goal of achieving carbon neutrality by 2050,” said TNB president and CEO Datuk Seri Baharin Din.

However, not every fleet operator is jumping into the electric bandwagon without extensive analysis, with the limited range of current battery technology, coupled with a lack of suitable charging infrastructure for trucking, being major obstacles.

“Electric car technology is still maturing, and has yet to reach stability, and now, we are asked to look at electric trucking. Moreover, the range for current electric lorries is too low. For example, a 7.5-tonne lorry only gives a range of 250km, and it has yet to be loaded. If it is loaded, maybe the range will drop to 200km,” said Alvin Loke, a former office bearer with the Pan Malaysia Lorry Owner’s Association.

“The distance from Port Klang to Petaling Jaya is around 60km, but with the congestion and time needed for distribution, I think the driver needs to look for charging points before heading back to Port Klang,” said Alvin, who is the treasurer of the Negri Sembilan Lorry Owner’s Association.

“I would say the time needed for charging, as well as the cost of charging, especially with quick chargers, along with limited charging infrastructure, are the downsides,” he said.

However, Alvin acknowledged that electricity cost is still something that will be viewed relative to the availability of subsidised diesel for the transport industry.

Malaysia is looking at rationalising the subsidy for RON95 petrol after doing the same for B10 diesel on June 10, resulting in a pump price of RM3.35 in Peninsular Malaysia.

https://www.thestar.com.my/news/nation/2024/07/28/big-firms-begin-ev-transition