Volts not Jolts - How Kuehne + Nagle is helping SMEs smooth the journey to electrification

2025 will be a pivotal year for electrification in the HGV sector, and the time for talking is over as many of the initiatives that have been discussed over the last few years come to fruition. 

Technology and range are improving all the time and alternatively-fuelled vehicles can now operate over significant distances. An HGV can be charged with over 500 kilowatts, with vehicles now achieving approximately one kilometre per kilowatt, which makes using electric HGVs a feasible option for the bulk of UK road freight.  

However, while using electric HGVs may be a technical option, they are still not practical for all operators, especially SMEs, and this is why larger operators have a vital role in sharing knowledge and experience to support smaller operators on the decarbonisation journey. 

Decarbonisation and electrification are changing the jobs and skills required to operate vehicle fleets at a fundamental level. Maintenance technicians require new skills so they can work safely on electric vehicles; the requirements for managing real estate and infrastructure are changing and energy management and optimisation from both the purchasing and utilisation sides are now critical.  

This level of change can be overwhelming for smaller operators and, as larger players like K+N have the resources and ability to build expertise in this sector, we are now sharing and disseminating information in these areas in the spirit of cooperation instead of competition.  

There is a misconception that simply getting more grant funding into SMEs is the solution, but it is much more complex than that. The timing of any investment is critical, as businesses will need to work around their cash flow and staffing requirements to manage their operations. Any investment needs to fit into the procurement cycle as well and businesses cannot simply make a spontaneous decision in the middle of the year and buy new vehicles. 

The haulage sector operates on very tight margins, so it is understandable that many small operators are cautious when making decarbonisation investments. This is why larger operators have a responsibility to share best practice and remove as much risk for smaller operators as possible. As K+N moves along its own journey to zero emission fleets, we have made it a priority to share and disseminate information with our smaller partners. 

When the UK government was developing its ‘Zero Emission HGV and Infrastructure Demonstrator Programme’ (ZEHID), Kuehne+Nagel was involved in shaping the scheme and made the case consistently for ensuring the initiative would support small and medium-sized carriers and not just the bigger players. Research from the Kühne Logistics University (KLU) shows 99% of road carriers in the UK and Europe have fewer than 50 employees, so any attempt to decarbonise the HGV sector will only succeed if it is practical and sustainable for smaller operators.  

The ZEHID programme officially launched in November 2023 with over £200m in UK government funding. K+N is in two of the four successful consortia on the programme that secured grant funding, along with about a dozen of our SME haulier partners. Together, we will begin to deploy around 370 zero-tailpipe-emission HGVs, help develop a new network of public chargers for electric trucks, explore innovative megawatt charging technology and start running heavy-duty electric vehicles in real-world operational environments.  

The programme has accelerated K+N’s deployment of heavy-duty electric vehicles: we are taking delivery of these vehicles now and will see significant developments in charging infrastructure in the first half of next year. One key step we have announced is installing megawatt chargers at our flagship road depot in the East Midlands, which will also be available for our smaller haulier partners to use.  

Other large players will be launching similar initiatives to make their charging infrastructure available to external companies and, with the improvements in public charging alongside these agreements, many of the barriers to operating electric HGV fleets will be removed. There is a real momentum developing and while the sector has several long-term deadlines in the years ahead, next year is going to be decisive in the operation of lower emission vehicles – I believe we are going to see a significant increase in the number of electric HGVs on our roads. 

On the road to net zero, it is important to recognise the significant changes are happening, so it is critical not to get left behind. It is, however, still just the start of the process and there are plenty of practical steps SMEs can take to ensure their transition to green fleets is as smooth as possible and they start their journey on the right foot. 

Stay up to date – There are many ways to stay informed regarding developments in the sector: there are regular conferences on the subject, including Logistics UK’s Delivering Decarbonisation in November. Project JOLT, which is spearheaded by the Centre for Sustainable Road Freight (SRF), is also an initiative that is giving operators the opportunity to participate in real-world trials using electric vehicles. 

Internal power audit - Start looking at your operations and see what you need to do to prepare. A good start is understanding the current power usage at your sites and having sites surveyed to establish what power is available to you.  

Understand the technology – It is a good idea to talk to your OEM dealership about the technology they use on their vehicles. Familiarising yourself with the new technology is vital because even if new electric vehicles are not included in the current procurement cycle, they are very likely to be in your next one.  

Published On: 28/10/2024 12:00:00