Seamus Leheny, Logistics UK Policy Manager-NI

Seamus Leheny

Policy Manager - Northern Ireland. Logistics UK

THE ROAD TO ELECTRIC

Decarbonisation is a high priority for all operators with the deadline for net-zero by 2050 moving ever-closer. The van sector is facing increasing pressure with the 2030 phase out date for the sale of new petrol and diesel vehicles more imminent. While operators are keen to decarbonise, several key concerns remain surrounding charging infrastructure and power supply availability.

As a result of the current economic crisis – in September inflation reached 10.1% Consumer Prices Index (CPI) – rising costs are placing an unsustainable burden on the logistics industry. In addition to rising energy prices, operators looking to electrify their van fleets are already facing significant challenges with the cost of vehicle acquisition and potential significant costs to depot charge point installation and power upgrades. Businesses in the logistics industry run on typically low profit margins and Logistics UK members have previously reported costs of over £1 million for upgrading power supplies to a depot; a significant additional financial burden at a time when operating costs have already risen by 16.7% for the six months to 1 July 2022. Logistics UK has and will continue to campaign for a fair and equitable way of paying for depot power supply upgrades in relation to fleet charging, as well as called for substantial grid reinforcements and power upgrade to support an increased reliance on grid capacity. While there are alternative solutions for operators looking to electrify parts of their fleets more quickly, such as battery storage and solar panels, Logistics UK recommends operators work closely with their local Distribution Network Operator (DNO) to carefully plan power needs and minimise future costs. A key concern for the sector is the power outages predicted for the upcoming winter and Logistics UK has written to the Chancellor, Jeremy Hunt, to urge government to communicate with industry regarding any potential disruptions, and to consider the logistics industry as a priority when making contingency plans. Public charging infrastructure is also a focus for operators looking to make the switch to electric. Figures released recently (26 October 2022) by the Department for Transport show that since 1 October 2021, there has been a 34% increase in public electric vehicle charge points across the UK, with the total number now standing at 34,637. All regions have reported increases in total charging devices in the last quart, apart from the North East, in which the figure was reduced. The number of rapid or ultra-rapid charging devices has increased by 30% as a result of an additional 1,472charge points.

MANY CHALLENGES IN NI

While these overall UK figures are encouraging, Northern Ireland operators still face many challenges with the lowest number of public charging devices per 100,000 of population. The figure for Northern Ireland stands at 18, which is significantly low when compared to 122 for London, and an overall of 60 for Scotland. Additionally, the number of available charge points only represents part of the picture and there is concern across the UK regarding their suitability for commercial vehicles. To support the decarbonisation of industry, Logistics UK is calling for public electric vehicle charge points to be fully accessible to light goods vehicles (LGVs) with sufficient head space, larger parking bays and longer charging cables. Drivers often face strict time pressures and Logistics UK is also calling for a further increase in the number of rapid or ultra-rapid charge points across the strategic road network to support this. Locally, Logistics UK has worked with local government departments to establish a transport energy working group tasked with looking at potential pilot projects and infrastructure developments that would aid the uptake of alternatively fuelled vehicles including electric. We’ve made the case to local civil servants tasked with developing the transition to other energy sources that local operators need case studies and actual data to help decide what solutions suit their operations most. The transport energy working group should therefore assist the early adaptors of such technology both operationally and through available grants to ensure they are not disadvantaged by being the first to invest. Overall, figures from Logistics UK’s Logistics Report 2022 demonstrate a real willingness to meet sustainability targets, with 87% of logistics firms considering decarbonising their fleets. However, with escalating costs and a lack of suitable public electric vehicle charge points, government must communicate with industry to ensure practical and achievable solutions that can support the decarbonisation of both smaller businesses, and larger companies. Logistics UK looks forward to working with government and members to achieve this. *If you would like to learn more about the transport energy working group, please contact my colleague Jayne Currie at jcurrie@logistics.org.uk