Haul pass: Road freight’s tech frontier

The Australian freight and logistics industry keeps evolving toward low- and zero-emission technologies with new charging hubs to aid fleet electrification in parallel with the local development of biofuels, green hydrogen and the related infrastructure. 

Government investment in low-carbon biofuels

As part of a broader push toward sustainable transport, Australia is making strides in low-carbon biofuel development, with the Federal Government announcing a $1.1 billion investment to reduce transport emissions. 

The 10-year Cleaner Fuels Program aims to accelerate the production of alternative fuels to replace fossil fuels in sectors such as aviation, shipping, and heavy transport. 

It also aims to attract private funding for domestic production of low-carbon fuels from agricultural feedstocks such as canola, sorghum, and waste.

Announcing the program, federal environment and water minister Murray Watt said: “As demand for air travel grows, and more goods are moved by road and rail, it’s essential we invest in future fuels that allow us to facilitate this increasing demand while meeting our net-zero targets.”

Earlier this year, the Australian Army received its first batch of RD30 renewable diesel, now powering M113 armoured personnel carriers and light vehicles, delivering both environmental and operational benefits.

The first commercially available ‘drop-in’ fuels capable of directly replacing conventional fuels in existing engines are expected by 2029.

Federal climate change and energy minister Chris Bowen described the initiative as a key element in Australia’s efforts to cut transport emissions, which account for 22 per cent of the nation’s CO₂ output.

“Low-carbon liquid fuels are an enormous economic opportunity for Australia,” he said. “This is a down payment on developing an entirely new industry in Australia.”

Bioenergy Australia CEO Shahana McKenzie said the announcement was a “turning point” for Australia’s energy security, with the potential to create regional jobs, stimulate innovation and position Australia as a global leader in low-carbon fuels.

This investment aligns with the federal Transport and Infrastructure Net Zero Roadmap, which aims to cut emissions by up to 70 per cent by 2035, with growing adoption of electric vehicles further reducing demand for traditional fuels.

Melbourne’s first electric truck charging hub

Australia’s first shared electric truck charging hub will be built in Melbourne suburb Laverton North, attracting $12.3 million in funding from the Australian Renewable Energy Agency (ARENA)

Its 14 dual-plug chargers, purpose-built for heavy battery electric trucks, will provide some of the infrastructure necessary to accelerate the adoption of heavy electric vehicles across the country and help logistics companies to meet sustainability targets.

The project will be led by Mondo Power, which will develop, construct, and operate the hub.

A goal of the project is to demonstrate the technical and commercial feasibility of electrifying freight fleets.

Mondo will collaborate with several truck manufacturers to supply vehicles, offer technical support, and conduct long-haul demonstration trials.

Operators will be able to sign up for charging service agreements, providing access to the site, setting charging prices, and offering driver amenities and vehicle parking.

ARENA chief executive Darren Miller said the hub will “highlight to the heavy transport sector how electrification can be integrated into their existing business models and drive down the high emissions from transporting goods on our roads”.

“By backing first-of-kind innovation like this, we can accelerate the sector’s adoption of clean technologies and bring us closer to our net zero goals.”

The funding will also assist with installing truck-specific charging infrastructure and partially offset the up-front costs of 20 heavy battery electric vehicles.

Energy network operator AusNet described the hub as a turning point for Australian freight.

“This is a first-of-its-kind facility in Australia, providing essential charging infrastructure for heavy vehicles, supporting the transition to zero-emission freight and reducing pollution in Melbourne’s inner west,” said AusNet chief development officer Jon D’Sylva, adding that the clean energy transition is more holistic than “just about replacing coal-fired power with renewable generation”.

FedEx expands EV fleet in Australia

The FedEx parcel collection and delivery network has gained 55 electric trucks and vans.

Fuso eCanter trucks and Mercedes-Benz eSprinter vans will operate across major metropolitan areas, including Adelaide, Melbourne, Sydney, and Brisbane.

The first phase of the rollout will deploy 15 eCanters in Adelaide, with additional EVs to follow as new charging infrastructure is installed across the country.

With an estimated battery range of up to 200km, the eCanter trucks are expected to cut up to 13.2 tonnes of CO₂ emissions annually per vehicle compared to their diesel counterparts.

Similarly, each eSprinter van is projected to avoid up to 8.5 tonnes of CO₂ emissions per year, based on distance travelled, with a range of 264 kilometres per full charge.

FedEx Australasia regional vice president Peter Langley said the introduction of these vehicles is “a pivotal moment in our operations”.

“It is an important initial step we have taken to help reduce the environmental impact of our pickup and delivery operations while continuing to provide the efficient and reliable service our customers expect.”

Following a similar and successful rollout in New Zealand, Daimler Truck Australia Pacific president and CEO Daniel Whitehead said FedEx was “setting the sustainability benchmark globally”.

“We are thrilled to support this amazing leadership in Australia with the Fuso eCanter, the most advanced electric small truck in the market.”

The launch of the Australasian EV fleet comes as FedEx aims to electrify its entire global parcel pickup and delivery fleet by 2040 and achieve carbon-neutral operations by the same year.

Toll Group & Coca-Cola expand electric fleet

Building on the momentum of major fleet electrification initiatives across Australia, the next phase of Toll Group’s $67 million investment in sustainable transport is to replace diesel vehicles in the national Coca-Cola Europacific Partners (CCEP) delivery network with 12 Volvo FM battery electric rigid trucks.

The Volvos will provide quieter, more environmentally friendly transport across major metropolitan routes.

Each truck, with a 12-pallet capacity and a range of up to 270km on a full charge, is designed to meet the demands of CCEP’s delivery network. The new fleet is estimated to reduce CO₂ emissions by 283 tonnes annually.

They will operate out of CCEP’s distribution centres in Botany (NSW), Eastern Creek (NSW), Richlands (QLD), and Hazelmere (WA), where CCEP has co-invested in the installation of charging infrastructure, including dual outlet charging stations with capacities ranging from 30kW to 60kW.

Toll retail and consumer president Nick Vrckovski said the company is “proud to have CCEP take part in our national electric heavy vehicle program”.

“Their support is another key milestone in our 25+ year partnership, as we work together to reduce emissions, improve safety, and meet the high standards our customers expect.”

CCEP logistics director Phillip Parsons said the partnership “reflects our long-term commitment to building a more sustainable beverage distribution network”.

“Partnering with Toll on this rollout is another meaningful step in our journey toward achieving net-zero emissions by 2040.”

This deployment is part of a broader initiative that will launch 28 electric vehicles with Toll customers, making it the largest electric heavy vehicle rollout in the Australian third-party logistics sector.

Ikea extends electric fleet to regional Australia  

Ikea Australia has expanded its electric vehicle fleet into regional areas en route to its goal of 100 per cent zero-emission home deliveries.

The company has introduced four new Volvo FL long-range electric trucks, leased to subcontractors through CarBon Leasing.

Since 2019, Ikea has been partnering with ANC Delivers, All Purpose Transport and Kings Transport to roll out electric vehicle deliveries. 

Ikea Australia & New Zealand zero emissions project leader Alexandra Kelly explained that “most (98 per cent) of delivery vehicles are owned by small businesses or subcontractors, not delivery companies or retailers”. 

“Electric vans and trucks remain significantly more expensive than diesel alternatives, which is a major challenge for drivers who operate with low margins.”

CarBon Leasing MD Scott Gillespie said the leasing model helps make electric trucks more accessible.

“Our model removes the upfront cost barrier and supports drivers with everything from vehicle sourcing to charging and CO₂ reporting. Making zero-emissions delivery financially viable for small operators isn’t just good for business, it’s essential for Australia’s transition to cleaner transport.”

The new Gen 3 Volvo trucks, which can travel up to 450km on a single charge and carry up to 5500kg with lightweight bodies for enhanced efficiency, are central to Ikea’s decarbonisation strategy.

Ms Kelly said that almost 84 per cent of home deliveries requiring a truck were completed in an electric vehicle.

“That’s nearly all orders in metro areas. Our next step is to go further to reach more Australians living outside our cities.”

Volvo introduced the first electric FL truck to Australia in 2020, and the fleet has now accumulated more than a million kilometres. Volvo Group Australia president and CEO Martin Merrick described electric trucks as “indeed a reality for transport operators looking to reduce emissions and noise in urban areas”.

Recognising charging infrastructure as a key challenge for its delivery service partners, Ikea is also investing $4.5 million to install electric vehicle chargers at all stores and distribution centres across Australia.

Pure Hydrogen to assemble fuel cell trucks

Advanced Manufacturing Queensland (AMQ), which remanufactures Ford F-150 Lightning electric utes and Hyundai Xcient hydrogen heavy trucks to right-hand drive in Australia, is collaborating with Pure Hydrogen Corporation to assemble hydrogen-powered vehicles locally, destined for freight and industrial applications.

Under the new agreement, Pure Hydrogen’s wholly owned subsidiary, Pure One Operations, will partner with AMQ to assemble hydrogen fuel cell trucks at AMQ’s state-of-the-art manufacturing facility in Brisbane.

This partnership provides Pure with a clear pathway to establish local manufacturing capabilities and scale production. The two companies aim to integrate hydrogen components into various vehicle models, including trucks for freight and industrial applications.

A performance-based framework has been established for the scalable production and sale of clean transport solutions, with AMQ handling assembly, Pure One managing customer relationships and pricing, and both parties sharing in the success of each sale.

“This collaboration transforms how we approach zero-emission transport in Australia,” said Pure Hydrogen MD Scott Brown.

“By integrating assembly capabilities locally through AMQ, we gain the ability to scale production, innovate across vehicle platforms, and maintain full control over customer relationships and pricing strategy, reinforcing our long-term growth potential.”

AMQ managing director Edward Kocwa said the partnership both strengthens Australia’s clean mobility future and aligns with the federal government’s “Future Made in Australia” strategy.

“We’re pleased to partner with Pure One to support the growth of zero-emission transport in Australia, and this collaboration aligns perfectly with our mission to bring world-class manufacturing capability back to Australian soil,” he said.

The partnership sets the stage for both companies to explore additional commercial opportunities in zero-emission mobility, with the goal of finalising a binding agreement by early 2026.

Powered dolly to help cut freight emissions

A groundbreaking initiative led by Electric Haulage Australia (EHAULA), with support from the federal government-funded iMOVE Cooperative Research Centre, is paving the way for hybrid electric-powered dollies designed to work with A-double truck combinations.

One of Australia’s long-distance freight mainstays, the heavy loads A-doubles carry and the extended routes they travel have hindered the viability of electric prime movers in this application.

By electrifying the coupling dolly between the trailers to take some of the load off the prime mover’s diesel engine, EHAULA expects to slash fuel use by more than 40 per cent.

“The impact will be felt most significantly across mining, agriculture and long-haul logistics – sectors that carry the largest freight task and generate the highest emissions,” said EHAULA finance director Jerome Coleman.

At the core of the program is the development of a 284kWh swappable battery pack, alongside rigorous testing at the Australian Automotive Research Centre to measure fuel savings, braking performance and high-speed stability.

The results aim to help drive regulatory reform, including changes to Australian Design Rules (ADR), which currently prevent powered trailers and dollies from being registered.

Scheduled for completion by 2026, the project, backed through the second round of the Impact Extension Program (IEP2), has received part of $2.7 million in grants aimed at advancing low-emission heavy vehicle technology, with individual awards ranging from $100,000 to $500,000.

EHAULA’s eight years of research and international benchmarking have also led to the creation of two modular technologies – the ThunderHaul drive controller and the LightningVault scalable battery pack – enabling the system to adapt across multiple trailer configurations and freight applications. 

AusPost launches its first electric heavy truck

A Mercedes-Benz eActros has become Australia Post’s first heavy-duty electric truck in a trial that will help the mail monopoly find a more sustainable logistics model.

Australia Post general manager for network assets and implementation Mitch Buxton said the big Benz was on trial to “give us valuable insights into how heavy-duty electric vehicles can perform across our network”.

“We’ve been investing in electric delivery vehicles for more than a decade, and this is the next step in building a cleaner, smarter, and more resilient fleet for the future.”

Australia Post, which operates more than 5000 electric vehicles covering more than 15 million kilometres annually, has also partnered with Ampol to supply five million litres of renewable diesel blend R10 to its Redbank Parcel Facility in Brisbane.

Containing 10 per cent renewable diesel, Amplify Diesel R10 will be used across 89 vehicles over the next year, helping reduce lifecycle emissions without requiring engine modifications.

Ampol general manager for B2B Brad Phillips said R10 helps reduce lifecycle carbon emissions “as it is manufactured from renewable feedstocks such as canola or waste products”.

“We know there’s no single path to decarbonising a fleet of our size and scale,” Mr Buxton added.

“That’s why we’re exploring a range of cleaner alternatives. Each step helps us learn, adapt, and keep driving on our path to target net-zero emissions by 2050.”