Toll's Electric Fleet: A US$43m Green Logistics Investment
Toll Group is leading the charge toward sustainable transport with a landmark AU$67m (US$43.8m) investment in electric heavy vehicles and charging infrastructure.
The move aims to slash emissions across Australia’s logistics sector, setting a precedent for a greener future in freight and transport.
A trusted name in global logistics for over 130 years, Toll operates in 150 countries, employs more than 16,000 people and serves more than 20,000 clients.
As a subsidiary of Japan Post, the company is now embarking on one of Australia’s largest corporate investments in battery-electric vehicle (EV) technology for heavy transport.
Pioneering electric heavy transport
The ambitious investment covers the acquisition of 28 electric heavy vehicles, including 10 Volvo FM electric prime movers and 18 Volvo FE electric rigid trucks.
Alongside these, at least 30 charging stations will be installed at eight customer sites and two Toll facilities. The upfront cost of this fleet expansion totals AU$20.3m (US$13.3m).
The project is partially funded by the Australian Renewable Energy Agency (ARENA), which has contributed AU$9m (US$5.9m) through its Driving the Nation Programme.
ARENA's support bridges the cost gap between electric and diesel vehicles, showcasing a shared commitment to cutting emissions in freight transport.
Alan Beacham, Managing Director of Toll Group, highlights the strategic importance of this investment: “The funding from ARENA supports an important part of our broader strategy to optimise the environmental sustainability of our operations - and we’re delighted to be supporting our customers through a shared commitment to decarbonising their supply chains without needing to rely solely on carbon offsets.”
The electric fleet will primarily serve major clients such as Coca-Cola Europacific Partners, Woolworths, Bluescope and Origin Energy, making Toll the largest operator of electric heavy vehicles in Australia's third-party logistics sector.
The rollout begins in February and the fleet is expected to cut Toll’s emissions by 1,810 tonnes of CO2 annually.
Addressing emissions and advancing technology
Transport contributes approximately 20% of Australia’s total CO2 emissions, with heavy vehicles making up a significant share. The electrification of heavy-duty transport is crucial as demand for logistics grows.
“Transport accounts for about one-fifth of Australia’s CO2 emissions, with heavy vehicles a significant share of the transport emissions pool, emphasising why ARENA is focusing in this area of greatest impact," comments Darren Miller, CEO of ARENA.
Beyond emissions reductions, the project will yield valuable insights into the operational realities of running a battery-electric fleet. Toll will collect and analyse data on energy needs, charging requirements, route planning and payload efficiency.
Despite advancements in battery-electric technology, challenges remain. Darren adds: “There are significant hurdles including upfront costs for operators, challenges with charging technology and infrastructure, as well as the lack of real-world data.”
By partnering with RMIT University, Toll aims to share findings from this large-scale project in a comprehensive report. This resource will help other transport companies transition to lower-emission vehicles by providing practical, evidence-based guidance.
Balancing innovation with practicality
While the push for electrification is a key part of Toll’s strategy, the company acknowledges that a complete shift to electric is not feasible in the short term.
Alongside the AU$67m investment, Toll is upgrading 25% of its fleet with more fuel-efficient models, representing a further AU$200m (US$130.6m) in spending. These improvements are expected to cut emissions by 5-10%.
Our Australian fleet is undergoing a major transformation. While we’re committed to electrification, we’re also investing more than AU$200m (US$130.6m) to upgrade 25% of our fleet with more fuel-efficient vehicles, delivering emissions reductions of 5-10%.
Fully transitioning to electric isn’t feasible overnight, but by combining electrification with these more efficient models, we’re doing everything we can to reduce our environmental impact and support our customers.
This initiative cements Toll’s position as a leader in sustainable logistics. By integrating cutting-edge technology with a clear focus on reducing environmental impact,
Toll is setting a powerful example for the logistics industry as it adapts to an increasingly carbon-conscious world.
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