Toll: A US$43m Electric Fleet Investment in Green Logistics

Toll Group has unveiled a AU$67m (US$43.8m) investment in battery electric heavy vehicles and charging infrastructure, aiming to lead Australia's logistics sector toward a low-carbon future.

This bold step underlines its commitment to sustainability and reducing emissions while transforming the transport industry.

With more than 130 years of experience, Toll Group operates across 500 locations worldwide, employing more than 16,000 people. A subsidiary of Japan Post, it supports over 20,000 clients in 150 countries.

The new investment positions Toll at the forefront of green logistics, marking one of the largest EV investments in Australia's heavy transport sector.

Introducing electric heavy vehicles

The AU$67m (US$43.8m) plan includes 28 battery electric heavy vehicles and more than 30 new charging points across two Toll facilities and eight customer sites.

The vehicles, which include 10 Volvo FM electric prime movers and 18 Volvo FE electric rigid trucks, represent a AU$20.3m (US$13.3m) investment. This initiative aligns with Toll’s broader vision of decarbonising logistics while maintaining efficiency.

The Australian Renewable Energy Agency (ARENA) is contributing AU$9m (US$5.9m) through its Driving the Nation Programme, significantly offsetting the higher costs of electric vehicles compared to diesel. This collaboration underscores a joint commitment to reducing the transport sector’s emissions footprint.

Alan Beacham, Managing Director of Toll Group, emphasises the significance 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 rollout of this fleet is scheduled to begin in February next year and is projected to cut Toll’s annual fleet emissions by 1,810 tonnes of CO2.

Tackling emissions with key partners

The electric fleet will primarily serve Toll’s major customers, including Coca-Cola Europacific Partners, Woolworths, Bluescope and Origin Energy. With these new vehicles, Toll becomes the largest operator of battery electric heavy vehicles in Australia’s third-party logistics sector.

Heavy vehicles account for a significant portion of Australia’s transport emissions, which overall contribute 20% of the nation’s CO2 output. This makes decarbonising logistics critical to meeting environmental goals.

ARENA CEO Darren Miller highlights the importance of this initiative: “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.”

Through this investment, Toll is not only addressing emissions but also building a framework for scaling electric transport.

By providing real-world data on operational logistics such as energy consumption, route planning and payload efficiency, this project offers practical insights for the industry.

Developing infrastructure

Beyond deploying vehicles, the investment includes partnerships with RMIT University to analyse the project’s outcomes. Their report will share key insights, promoting the adoption of low-emission vehicles industry-wide.

Toll is also pursuing broader upgrades to its fleet, committing more than AU$200m (US$130.6m) to replace 25% of its vehicles with more fuel-efficient models.

These new vehicles will reduce emissions by 5-10%, providing an interim solution as full electrification remains out of immediate reach.

As Australia’s logistics industry evolves, Toll’s leadership serves as a beacon for sustainable practices in a world increasingly focused on carbon reduction.

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