A report released by trade group Logistics UK has warned that a lack of fiscal support from government is hampering electric vehicle (EV) uptake.

The organisation’s Electric Vehicle Report 2023 said that, while fleet operators had strong ambitions around decarbonisation, these were tempered by concern about costs associated with the transition.

“Respondents to the 2023 research reported volatile energy prices and vehicle acquisition costs, and called for more support through tax allowances for capital expenditure on green infrastructure, including increasing power supply capacity at their premises,” said the report.

“Many cited business planning challenges connected to uncertainty around costs and financial support, including sudden changes or withdrawals of grant funding for both vehicle acquisition and chargepoint installation.”

The organisation had called for fairer ways of funding energy supply upgrade, and consistent and straightforward rules for grants, taxation and regulations, in its previous report on the topic.

In this year’s edition, it urged government to “embed certainty for fiscal support” aimed at encouraging fleets to decarbonise, including for grants.

It advocated the amendment of the qualifying criteria for the 100 per cent tax deductible annual investment allowance for capital spending in the year of expenditure that was announced in the Spring Budget to include vehicles acquired via leasing or hiring – as well as calling for clarification around the usage of the allowance for investments in both buildings and equipment, including costs associated with increasing electricity supply at CV premises.
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The UK’s third largest ports group, Forth Ports, has outlined its commitment and the actions it is taking to achieve a Net Zero carbon operation by 2042.

The company, which is Scotland’s biggest port operator, also outlined an interim target of achieving carbon neutral emissions (Scope 1 and 2) by 2032, while creating an infrastructure platform to help accelerate the UK’s path to a decarbonised economy.

To achieve this across the group’s eight ports, the team is overhauling and electrifying equipment and machinery, switching to low carbon fuels, increasing on-site renewable energy generation and promoting low carbon delivery alternatives such as rail and barge. This is complemented by very significant investment in new port infrastructure to support the offshore wind revolution taking place in the North Sea.

Forth Ports is part of the Thames Freeport and Forth Green Freeport* partnerships which are seeking to accelerate the drive to Net Zero across the country.

Sustainable electricity – all eight ports use environmentally sustainable sources of electricity, including on-site wind turbines at Tilbury, London’s major port. All new warehouses will have solar roof panels installed as standard, such as the recently built 100,000 square foot facility at the Port of Grangemouth freight hub. These projects are already satisfying a meaningful proportion of the ports’ power needs. A programme of rolling out new LED lighting is under way to further reduce power use across all port estates.

Low carbon fuels – for mobile equipment and marine fleet, the strategy is to blend and utilise alternative fuels. Initially this involves the widespread use of sustainably sourced hydrogenated vegetable oil (HVO) and, as technology develops, other methods of low emission propulsion. An ongoing programme exists to introduce more fuel-efficient equipment and marine fleet across the asset base. Read more from: www.Forthports.co.uk

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IFS are delighted to see a continuing trend in the freight industry as more companies invest in sustainable transport vehicles.

The latest being one of our partners, DHL Supply Chain, who announced the introduction of the UK’s first fully electric Volvo heavy duty tractor units. The four Volvo FM electric trucks are designed for high-capacity deliveries operating at 40 tonnes and directly replace diesel vehicles on a range of activities.

Featuring Volvo’s largest 540kWh battery which provides 666hp, the zero-emissions trucks have a range of up to 300km/180 miles, allowing them to complete full round-trips servicing DHL’s retail and automotive customers across the UK.

Saul Resnick, CEO DHL Supply Chain UK & Ireland, DHL Supply Chain said:

“Today marks an important milestone in our journey towards alternative fuel vehicles. The size and capability of these trucks make them a truly viable alternative to diesel as they fully meet our needs and those of our customers. Following our introduction of the UK’s first 16-tonne rigid electric truck in late 2020, we’re proud to continue to lead the way in electric commercial transport.”

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