COMMERCIAL vehicle manufacturer Volvo Trucks and logistics company DSV have signed a memorandum of understanding (MOU), under which DSV will operate a Volvo electric heavy-goods vehicle (eHGV) in a pilot project starting early next year.

The announcement was made at a signing ceremony held at DSV’s office in Kallang on Thursday (Aug 17). Representatives from DSV, Volvo Trucks, and UD Trucks, the importer for Volvo Trucks in Singapore, were present.

The signatories described the move as a learning opportunity and a first step in their efforts to decarbonise transport and logistics in Singapore.

The tie-up is a “learning-together” partnership for the long-term, said Joseph Heng, general manager for UD Trucks Singapore, referring to the fact that both companies will use this project to inform future decisions on eHGVs.

Gino Marzola, managing director of DSV Air & Sea Singapore and Malaysia, responding to reporters at the event, said: “Looking at the business model and the costs involved, we decided we wanted to go for it…to show that it can be done, and we have to take this first step.”

DSV will operate one Volvo FL Electric eHGV, using it for package deliveries within Singapore. Volvo, besides supplying the truck, will also provide service and support, including charging, route planning and battery monitoring.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

Volvo has not revealed the specifications of the unit DSV will operate, but the FL Electric can be configured with three to six batteries, depending on requirements, with a total capacity ranging from 280 kilowatt hours (kWh) to 565 kWh. It has a maximum range of 450 km.

With a four-battery configuration and using a 22 kilowatt (kW) alternating-current source, the truck will take 16.8 hours to be fully charged; charging time can be brought down to 2.3 hours if a 150 kW direct-current fast-charging source is used.

For Volvo, the move is in line with the global expansion of its eHGV sales.

It intends to increase its sales of such vehicles in Singapore, and is currently in talks with multiple customers, said Anna Engblom, managing director for Volvo Trucks, South-east Asia and Japan.

She added that she expects “a lot of interest” for eHGVs in Singapore, “given the strong focus on green transport” under the Singapore Green Plan 2030.

The company says it has a leading position in eHGV sales in Europe and the United States. It began eHGV sales in Malaysia this month, and has made its first eHGV deliveries in Taiwan.

Volvo is not the first to introduce a road-going, fully-electric HGV in Singapore.

Chinese EV-maker BYD did so with its eHGVs in 2018, and now has 44 on the roads here, owned by waste disposal companies SembWaste and 800 Super.

Swedish truck maker Scania announced the sale of 15 eHGVs to ALBA W&H Smart City, a local waste-disposal company, in April; logistics company Jasico Express has been using one such eHGV since May.

In contrast to the increased sales of electric light goods vehicles (LGVs), eHGVs are still relatively uncommon because of their increased upfront cost. HGVs do not qualify for Commercial Vehicle Emissions Scheme rebates, unlike LGVs.

Industry sources say the cost of an eHGV is around twice as much as a comparable diesel model, although the total cost of ownership is the same over the lifetime of the vehicle, since fuel and maintenance expenses for eHGVs are lower.