Logistics to play critical role in shift to e-mobility

While South Africa’s electricity crisis is cited by many as the reason that the country is not ready for electric vehicles (EVs), Accenture’s Greg Cress contends that loadshedding could be the catalyst for the decentralisation of the country’s green energy rollout and may, in fact, fuel the shift to e-mobility.

Speaking at a supply chain professionals conference co-hosted by SAPICS (The Professional Body for Supply Chain Management) and the South African Association of Freight Forwarders (SAAFF), Cress said that it was critical to step on the gas – but without the gas – in the race to net zero carbon emissions. He stressed that South Africa needs to focus its EV transition not just on private cars, but also on trucks, light delivery vehicles, and buses. According to the International Energy Agency (IEA), road transport (cars, trucks, and buses) account for 28% of global CO₂ emissions.

Cress, who is the sustainable energy and e-mobility lead at Accenture, outlined two possible e-mobility scenarios in South Africa’s future. In the “Beetle” scenario, the country continues on the status quo path, only investing in manufacturing and exporting ICE vehicles, and not transforming facilities to make and assemble EVs. “If this plays out, South Africa will become irrelevant on the global stage. Demand for our exports will decline, unemployment will rise, and large original equipment manufacturers (OEMs) may exit South Africa’s automotive manufacturing sector,” he asserted.

Cress emphasised that South Africa needs to pursue the “Charged-Up” scenario, in which the country’s assembly plants are transformed for EVs, 60% of which are exported. Expanding on this scenario and its benefits, he said: “Consumers will have transitioned towards green and sustainable technologies and adopted EVs. Cities, OEMs, and independent power producers will have created an ‘energy alliance’ to offset the dependence on Eskom for EV charging infrastructure. Understanding the benefits of an EV future, government will have made tremendous progress in removing all the red tape that hampers EV adoption. South Africa’s economy will have recovered, the GDP will be growing, and unemployment dropping in this scenario.”

Cress said the retail logistics and supply chain sectors have a critical role to play in the move to sustainable mobility and achieving a “Charged-Up” future for South Africa. He noted that, globally, many logistics companies are transitioning to EVs. These include FedEx, UPS, and DHL. Heavy commercial OEMs like Volvo are focusing on EVs, while Coca-Cola – which is switching to electric trucks – aims to have transformed its fleet to 100% EVs by 2030. In California, Volvo and Shell Recharge have partnered to build an “Electrified Charging Corridor Project” for medium and heavy-duty EVs.

Volvo’s first electric truck ever sold in South Africa was delivered to KDG Logistics earlier this year, while Woolworths has become the first South African retailer to embark on an extensive rollout of electric panel vans, in partnership with DSV and Everlectric, Cress noted. He cited the diversification and decentralisation of energy generation as national imperatives, adding that both small-scale and large-scale generation projects have roles to play. “More EVs will lead to more decentralised (and mobile) energy storage. It is also critical to establish a viable EV battery recycling value chain in South Africa,” he said, adding that the Global Battery Alliance – which counts leading mining companies among its members – is leading the way on this front.

Sustainability and the shift towards e-mobility are among the important topics that will be explored at the 46^th annual SAPICS Conference, which will take place in Cape Town from 9 to 12 June 2024. This conference is the leading knowledge sharing and networking event in Africa for supply chain professionals. In 2024, the co-hosted conference’s theme will be “Supply Chain Metamorphosis”. More information is available here.