Logistics sector faces infrastructure challenges in its route to net zero

Denise Beedell

Senior Policy Manager, Logistics UK

With the industry’s target to achieve net zero by 2050, the logistics sector is focused on decarbonisation of all transport modes, but the challenges this will pose cannot be overlooked.

Business group Logistics UK, which represents the whole sector, is clear that achieving net zero is a priority and launched its own member commitment – the Route to Net Zero – in July 2021. For operators to reach decarbonisation deadlines, future governments will need to work closely with industry to overcome challenges facing our sector.

Vehicle and fuel decarbonisation challenges

Traditionally, logistics has relied on fossil fuels to move goods from A to B, but the commitment to decarbonise brings new challenges. The ongoing global shortage of microchips to power decarbonised vehicles is just one reason for delay in bringing new models to market.

However, more fundamental concerns exist concerning the lack of an efficient and effective national refuelling network and indeed, the preferred fuel to be used. Switching a fleet to a new fuel source is costly for logistics operators, which typically operate on extremely narrow margins. Careful research and vehicle testing are necessary, assuming the new vehicles are available to buy.

Some logistics operators have been
quoted up to £1 million to increase
power supplies at their depots.

Adapting fleets for decarbonisation

Regardless of the chosen fuel for newly decarbonised fleets, each operating model may require adaptations to ensure vehicles are ready for every shift, posing additional questions: If battery electric vehicles are to be used, is there national grid capacity to enable rapid recharging? Is there proximity to a power source, ensuring cabling can be installed quickly and efficiently?

Some logistics operators have been quoted up to £1 million to increase power supplies at their depots — a cost that will need to be passed on to customers. Public recharging opportunities across the Strategic Roads Network are also a concern, as are the practicalities of where larger vehicles can access suitable charge points and availability, which are fit for purpose for larger vehicles, and whether alternative fuels will be available for those yet to electrify.   

Tackling challenges to achieve net zero

Logistics have made significant progress in decarbonisation, but challenges remain, particularly regarding costs, before an effective switch to zero-emission operation can be made. With decarbonisation, Brexit, new technology and other disruptive forces driving change in how goods move across borders and through the supply chain, logistics has never been more important to UK plc.