November 13, 2023 | Category: Published Articles

 

(Published by The Hill Times)

Charting a Sustainable Course for Freight Transportation

As the world grapples with the pressing urgency of climate change, Canada finds itself at a pivotal juncture on its road to a sustainable future. Trucks, rail, ports and air have long been the lifeblood of our supply chain, yet their carbon footprint looms large. It is time to highlight a new path that leads to innovating and electrifying the heart of our economy. Much of the world depends on receiving Canadian resources, and we need to deliver them to our customers efficiently and sustainably. We currently do not have the technology to implement only heavy-duty electric trucks for long-haul, that can be as efficient. The aim is to examine the challenges and opportunities in transitioning Canada’s freight transportation sector to electric vehicles/fleets for a more sustainable future and determine the implications for the Canadian economy.

The path to electrification in freight transportation needs to be treated as a proper transition, as limited technology is currently available for long-haul. According to the "Transportation in Canada 2022" report, currently, over 70% of the country's domestic freight tonnage is transported by trucks, ensuring businesses and consumers have access to essential products. A drastic change for trucks cannot happen overnight. Heavy-duty electric trucks also have range limitations and have heavy, expensive batteries. Compared to passenger vehicles, freight trucks require heavy-duty chargers, and the current infrastructure in Canada still needs to be prepared for it. Without high-capacity chargers, there is an opportunity cost involved for frequent charging. It adds to the cost for all parties in the supply chain. Some are waiting for the technology to be perfected before investing a large sum into a project or initiative. Some pilots have been conducted but with limited success. The upfront cost of purchasing heavy-duty electric trucks is and will be brutal till production increases and economies of scale can be applied. The cost of maintenance and replacing parts has yet to be fully understood. It will likely be an expensive and long-term venture.

On a macro level, large-scale implementation would require heavy investment in the proper infrastructure, charging stations and access to reliable and clean electricity supply. The path to net zero will require transforming the energy mix. We need to produce more on the grid to handle massive changes in electricity usage. Other factors such as operating costs and productivity are top of mind of industry leaders as they work to develop resilient and sustainable businesses.

Despite the hurdles, working towards a sustainable future is top of mind for the freight transportation industry. The environmental, social and economic benefits cannot be overstated. Over the past few years, increased weather and climate-related challenges have strained transportation and the Canadian economy. The cost of recovering from the atmospheric river that cut off the Lower Mainland from the rest of the country was significant for governments and industry. As a result, carriers are taking inspired action and investing heavily in R&D, electrifying their respective fleets or parts of their operations to stay resilient and competitive. To give a non-trucking example, CPKC is actively developing its hydrogen locomotive.

Innovations of EVs in freight transportation also bring potential economic growth and job creation to Canada. As the freight EV industry grows, it will create opportunities for critical mineral and resource extraction, manufacturing, infrastructure development and skilled jobs. However, the industry's ongoing labour shortage makes this difficult to envision. Today's vacancies in the transportation and warehousing sector are approximately 40% higher than in 2019, exceeding 50,000. Other barriers to overcome for implementing electric trucks include ensuring the implementation does not drastically disrupt operations.

Are we ready to reliably transport goods with EV trucks or other cleaner modes of transportation? Not yet, but the industry is working to get there. Support from the Canadian federal and provincial governments can play a pivotal role by offering financial incentives and improving regulatory and permitting processes to make EVs more appealing to the industry. Collaboration between key stakeholders can help accelerate the transition to a more sustainable freight industry. We also might need to consider a modal shift. For instance, the cost and time to move goods on rail would be drastically different, with more controlled emissions. To curb emissions and to welcome a smoother transition, alternative fuels that have lower emitters in comparison to diesel need to be utilized effectively.

Electrifying Canada's freight transportation is a challenging but achievable journey with enhanced stakeholder collaboration. While acknowledging the current limitations and hurdles in electrification, we must remember that the benefits, both environmental and economic, are substantial. We must recognize that this transition is interconnected with other policy challenges, like energy, and requires comprehensive system changes. By considering and utilizing alternative fuels, considering modal shifts and continuing to invest in innovation we can transition to a cleaner, safer future with more confidence. Canada needs a pragmatic, forward-thinking, and bold approach to achieve net-zero emissions in freight transportation, a vital part of our economy.

 

About the Author/s:

Marzia Rizvi is WESTAC’s Manager of Program Development and Communications and the lead for the annual Compass Report. Prior to WESTAC, Marzia has worked in academia, the non-profit and private sectors in Canada and abroad. She Marzia graduated from the University of British Columbia with a Master of Public Policy and Global Affairs. She completed her BA at the American University in Dubai, where she graduated Magna Cum Laude, in International Studies.

 

About WESTAC:

The Western Transportation Advisory Council (WESTAC) is a council of organizations in the transportation sector represented by senior decision-makers. WESTAC’s members span all aspects of freight transportation in Canada, including carriers and logistics providers, ports and terminals, shippers, labour unions, and the three levels of government. Members represent a significant share of the Western Canadian economy. We focus on critical issues that affect Western Canada’s freight transportation network to ensure that it is safe, efficient, reliable, and competitive.

 

The comments here are of the author/s and do not reflect the opinions of WESTAC members. For media inquiries, contact Marzia Rizvi, WESTAC’s Manager, Program Development and Communications.