The Future of Sustainable Logistics
In urban centers, EVs quickly gained traction thanks to their quiet performance and user-friendly designoffering a sharp contrast to the noisy, maintenance-heavy gasoline engines of the era. A 1917 photograph from the UK, depicting electric trucks lined up for charging, captures this early momentum. It's a visual testament to how commercial electric transport was already thriving over a hundred years ago.
However, by the 1920s, the dominance of EVs waned. The mass production techniques pioneered by Henry Ford and the widespread availability of cheap gasoline shifted the automotive landscape in favor of internal combustion engines.
Today, with the rise of advanced battery technologies and the urgent need for climate-conscious solutions, EVs are staging not a debutbut a remarkable return. We're not inventing the future of transport, we're reawakening it, with more power, purpose, and potential than ever before.
Yet the EV journey is more complex than it seems. While we are witnessing a long-overdue revival of electric mobility with roots reaching back over a century today's adoption brings its own set of challenges. As the global focus shifts towards greener technologies, electric vehicles have emerged as the frontrunners in the race for sustainable transportation. However, growing concerns suggest that the EV boom might not be as enduring or universally beneficial as hoped. In regions where electricity production is still heavily fossil-fuel dependent, the true environmental advantage of EVs is called into question.
The EV Dilemma: A Partial Solution:
Electric cargo trucks have garnered significant attention for their potential to reduce emissions and improve urban air quality. However, their sustainability is somewhat compromised by the fact that much of the world's electricity is still generated from fossil fuels.
In Pakistan, approximately 59% of electricity is produced from fossil fuels. According to the National Electric Power Regulatory Authority's (NEPRA) 2022 yearly report, Pakistan's total installed power generation capacity is 43,775 MW, with 59% of energy coming from thermal (fossil fuels), 25% from hydro, 7% from renewable sources (wind, solar, and biomass), and 9% from nuclear. This heavy reliance on fossil fuels means that the environmental benefits of EV trucks are mitigated by the carbon footprint of the energy used to charge them.
Currently, Pakistan's EV charging infrastructure is underdeveloped. The country has only a handful of EV charging stations, which are insufficient to support widespread adoption. Expanding this network would require substantial investment and development, which presents a significant challenge given the existing constraints of the national grid.
For short-haul operations, EVs are indeed suitable. Their lower operating costs and reduced emissions make them a compelling option for urban and regional deliveries where distances are manageable. However, for long-haul trucking, especially in large countries like China, Pakistan, the USA, the European Union, India, and Russiawhere trucks frequently travel over 1,500 kilometres in one directionEVs face significant limitations. The current range of most electric trucks, typically 200-300 miles per charge, is insufficient for long-distance routes without frequent and lengthy recharging stops.
Hydrogen Fuel Cell Trucks: A Cleaner, More Practical Alternative:
Hydrogen fuel cell trucks present an exciting and highly viable alternative to battery-electric vehicles. Unlike EVs, these trucks powered by fuel cells that generate electricity through a chemical reaction between hydrogen and oxygen, emitting only water vapor as a byproduct. This makes them a zero-emission option that does not rely on the electricity grid.
One of their biggest advantages lies in infrastructure adaptability. Hydrogen refueling stations can be established by modifying existing fuel station setups, requiring far less investment than the wide-scale rollout of EV charging networks.
On the road, hydrogen trucks shine in range and refuelling efficiency. They can travel up to 500 miles on a full tank—outpacing most electric trucks that typically manage 200–300 miles per charge. Even more promising is the future cost trajectory: hydrogen production currently averages $3–$5 per kilogram, but is projected to fall to $1.50/kg by 2030, making it comparable to the electricity costs for EVs.
Take, for example, Nikola's Class 8 Tre fuel cell electric truck. In trials, it achieved 8.13 miles per kilogram of hydrogen, exceeding expectations of 7.1–7.2 miles/kg. With five 14-kg tanks (totalling 70 kg), it delivers approximately 500 usable miles per fill. Its average refuelling time of 22.2 minutesjust slightly longer than a diesel fill-upvastly outpaces EV charging times for heavy-duty vehicles.
Operational efficiency is also impressive: overall uptime reached 95.4%, factoring in both vehicle and station availability, with the trucks alone logging 92.9% uptime.
Now consider the local context. In Pakistan, commercial electricity costs average $0.157 per kWh. Given that heavy-duty EV trucks typically consume around 3.2 kWh per kilometer, the operational cost works out to approximately $0.50/kmsignificantly higher than ($0.21/km) what hydrogen fuel cell vehicles could potentially achieve as hydrogen prices fall.
Pros and Cons of EV Trucks:
Pros and Cons of Hydrogen Trucks :
Pakistan's Road Network and Truck Demand:
Pakistan boasts a road network that spans over 264,000 kilometres, with an increasing demand for efficient cargo transport solutions. The trucking industry is a crucial component of the national economy, with over 300,000 trucks currently operating. The demand (approx. over 50,000 units) for trucks is projected to grow due to increasing trade and infrastructure development.
The Path Forward: Sustainable Logistics for Pakistan:
For Pakistan, hydrogen fuel cell trucks aren't just an innovation they're a smart, strategic leap forward in logistics. By leveraging existing fuel station infrastructure and offering greater range with faster refueling, hydrogen technology provides a practical answer to real operational needs.
Investing in this next-generation energy source aligns with Pakistan's sustainability vision, building a more resilient and future-proof supply chain. But it doesn't stop there.
It will also act as a catalyst for economic growth drawing international investment into hydrogen generation plants and fuelling infrastructure, while simultaneously attracting global cargo vehicle manufacturers to establish local assembly plants. This convergence of clean tech and industrial development will help the country meet future transport demands in a smarter, more scalable way.
As global logistics shifts gears toward cleaner alternatives, hydrogen-powered fleets could be the defining move that helps Pakistanand other emerging economies balance environmental responsibility with industrial progress.
AnwaarNizami,
Chief Executive Officer
DSV Solutions and Road Pakistan
Copyright Business Recorder, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
8 hours ago
- Business Recorder
US tariffs on Chinese graphite spark opportunity for India's Epsilon
NEW DELHI: India's Epsilon Advanced Materials is moving swiftly to close deals to supply critical components to Japanese and South Korean battery makers in the U.S., a top executive said, after Washington imposed anti-dumping duties on Chinese imports. The U.S. in July imposed a punitive 93.5% tariff on import of graphite anode materials from China, creating an opportunity for India's Epsilon to break Beijing's monopoly on supplies of the key battery component. Indeed, U.S.-based battery makers are eager to secure alternative suppliers as the higher levies disrupt supply chains and stoke uncertainty, including over future price rises. Vikram Handa, managing director of Epsilon, which makes graphite anode materials for EV batteries, expressed confidence over some new supply deals. 'Last month, they were saying let's wait and see how things go. Now we think in the next 60 to 80 days, we will close our contracts,' said Handa. Epsilon, which announced plans for a $650 million factory in North Caroline in October 2023, has been working on getting permits and environmental clearances, while waiting for firm orders before putting a shovel in the ground. 'The numbers now start making sense for customers to buy from the U.S.,' said Handa, adding that the plant, which will have capacity of 30,000 tonnes of anode materials, is expected to be up and running by mid-2027. An EV battery is made up of four components - anode, cathode, electrolyser and separator. The anode contributes to fast-charging and vehicle range. The U.S. needs 500,000 tonnes of anode materials a year for its EV and energy storage battery needs, which were met largely by China, which refines over 90% of the world's graphite into the material used in almost all EV battery anodes. Mumbai-based Epsilon also has plans to invest over $1.1 billion in a 100,000-tonne anode materials facility in India's Karnataka state, but has yet to see serious interest in India. Handa said low Chinese prices were a draw for Indian companies, but he was trying to persuade them to buy at least 20% from Epsilon, so that 'if China closes the tap,' they had an alternative supplier. 'If it is zero (demand for Epsilon's anodes) right now, how will I put up a plant?' he asked. 'I hope this rare earth story doesn't play out the same way for battery materials,' given Indian companies dependence on them, he said.
Business Recorder
4 days ago
- Business Recorder
Sindh objects to Centre's wheeling capacity decision
ISLAMABAD: The Sindh government has raised objections over the federal government's decision to allocate 800 MW capacity for wheeling purposes, arguing that such determinations should rest with the regulator — National Electric Power Regulatory Authority (Nepra), well-informed sources told Business Recorder. In a letter to the Power Division, Sindh's Energy Secretary Mushtaq Ahmed Soomro, conveyed the province's position on the proposed amendments to the Eligibility Criteria (Electric Power Supplier Licences) Rules, 2023. He stated that the province accepts most of the amendments, except for Rule 5(2)(b), where additional provisions should be incorporated. According to Sindh's proposal, open access charges should be recovered under the following framework: (i) Grid charges —including transmission and distribution system use charges, market and system operator fees, cross-subsidy charges, metering service charges, etc — shall be borne by consumers opting for open access until the currency of the NE-Plan or as later amended by the federal government ; and (ii) the federal government, in meaningful consultation with provincial governments, shall issue frameworks or policy guidelines for recovering stranded costs arising from market liberalization and open access. These frameworks should reflect market realities, provide incentives to facilitate wheeling, ensure transparency and competition, protect consumer interests, and advance broader economic and social policy objectives. QTA & MTA: Nepra cuts tariffs for Discos and KE Sindh further argued that in cases where bilateral trading occurs entirely within the province, the provincial government should be responsible for providing the relevant framework or policy guidelines for open access charges. The province also emphasized that determining the quantum of capacity allocation is a regulatory function and should therefore be left solely to Nepra. Additionally, Sindh proposed that where no policy framework exists, stranded costs should be paid by all bulk power consumers of a competitive supplier. These costs would mirror the total generation capacity charges recovered from comparable bulk consumers of suppliers of last resort—whether on a volumetric (kWh) basis or through fixed charges — until revised by the federal government under applicable policy and regulatory procedures. The Sindh Government requested that its recommendations be incorporated into the proposed amendments to Rule 5 before consideration by the Cabinet Committee on Legislative Cases (CCLC). Separately, the Power Division has already informed the Prime Minister that stranded cost options and proposals for socializing costs, including possible wheeling charges, have been finalized. The Cabinet Committee on Energy (CCoE) approved wheeling charges of Rs 12.55/kWh, which were later endorsed by the federal cabinet. The framework for wheeling charges on an 800 MW capacity was included in the Indicative Generation Capacity Expansion Plan (IGCEP), approved by the ISMO Board after public consultation. The competitive electricity market is scheduled to be operationalised on September 30, 2025, with Nepra to declare the Commercial Operation Date (CMoD) after issuance of guidelines on optimal wheeling charges. Copyright Business Recorder, 2025
Business Recorder
5 days ago
- Business Recorder
Leghari asks Discos to coordinate with industrial units, SEZs
ISLAMABAD: Minister for Power, Sardar Awais Ahmed Khan Leghari, has directed all Distribution Companies (Discos) to coordinate with industrial units and Special Economic Zones (SEZs) to implement power supply and billing through a single point. According to the Power Division, the directive was issued in light of a decision by National Electric Power Regulatory Authority (Nepra). Following Cabinet approval, the Power Division submitted a request to Nepra on February 25 to allow electricity to be supplied to SEZs through a single point of delivery. Under the new framework, Discos will supply electricity to these zones at one point as per the terms of newly established agreements. This move aims to reduce unnecessary interference and curb corruption within the electricity distribution system. Industrial power tariff: Power Div, APTMA at odds over cross-subsidy calculation The Nepra, in its letter referred to Pesco's letter of March 26, 2025, whereby the template of the O&M Agreement (the 'Agreement') was submitted for review and approval of the Authority in terms of Nepra (Supply of Electric Power) Regulations, 2015 (the 'Supply Regulations'). In consideration of Pesco's letter, Nepra clarified that there is no provision for the approval of a template Agreement under the Supply Regulations. However, to facilitate the process, the Authority initiated a consultative process and sought comments in the matter from the concerned stakeholders by publishing a notice in the newspapers. In this regard, various stakeholders, especially the developers of SEZ(s) & Industrial Estates, submitted their comments in the matter, raising various concerns on the submitted Agreement and the same were shared with the Ministry of Energy (Power Division) through letter of June 04, 2025, for submitting rejoinder(s). The Power Division, through its correspondence of July 03, 2025, submitted its response on behalf of all XW-DISCO(s) agreeing to some comments of the stakeholders, while there appeared to be disagreement on several other points. It was also stated in the response of the Ministry that the O&M arrangement is an alternative framework, and does not preclude the SEZs and other eligible entities from obtaining licences for Distribution and Supplier of Last Resort. Apart from this, the Authority also reviewed the submitted Agreement and observed various discrepancies in the same in terms of the Supply Regulations. In light of the foregoing, the Authority directed all Discos to address the observations and negotiate the Agreements with the prospective O&M operator(s). Thereafter, the negotiated draft Agreement may be submitted to the Authority for approval underRegulation 5(2) of the Supply Regulations. It further emphasized that the finalized agreement must be consistent with the provisions of the aforementioned regulations, as well as all the applicable laws and documents. Earlier, on January 28, 2025, the Power Minister stated that the government is considering offering electricity to the industrial sector at marginal cost for three years. Other potential reforms under review include changes to net metering regulations, phasing out the uniform tariff structure, and limiting power procurement through CPPA-G to only committed projects totaling 7,000 MW. He also disclosed that eight out of the ten Discos are slated for privatization, with financial advisors expected to be appointed by the first week of February. 'If there were no uniform tariff across the country, the performance of K-Electric in terms of losses and recovery would not be as it is today,' he added. Meanwhile, the Board of Investment (BoI) has instructed relevant stakeholders to resolve issues faced by investors in SEZs. Several meetings of the Working Group on SEZs have been held in response to a request from the Special Investment Facilitation Council (SIFC) concerning the draft development agreement. These issues were also discussed in a meeting between SEZA Punjab and the Punjab Board of Investment and Trade (PBIT), where it was suggested that Challenge Fashion (Pvt) Ltd could negotiate the terms of its agreement directly with SEZA Punjab. The CEO of Challenge Fashion (Pvt) Ltd confirmed the company's willingness to proceed and stated that a follow-up letter had been sent to BoI after the meeting. However, it appeared the letter did not reach its destination. It was emphasized that negotiations with SEZA Punjab should proceed first, after which BoI would intervene as needed. The CEO added that construction on the project would begin once the access road is completed. Construction on the road began in September 2024 and concluded by February 2025. Additionally, the SEZ requires utility services at zero point to begin the allotment process. The Chair/Director General (SEZs & Projects) at BoI asked SEZA Punjab to clarify the situation. A representative from SEZA Punjab responded that SNGPL had issued a demand notice to the company, which must be settled before any further progress can be made. The CEO of Challenge Fashion (Pvt) Ltd stressed that it is the government's responsibility to ensure the provision of utilities up to zero point. The company remains committed to developing the internal infrastructure as planned. SEZA Punjab then requested guidance from BoI on how to proceed. Regarding Hub SEZ, the Chair invited the Managing Director (MD) of LIEDA to provide an update. The MD reported that the zone is currently facing funding challenges related to its development. Copyright Business Recorder, 2025
