How E-Trucks and Private Charging Networks Can Transform Green Freight Systems

A study by researchers from UiT, Southwest Jiaotong University, and Hamad Bin Khalifa University shows that electric trucks, supported by industry-led charging infrastructure, can significantly reduce logistics costs and carbon emissions. Their proposed model proves economically viable and scalable, especially for developing regions like Nepal.

In a pioneering study conducted by researchers from UiT – The Arctic University of Norway, Southwest Jiaotong University in China, and Hamad Bin Khalifa University in Qatar, electric trucks (E-trucks) are evaluated not only as an environmentally friendly option but also as a cost-effective solution for transforming freight logistics. As global pressure mounts to cut emissions from the transport sector, particularly from medium and heavy-duty trucks that dominate freight operations, the study introduces a new business model: industry-spearheaded development of electric vehicle (EV) charging infrastructure, tailored to logistics networks and supply chains.

Rather than relying solely on large-scale public investments, the researchers propose that clusters of companies, especially those with shared logistical operations, could jointly develop and manage charging stations. By focusing on their specific distribution needs, these industry players can initiate the transition to E-trucks on their own terms, while still meeting environmental targets. This alternative model could prove particularly valuable in developing countries, where public infrastructure projects face budgetary and bureaucratic constraints.

Optimizing the Network: A Mathematical Blueprint

Central to this study is a mixed-integer optimization model that jointly designs logistics and charging networks. The model’s objective is straightforward but ambitious: minimize total system costs, including transportation, facility operation, and charging station deployment, while ensuring adequate access to charging for E-trucks. Importantly, the model recognizes that logistics and infrastructure planning cannot be handled in isolation — one affects the other.

The model considers the locations of suppliers, distribution centers (DCs), retail stores, and potential charging points. It factors in transportation distances, electricity and fuel costs, carbon emissions, and demand volumes. It also allows flexibility in infrastructure density by adjusting the coverage radius of charging stations, meaning decision-makers can analyze tradeoffs between more stations with greater accessibility and fewer stations with lower costs.

Real-World Testing in Nepal

To ground the model in a real-world context, the researchers applied it to a case study in Nepal, focusing on the logistics network of a major supermarket and retail chain. Nepal, which is actively encouraging electric vehicle adoption, offers a relevant testing ground with rising EV imports and growing interest in clean transport. The study examined three scenarios: a traditional diesel truck fleet; a hybrid scenario using E-trucks supported by ten charging stations with 100 km coverage; and a leaner model using E-trucks with five charging stations offering 150 km coverage.

The results were compelling. Compared to the diesel-only model, the two E-truck scenarios slashed total logistics costs by 29% and 33.3%, respectively. Transportation-specific costs saw an even more dramatic drop, up to 61.4%, thanks to the lower operating cost of electric vehicles. Emissions reductions were equally impressive, with up to 55.9% less CO₂ released into the atmosphere under the hybrid models.

Furthermore, the study revealed that the hybrid systems required fewer distribution centers, as the reduced transportation cost allowed for more centralized logistics. In Scenario 3, for instance, only three DCs were needed, compared to four in the diesel-only model. This change contributed further to cost savings and logistical efficiency.

The Cost-Accessibility Tradeoff

While the economic and environmental benefits of E-trucks were clear, the study also highlighted a critical dilemma: balancing infrastructure density with accessibility. The 100 km coverage model with ten charging stations ensured that E-trucks were never far from a recharge, making adoption easier for new users. However, this came at a higher infrastructure cost and a lower overall network efficiency. On the other hand, the 150 km coverage model reduced infrastructure needs and overall cost, but increased the average distance to the nearest charging point by over 200%, which could deter wider adoption.

This tradeoff is particularly important for policymakers and business leaders to consider. High accessibility supports early adoption and resilience, but it may initially reduce economic performance. The study suggests that public subsidies or financial incentives could help bridge this gap during the early stages of E-truck adoption, especially in markets with volatile electricity prices.

Paving the Road Ahead for Sustainable Logistics

The research makes a strong case for rethinking how green logistics are planned and financed. The proposed industry-led approach not only accelerates the deployment of E-truck infrastructure but also allows companies to tailor solutions to their specific needs, improving efficiency. From a policy perspective, the findings suggest that governments should support such models through flexible regulations, long-range vehicle incentives, and financial buffers against electricity market fluctuations.

Though the study focuses on Nepal, its mathematical framework and strategic insights are globally applicable. The authors acknowledge that further research is needed to account for vehicle purchase costs, evolving battery technologies, charging station utilization, and fleet diversity. Nonetheless, this work lays a robust foundation for a scalable, replicable approach to green freight transformation.

The study by UiT – The Arctic University of Norway, Southwest Jiaotong University, and Hamad Bin Khalifa University shows that E-trucks, when supported by strategically developed infrastructure, are not just a vision of the future; they are an economically and environmentally viable solution ready to be rolled out today.