For transport operators, adding reduced-emission trucks to the fleet is not just an attractive prospect to future-proof the business, but it’s becoming a necessity to remain competitive in an increasingly demanding sector.
Despite the long-term benefits operating electric trucks within a fleet can bring, a major limiting factor in their uptake is the initial financial outlay to purchase the truck and install the charging infrastructure to ensure effective operation.
For larger transport operators, that initial cost of ownership to add renewable trucks to their fleet may be absorbed before they feel the longer-term benefits, but for small and medium-sized operators who can action real, wholesale change to the industry, that initial cost may seem insurmountable.
DLL, a leading global vendor finance company, is committed to enabling companies start and progress their journeys in the energy transition space through its vehicle financing solutions, whether they’re ready now or preparing to make the leap in a few years’ time.
Supporting the Energy Transition Journey
Daniel Foster, Regional Sales Manager, Asia Pacific, for DLL’s Construction, Transport and Industrial business, says the company is well-placed to help partners and customers take their next steps in the transport sector’s energy transition wherever they are in their journey.
“We’ve seen Australian operators show a strong appetite to add reduced-emission vehicles to their fleet, but their time scale seems to vary,” Foster says. “We have customers who are looking now and customers who are flagging it as a goal over the next few years.
“There is such a mix of things happening out there and it’s a topic that is becoming more and more prevalent, without a doubt.
“To aid with the increased interest, DLL has established a Global Energy Transition Team, which is dedicated to energy transition across different industries. The dedicated eMobility Team specifically supports energy transition for transportation assets.
“Now we have global specialists to identify what we need to do, create comfort in a long-term plan and progress from there.”
The DLL Difference
That ability to plan for the long-term is part of what separates DLL’s services from other financiers. As DLL is part of the global Rabobank Group, it can ride the short-term ups and downs of the volatile transport sector while keeping long-term customer ambitions intact and progressing, whether in the EV space, or continuing diesel-fueled operations.
“It’s certainly a customer-first culture here,” Foster continues. “Our NPS (Net Promotor Score) is one of the highest across all financiers in ANZ, including the banks, and a lot of that comes from our status as being part of the global Rabobank Group. We don’t need to go to market and discuss our quarterly reports, we can take longer term views and take longer term plays on our approach to new markets and technological developments.”
“We know there are going to be cycles in industries, and this is probably the most cyclical industry globally. Most of our larger vendors have been with us for 10, 15, 20 years, and we’ve been through multiple tough times with them, and in the tough times we do quite well. Where other financiers might pull out or tighten the belt, we accept it and grow even more.”
“One thing about DLL is we’re a company that is really focused on partnership,” Stephen Denlow, Business Development Manager for DLL’s Construction, Transportation, and Industrial business adds. A lot of other financers or brokers might see deals as purely a transaction. Because we partner with the OEM and/or the dealers, we’re part of their sales process, and we understand their motivations and priorities.
Tailored Solutions for Transport Assets
“Dealers and OEMs all focus on different things, it might be a transport asset, but is it interstate? Is it refrigerated? Is it civil construction? Is it postal work? There are nuances to transport, and you must understand what they are buying the asset to do so you can then focus on providing a tailored solution to the end user, which not only helps them get their asset on the road but also helps the dealer as part of their sales processes.”
“It’s a real priority to understand those end user customers and their needs.”
For many small and medium transport operators, the purchase of new, or different technologies in trucks, including electric, is a tough decision to make, simply because of their significant understanding of what has worked before.
Global Expertise, Local Support
In the face of a changing industry, though, operators need to adapt to survive, and Denlow says DLL’s international relationships with a range of OEMs ensures customers are presented with a full, detailed picture of the evolving industry in order to make the best choices possible.
“In the long-term, a lot of the bigger players are going to embrace electric and hydrogen trucks,” Denlow continues.
“For example, the local delivery truck I see every day around my area is a Foton electric truck. You can see large charging stations and bays at the big depots and sites coming up all the time.”
“The small and medium-sized operators are more focused on cash flow, the price of the trucks themselves, and the cost of installing the charging infrastructure.
“Having a finance partner that can finance your truck, your electric charging stations and even your energy producing assets as a package is a real opportunity to embrace a quicker change than if that financing option wasn’t there. Instead of needing to pay, say, $400,000 upfront, it can be paid over an agreed amount of time to be far more palatable for small and medium-sized operators.”
“Some operators have been doing the same thing for 40 or 50 years, so to have such a big change is a tough mindset to embrace. But since we operate globally, we have access to data and trends from Australia and around the world to present to our partners and provide even more insights to help them become more comfortable with making this type of change.”
About DLL
DLL is a global asset financing partner servicing the transport industry, among a variety of others. It operates in over 20 countries and has almost 60 years of experience to call upon.
Want to reach out or learn more about DLL? Click here.
Disclaimer: Finance is provided by De Lage Landen Pty Limited (ABN 20 101 692 040) (DLL). Equipment to be used for business purposes only. Subject to DLL’s standard credit criteria, fees and terms and conditions apply.
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