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
15 hours ago
- Business Recorder
Beyond tariff cut: Millions more move to protected slabs
Nepra has approved a reduction of Rs1.15 per unit in the base tariff for all non-lifeline consumers. The cut implies a base tariff relief of 2 to 5 percent for non-protected consumers, and 8 to 10 percent for those in the protected category. Negative base tariff adjustments are uncommon, offering a rare break after an extended spell of steep increases. The reduction in base tariff is not the main story. What ultimately matters is the effective end-user tariff — where a mix of adjustments, surcharges, and taxes often carries more weight, particularly when the base tariff revision is modest, as is the case this time. Significant confusion persists around the continuation of the previously announced Rs7.4 per unit relief into FY26. The issue was raised during the tariff hearing, but the Ministry of Energy's response did little to resolve the uncertainty. The Ministry stated that the 'average applicable consumer tariff in July 2025 would be lower by around seven rupees as compared to July 2024' — a phrasing that, while seemingly affirmative, raises more questions than it answers, especially in the absence of clarity on the underlying assumptions and whether the relief refers to gross billing impact or base tariff trajectory alone. It is important to recall that much of the previous quarter's relief was temporary by design, intended to lapse by June 2025. The only component explicitly extended into FY26 was the Rs182 billion relief — equivalent to Rs1.7 per unit — financed through additional Petroleum Levy collections. In its communication with the IMF, the government had clearly stated that this limited subsidy for all non-lifeline consumers would remain in place only until June 30, 2026. Combining the Rs1.15 per unit base tariff reduction with the Rs1.7 per unit Petroleum Levy–financed subsidy brings the total relief for July 2025 to Rs2.8 per unit. However, the most significant contributor is the Fuel Charge Adjustment (FCA), which has dropped from Rs3.2 per unit in July 2024 to around 10 paisas — a major swing. Additionally, quarterly tariff adjustments (QTA) offer further relief of Rs2.5 per unit, as the current QTA is a negative Rs1.55 per unit, compared to a positive Rs0.93 per unit last July. It's worth recalling that effective electricity tariffs for all consumer slabs had peaked in July 2024. Despite the base tariff cut, effective tariffs are set to increase by Re1 per unit on a month-on-month basis — primarily due to the quarterly adjustment becoming less negative, narrowing from Rs3.45 to Rs1.55 per unit. With this periodic negative adjustment scheduled to lapse after July 2025, the year-on-year relief in effective tariffs will also diminish as FY26 progresses. The more fundamental shift is unfolding in consumption patterns. An estimated 3.5 million additional consumers are expected to move into the protected category in FY26 compared to FY25. Today, 60 percent of all domestic consumers fall under protected or lifeline slabs — up from 50 percent just three years ago. Their share in total domestic consumption has risen from 22 percent in FY22 to 32 percent now. In contrast, consumption in the unprotected category — primarily middle and lower-middle income households — has declined sharply. The 301–700 unit slab has seen a drop of 5 billion units over three years, with its share in domestic consumption falling from 26 to just 19 percent. Despite lower tariffs compared to last year, the shift appears structural. Erosion in purchasing power has pushed millions into protected categories, shielding them from steep tariffs — but at the cost of mounting pressure on those left behind to cross-subsidize. The shift also mirrors the acceleration of solar adoption. In many remote areas, the grid is becoming increasingly redundant. Solar uptake is now evident across commercial, agricultural, and industrial segments as well. Meanwhile, uncertainty around net metering policy continues. Without clarity, the burden will keep growing on mid-tier unprotected consumers still tied to the grid.
Express Tribune
2 days ago
- Express Tribune
NEPRA cuts basic power tariff by Rs1.15/unit
The National Electric Power Regulatory Authority (Nepra) has decided to reduce power tariff by Rs1.15 per unit, offering a big relief to consumers, using 100 to 500 units per month, according to a notification sent to the government for final approval and implementation. Nepra has issued its decision to reduce the basic price of electricity for the entire country. As per the decision, the maximum tariff for domestic consumers will be Rs47.69 per unit. However, the tariff for domestic lifeline consumers, using up to 50 units per month has been maintained at Rs3.95 per unit. According to the Nepra notification, tariff for lifeline consumers, using 51 to 100 units per month, is Rs7.74. A rate of Rs10.54 per unit has been approved for protected domestic consumers using 1-100 units and Rs13.01 for protected domestic consumers, using 101-200 units. For the non-protected domestic consumers, Nepra fixed the tariff at Rs22.44 for 1-100 units per-month category; Rs28.91 for 101-200 units; Rs33.10 for 201-300 units; Rs37.99 for 301-400 units; Rs40.20 for 401-500 units; Rs41.62 for 501-600 units; Rs42.76 for 601-700 units and Rs47.69 for above 700 units. According to officials, Nepra has sent its recommendations to the federal government for the implementation of the new rates. After the approval of the Nepra recommendations, the government would announce the reduction of the power tariff, they added.
Business Recorder
2 days ago
- Business Recorder
Wall St recovers with help from Nvidia, Tesla
NEW YORK: US stocks recovered from opening losses to trade higher on Wednesday, helped by Nvidia, Apple and Tesla, while investors looked ahead to the non-farm payrolls report for clues on how soon the Federal Reserve would lower borrowing costs. Tesla rose 4.2%, even as the EV-maker posted a big drop in second-quarter deliveries, with some traders saying the numbers were less severe than analysts' bleak forecasts. The stock has shed more than 20% this year. Nvidia rose 2.2%, while Apple added 1.8%, keeping technology shares in the lead. Markets opened lower after data showed US private payrolls fell unexpectedly in June and job gains in the prior month were smaller than initially thought, fueling increased bets of interest-rate cuts as soon as July. The focus, however, is on the more comprehensive non-farm payrolls report on Thursday - set to be released a day earlier than usual, with markets closed on July 4 for Independence Day. The reading is expected to show US job growth cooled in June and the unemployment rate ticked up to 4.3%, according to a Reuters poll of economists. 'What's happening now is the data is getting very close for the Fed to make a move. There's going to be a cut - it's just a matter of July or September and then we'll go from there,' said Joe Saluzzi, co-manager of trading at Themis Trading. 'The (April) selloff really shook a lot of people out and you might see more buyers coming in. I think momentum is very powerful in this market.' The Nasdaq and the S&P 500 touched record highs on Monday, recovering from their April slump as investors looked past trade uncertainties and geopolitical tensions to bet on accommodative monetary policy from the US central bank and AI potentially driving earnings for tech companies. The blue-chip Dow was within 1.3% of hitting an all-time high. At 11:58 a.m., the Dow Jones Industrial Average rose 2.29 points, or 0.00%, to 44,496.43, the S&P 500 gained 17.19 points, or 0.27%, to 6,214.98, and the Nasdaq Composite gained 152.33 points, or 0.75%, to 20,354.69. President Donald Trump said on Tuesday he was not considering extending the July 9 deadline for imposing tariffs and expressed doubts that an agreement could be reached with Japan, but said the US had struck a deal with Vietnam and expected one with India. Meanwhile, Trump's massive tax-and-spending bill heads to the US House of Representatives for possible final approval after the Senate passed the legislation, which nonpartisan analysts say will add $3.4 trillion to the national debt over the next decade. Seven of the 11 major S&P sectors nursed losses, with utilities and healthcare falling 1% and 0.7%, respectively. Centene tumbled about 40% and was set for its worst day on record, if losses hold, after the health insurer said it had withdrawn its 2025 earnings forecast after data showed a significant drop in expected revenue from its marketplace health insurance plans. Shares of peers including Elevance Health fell 8%, Molina Healthcare sank 20% and UnitedHealth lost 3.5%. Verint Systems rose 12.2% after Bloomberg News reported buyout firm Thoma Bravo was in talks to acquire the call-center software maker.
