The cement industry is embracing green logistics by testing the use of electric vehicles (E-trucks), with around 150 E-trucks already deployed, top executives said at the CII-Green Cementech 2024 conference. Neeraj Akhoury, Chairman, Cement Manufacturers' Association (CMA) & MD of Shree Cement Ltd, discussed the challenges and benefits of using E-trucks in the industry.
Besides exploring green logistics, the cement industry is looking to invest around Rs 400 billion to add around 40 million tonnes per annum (MTPA) capacity annually, which means a total of 100-120 MTPA over the next three years. This translates to an investment of about Rs 10 billion for every tonne of capacity.
Despite challenges such as higher ownership costs, heavy batteries, inadequate charging infrastructure and limited EV range, the industry sees potential in e-trucks to reduce operating costs in the long term. A report on 'Greening Logistics: Electrification in Cement & Raw Material Transport' from CII and CMA highlights the industry's leadership in deploying electric vehicles for material handling and shipping, even on routes longer than 100 kilometers.
Madhavkrishna Singhania, Chairman, Green Cementech 2024 & Deputy MD & CEO, JK Cement Ltd, highlighted the long-term benefits of reduced emissions, lower energy costs and regulatory compliance. With the cement industry heavily dependent on road transport and internal combustion engine (ICE) trucks for material transportation, e-trucks offer the potential to reduce logistics costs by 25-40%. Furthermore, e-trucks powered by renewable energy can achieve up to 100% reduction in CO2 emissions compared to ICE trucks, which emit approximately 6 kg of CO2 per ton of cement transported over a range of 100 km.