With Company Vehicle’s focus on sharing electrification of the fleet information this month, we went in search of an organisation which is not just talking the talk but walking the walk as well.
Of course, finding the organisation is easy, having them find the time to talk to a magazine is quite another trick, but there are huge unanswered questions about transitioning a traditional ICE-focused fleet to an environmentally responsible and fit-for-purpose electrified fleet.
We’re looking for organisations willing to share their experiences and insights with other readers who may be in the process of transitioning their own fleets and with that in mind, we’re delighted to have the opportunity to speak with one of the country’s largest fleet operators – Downer New Zealand Limited.
Josh Hedley is the National Fleet Manager for Downer New Zealand. He leads a team in providing fleet assets and whole of life asset management to the organisation’s internal customers across New Zealand.
To get a better idea of what this entails, it’s important to understand what it is Downer actually does. Josh explains: “Downer designs, builds and sustains assets, infrastructure and facilities and we are the leading provider of integrated services in Australia and New Zealand.
“With a history dating back over 150 years, Downer is listed on the Australian Securities Exchange and New Zealand Stock Exchange as Downer EDI Limited (DOW).
“The Downer Group employs approximately 50,000 people across more than 300 sites, primarily in Australia and New Zealand.”
Bearing in mind numbers like these, it’s fair to say Downer has one of the country’s largest fleets and Josh confirmed that.
“We manage just over 10,000 assets, of which 6000 are road registered. Our road going fleet is primarily commercial – heavy truck, ute, van and passenger making up the balance.
“Over the last 18 months we have transitioned around 150 units from pure ICE. The replacements are mix of hybrid, PHEV and BEV in both the heavy and light fleets.”
This is clearly a significant undertaking and a fleet transition worthy of extensive investigation in terms of its facilitation so does Downer lease or purchase its assets outright?
“We operate a balanced portfolio of leased and owned assets,” says Josh, “and are committed to exploring alternate fuel options with a strong focus on fleet conversion and the installation of a charging network across our sites.”
Fleet best practice over the years has had an emphasis on fit-for-purpose vehicle selection and more and more fleets are coming to terms with this as far as ICE-powered vehicle assets are concerned.
With the shift to electrification – and the consideration of a somewhat reduced selection of vehicles to choose from, has this had an impact on fleet vehicle acquisition for Downer Group?
“100% – it’s not easy. Being fit for purpose and cost effective are key drivers in the decision-making process,” explains Josh. And besides that, converting a fleet of primarily commercial vehicles is a significant challenge.
“We must also balance the driver/vehicle criteria with our ability to respond as a services provider. Significant parts of the fleet are dedicated to the maintenance of critical infrastructure, with the ability to respond being paramount.
“Therefore, like many others, our EV checklist is focussed on the fleet item being fit for purpose and cost effective.
“The key at this stage is finding the right role for the vehicle. It is important to note that the Electrified vehicle market is growing all the time, and with the selection and availability improving, we recently removed all pure ICE vehicles from our passenger selection guide.”
For many organisations, such a move would be tantamount to an ‘all or nothing’ risk of the highest magnitude, but it ably demonstrates the Downer commitment to an electrification (and fleet betterment) programme.
