EV based Logistics

USB cable plugged into EV

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EV based Logistics
For Freight Forwarding
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Transportation
Land Transportation
Business Model Description

Invest in setting up a new nationwide sustainable freight forwarding company or scaling up an existing network using emission-free transport vehicles or scaling up an existing freight forwarding company using the B2B model; transferring goods from farm to factory or through a B2C model; transferring goods from retailers and customers.

Companies can also develop freight forwarding channels that offer services to connect different modes of transportation and operators for both passengers and freight logistics - for instance, ride-sharing services, mobility as a service, logistics management platform and the like - and generate revenue from the service fees. Examples of companies active in this space are:

DHL has introduced emission friendly forwarding by GoGreen solutions that create transparency, optimize carbon footprint and offset carbon emissions.

DHL's Sustainable Development Model aims to apply sustainable management practices to transform businesses and challenge the status quo by turning sustainability into an integral component of Supply Chain Management (SCM). This is a key factor in a company’s success. Thus, to generate high returns, DHL has increased its investment in Pakistan and has invested ~USD 8 million recently. (9)

Expected Impact

Reduction in carbon emissions and fuel import bill by switching transportation dependence from oil to clean energy.

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
> 25% (in IRR)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Short Term (0–5 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
> USD 1 billion
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
> USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Affordable and Clean Energy (SDG 7) Sustainable Cities and Communities (SDG 11) Climate Action (SDG 13)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Industry, Innovation and Infrastructure (SDG 9) Responsible Consumption and Production (SDG 12) Gender Equality (SDG 5)
Sector Sources
  • 1) UNDP (United Nations Development Programme). 2022. “Pakistan: Flood Damages and Economic Losses over USD 30 billion and Reconstruction Needs over USD 16 billion.” UNDP press releases. https://www.undp.org/pakistan/press-releases/pdna-pakistan-floods. Accessed 29 March 2023. 2) Statista. 2023. “Third Party Logistics (3PL) Pakistan.” https://fr.statista.com/outlook/mmo/third-party-logistics-3pl/pakistan. Accessed 14 April 2023. 3) Ministry of Commerce. Government of Pakistan. 2021. Strategic Trade Policy Framework (STPF) 2020-25. https://tdap.gov.pk/wp-content/uploads/2022/01/STPF-2020-25-1.pdf Accessed 30 March 2023. 4) United Nations. 2021. “Sustainable Transport, Sustainable Development.” Interagency Report – Second Global Sustainable Transport Conference. https://sdgs.un.org/sites/default/files/2021-10/Transportation%20Report%202021_FullReport_Digital.pdf. Accessed 29 March 2023. 5) ADB (Asian Development Bank). 2013. Gender Tool Kit: Transport. https://www.adb.org/sites/default/files/institutional-document/33901/files/gender-tool-kit-transport.pdf. Accessed 29 March 2023. 6) Abid, S. 2019. “Pakistan Logistics and Transport: Problems and Solutions.” Pakistan & Gulf Economist. https://www.pakistangulfeconomist.com/2019/09/30/pakistan-logistics-and-transport-problems-and-solutions/. Accessed 14 April 2023. 7) Redaelli, S., and N. Rahman. 2021. “In Pakistan, Women’s Representation in the Workforce Remains Low.” World Bank Blogs. https://blogs.worldbank.org/endpovertyinsouthasia/pakistan-womens-representation-workforce-remains-low. Accessed 29 March 2023. 8) BOI (Board of Investment). “Sector Profile Logistics.” https://invest.gov.pk/sites/default/files/boi/Housing%20and%20Construction.pdf?gtranslate=en. Accessed 29 March 2023.
IOA Sources
  • 9) DHL. “Business Success Through Sustainable Supply Chain Management.” https://www.dhl.com/us-en/home/global-forwarding/freight-forwarding-education-center/focus-on-sustainability-glossary/business-success-through-sustainable-supply-chain-management.html. Accessed 29 March 2023. 10) Iqbal Institute of Policy Studies. 2021. “Revitalizing Small and Medium Enterprises (SMEs) in Pakistan.” https://iips.com.pk/revitalising-small-and-medium-enterprises-smes-in-pakistan-2/. 11) SMEDA.2022. “Freight Forwarding Company “. https://smeda.org/index.php?option=com_phocadownload&view=category&id=169:logistics. Accessed 29 March 2023. 12) Fitch Solutions. Inc. 2022. Pakistan Logistics Risk Report. https://store.fitchsolutions.com/all-products/pakistan-logistics-risk-report Accessed 30 March 2023. 13) Gomez, J. 2022. “7 EV Van and Truck Companies with Big 2022 Plans.” https://www.greenbiz.com/article/7-ev-van-and-truck-companies-big-2022-plans. Accessed 29 March 2023. 14) Climate Transparency. 2021. Climate Transparency Report 2020: Pakistan. https://www.climate-transparency.org/wp-content/uploads/2021/11/Pakistan-CP-2020.pdf Accessed 30 March 2023. 15) OECD (Organization for Economic Cooperation and Development). 2015. New Approaches to SME and Entrepreneurship Financing: Broadening the Range of Instruments. https://www.oecd.org/cfe/smes/New-Approaches-SME-full-report.pdf. Accessed 29 March 2023. 16) Mirza. A. (2020). “7% Women Have Access to Financial Services.” The Express Tribune. https://tribune.com.pk/story/2171004/7-women-access-financial-services Accessed 30 March 2023. 17) Government of Pakistan. 2019. Alternative and Renewable Energy Policy 2019. https://www.aedb.org/images/Draft_ARE_Policy_2019_-_Version_2_July_21_2019.pdf. Accessed 29 March 2023. 18) Kurshitashvili. N. Carvajal. K. and Tamayo. C. (2021). “Filling in Knowledge Gaps on Gender Equality in Transportation.” The World Bank Blogs. https://blogs.worldbank.org/transport/filling-knowledge-gaps-gender-equality-transportation Accessed 30 March 2023. 19) Ministry of Communications. 2020. National Freight and Logistic Policy. https://communication.gov.pk/SiteImage/Policy/NFLP%20Main%20Document%20(Final)%2013%20September%202020-converted.pdf. Accessed 29 March 2023. 20) Engineering Development Board. 2020. Electric Vehicle Policy 2020-2025 (Draft) 2-3 Wheelers and Heavy Commercial Vehicles. https://invest.gov.pk/sites/default/files/2020-07/EV%2023HCV%20130620%20PDF.pdf.pdf Accessed 30 March 2023. 21) AEDB (Alternative Energy Development Board). 2019. Alternative and Renewable Energy Policy 2019. https://www.aedb.org/images/Draft_ARE_Policy_2019_-_Version_2_July_21_2019.pdf Accessed 30 March 2023. 22) Ministry of Communications. Government of Pakistan. 2018. Dimension of Good Transport Vehicles Rules. 2017. https://communication.gov.pk/SiteImage/Publication/goods%20transport%20rules.pdf Accessed 30 March 2023. 23) BOI (Board of Investment). 2023. “Sector And Scheme Incentive.” Incentives For Investors. https://invest.gov.pk/incentives-database Accessed 30 March 2023. 24) BOI (Board of Investment). 2021. “Incentives in Special Economic Zones.” Special Economic Zones Incentive Package. https://invest.gov.pk/sez#gallery-1 Accessed 30 March 2023.