Renault Trucks and GEODIS are combining their industrial, logistics and engineering expertise to design an electric heavy truck dedicated to urban logistics, meeting the requirements of city-center freight transport.

Changes are occurring in urban freight transport, whether in terms of emission regulations, restricted access, or the proliferation of modes of mobility (cargo bikes, bicycles, scooters, etc.) sharing the public space.

For reasons of massification [1], vehicles with a tonnage of over 3.5 tonnes will remain at the core of urban distribution. With a complete range of electric vehicles manufactured in France ranging from 3.5 to 26 tonnes, Renault Trucks has been working for ten years on reducing the environmental footprint of city logistics. GEODIS, whose ambition is to reduce its CO₂ emissions by 30% by 2030, has undertaken to provide carbon-free deliveries to 37 cities in France by 2023.

Through their new collaboration, the constructor and its logistics partner are taking this approach a step further and combining their know-how to develop a brand new 16-tonne electric urban truck, at a comparable cost (TCO [2]) to that of a diesel vehicle, which is a prerequisite for the widespread adoption of alternative power units.

Marie-Christine Lombard, Chief Executive Officer of GEODIS, said: “The environmental emergency combined with the growth of e-Commerce and the implementation of low-emission zones in major French cities mean that we urgently need to step up the decarbonization of transport. This is the objective of GEODIS in forming this partnership with Renault Trucks. We want to quickly provide concrete answers to the issue of sustainable urban logistics.”

Bruno Blin, president of Renault Trucks, added: “We have noticed that the image of the truck is changing; at last it is being perceived as an indispensable tool. The purpose of the Oxygen project, in which Renault Trucks is working alongside GEODIS, is to design a truck that will seamlessly blend into the urban landscape, among other road users in areas with traffic and even in pedestrian zones. This new truck will be designed for the driver’s working comfort and safety, and for the safety of city dwellers.”

A truck that seamlessly blends into the urban landscape

Thanks to the collaborative work carried out from the design stage onwards, this vehicle (project name: Oxygen) will make it possible to integrate all the requirements and functions of city-center delivery: elimination of nuisances such as pollution and noise, and improvement of active and passive safety in order to better manage co-existence with all road users (pedestrians and people using soft modes of transport).

In the early phases of work, the following areas of focus were identified:

• Improved safety for the driver and the public thanks to a lowered cab giving the driver an excellent direct view for optimal protection of road users; a large windshield and multiple cameras instead of rear-view mirrors, offering a 360° view; a sliding side door on the passenger side restricting the door opening angle.

• Greater comfort for the driver, who will be able to get out of the truck on either side, left or right. Climbing in and out of the truck will be made easier by a much lower access height than on a standard delivery truck.

• Optimal ergonomics and easier access to the cargo space. To achieve this, a three-way partnership with a bodybuilder is under consideration with a view to improving loading/unloading operations in an urban environment.

• Connected tools enabling drivers to optimize their delivery operations and their routes.

• To ensure that this vehicle blends into the urban landscape perfectly and with a view to enhancing both the comfort and the self-esteem of the driver, Renault Trucks designers have completely redesigned both the exterior lines of the truck and the interior of the cab.

Delivery of the prototype is scheduled for the end of 2022. It will be produced at Renault Trucks’ site in Blainville-sur-Orne, France, the first European plant to manufacture series production electric trucks since 2020.

The truck will be trialed for urban deliveries in Paris, starting in 2023. This real-world testing will be followed by a phase of adaptation of the vehicle incorporating feedback from drivers covering comfort of use, practicality, recharging, etc., and then by a study to optimize the total cost of ownership.

[1] TCO = Total Cost of Ownership, i.e. the overall cost of an asset or a service throughout its life cycle.

[2] One 12-tonne truck is equivalent to more than 3 LCVs (light commercial vehicles).

Link with pictures:  https://geodis.keepeek.com/bltqTf9EJ

About GEODIS

GEODIS is a top-rated, global supply chain operator recognized for its commitment to helping clients overcome their logistical constraints. GEODIS’ growth-focused offerings (Supply Chain Optimization, Freight Forwarding, Contract Logistics, Distribution & Express, and Road Transport), coupled with the company’s truly global reach thanks to a global network spanning nearly 170 countries, is reflected by its top business rankings: no. 1 in France and no. 7 worldwide. In 2021, GEODIS employed over 46,000 people globally and generated €10.9 billion in revenue.

www.geodis.com

About Renault Trucks

Building on the legacy of more than a century of French truck know-how, Renault Trucks supplies transport professionals with a range of vehicles (from 2.8 to 120 T) and services adapted to the segments of distribution, construction and long distance. Renault Trucks vehicles are sturdy and reliable with low fuel consumption that enables them to deliver greater productivity and control operating costs. Renault Trucks distributes and maintains its vehicles through a network of more than 1,500 service points around the world. The design and assembly of Renault Trucks vehicles, as well as the production of most of the components, are carried out in France.

Renault Trucks is part of the Volvo Group, one of the world’s leading manufacturers of trucks, coaches, buses, construction machines, and industrial and marine engines. The group also offers complete financing and service solutions. The Volvo Group employs around 105,000 people, has production plants in 18 countries and sells its products in more than 190 markets. In 2020, Volvo group sales amounted to €33.4 billion (338.4 billion Swedish crowns). The Volvo Group is a listed company with registered offices in Gothenburg, Sweden. Volvo shares are listed on the Nasdaq Stockholm Stock Exchange.

GEODIS has achieved the targets of its “Ambition 2023” plan two years ahead of schedule, demonstrating the reliability of its business model

• Revenues: €10.9bn, +28% compared to 2020 and +33% compared to 2019, at constant perimeter and exchange rate
• EBITDA[1]:€948m, 33% above 2020 level and 38% higher than in 2019
• Very strong generation of operating cash flow leading to a substantial reduction in net debt

Marie-Christine Lombard, Chief Executive Officer of GEODIS, declared:

“In 2021, GEODIS met the targets of its ‘Ambition 2023’ strategic plan two years ahead of schedule, both in terms of revenue and EBITDA. This performance validates the Group strategy and confirms the value creation for its shareholder, SNCF.

“In less than 10 years, GEODIS, the French leader, has become the 4^th largest European player in the logistics sector and the 7^th largest in the world, with revenues that have grown by more than 50% and an operating margin that has increased fivefold during this period. I would like to thank our customers for their trust (89% satisfaction rate), as well as our employees for their unwavering commitment to the Group (80% satisfaction rate).

“In 2022, GEODIS will continue implementing the three pillars of its strategic ambition: the development of an end-to-end service offering for freight delivery, the strengthening of its e-commerce logistics offering, and a policy of targeted investments in both strategic assets (logistics real estate including robotics, decarbonated trucks) and acquisitions to bolster our presence in key countries (North America, Europe and Southeast Asia).

“In 2022, GEODIS will strengthen its commitment to ESG by including environmental and social responsibility issues in the variable compensation for top management.”

A historic year for GEODIS in a favorable market environment

• Revenue of €10.9bn, +33% compared to 2019 on a like-for-like basis[2] (+28% compared to 2020), driven by sustained activity across all the Group’s Lines of Business and regions. In particular:

• The Freight Forwarding Line of Business benefited from a very positive market environment owing to a favorable price effect and increased volumes. Its revenue in 2021 stood at €4.9 billion, +66% compared to 2019.

In a context of extreme tension in the air and sea freight market, GEODIS managed to secure transport capacities to ensure the continuity of its customers’ supply chains, by:

• Chartering vessels and securing long-term shipping capacity between Asia and Europe,
• Strengthening its air charter program and launching a dedicated cargo aircraft.

• The contract logistics business has been boosted by the boom in e-commerce and market dynamism in the United States and Europe.

The Group’s activities linked to e-commerce now represent more than a quarter of sales in 2021, which illustrates GEODIS’ ability to adapt its offering to market expectations.

• Record results, well above pre-pandemic levels: post-IFRS 16 EBITDA rose by +38% compared to 2019 (+33% versus 2020) to €948m, resulting in an EBITDA margin of 8.7%thanks to the combined effect of relevant commercial initiatives, strong operational performance and tight cost management.

• Sound financial position: strong generation of operating cash flow, allowing a substantial reduction in net debt and a leverage ratio[3] below 1x.

Structural investments in 2021 focused on GEODIS’ sustainable growth

In line with its “Ambition 2023” plan, GEODIS carried out strategic and targeted investments in 2021 that contributed to the Group’s sustainable growth, both through external growth operations and the acquisition of transport and logistics capacities.

• GEODIS made some bolt-on acquisitions to meet customer demand with an enhanced service offering and a stronger geographic presence in strategic markets:

• The acquisition of Pekaes and Transport Perrier will reinforce the Road Transport Line of Business’ network for palletized freight in Poland and France.
• The Distribution & Express Line of Business, which is experiencing strong growth, has expanded its offer in the healthcare sector through the acquisition of Gandon Transports, a leading player in the transport of temperature-controlled pharmaceutical products in France.

• As part of its objective to reduce its CO₂ emissions by 30% by 2030 (compared with 2017 levels), GEODIS has ramped up the implementation of low-carbon and carbon-free transport solutions:
• Implementation of a Sustainable Fuels offer, providing customers with a sustainable alternative fuel for air and sea freight, in addition to the solutions already available for road freight.
• Ordering 330 light commercial vehicles and heavy trucks from Iveco running on bioNGV fuel. This investment will help reach the target of ensuring 100% carbon-free deliveries in the city centers of 37 French metropolises by 2023.
• Already the French leader in multimodal transport, GEODIS intends to develop its offering, in particular through the recent launch of a new France-Italy rail-road transport route.

• GEODIS is investing in strategic assets. The Group has purchased land in Venlo, the strategic logistics hub in Holland close to the German border, with the intention of building a 130,000 m² logistics facility incorporating the latest environmental standards.

Development of the digital offer

• Upply,a marketplace launched in 2018, trebled its sales in 2021, driven by strong growth in its transport price benchmarking activity. In 2022, the company intends capitalize on its position as the European leader in benchmarking and expects increasingly rapid growth for the marketplace.

• The eLogistics offer, developed to meet customers’ expectations in the context of the e-commerce boom, gained momentum in 2021 with three new sites in the United States. It will soon be launched in Europe.

Responsible growth rooted in an ambitious ESG approach

• ESG rating: the GEODIS ESG strategy has been awarded the EcoVadis Gold rating for the last ten years. This is a recognition of the commitment of both management and employees.

• Diversity and inclusion: beyond the environmental ambition of reducing its CO2 emissions, GEODIS has made inclusion one of its priorities. In 2017, women held 13% of the Group’s top management positions. By 2021, this figure had risen to 20% and it will reach 25% by 2023.

• Governance: starting in 2022, GEODIS has decided to include ESG as one of the criteria for up to 25% of the variable remuneration of Executive Committee members and the 150 Top managers. This criterion will cover the environment, gender parity and employee commitment.

A promising outlook in the short term

The Group’s objective is to maintain a favorable growth dynamic in a context where the logistics sector remains favorable in the short term, but where medium-term uncertainties persist: inflationary trends, pressure on capacities (particularly regarding sea freight), geopolitical issues, and the continuing uncertainty surrounding the ongoing public health crisis.

[1] Post-IFRS 16 EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) consists of revenues and related income minus expenses directly attributable to the business

[2] At constant perimeter and exchange rates

[3] Leverage ratio = Net Financial Debt / pre-IFRS 16 EBITDA

GEODIS – www.geodis.com 

GEODIS is a top-rated, global supply chain operator recognized for its commitment to helping clients overcome their logistical constraints. GEODIS’ growth-focused offerings (Supply Chain Optimization, Freight Forwarding, Contract Logistics, Distribution & Express, and Road Transport), coupled with the company’s truly global reach thanks to a global network spanning nearly 170 countries, is reflected by its top business rankings: no. 1 in France and no. 7 worldwide. In 2021, GEODIS employed over 46,141 people globally and generated €10.9 billion in revenue.