Driving the future of green logistics: How electric delivery vans are transforming last-mile deliveries at RSG

The developer is reshaping the logistics landscape in the region by launching an entirely electric fleet, paving the way for a cleaner and more efficient future.

In today’s rapidly evolving logistics landscape, electric delivery vans are emerging as a game-changing solution in the quest for sustainability and operational efficiency. With industry giants like Amazon deploying over 13,000 custom electric vans across the US and Europe, and DHL already converting 37.6% of its fleet to electric with more ambitious goals ahead, it’s clear that the future of last-mile delivery is electric. At Red Sea Global (RSG), we’re proud to join this green revolution by integrating an innovative fleet of eight fully electric vans into our delivery operations, setting a new benchmark for sustainable logistics.

Our journey into a fully sustainable logistics fleet is about rethinking the entire delivery process. These modern electric vans, which can cover up to 200km on a single charge, have been meticulously designed to serve the unique demands of last-mile delivery. Using electric of biodiesel (B100), they excel in the realm of precision delivery. Each van is outfitted with advanced electric refrigeration systems, ensuring that perishables and chilled goods remain at their optimal temperatures from dispatch to door, even as the vans complete multiple trips per day. At RSG, we are pioneers in the region in designing and deploying fully electric vans equipped with electric onboard refrigeration systems representing a breakthrough in sustainable logistics.

The advantages of switching to electric are profound. For instance, operating an electric van can be significantly more cost-effective over time. A study by the Center for Economics and Business Research highlighted that the annual cost of recharging an electric van might be as low as EUR 3,700 (based on a survey of EU van users), compared to the EUR 12,400 annual fuel cost for its diesel counterpart. This reduction in energy costs, coupled with the inherent efficiency of electric drivetrains – which eliminate the need for oil changes, filter replacements, and complex transmission servicing – results in maintenance savings that can reach up to 40% compared to traditional diesel vehicles. On the ground, we’ve seen fewer maintenance issues with electric vans compared to our previous diesel vehicles. In practice, these savings not only lower the total cost of ownership but also enhance operational uptime, allowing our fleet to serve more customers with fewer interruptions.

Yet, the transition to electric vehicles is not without its challenges. The upfront cost of electric vans is notably higher – sometimes nearly double that of a comparable diesel model. This initial financial hurdle often raises concerns among fleet managers. However, the long-term benefits – ranging from reduced maintenance and energy costs to significant emission cuts – make a compelling business case for this green technology.

Range and refueling infrastructure are critical considerations as well. Modern models are achieving ranges of around 200km per charge, which is typically two to three trips for RSG’s last-mile requirements. Furthermore, advances in fast-charging technology are steadily reducing downtime. Fleets are adapting by installing private charging stations at depots and optimizing route planning to include charging stops, effectively mitigating the so-called “range anxiety” and aligning the operational capabilities of electric vans with the demands of last-mile delivery.

Electric vans operate with zero tailpipe emissions, a stark contrast to diesel vehicles that emit several tons of CO₂ annually along with other pollutants detrimental to urban air quality and public health. In cities where stop-and-go traffic is common, the environmental impact of diesel engines is especially pronounced, making electric vans an attractive alternative for companies aiming to meet stringent emissions targets.

In fact, each month our electric van fleet avoids roughly 116 tCO₂e – that’s equivalent to the emissions from about 77 round trip flights between Jeddah and New York (assuming ~1.5 tCO₂e per long haul flight). Stakeholders have noticed the difference: we’re receiving stellar customer feedback on our greener operations, and our sustainability scores continue to climb.

Drawing from recent industry data and research, the electric van provides an enduring transformation in the logistics sector. With substantial investments underway and continuous advancements in technology, electric delivery vans are set to become the industry standard. At RSG, our new fleet symbolizes our pledge to drive innovation in last-mile delivery and lead the way toward a sustainable future, where responsible logistics and exceptional service go hand in hand.