NZ Post funds EV transition with green finance

A $20 million financing agreement to accelerate the transition of the NZ Post fleet and its delivery contractors’ vehicles to electric vans or low emissions vehicles (LEVs) has been signed by NZ Post and New Zealand Green Investment Finance (NZGIF).

Each is providing $10m through NZGIF majority owned subsidiary Sustainable Fleet Finance (SFF) for 60 e-vans with EVs and Beyond earlier outlining what these will include.

The initial deal is for Mercedes eVito panel vans, while NZ Post discussions with other OEMs are also ongoing.

NZ Post aims to have 100% of its own fleet and 25% of its contractor fleet electric by 2025 and the balance of the contractor fleet electric by 2030 with contractors able to access grant funding from NZ Post’s EV Incentive Scheme.

“This is a great collaboration between like-minded organisations,” NZGIF chief executive Craig Weise says.

“Transport makes up about a fifth of the country’s carbon footprint, and most of that comes from the light vehicle fleet – cars, vans and utes,” he says.

“This deal will help our decarbonisation goals both by helping NZ Post achieve their goals but also by giving the secondhand commercial EV market the kickstart it needs.”

The e-vans will arrive here in the second half of 2022 and mark the beginning of a four-year tiered lease plan, where a vehicle leased by NZ Post can then be offered by SFF to contractors as second and third owners. The idea is as a vehicle moves down the model it becomes more affordable for each subsequent owner.

Weise says ultimately switching to e-vans for courier deliveries makes sense because models well suited to the task are available.

“Vehicles that will be available will meet pre-determined criteria from NZ Post to make sure they are fit for purpose. So, through this initiative we are bringing in a proven technology that hasn’t made it to New Zealand yet,” he explains.

NZ Post chief executive David Walsh says an EV costs much less to run than an internal combustion engine (ICE) equivalent, though the initial purchasing cost can be a barrier.

“Because of this, NZ Post is making up to half a million dollars available each year to help our delivery contractors invest in these eco-friendly vans.

“Sustainability is a big deal to all of us at NZ Post.”

NZ Post’s owned delivery fleet already includes more than 400 EVs – Paxsters – and at least 35 electric passenger cars.

During the past 24 months NZ Post has also been trialling e-vans which included LDVs, Nissan and Renaults.

The combined NZ Post and contractor fleet covers about 2131 vehicles with 80% being light vans and 81% having diesel engines. About 1916 vehicles are in the contractor fleet.

Each diesel van NZ Post replaces with an EV will abate an average 7.8 tonnes of C02-e annually.