On the road to sustainable mobility: How can a purchase of 50 Tesla trucks disrupt the ME transport sector?

Does the creation of the first regional fleet of Tesla trucks point to a general speeding up of smart and sustainable mobility in the Middle East?

The GCC is home to over 51 million people – a figure that is predicted to reach 65 million by 2030.[1] This rapid increase in population will no doubt place greater strain on transport infrastructure that’s already under pressure. More immediately, women in Saudi Arabia will be finally be allowed to drive on the kingdom’s roads as of June 2018,[2] further impacting on the market growth of the region’s transport sector. With so many new drivers joining the roads it’s clear that big changes are in order.

During WFES 2018, Sharjah-based Bee’ah, the region’s fastest-growing environmental management company, announced that it would be buying 50 Tesla Semi heavy duty electric trucks to add to its 1000-strong fleet of waste collection and transportation vehicles.[3] At a base price of $180,000 per unit – compared to the $80,000 starting price for your more traditional Semi truck models – this order for 50 of Tesla’s emissions-saving trucks could be the necessary kickstart needed to prompt heavier investment in smart mobility solutions across the Middle East.

Bigger investments lead to greater impact on transport sustainability

It’s not only the magnitude of the purchase that is notable, it’s what that order represents. The 50 Tesla trucks will no doubt quickly make a big dent in Bee’ah’s overall emissions once they’re delivered and operational in 2019. However, the attitude and reasoning behind the company’s purchasing decision, with an estimated worth of between $7.5 and $10 million,[4] are an encouraging sign that Middle Eastern transport operators are committing more firmly to meeting their sustainability goals. In recent media interviews, Bee’ah leadership figures Salim Al Owais and Khaled Al Huraimel explained their thinking behind the purchase:

“Sustainability is at the very core of what we do, and the pursuit of this feeds into every level of our organisation. That is why we have made this investment in our transportation fleet, which occurs with a view towards a larger goal – achieving the objectives of the National Agenda for UAE Vision 2021.” – Khaled Al Huraimel, Group CEO, Bee’ah

“Through this latest investment, we hope to demonstrate to others the value and importance of seeking out better, more viable ways of achieving our business aims.” – Salim Al Owais, Chairman, Bee’ah[5]

This linking of stated mission goals with actual action and tangible investment in improved solutions (despite their significantly higher adoption costs) that makes the introduction of a Tesla truck fleet such an intriguing prospect for the future of ME mobility. Should competing companies take note of Bee’ah’s example and decide that similar investments and adaptive thinking are the way forward, then this could be the first major disruption of many for the region’s transport sector.

In fact, early 2018 has already seen plenty of movement in this regard, as Masdar announced the forthcoming introduction of its new electric bus during the Abu Dhabi Sustainability Week (ADSW).[6] Not only is this another example of major international player in renewable energy and sustainable urban development making an impact in sustainable transport solutions, Masdar’s announcement may encourage further electric transport innovation in the UAE since the working prototype was developed locally.

Similar signs of smart mobility adoption

National strategies like UAE Vision 2021 aren’t exactly a hard deadline for the Middle East to achieve all of its dreams for a smarter, more sustainable future. However, they serve as an integral ‘spurring on’ factor for ME companies and governments to think big and push for the adoption of more disruptive and innovative solutions to the age-old problems facing transportation:

  • Progress on Dubai’s Autonomous transportation Strategy goal of powering 25% of the emirate’s journeys through autonomous methods by 2030 continues at pace. September 2017 saw the world’s first successful maiden concept flight of a two-seater Autonomous Air Taxi (AAT) or self-flying taxi. In April 2018, RTA director Mattar Al Tayer stated that Dubai is “ready” to move forward with plans to expand the public transport network to accommodate AATs.[7]
  • In February 2018, RTA launched the first tests of the world's first autonomous pods in collaboration with Next Future Transportation. The driverless pods can transport up to 10 people through built-up urban areas at an average speed of 20km/h, powered only by a battery supporting 3 hours of continuous operation. Pending successful testing, this could prove to be a safe, sustainable inner-city transport solution.[8]
  • Earlier this year, Ford established the ME branch of its City Solutions team, the only-of-its-kind in the automotive industry, to work directly with governments to determine their mobility needs and to help develop customised, local solutions to address transportation issues.[9] Greater international cooperation and corporate buy-in will be essential elements for the forthcoming ME transportation transformation.

 

Sources:

[1] Albawaba, Ford Embraces Future Investment Initiatives to Boost Smart Mobility in the Middle East, 23/10/2017

[2] Arab News, Economic benefits of allowing women to drive are very welcome, 22/04/2018

[3] The National, Sharjah company buys 50 Tesla electric trucks in first for region, 15/01/2018

[4] Electrek, Tesla Semi receives another large 50-truck pre-order, 14/01/2018

[5] Ibid

[6] Gulf News, Masdar unveils locally built electric bus at Abu Dhabi Sustainability Week, 15/01/2018

[7] Time Out, Dubai is now ready for flying taxis, RTA official says, 24/04/2018

[8] Smart Cities World Forums, RTA partners with Next Future Transportation to test autonomous pods at World Government Summit, 14/02/2018

[9] Albawaba, Ford Embraces Future Investment Initiatives to Boost Smart Mobility in the Middle East, 23/10/2017

https://www.thenational.ae/business/technology/sharjah-company-buys-50-tesla-electric-trucks-in-first-for-region-1.695413

https://www.globalfleet.com/en/news/smart-mobility-given-boost-middle-east

http://www.smartcitiesworldforums.com/news/smart-cities-middle-east/smart-mobility-deployments-me

https://government.ae/en/information-and-services/transportation/smart-mobility-solutions

https://www.thefirstgroup.com/en/news/2017/1/dubai-ramps-up-smart-mobility-strategy/

https://www.albawaba.com/business/pr/ford-embraces-future-investment-initiatives-boost-smart-mobility-middle-east-1037966

https://electrek.co/2018/01/14/tesla-semi-electric-truck-pre-order/

https://gulfnews.com/news/uae/transport/dubai-ready-for-hyperloop-flying-taxis-says-official-at-transport-congress-1.2210062

http://www.timeoutdubai.com/aroundtown/news/83022-dubai-is-now-ready-for-flying-taxis-rta-official-says

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http://www.smartcitiesworldforums.com/news/smart-cities-middle-east/smart-mobility-deployments-me/775-rta-partners-with-next-future-transportation-to-test-autonomous-pods-at-world-government-summit

http://www.arabnews.com/node/1289116

https://gulfnews.com/news/uae/environment/masdar-unveils-locally-built-electric-bus-at-abu-dhabi-sustainability-week-1.2157212