RIYADH: Saudi Arabia is rapidly advancing in the electric vehicle sector for commercial transportation, outpacing many other countries, according to an industry leader.
In an interview with Arab News during the EV Auto Show 2024, Gary Flom, president and CEO of National Transportation Solutions Co., praised the Kingdom’s swift development, noting that it has achieved in five years what took the US 25 years.
“The speed of progress here is like light speed,” he remarked.
“Everything here is accelerated — maybe 10 times when you look at Europe or the United States,” he added.
As part of its Vision 2030 initiative, Saudi Arabia is focused on creating a comprehensive EV ecosystem to diversify its economy and reduce reliance on oil. The government aims for 30 percent of vehicles in Riyadh to be electrified by 2030.
To meet this ambitious goal, significant investments are being made in EV infrastructure, including public charging stations and policies favorable to EV adoption.
Additionally, the government is collaborating with international partners to build an EV supply chain that encompasses sourcing raw materials for batteries and enhancing manufacturing capabilities.
Flom acknowledged the difficulties in transforming the passenger vehicle market but expressed optimism about the advancements in the commercial sector.
“It’s a lot easier to decarbonize the commercial sector because we know what the customer does,” he said. “We know where the vehicle goes, where it lives, and the payload it carries. We know how to design the charging infrastructure for it,” the executive said.
NTSC is leading these efforts with its decarbonization roadmap. According to Flom, this comprehensive plan aims to assist government and private fleet operators in transitioning from internal combustion engine fleets to electric and hydrogen-powered vehicles. The roadmap is designed to measure the carbon baseline of fleets, provide the necessary ecosystem for charging infrastructure, and manage the maintenance of electric commercial vehicles using advanced software.
“Our decarbonization Roadmap gives government fleets and private fleets a cost-effective, organized way to transition from ICE fleets to new energy fleets,” Flom said. This initiative also provides accredited carbon reduction data, which will be crucial for carbon credit trading in Saudi Arabia as the market for this system continues to grow. Flom added: “We give them this plan over the next few years on how to decarbonize their fleet. And also we give them the accredited carbon reduction data so they can actually use it to trade carbon credits when that becomes available in Saudi Arabia.”
The roadmap has already resulted in strategic partnerships with key players in the transportation sector, including agreements with J&T Express, Saudi Bulk Transport (SBT-SENDDEX), and UPS. These collaborations, announced at the event, are instrumental in promoting advanced decarbonization strategies across the Kingdom. “Our collaboration with SBT-SENDDEX and Electromin reflects our commitment to advancing sustainable transportation with leading companies in KSA,” Flom said. “By leveraging innovative decarbonization strategies, we aim to make a significant impact aligned with the UN Sustainable Development Goals,” he added.
In addition to strategic partnerships, NTSC has developed innovative technologies such as DarbConnect, a proprietary fleet management software. The platform uses Internet of Things technologies to provide real-time GPS tracking, predictive maintenance, and a range of data services, helping fleet operators enhance efficiency and reduce costs. “DarbConnect has proven to be a huge success,” Flom said. “In less than two years, we signed up more than 330 B2B and B2G customers and gained about 35 percent market share of the entire commercial units and operation sector,” he added.
While the commercial sector is advancing quickly, Flom noted that decarbonizing the passenger vehicle sector presents more challenges due to the variability in individual vehicle use. Unlike commercial fleets, which have predictable routes and payloads, passenger vehicles are utilized for various purposes, complicating the establishment of a uniform charging infrastructure and user behavior model.
Looking ahead, Flom remarked that the company aims to become a regional leader in sustainable transportation, planning to export its expertise, roadmap, and technologies to the broader Middle East and North Africa region. “NTSC will become not only the leader for fleet management and sustainable multi-modal mobility, but we also look to export the same outside of Saudi Arabia,” said Flom.
