Myth #2: Electric Straddle Carriers have a higher Total Cost of Ownership (TCO)

"Actually, when looking at the calculations based on real-world terminal data, battery-powered straddle carriers present a highly compelling business case with an equivalent or even superior TCO over the lifetime of the equipment when compared to diesel-electric or hybrid machines," says Aki Heikkinen, Sales Development Lead, AMEA Horizontal Transportation, Kalmar. "Even though battery-powered machines will require a somewhat higher capital investment, this is more than offset by the significantly lower OpEx and energy costs over the lifetime of the equipment. The lower operating expenses are mainly due to the reduced maintenance needs from removing the diesel engine."

When looking at the calculations based on real-world terminal data, battery-powered straddle carriers present a highly compelling business case with an equivalent or even superior TCO over the lifetime of the equipment when compared to diesel-electric or hybrid machines

Long-life batteries

One reason for the higher cost of an electric straddle carrier compared to a traditional diesel-powered machine is the fact that the demands on the battery technology are so extreme compared to, for example, consumer electric vehicles. As a result, the long-term support and lifespan of batteries are crucial factors in maintaining the cost-efficiency of electric operations over time.

Some indication of the reliability of the battery technology of electric straddle carriers can be seen from the fact that Kalmar has, over more than a decade, delivered over 700 hybrid straddle carriers around the world using the same battery solution as the company's current High Power battery for electric straddle carriers. Of the 17,000 battery modules installed in these machines, less than 1% have been replaced due to warranty issues.

"Based on data from hundreds of our connected machines dating back to 2016, we can safely state that the degradation of battery capacity in our High Power battery technology is less than 10% over a period of eight years," adds Sami Yli-Äyhö, Senior Manager, Product Management Horizontal Transportation, Kalmar. For the newer High Energy battery solution, we do not yet have this depth of accumulated data, but we expect similar results to hold. Basically, both battery solutions are rated to last the normal service life of the machine."

Based on data from hundreds of our connected machines dating back to 2016, we can safely state that the degradation of battery capacity in our High Power battery technology is less than 10% over a period of eight years

Doing the calculations

A key factor in the electrification of straddle carrier operations is that battery-powered machines will dramatically transform the equation for lifetime operating costs. "For any market area that has access to reasonably priced electricity, the costs will almost inevitably come out in favour of battery technology when factoring in energy prices and the reduced maintenance costs," says Verneri Koiranen, Business Development Specialist Horizontal Transportation, Kalmar.

The cost and efficiency benefits of battery-powered equipment are even more pronounced when considering the potentially heavier future taxation of carbon dioxide emissions and/or diesel fuel. "Even in markets that benefit from both cheap diesel and low-cost electricity, we can see energy cost savings of up to 60% when compared to hybrid machines," Koiranen says. "When you couple these results with the immediately accessible savings in maintenance costs, the data is quite unequivocal."

Even in markets that benefit from both cheap diesel and low-cost electricity, we can see energy cost savings of up to 60% when compared to hybrid machines

The charging infrastructure that electric straddle carriers require does inevitably represent a significant upfront investment. However, with more and more ports introducing shore power for ships, many major ports are facing upgrade requirements to their grid infrastructure over the coming years. These investments can present a window of opportunity to simultaneously install charging infrastructure in the terminals.

"As a 'bonus' for the TCO calculations, the availability of green funding or other financial incentives may also further offset the initial costs of electrification," says Verneri Koiranen. "However, even without these added benefits, the case for electrification is usually quite clear from a business standpoint."

As a 'bonus' for the TCO calculations, the availability of green funding or other financial incentives may also further offset the initial costs of electrification

Next up: Is it better to wait before switching to electric straddle carriers – or to be a first adopter?