Retailer Clicks Group and its pharmaceutical wholesaler United Pharmaceutical Distributors (UPD) have partnered with electric vehicles (EVs) lessor Everlectric and sustainable finance solutions provider Investec Sustainable Solutions to launch the South African pharmaceutical industry’s pioneer fleet of zero-emission, pharma-compliant EVs with solar-powered refrigeration.

Clicks acquired UPD in 2003 to provide the distribution capability for its healthcare strategy.

The EV project, initiated last year, entails the deployment of 42 Maxus eDeliver 3 panel vans, purpose-built for UPD.

Speaking to Engineering News on the sidelines of the event, UPD managing executive Trevor McCoy said 26 of the vehicles would be deployed in Gauteng and 16 in the Western Cape.  

They would be used to transport pharmaceuticals from the warehouses in Gauteng and Cape Town to various Clicks stores, hospital stores or independent pharmacies in the provinces’ urban areas.

McCoy highlighted that the group also has plans to expand the fleet of EVs. The 42 vehicles represent about 42% of its fleet and the group is looking to deploy an additional 36 EVs in Gauteng, as well as start the roll-out of EVs to Gqeberha and Durban during 2026.

Also, the timing of the rollout is aligned to the previous vehicles reaching their end of lives, to minimise losses, McCoy pointed out.

The vans were manufactured by Chinese vehicle brand SAIC Maxus in China, and are imported and supplied by Everlectric, Everlectric CEO and co-founder Ndia Magadagela told the publication.

The vans feature a laser-welded aluminium chassis and lithium-ion batteries. They are equipped with a 50.5 kWh battery pack, providing a range of 220 km to 250 km on a single charge. Each EV has a 1 t capacity and 6.5 m³ of refrigerated space.

To support the fleet, UPD has further expanded its renewable-energy infrastructure, adding 1 170 additional solar panels and high-speed charging points at the two distribution centres in Gauteng and the Western Cape, McCoy informed.  

Moreover, Magadagela highlighted that Everlectric provides live charging support through its cloud system to UPD’s delivery EVs, providing information such as the best location and times to charge, to ensure they do not run out of range.

The refrigerated cargo boxes on the vans were highlighted as pioneering in the industry, powered entirely by solar energy. Moreover, Magadagela said this component of the van was locally built and fitted and the company was aiming to bolster local content over time.  

These boxes are insulated, and are produced from lightweight composite structural polyvinyl chloride, the same material used in super yachts, and are 50% (200 kg) lighter than standard models.

UPD owner-driver Elizabeth Nwokedi acclaimed that this made them more efficient and smoother to drive and capable of managing heavy loads.

Magadagela pointed out that the refrigeration system was accompanied by an inverter and a battery system to ensure that it could operate for two days without sunlight.

The vehicle’s own battery can also be used to power the refrigeration unit.

The vehicles are expected to cut about one ton of CO₂ per month each, with the entire fleet projected to save 2.4-million litres of diesel and reduce CO₂ emissions by 6.3-million kilogrammes over its lifespan.

They also operate at a quarter of the fuel cost of diesel alternatives and have lower maintenance expenses, Magadagela said.

TRANSFORMATION DRIVER

UPD implemented an owner-driver scheme in 2003, and this has since seen sustained growth, supporting 80 black entrepreneurs, McCoy indicated.

Further to pursuing sustainability, the group is also looking to engender transformation with the EV project, through this scheme. 

In this vein, it partnered with Investec Sustainable Solutions, for the company to finance the owner-driver scheme for this particular project. 

Investment Sustainable Solutions developed a financial model in conjunction with UPD, which allowed for funding into a special purpose vehicle that provided financing to each one of the owner-drivers, and ultimately, at the end of the funding period of five years, ownership was vested with each one of the drivers, Investec Sustainable Solutions head Melanie Humphries explained.

Moreover, the process included upskilling of the drivers on how to run their own business, which included financial management, she averred.   

Humphries said that there were 11 drivers on the scheme, with some owning more than one vehicle.  

McCoy highlighted that 27% of the EVs would be owned by black women entrepreneurs.

Nwokedi, who will own five vans, highlighted that this allowed her contribute to employment in the country. She also welcomed the initiative as a means of improving gender parity in a male-dominated industry, and encouraged more women to enter the space.

Humphries indicated the cost of the vehicle itself was about R800 000, while the kitting out of the refrigeration unit, batteries, inverter, solar panels and other equipment cost about R200 000, bringing the total cost to about R1-million.

However, she said they were cheaper to operate for the owner-drivers compared to internal combustion engine vehicles, ultimately engendering cost savings.

“We’re seeing a massive trend towards sustainability, but sustainability in the context of commerciality. The thinking today is that the two concepts are definitely not mutually exclusive, and that you can actually build a commercially viable business while being sustainable,” Humphries acclaimed.