Land ports of entry (POEs) in the California/Baja California region provide essential infrastructure for binational trade operations between the U.S. and Mexico. Most of the trucks used to transport cargo in and beyond the border region are diesel-powered and a significant source of greenhouse gas and other polluting emissions.
Transitioning to a low-carbon and eventually zero-carbon freight truck fleet presents opportunities and challenges, as upfront costs for these vehicles are high. California has enacted regulations and developed incentive programs to promote cleaner technologies for heavy-duty vehicles to improve air quality and reduce greenhouse gases related to the freight industry. As part of the incentives available in California to offset those costs, grants from the Hybrid and Zero-Emission Truck and Bus Vouchers (HVIP) and the Volkswagen (VW) Environmental Mitigation Trust for California are available to help the truck fleet owners to replace existing diesel-fueled vehicles with cleaner technologies.
Bali Express has demonstrated a strong environmental commitment to upgrade its fleet with cleaner technologies in compliance with state regulations. In April 2024, it was the first freight company to use an electric truck for commercial crossings between Mexico and the United States. NADBank financing will help Bali bridge the financial gap between initiating the acquisition of trucks with cleaner technologies and receiving state grant funds to offset some of the costs.
The project consists of the gradual replacement of up to 97 diesel-fuel based freight trucks with a combination of 75 electric and 22 natural gas-based vehicles. The project will be implemented over a two-year period starting with 25 electric vehicles in 2025.
As part of the requirements to access state grants for this project, the old diesel trucks will be scrapped in accordance with proper disposal methods to ensure that they will no longer be in use and improved emission conditions are achieved.
By upgrading its fleet with cleaner technologies in compliance with state regulations, Bali Express will significantly reduce the harmful emissions generated by its current trucking operations in the San Diego-Tijuana border region. Specifically, the cleaner technology vehicles are expected to avoid an estimated 5,530 metric tons/year of carbon dioxide (CO2), 47 metric tons/year of nitrogen oxides (NOx) and less than one metric ton/year of sulfur dioxide (SO2).