• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
TechGlobal 500

Why Siemens is using old technology to solve modern shipping problems

By
David Z. Morris
David Z. Morris
Down Arrow Button Icon
By
David Z. Morris
David Z. Morris
Down Arrow Button Icon
August 31, 2015, 3:21 PM ET
Roding Roadster auf dem Prüfstand in Groß Dölln
Courtesy of Siemens AG

In June, Siemens announced a partnership with Swedish transit authorities for the second pilot study of a new way to electrify highway freight shipping.

Well, it’s sort of new—dubbed eHighway, the system powers trucks through overhead wires transmitted to moving vehicles, a method that has worked for streetcars for more than a century.

eHighway is one of the only currently viable possibilities for electrification of freight trucking. Though freight trucks are similar in weight to the all-electric buses already in operation, trucks face several specific hurdles to electrification. Batteries’ weight would cut directly into trucks’ profitability, and so would stopping to charge. Even as battery costs decline, neither of those limiting factors will change.

Martin Birkner, head of the eHighway project, says that despite those obstacles, a number of broader factors make electrified trucking worth pursuing. While trains have an edge in efficiency, trucks are far more flexible. And in some areas, much of Sweden included, rail infrastructure is already at or near maximum capacity, a situation that will become more common as global shipping volumes grow.

By partially electrifying existing highways, eHighway could balance the flexibility of trucks and the efficiency of trains. Trucks in the Swedish demonstration, like those in a demonstration route already operating outside of Los Angeles, will be electric-fossil fuel hybrids. They can connect to the electrified lines along main routes, then disconnect and reach their final destinations on diesel power.

The connections and disconnections are performed at full speed, using a specially engineered version of the familiar overhead connector. Modern versions are already in use on everything from buses to light rail to mine trucks.

“This is an absolutely proven technology,” says Birkner. “We didn’t have to reinvent the wheel.” In fact, the overhead-wire system was pioneered by Siemens’ founder, Werner von Siemens, in 1879.

Birkner says that while the demonstration trucks are hybrids, the end goal is a system of fully electric trucks with relatively small batteries for last-mile travel. Though such systems could eventually have a big impact on CO2 emissions as renewable energy expands, the more immediate impact would be on local air quality, particularly near high-traffic areas like ports.

Demand for such systems may be driven by local regulation and policy goals, such as Sweden’s goal of achieving a zero-emissions transit fleet by 2030. The consulting group Gladstein, Neandross and Associates, however, did conclude that for short-range operation, such as near ports, electrified trucks could actually be cheaper to operate than their diesel siblings—particularly where the cost of gasoline is highest relative to the cost of grid electricity.

The infrastructure itself is another matter—Birkner says the cost of installation could vary widely, and bodies considering the systems haven’t yet settled on funding models. The Swedish test system will be installed by summer 2016, and that question will be explored, along with system performance, during the two-year test period.

Sign up for Data Sheet, Fortune’s daily newsletter about the business of technology.

About the Author
By David Z. Morris
See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

Intuit was an AI pioneer. Why its stock became a SaaSpocalypse casualty
InvestingSoftware
Intuit was an AI pioneer. Why its stock became a SaaSpocalypse casualty
By Geoff ColvinApril 12, 2026
4 hours ago
Artemis III will practice docking Orion with lunar landers in Earth orbit next year while Musk’s Starship and Bezos’ Blue Moon compete for Artemis IV
InnovationNASA
Artemis III will practice docking Orion with lunar landers in Earth orbit next year while Musk’s Starship and Bezos’ Blue Moon compete for Artemis IV
By Marcia Dunn and The Associated PressApril 12, 2026
4 hours ago
$12 billion crypto company boss says Gen Z ‘create an absurd amount of chaos’ and make him want to pull his hair out—but he’s betting on them anyway
SuccessGen Z
$12 billion crypto company boss says Gen Z ‘create an absurd amount of chaos’ and make him want to pull his hair out—but he’s betting on them anyway
By Orianna Rosa RoyleApril 12, 2026
8 hours ago
mueller
CommentaryEntrepreneurship
I grew up in a family of entrepreneurs. Here’s what I had to unlearn to build a $1 billion business
By Samuel MuellerApril 12, 2026
8 hours ago
grantham
Investingbubble
Legendary investor says the AI boom masks a deeper crisis: Falling sperm counts, shrinking populations, and vanishing resources
By Nick LichtenbergApril 12, 2026
8 hours ago
Wemimo Abbey and Samir Goel, the cofounders of fintech company Esusu
SuccessCareers
These cofounders quit corporate jobs, took on $100K in credit card debt, and slept in a Denny’s—now their $1.2B company is backed by Serena Williams
By Emma BurleighApril 12, 2026
9 hours ago

Most Popular

'This is the last warning.' Iran threatens U.S. warships after they throw down the gauntlet for winner-take-all Strait of Hormuz
Politics
'This is the last warning.' Iran threatens U.S. warships after they throw down the gauntlet for winner-take-all Strait of Hormuz
By Fortune EditorsApril 11, 2026
21 hours ago
Palantir CEO says AI ‘will destroy’ humanities jobs but there will be ‘more than enough jobs’ for people with vocational training
Future of Work
Palantir CEO says AI ‘will destroy’ humanities jobs but there will be ‘more than enough jobs’ for people with vocational training
By Fortune EditorsApril 11, 2026
1 day ago
The 'affordability economy' has created a housing market nobody predicted: Prices collapsing in the Sun Belt, soaring in the Rust Belt
Real Estate
The 'affordability economy' has created a housing market nobody predicted: Prices collapsing in the Sun Belt, soaring in the Rust Belt
By Fortune EditorsApril 11, 2026
1 day ago
A 93-year-old refused to sell her home to the Masters golf course that’s spent $280 million on expansion: ‘Money ain’t everything’
Real Estate
A 93-year-old refused to sell her home to the Masters golf course that’s spent $280 million on expansion: ‘Money ain’t everything’
By Fortune EditorsApril 12, 2026
8 hours ago
Navy tests Hormuz blockade as expert says U.S. military prepares for round 2 and could degrade Iran's hold over the strait to a 'manageable level'
Politics
Navy tests Hormuz blockade as expert says U.S. military prepares for round 2 and could degrade Iran's hold over the strait to a 'manageable level'
By Fortune EditorsApril 11, 2026
1 day ago
'People are trying to be creative': Tariff-battered American companies are so cash-starved they are using refund claims as collateral for loans
Economy
'People are trying to be creative': Tariff-battered American companies are so cash-starved they are using refund claims as collateral for loans
By Fortune EditorsApril 12, 2026
12 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.