Hyundai Motor Company is gearing up for a massive expansion in Georgia, with plans to produce 300,000 electric vehicles (EVs) annually at its new manufacturing complex near Savannah. The South Korean automaker is betting big on rail transport to move these EVs efficiently and sustainably.

According to Hyundai spokeswoman Bianca Johnson, about 70% of the newly built EVs—more than 200,000 annually—will be hauled by train for at least 500 miles. This move is part of a broader strategy to reduce emissions and streamline logistics, reports Savannah Now.

The Role of Rail in EV Transport

Hyundai’s decision to rely heavily on rail transport is a strategic one. Nationwide, about 75% of new cars and light trucks are moved by rail at some point in their journey from the manufacturer to the dealership, according to the U.S. Bureau of Transportation Statistics. This mode of transportation is not only efficient but also environmentally friendly.

Environmental Benefits

Trains produce far less pollution than trucks. Carbon dioxide emissions from rail operations are up to nine times lower than over-the-road transport, according to a report by the World Economic Forum. This reduction in emissions is crucial in the fight against climate change, as heat-trapping carbon pollution from the burning of fossil fuels is a leading cause of global warming.

Additionally, trains release up to 80% fewer fine particles that can have serious health impacts if they penetrate deep into the lungs or enter the bloodstream, as concluded by a study by the California Air Resources Board.

Hyundai’s Partnership with Genesee & Wyoming

Hyundai has struck a transport deal with Connecticut-based Genesee & Wyoming Railroad Services Inc., which operates the Georgia Central Railway. The company plans to use reconditioned diesel locomotives that are more fuel-efficient while releasing less carbon dioxide and particulate matter than traditional engines.

According to G&W’s 2023 Environmental, Social and Governance Report, the company plans to purchase nearly 200 cleaner engines and retire 273 older models this year. They have already cut greenhouse gas emissions by 15% since 2020 and aim for a 42% reduction by 2035.

The Future of Hyundai’s Georgia Plant

The plant, which is projected to employ 8,500 workers, is expected to begin production before the end of the year. Hyundai showcased early versions of the 2025 Ioniq 5 electric SUV that will be assembled there during an event at a Savannah dealership.

Infrastructure Modifications

To accommodate the increased rail traffic, Hyundai sought modifications to a federal environmental permit early this year, allowing for an additional line of track at the 2,500-acre site. The Georgia Department of Economic Development and Savannah Harbor-Interstate 16 Corridor Joint Development Authority requested these changes from the U.S. Army Corps of Engineers.

EVXL’s Take

Hyundai’s commitment to rail transport for its EVs is a significant step towards a greener future. As the demand for electric vehicles continues to grow, innovative logistics solutions like this will be crucial in reducing the overall carbon footprint of the automotive industry. This move aligns with the broader trend of automakers prioritizing sustainability throughout their supply chains, as discussed in our recent article on Tesla’s global sales dominance.

Moreover, Hyundai’s strategy reflects a growing awareness of the importance of sustainable transportation beyond just the vehicles themselves. As we’ve explored in our analysis of EV charging infrastructure expansion, the entire ecosystem surrounding electric vehicles plays a crucial role in their adoption and environmental impact.

By leveraging rail transport, Hyundai is not only reducing emissions from vehicle delivery but also potentially alleviating pressure on road infrastructure and contributing to a more integrated, sustainable transportation network.

What are your thoughts on Hyundai’s use of rail transport for their EVs? Leave your comments below!