Prologis Prepares for the Future of Logistics with Autonomous Trucks
The conversation begins with Todd discussing how Prologis is approaching the future of autonomy as autonomous trucks will be operating at their customers facilities.
Our role across many of our customers footprints is how can we be an accelerant for adoption, for things that can be transformative to their bottom line, to their top line, to their day-to-day growth. Because we want to have customers that can thrive using our existing footprint today.– Todd Lewis
To prepare their facilities for autonomous trucking, Prologis is putting plans in place today to update the infrastructure and add services such as fiber to support autonomous operations. As Prologis plans for autonomy, the company is taking a measured approach to leasing by hedging their capital risk for infrastructure development and capital investment.
To limit their capital risk, Prologis develops their infrastructure to be future-proofed. Whether it’s the switch to electric vehicles and laying the conduit needed for energy to designing the yards for autonomous trucks, Prologis is developing for the future.
From an underwriting perspective, the company has a robust due diligence process that looks at the long-term viability of the potential company leasing the real estate. Including if they have a corporate parent with superior credit and a healthy balance sheet who could co-sign the lease.
We choose partners that have the highest likeliness of success. We try to stay true to picking partners and customers who have operations and new business practices that have, what we would consider staying power.– Todd Lewis
To prepare for all the changes currently happening in the market, Prologis created a mobility division to focus on accelerating EV adoption and preparing for autonomy. Focused both on automation outside and inside the facility as by 2027, it is projected that 26% of all warehouses will have some sort of automation.
I believe that you have to enable automation in order for it to be properly utilized. It’s the nuances that matter.– Todd Lewis
Outside of the facility, the yard of the future is going to change as there will be autonomous truck launch and landing pads. The changes from an infrastructure standpoint will be minor, but from a human interaction standpoint, major. As both autonomous trucks and human driven trucks will operate at the same facility.
The interaction with the human element is something that over time will have to be fleshed out a bit, in order for those systems to work properly.– Todd Lewis
Wrapping up the conversation, Todd shares his thoughts on the future of logistics.
Recorded on Monday, July 10, 2023