Tuesday, July 5, 2011

Ryder Sees Increasing Demand for Natural Gas Trucks

Fuel Savings and Emissions Reductions Goals Drive Customer Lease Decisions for Heavy-Duty Natural Gas Vehicles
 
MIAMI--(BUSINESS WIRE)--Ryder System, Inc. (NYSE: R), a leader in commercial transportation and supply chain management solutions, today announced it has already secured lease agreements for 87 heavy-duty natural gas trucks from customers looking to take advantage of the fuel cost savings and environmental benefits of alternative fuel powered vehicles – 65 of those vehicles are part of Ryder’s natural gas fleet in Southern California, made available through the Ryder/San Bernardino Associated Governments (SANBAG) Natural Gas Vehicle project. Due to the leadership Ryder has established with the SANBAG project, the Company has also been able to expand its alternative fuel program outside of California and has already secured a lease agreement with customer, Golden Eagle Distributors, Inc., for 22 natural gas vehicles in Arizona.
“Bringing natural gas vehicles into our fleet reinforces our commitment to help customers reduce their carbon footprint through smart, environmentally-sound transportation solutions.”
The Ryder/SANBAG project is part of a joint public/private partnership between the U.S. Department of Energy, the California Energy Commission, San Bernardino Associated Governments, Southern California Association of Governments, and Ryder. The $38.7 million project includes a total of 202 natural gas vehicles available for lease or rent, three strategically located natural gas compliant maintenance shops in Rancho Dominguez, Orange, and Fontana, and two fueling stations. Ryder took delivery of 70 vehicles in May and is expected to have the balance of the full 202 SANBAG natural gas vehicle order in its fleet by the end of 2011.

Driven by a desire to take advantage of fuel savings and support sustainable transportation initiatives, Ryder customers Mohawk Industries and CEVA are just two examples of these early adopters that have committed to bring alternative fuel-powered vehicles into their fleets.

“Our lease and maintenance offering makes it easy for customers to incorporate new vehicle technologies, like natural gas, into their fleets,” stated Robert Sanchez, president of Global Fleet Management Solutions for Ryder. “We are fundamentally giving private fleets an alternative to ownership – helping them implement sustainable transportation alternatives by tapping into Ryder’s investments in technology, people, safety, fueling, and maintenance and service infrastructure.”

Mohawk Industries: Laying the Groundwork for Green
Mohawk Industries, a leading supplier of flooring for both residential and commercial applications with one of the largest fleets in the U.S., has leased five liquefied natural gas (LNG) tractors to support its day-to-day customer delivery operations in Southern California. The vehicles, to be delivered in July, will be serviced out of Ryder’s maintenance facility in Fontana, CA.

Stan Brooks, director of Transportation for Mohawk Industries said, “We are always looking for ways to reduce our carbon footprint, and with diesel fuel prices continuing to rise, the timing was right to start testing the value of natural gas vehicles in our fleet. In addition, Mohawk Industries manufactures a significant percentage of its product in the U.S., so supporting a cleaner, domestic energy source fits very well into our overall business strategy.”

The Calhoun, GA based company prides itself on being an industry leader in sustainability. Mohawk is the largest recycler in the flooring industry, and the leader in recycled and renewable flooring. The company diverts over three billion pounds of material from landfills each year. Mohawk's goal is to develop processes and products that allow the company to focus on the five "Rs" of its “GreenWorks” platform: reduce, recover, reuse, renew, and recycle. For more information visit www.mohawkind.com.

Mr. Brooks continued, “We could not have implemented this project without Ryder. Ryder has been our strategic transportation partner for decades. We rely on their expertise when it comes to evaluating new technologies, whether it’s for specialized equipment or alternative fuels.”

Mohawk has been a Ryder customer since 1978. Ryder provides both full-service lease and dedicated contract carriage services to Mohawk in the U.S. and Mexico.


CEVA: Sustainable Supply Chains
CEVA, a leading supply chain company and a Ryder full service lease customer for more than 30 years, will be taking delivery of two LNG tractors. The vehicles will be used to support a customer operation in Southern California.

“CEVA works with its customers to deliver supply chain solutions that bring tangible, sustained benefits to their business,” said Jim Krepp, vice president of Procurement for CEVA in the Americas. “Bringing natural gas vehicles into our fleet reinforces our commitment to help customers reduce their carbon footprint through smart, environmentally-sound transportation solutions.”

CEVA offers Full and Less than Truckload (FTL and LTL) transportation along with dedicated fleet services. As a member of the EPA SmartWay® vehicle program, CEVA participates in the nationwide initiative to optimize fuel efficiency, improve equipment and meticulously track MPG for its truck fleet. Additionally, CEVA takes pride in its facilities’ environmental efficiencies worldwide with centralized locations, limited electricity use, tracking and monitoring energy usage and working together with customers to control consumption. For more information visit www.cevalogistics.com.

Golden Eagle Distributors: The Spirit of Sustainability
California isn’t the only state where businesses are taking advantage of alternative fuel technologies. To support distribution operations in Tucson, AZ, Golden Eagle Distributors, Inc., a large distributor of Anheuser-Busch products in the U.S. and a Ryder full service lease customer for almost 40 years, has agreed to lease 22 compressed natural gas (CNG) vehicles. The vehicles are part of a strategic alternative fuel program at Golden Eagle focused on reducing transportation-generated emissions, and reducing fuel costs.

“This initial order is a first step in converting our entire fleet to natural gas,” said Bill Osteen, Senior Vice President of Business Operations for Golden Eagle Distributors, Inc. “After evaluating a number of different alternative fuels, we determined that compressed natural gas made the most sense for our operation. Not only is it a cleaner fuel, but we also expect to see real fuel cost savings over time.”

All 22 vehicles will be delivered to Golden Eagle by December 2011. In support of the agreement, Ryder will be converting two outdoor bays in its maintenance facility in Tucson, AZ to be compliant for servicing natural gas vehicles.
“This project reflects our commitment to convert enough vehicles to make a difference and Ryder has been a great partner to help us get started,” continued Mr. Osteen. “We are committed to natural gas. This is the first step of our company-wide commitment.”

Golden Eagle Distributors, Inc., headquartered in Tucson, AZ, is a member of the Tucson Regional Clean Cities Coalition. The Clean Cities Coalition promotes the use of clean fuels and clean-fuel vehicles in partnership with the U.S. Department of Energy’s Clean Cities Program. Golden Eagle was named Arizona’s Greenest Workplace in 2010 by Mrs. Green’s World, an environmental website that promotes global sustainability. The company was recognized for its recycling and energy efficiency initiatives, employee carpooling, and for its green transportation program. For more information visit www.gedaz.com.

Meeting Ongoing Demand
“We are hearing from many customers who are interested in taking advantage of the cost-saving and environmental benefits of natural gas,” said Ryder’s Sanchez. “We are committed to being a leader in providing flexible solutions that enable companies to successfully implement alternative fuel programs in their commercial truck operations – it is sustainability made simple.”

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