The Game Changer in Transportation
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Transcript The Game Changer in Transportation
The Game Changer in Transportation
Chris Nordh – Director, Advanced Fuels & Strategic Infrastructure
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1
Ryder Corporate Overview
Company Overview:
Fortune 500 Ranking – 404
Total Revenue $6.2 Billion
US Locations 850+
200+ On-Site
Total Employees 29,400
Total Units Under Contract 150,000
Total Units 200,000 +
Global Reach
Provider:
Fleet Management Solutions
Leasing
Truck Rentals
Used Vehicle Sales
Maintenance
Fuel
Safety Services
Dedicated
Vehicles
Drivers
Routing
Scheduling
Supply Chain Management
Acquisition of Raw Materials
to Delivery of Finished Products
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Ryder natural gas fleet innovation program
• Investing in Natural Gas since 2009
• Deep knowledge base
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500+ NG Tractors/Trucks 6.14
20,000,000 miles run on NG
Fuel station networks, design and
layout
Natural Gas engine technology
Facility design and layout
Facility modifications required to
maintain compliance to NFPA
codes
• Customer access to fleet innovation:
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Latest natural gas fleet technology
CNG & LNG fueling infrastructure
Maintenance & roadside services
Safety and technical expertise
Sub vehicles
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3
Not the first time we try natural gas!
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This time is different!
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US behind the rest of the world in NGV use
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However…
When we decide to do something, we become #1
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We have access to capital
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Entrepreneurial spirit
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Most capable engineering minds
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Government support…
Will lead to jobs, exports & growth
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Made in America
Nat Gas Engines & Technology
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Cummins Westport
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Westport
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GM
Compressors
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GE
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ANGI
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IMW
Tanks & Systems
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Quantum
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3M
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Chart
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Agility
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Complexity
Diesel vs. NG
Uptime of Equipment
CNG vs. LNG
Driver Hours
Where to Fuel
Lease vs. Own
Time per Fueling
Where to Maintain
Frequency of Fueling
Total Cost of Ownership (TCO)
Range vs. Weight vs. Cost
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9
Vehicle Trials – What to Expect
Validate Vehicle Performance
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Engine capabilities
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Vehicle reliability
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Driver acceptance
Validate Existing Fueling Stations
Ryder Rental Trials
12L ISX-G
Michigan
Texas
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Fuel fill time
Georgia
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Station accessibility
Louisiana
California
Utah
Arizona
Financial Results
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Will not reflect economies of scale
Leverage buying power at retail stations
Leverage fuel volume for 3rd party station builder
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Larger Implementation Strategy
Leverage Economies of Scale
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Create plan & TCO budget to buy/lease/convert enough vehicles to
generate single location volumes in the 200,000 – 500,000 DGEs per
years.
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New dedicated NG equipment is most advantageous
OEM with new engines
Glider kits with remanufactured engines
Dual fuel technology – verdict still out but positive feedback
Back into the required fuel cost that provides required ROI
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Identify location for station that minimizes operational impact
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Create partnership with a fuel station builder
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Hedge your bets = Game changer!
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Execute vehicle implementation based on timeline for station completion
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How is Ryder helping offset Increased costs?
Buying tank systems directly from tank manufacturer
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Installing tank systems ourselves
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Reduces install cost
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Reduces transportation cost
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Reduced vehicle lead time
Increased residual values
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Quantum technologies
12L with medium sized tank systems (115DGE – 140DGE)
Create the right scale of implementation
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Leverage multiple customers into a single fuel station
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Quantum 123DGE Back of Cab CNG tank system
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Regulatory Environment
Usually not a positive!
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EPA 2007
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EPA 2010
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EPA 2013/14
Obama recently told EPA and DOT to create & issue new fuel
efficiency and GHG standards for trucks by March 2016 – effective
2020
Diesel operations will continue to get more expensive, as natural gas
operation will continue to get cheaper to buy & operate
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Conclusions
Given the right scale, natural gas applications make financial sense
today, without incentives.
Infrastructure players will build stations anywhere you want, given
base load volumes.
Comparative costs will continue to improve
Industry has a solid base for continued success and expansion
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15
Q&A
Maintenance Considerations
Shop upgrade costs - $300,000 - $500,000 per shop
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NFPA vs. Fire Marshall
Technician Training & Tooling
$30,000 - $80,000 Vehicle premium
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CNG vs. LNG
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Range vs. Weight vs. Cost
Maintenance Cost Increase!!!
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Expensive Spark Plugs
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Tank inspections / vacuum seal
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Component failures
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Fuel system complexity
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Increased Inventory
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17
On & Off Road, Marine & Rail
CR England just signed on with Shell for LNG stations
Alpha Coal West (off road) are doing dual fuel vehicle applications
Marine leapfrogging from bunker fuel to LNG
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Golf Coast Shipping (Gulfport, MS) just launched 1st of 6 302’ long LNG
dual fuel vessels.
Railroad industry evaluating CNG & LNG, Dedicated & Dual Fuel
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Indiana Harbor Belt Railroad to convert 31 locomotives to CNG
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Berkshire Hathaway testing these technologies in a number of their
railway companies
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18
Shop Retrofit Considerations
Methane Detection
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Ryder requires for both CNG & LNG
Electrical
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Relocate electrical outside classified zone (18”)
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Explosion proof lighting
Facility Heaters
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No ambient heaters because they get to 900 degrees
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Forced air
Adjacent Occupancies
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Install audible & visual alarms
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Shop Retrofit (continued)
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Shop Retrofit (continued)
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Natural Gas Vehicle Running Costs
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NGV Running Cost Analysis
► Data set = 170 Tandem Axle NGVs
► Freightliner M2-112 Chassis
► Cummins 8.9L ISL-G
► CNG and LNG configurations
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Natural Gas Vehicle Running Costs (continued)
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DATA SET
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34 Month Cumulative Comp
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170 NGVs and 1,811 Diesels
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$3,370 Cumulative increased RC
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2010 EPA Diesel models
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~$99 / month
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4,000 – 6,500 miles per month
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~1.9c / mile
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All Freightliners
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Maintenance - 8.9L Cummins ISL-G
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Known Issues
► Manifolds
► Pistons
► Turbos
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Failures due to installation & handling procedures
► Premature spark plug failures
► Handling & Installation of spark plug
► Boot & Plug
► Separate install wrench & torque spec
► Coil pack cracking
► Installation process
► Overhead set
► Outside tolerance spec
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Silk Glove Maintenance!
Torque value: 38 Nm = 28 ft-lbs
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Original ISL G Exhaust Manifold
4 port and 2 port Design
Current Symmetrical Exhaust Manifold
3 port and 3 Port Design
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26
Fuel System – Lessons learned
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