The Game Changer in Transportation
Chris Nordh – Director, Advanced Fuels & Strategic Infrastructure
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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
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Provider:
Fleet Management Solutions
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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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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…
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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
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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
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Diesel vs. NG
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Uptime of Equipment
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CNG vs. LNG
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Driver Hours
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Where to Fuel
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Lease vs. Own
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Time per Fueling
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Where to Maintain
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Frequency of Fueling
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Total Cost of Ownership (TCO)
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Range vs. Weight vs. Cost
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Vehicle Trials – What to Expect
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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
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Ryder Rental Trials
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12L ISX-G
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Michigan
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Texas
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Fuel fill time
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Georgia
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Station accessibility
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Louisiana
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California
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Utah
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Arizona
Financial Results
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Will not reflect economies of scale
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Leverage buying power at retail stations
Leverage fuel volume for 3rd party station builder
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Larger Implementation Strategy
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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?
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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
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Usually not a positive!
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EPA 2007
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EPA 2010
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EPA 2013/14
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Obama recently told EPA and DOT to create & issue new fuel
efficiency and GHG standards for trucks by March 2016 – effective
2020
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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
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Given the right scale, natural gas applications make financial sense
today, without incentives.
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Infrastructure players will build stations anywhere you want, given
base load volumes.
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Comparative costs will continue to improve
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Industry has a solid base for continued success and expansion
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15
Q&A
Maintenance Considerations
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Shop upgrade costs - $300,000 - $500,000 per shop
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NFPA vs. Fire Marshall
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Technician Training & Tooling
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$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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On & Off Road, Marine & Rail
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CR England just signed on with Shell for LNG stations
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Alpha Coal West (off road) are doing dual fuel vehicle applications
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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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Shop Retrofit Considerations
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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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Fuel System – Lessons learned
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