- Orders more than 200 heavy-duty natural gas trucks as part of a
project estimated to displace 1.5 million gallons of diesel fuel with
100% domestically produced natural gas and reduce more than 9.2 million
pounds of greenhouse gas emissions per year -
MIAMI--(BUSINESS WIRE)--
Ryder System, Inc. (NYSE: R), a leader in commercial transportation and
supply chain management solutions, today announced that it reached a key
milestone in a major alternative fuel initiative with the order of 202
heavy-duty natural gas vehicles. The vehicle order is part of Ryder’s
agreement with the San Bernardino Associated Governments (SANBAG) to
launch a groundbreaking heavy-duty natural gas truck rental and leasing
project in Southern California. Ryder will begin taking delivery of the
vehicles in April, and expects to have the full order integrated into
its fleet by September. Ryder will also begin work this month to upgrade
the first of three existing maintenance facilities in its network to be
properly equipped for the indoor servicing of natural gas vehicles and
will soon commence construction of two natural gas fueling stations.
In addition to reducing emissions, businesses that incorporate natural
gas vehicles in their fleet have the opportunity to realize additional
cost savings because natural gas fuel prices are significantly lower
than diesel fuel prices, which are currently on the rise.
“We are excited about taking these first important steps to kick off
what is proving to be one of the most innovative and large-scale
commercial natural gas truck projects in North America,” stated Robert
Sanchez, President of Global Fleet Management Solutions for Ryder. “This
project reinforces our ongoing commitment to deliver
environmentally-sound and cost-effective transportation solutions, while
serving as a model for how to successfully implement alternative fuel
programs in large commercial truck operations.”
“This project is a great illustration of the potential for success when
the right project partners assemble and work as a team,” said SANBAG
President and San Bernardino County First District Supervisor, Brad
Mitzelfelt. “We are proud to play a role in an important project in
which each partner has made a contribution. This project confirms
SANBAG’s commitment to creative problem solving and enhancing the
quality of life for our residents.”
About the Project
The SANBAG project, awarded to Ryder in April 2010, is being conducted
in partnership with the Southern California Association of Governments
(SCAG) Clean Cities Coalition. It is intended to increase the use of
domestically produced alternative fuels and reduce emissions by
bolstering the existing regional infrastructure in Southern California.
When fully implemented, the project will displace more than 1.5 million
gallons of diesel annually with 100 percent domestically produced
low-carbon natural gas. The project will contribute to the maintenance
and creation of more than 400 U.S. green automotive jobs located in
regions of the country that have been the hardest hit by the recent
economic downturn. Based on estimates using California’s Carl Moyer
program guidelines, the project will reduce more than 9.2 million pounds
(4,195 metric tons) of greenhouse gas emissions per year, more than 131
tons of nitrogen oxide emissions annually, and completely eliminate 2.65
tons of diesel particulate emissions from local neighborhoods.
The $38.7 million project will be funded as part of a joint
public/private industry partnership between the U.S. Department of
Energy, the California Energy Commission, and Ryder. $19.3 million of
the total project funding will be provided by state and federal sources,
including $9.95 million from the U.S. Department of Energy’s Alternative
Fuel and Advanced Vehicles Pilot Program funded through the American
Recovery and Reinvestment Act of 2009 (ARRA), and $9.3 million via the
California Energy Commission’s Alternative and Renewable Fuel & Vehicle
Technology Program. Demonstrating Ryder’s strategic commitment to
alternative fuels, the Company is also committing $19.4 million of its
own capital into the project.
Vehicle Configurations
Ryder worked extensively with its OEM partners to determine the right
vehicle mix and configurations to meet the needs and applications of
customers in the Southern California market. The order includes 182
Freightliner M2-112 tractors, featuring the Cummins ISL-G engine, in
both single-axle and tandem-axle day cab configurations. This represents
the largest single heavy-duty natural gas truck order for Freightliner
in North America. The balance of the order will include a mix of other
unit configurations supplied from a variety of manufacturers. The trucks
will be equipped with either liquefied or compressed natural gas (LNG
and CNG) on-board fuel storage systems.
All 202 vehicles will be equipped with RydeSmart®, Ryder’s proprietary
GPS fleet location, tracking, and vehicle performance management system.
The RydeSmart® onboard telematics technology continuously monitors each
vehicle’s location, mileage and speed, as well as other performance and
diagnostic data. That information is communicated every 15 minutes and
on-demand, as necessary, via a dedicated and secure cellular connection
to fleet operators’ desktops. Using this depth of real-time fleet
information and visibility down to individual vehicles, fleet operators
can make a quantum leap in saving labor, time and money, while improving
productivity and customer satisfaction. More information about
RydeSmart® can be found at www.rydesmart.ryder.com.
These ultra low-emission trucks will be deployed into Ryder’s Southern
California operations network, where Ryder’s 1,200 customers will be
able to access them through short-term rentals, long-term leases, or
through Ryder’s dedicated logistics services.
Infrastructure
As part of Ryder’s agreement with SANBAG, the Company will also maintain
the vehicles at three strategically located maintenance shops in Rancho
Dominguez, Orange, and Fontana. The upgrade of the first facility in
Rancho Dominguez will begin this month and is expected to be completed
and ready to service natural gas vehicles in April. A number of
important steps are required to ensure the facility will meet stringent
industry and government safety standards for natural gas vehicle
maintenance. These include upgrades of shop electrical and lighting
systems, as well as the installation of enhanced air handling and
ventilation systems and natural gas refueling stations. Ryder’s
professional maintenance technicians are also receiving extensive,
specialized training on the maintenance and repair of heavy-duty natural
gas vehicles.
Technical and administrative support for this project is being managed
by Gladstein, Neandross and Associates, an environmental consulting firm
that is widely recognized throughout the United States for its expertise
on air quality issues, alternative fuel vehicles, and infrastructure and
energy projects.
For information and ongoing updates about the project, please visit www.thengvproject.com.
About SANBAG
SANBAG is the council of governments and transportation planning agency
for San Bernardino County. SANBAG is responsible for cooperative
regional planning and furthering an efficient multi-modal transportation
system countywide. SANBAG serves the two million residents of San
Bernardino County. SANBAG supports freeway construction projects,
regional and local road improvements, commuter rail and bus transit,
freeway service patrol, ridesharing and congestion management efforts.
SANBAG administers Measure I, the half-cent transportation sales tax
approved by county voters in 1989 and again in 2004. For more
information on SANBAG, visit www.sanbag.ca.gov.
About SCAG
The Southern California Association of Governments (SCAG) is the
nation's largest metropolitan planning organization, representing six
counties, 190 cities and more than 19 million residents. SCAG undertakes
a variety of planning and policy initiatives to encourage a more
sustainable Southern California now and in the future. For more
information about SCAG projects, plans, services and initiatives, visit www.scag.ca.gov.
About Ryder
Ryder is a FORTUNE 500® commercial transportation, logistics and supply
chain management solutions company. Ryder’s stock (NYSE:R) is a
component of the Dow Jones Transportation Average and the Standard &
Poor’s 500 Index. Inbound Logistics magazine has recognized Ryder
as the top third party logistics provider and included Ryder in its 2010
“50 Green Partners” listing. Ryder also ranked 114 out of the top 500
U.S. companies and sixth in its industry sector in the 2010 Newsweek
Green Rankings. Security Magazine has named Ryder one of the top
companies for security practices in the transportation, logistics,
supply chain, and warehousing sector. Ryder is a proud member of the
American Red Cross Annual Disaster Giving Program, supporting national
and local disaster preparedness and response efforts. For more
information on Ryder System, Inc., visit www.ryder.com.
Note Regarding Forward-Looking Statements: Certain statements and
information included in this news release are "forward-looking
statements" within the meaning of the Federal Private Securities
Litigation Reform Act of 1995. These forward-looking statements are
based on our current plans and expectations and are subject to risks,
uncertainties and assumptions. Accordingly, these forward-looking
statements should be evaluated with consideration given to the many
risks and uncertainties that could cause actual results and events to
differ materially from those in the forward-looking statements including
those risks set forth in our periodic filings with the Securities and
Exchange Commission. New risks emerge from time to time. It is not
possible for management to predict all such risk factors or to assess
the impact of such risks on our business. Accordingly, we undertake no
obligation to publicly update or revise any forward-looking statements,
whether as a result of new information, future events, or otherwise.
Acknowledgment: This material is based upon work supported by the
Department of Energy under Award Number DE-EE0002173.
Disclaimer: This was prepared as an account of work sponsored by an
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Source: Ryder System, Inc.