Briefly Who are We? 15 Terminals serving 25 states 380 Trucks, 600 Trailers Bulk liquid / Dry Bulk on Highway Complete oil field services including Frac Tanks, Vacuum Trucks, Crude Oil & Frac Sand 24 LNG trucks (8.9) + 11.9 Alpha ISX Plans for expansion/conversion of our fleet to Natural Gas…Multiple projects in process
Terminal Location TL utilizing LNG
Considerations Shipper and Fueling Partner? Capital Recovery-Vehicle Acquisition Cost-ROI? Maintenance Practices/Intervals-Cost? Training? LNG CNG range / Infrastructure-NG Highway? Engine Choices- What is available? Resale Market-Who is the second buyer? Specs?
Current Truck Peterbilt 384 Day Cab Wheelbase 192” ISL-G 8.9 Liter 320 HP Single 150 gallon (81 DGE) 380 mile range Allison 4500 6 speed Automatic Bendix ESP NO DEF or DPF Hardware Platinum Interior Wide base tires and all weight saving features
NG Benefits Domestic improves national security. Sustainability-reduce GHG and other criteria pollutants Cost-offers a significant price advantage over conventional diesel Volatility-Natural gas market is not subject to the same forces that impact the Petroleum markets.
Crude Oil vs. NG Historic Pricing Source: Energy Information Administration (EIA)
Common NG Excuses 1. Tractors are too heavy- lighter with the elimination of DEF/DPF 2. Not enough range/miles- Multiple tank options/NG Highway 3. 9L engines are too small for 80klbs- 24 trucks that do it every day 4. MPG is terrible – no saving- 5.5 MPG 5 .ROI will fail without Government Assistance- It is working for us 6. Maintenance costs too high- Reasonable Costs/Warranty 7. Drivers won’t like them- Our drivers do 8. Shop modifications too costly- Relative to what 9. Qualcomm/Cummins can’t deliver performance metrics- You can get the same metrics you have now 10. Permitting & Construction too slow- NG Highway is moving pretty fast 11. It’s Not Safe- Used in School buses & airport vehicles 12. Customers don’t care about Sustainability- CSO’s seems to differ with that statement
(630)230-5713 www.dillontransport.com Phil Crofts Marketing director Pcrofts@dillontransport.com (630)230-5713 www.dillontransport.com
C.R. England LNG/CNG Experience
LNG Profile Tractor Count: Five daycab tractors Make: Kenworth T800, Westport 15L Fuel Type: Liquefied Natural Gas (LNG) & Diesel (ULS) Fuel Capacity: LNG: 70 diesel gallon equivalents (DGE) & Diesel: 45 gallons Mileage Range: App. 350 miles on LNG Application: Dedicated fleet Implementation: October 2011
Additional Information 250-mile length of haul, looped freight Significant increase in tractor cost Full-service lease arrangement Notable elevation change – reason for 15L engine LNG fueling stations at both origin and destination Southern California (Fleet Star) to Las Vegas (Clean Energy) MPG: 5.86
LNG Financial Analysis
Paper Transport, Inc Jeff Shefchik, President Headquarters in Green Bay, WI Regional for-hire truckload carrier Currently operating 370 tractors & 1200 trailers Operations based in WI, IL, OK, FL, & GA
Paper Transport –CNG Fleet 33 – tractors with Cummins ISL-G engine 1 – dual fuel tractors 1 – tractor with Cummins ISX-G 12L engine Purchased our first 2 tractors in February 2010 The first 2 tractors have 500,000 miles each In total we have over 2,700,000 miles
Real World Issues Customers Drivers Maintenance Fuel Availability Regional Application
PTI’s Future Plans for NG First – we are very bullish on NG as a transportation fuel Economic and Environmental benefits are part of every companies strategic plan Being a market leader