The Game Changer in Transportation Chris Nordh – Director, Advanced Fuels & Strategic Infrastructure To select another option for page layout, simply right click on this slide and select “Layout”. Then select the option that best suits your requirements.

Company Overview: Provider: Ryder Corporate 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

Ryder natural gas fleet innovation program Investing in Natural Gas since 2009 Deep knowledge base 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: Latest natural gas fleet technology CNG & LNG fueling infrastructure Maintenance & roadside services Safety and technical expertise Sub vehicles

Not the first time we try natural gas!

This time is different!

US behind the rest of the world in NGV use

However… When we decide to do something, we become #1 We have access to capital Entrepreneurial spirit Most capable engineering minds Government support… Will lead to jobs, exports & growth

Made in America Nat Gas Engines & Technology Compressors Cummins Westport Westport GM Compressors GE ANGI IMW Tanks & Systems Quantum 3M Chart Agility

Complexity Diesel vs. NG CNG vs. LNG Where to Fuel Time per Fueling Frequency of Fueling Range vs. Weight vs. Cost Uptime of Equipment Driver Hours Lease vs. Own Where to Maintain Total Cost of Ownership (TCO)

Vehicle Trials – What to Expect Validate Vehicle Performance Engine capabilities Vehicle reliability Driver acceptance Validate Existing Fueling Stations Fuel fill time Station accessibility Financial Results Will not reflect economies of scale Leverage buying power at retail stations Leverage fuel volume for 3rd party station builder Ryder Rental Trials 12L ISX-G Michigan Texas Georgia Louisiana California Utah Arizona

Larger Implementation Strategy Leverage Economies of Scale Create plan & TCO budget to buy/lease/convert enough vehicles to generate single location volumes in the 200,000 – 500,000 DGEs per years. 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 Identify location for station that minimizes operational impact Create partnership with a fuel station builder Hedge your bets = Game changer! Execute vehicle implementation based on timeline for station completion

How is Ryder helping offset Increased costs? Buying tank systems directly from tank manufacturer Quantum technologies Installing tank systems ourselves Reduces install cost Reduces transportation cost Reduced vehicle lead time Increased residual values 12L with medium sized tank systems (115DGE – 140DGE) Create the right scale of implementation Leverage multiple customers into a single fuel station

Quantum 123DGE Back of Cab CNG tank system

Regulatory Environment Usually not a positive! EPA 2007 EPA 2010 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

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

Q&A

Maintenance Considerations Shop upgrade costs - $300,000 - $500,000 per shop NFPA vs. Fire Marshall Technician Training & Tooling $30,000 - $80,000 Vehicle premium CNG vs. LNG Range vs. Weight vs. Cost Maintenance Cost Increase!!! Expensive Spark Plugs Tank inspections / vacuum seal Component failures Fuel system complexity Increased Inventory

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 Golf Coast Shipping (Gulfport, MS) just launched 1st of 6 302’ long LNG dual fuel vessels. Railroad industry evaluating CNG & LNG, Dedicated & Dual Fuel Indiana Harbor Belt Railroad to convert 31 locomotives to CNG Berkshire Hathaway testing these technologies in a number of their railway companies

Shop Retrofit Considerations Methane Detection Ryder requires for both CNG & LNG Electrical Relocate electrical outside classified zone (18”) Explosion proof lighting Facility Heaters No ambient heaters because they get to 900 degrees Forced air Adjacent Occupancies Install audible & visual alarms

Shop Retrofit (continued)

Shop Retrofit (continued)

Natural Gas Vehicle Running Costs NGV Running Cost Analysis Data set = 170 Tandem Axle NGVs Freightliner M2-112 Chassis Cummins 8.9L ISL-G CNG and LNG configurations

Natural Gas Vehicle Running Costs (continued) DATA SET 170 NGVs and 1,811 Diesels 2010 EPA Diesel models 4,000 – 6,500 miles per month All Freightliners 34 Month Cumulative Comp $3,370 Cumulative increased RC ~$99 / month ~1.9c / mile

Maintenance - 8.9L Cummins ISL-G Known Issues Manifolds Pistons Turbos 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

Silk Glove Maintenance! Torque value: 38 Nm = 28 ft-lbs

Original ISL G Exhaust Manifold 4 port and 2 port Design Current Symmetrical Exhaust Manifold 3 port and 3 Port Design Current design reduced cracking of the head, but more improvements are in test.

Fuel System – Lessons learned