1. The Game Changer in Transportation
Chris Nordh – Director, Advanced Fuels & Strategic Infrastructure
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2. 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

3. 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

4. Not the first time we try natural gas!

5. This time is different!

6. US behind the rest of the world in NGV use

7. 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

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

9. 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)

10. 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

11. 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

12. 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

13. Quantum 123DGE Back of Cab CNG tank system

14. 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

15. 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

16. Q&A

17. 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

18. 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

19. 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

20. Shop Retrofit (continued)

21. Shop Retrofit (continued)

22. 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

23. 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

24. 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

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

26. 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.

27. Fuel System – Lessons learned