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About UPS
• World's largest package delivery company and a global leader in supply chain services
• Headquartered in Atlanta, serves more than 220 countries and territories worldwide
• 397,100 employees worldwide • 16.3 million packages per day• 2013 Revenues: $54.1 billion• 100,069 vehicles• World’s 9th largest airline
Recent Recognition• FORTUNE magazine – World’s Most Admired
Companies• Ethisphere Institute – World’s Most Ethical
Companies• Inbound Logistics – Top 100 Motor Freight
Carriers• Maplecroft – Climate Innovation Index• Climate Counts – Top 10• Newsweek magazine – Green Rankings• Dow Jones Sustainability Index – S&P• Carbon Disclosure Project Leadership Index• EPA Climate Leadership Awards• Corporate Responsibility Magazine - 100 Best
Corporate Citizens•
UPS: No Bias As To Alternative Fuels/Technologies
• UPS’ “rolling laboratory” tests virtually all alternative fuels/technologies with more than 2,800 vehicles in operation worldwide.
• Natural gas – CNG and LNG
• Hydraulic hybrid
• Propane
• Electric hybrid
• Fuel cells
• Plug-in Electric
Corporate Automotive Engineering Confidential Information Internal Use Only © Copyright 2013, UPS, Inc. All rights reserved.
U.S. Domestic Alternative Fuel and Advanced Technology Vehicles
U.S. Alternative Tech Vehicles Total: 2,072
Compressed Natural Gas (CNG) Vehicles: 940(car group = count)
P70C = 188 Package Cars P80C = 33 Package Cars P100C = 578 Package Cars P10CX = 50 Package Cars HSC = 46 Shifters HTDAT= 45 Tractors
Hybrid Electric Vehicles (HEV): 380 P70H = 25 Package Cars P100H = 355 Package Cars
Electric Vehicles: 102 P70E = 40 Package Cars P100E = 62 Package Cars
Propane Vehicles: 18 P80XP = 10 Package Cars HSP = 8 Shifters
Composite Body Diesel Vehicles: 251 P63D = 251 Package Cars
Liquid Natural Gas (LNG) Vehicles: 340
Updated: 4/11/2014
Hydraulic Hybrid Vehicles (HHV): 41 P10HH = 41 Package Cars
Corporate Automotive Engineering Confidential Information Internal Use Only © Copyright 2013, UPS, Inc. All rights reserved.
Global Alternative Fuel and Advanced Technology Vehicles
Total Alternative Tech Vehicles (U.S. & International): 3,135
Updated: 10/11/2013
U.S. Alternative Tech Fleet: 2072 Compressed Natural Gas Vehicles: 940 Hybrid Electric Vehicles: 380 Liquid Natural Gas Vehicles: 340 Propane Vehicles: 18 Electric Vehicles: 102 Hydraulic Hybrid Vehicles: 41 Composite Body Diesel: 251
International Alternative Tech Fleet: 1,063 Compressed Natural Gas Vehicles: 91 Hybrid Electric Vehicles: 6 Propane Vehicles: 852 Electric Vehicles: 44 Ethanol Vehicles: 50 Biomethane Vehicles: 20
Performance Statistics• In 2013…
• UPS vehicles traveled 2,373,467,743 miles• UPS vehicles used 324,088,987 gallons of fuel• Gasoline package cars averaged 8.54 MPG• Diesel package cars averaged 10.18 MPG• Tractors averaged 6.39 MPG
• * Numbers represent domestic fleet only
Background1. There is an abundance of Natural Gas available in the U.S. 2. Liquefied natural gas, or LNG, is natural gas that has been
converted to liquid form for ease of storage or transport.3. Tractor Manufacturers have been developing tractors in
order to utilize natural gas as a transportation fuel.4. Various incentives (grants and tax) are available to offset
some of the capital investment associated with LNG as a transportation fuel.
5. LNG fuel is substantially less expensive than Diesel6. LNG/CNG fit the UPS sustainability mission
BackgroundBenefits of LNG as a Transportation Fuel1.Reduces dependence on Foreign Oil2.Lower Emissions than Diesel Fuel3.Financial ($1.75 per gallon price gap)
Annual Savings*Miles per Day LNG SI
300 $ 14,382 400 $ 19,176 500 $ 23,970 600 $ 28,763 700 $ 33,557 800 $ 38,351 900 $ 43,145
1000 $ 47,939 1100 $ 52,733
Fleet Perspective- The LNG experience”
The first 10 duel fuel LNG tractors and 1 Mack SI were put in service in Ontario,Ca in 2001.
In 2011 we introduced the Kenworth/ Westport HPDI to the UPS fleet in Ontario and Las Vegas NV.
In 2012 that build continued with additional tractors added to Salt Lake City and Beaver Utah.
Fleet Perspective- The LNG experience”
Experiences along the way
Kenworth & Westport support on initial build was excellent for driver and mechanic training.
Good dealer support and network.
Fleet Perspective- The LNG experience”
Experiences along the wayTractor range was very dependent on:Driving skillsTerrainWind conditionsType of trailer combinationWeight of loadsFueling skills of driverConditioning tanks on initial fills
Fleet Perspective- The LNG “experience”
Experiences along the wayLNG shop requirements were difficult to understand.Limited locations to benchmark from.Consultants were needed to move forward with shop designs. Maintenance issues had a steep learning curve.
Fleet Perspective- The LNG “experience”
Experiences along the way
Very good driver acceptance after initial fear of LNG and a different design of truck.
Very good press and media coverage.
Fleet Perspective- The LNG experience”
Lessons Learned
Internal roles & responsibilities established for:Driver trainingFuelingShop requirements & designFueling station MaintenanceLNG vehicle,tank inspections & maintenanceVehicle specific daily usage based on miles run
Fleet Perspective- LNG Fueling stationsPublic station needs
Location is everything!
Close to main highwaysAccessible for long combinationsReliability of station- quick response & resolution24/7 operationLarge enough to avoid wait time and congestionConsistent point of contact
Continued Improvement
While operating its current alternative fuel and technology vehicles, UPS is also working with manufacturers, government agencies and nonprofit organizations to advance new fuel technologies and find cheaper, cleaner-burning domestic fuels that are better for the environment and more sustainable than conventional diesel.
Expanding the UPS Green
2014 Initiatives
Continue LNG Tractor deployment (Est.984 total)Deploy 45 CNG Class 8 tractorsInitial roll-out of Propane package car fleet expansion (1000 planned)