Ryder System Inc.
), the world's largest provider of integrated logistics and
transportation solutions has announced that it will be represented
by Vice President of Supply Management, Scott Perry in a panel at
Alternative Clean Transportation (ACT) Expo. The panel meet is
considered the largest alternative fuels and clean vehicle
technologies conference in North America and will be held on May
17, in California.
Over the summit, the company will showcase its initiatives
toward the deployment of alternative fuel vehicle fleets and clean
vehicle technologies in North America.
In September last year, the company launched its "Flex-to-Green"
lease offering to support sustainable transportation, or
eco-friendly transportation for private fleet operators. This lease
offering involves incorporation of fuel efficient vehicles,
including liquid natural gas and hybrid vehicles into its fleets.
The deal provides customers an opportunity to convert their
conventional vehicles to new fuel-efficient ones as per their
In consequence to the company's initiative, Ryder entered into
its first "Flex-to-Green" lease agreement with Source Interlink,
(an U.S. based publishing and logistic company) in January. Per the
agreement, Ryder will provide Source Interlink with a flexible
option to exchange diesel vehicles for natural gas-powered
vehicles. However, the terms of the deal were not disclosed.
In 2010, Federal Corporate Average Fuel Economy (CAFE) set a
fuel economy standard of 34.1 miles per gallon, which is to be
implemented on automobiles manufactured through 2012 to 2016. As
per industry insiders, it is estimated that the mandate will
require investments of approximately $50 billion by automakers to
upgrade their technology to meet the CAFE standards.
This indicates the growing importance of eco-friendly
transportation. Several companies, especially those involved in
transportation and logistic services, are increasingly realizing
the benefits of fuel efficient vehicles.
If the Fed is right, automakers will spend $51.5 billion over
the next five years in putting the standards into effect and the
average price of a new car will rise by $985 by 2016. Savings,
though, are expected to be even greater, with the average consumer
netting an extra $3,000 from fuel savings over the life of the
These vehicles are not only designed to minimize the
harmful impacts of heavy fuel consumption but will also aid in
optimal utilization of resources through alternative fuel usage,
ultimately leading to significant cost synergies for the
Consequently, it is apparent that Ryder's Flex-to-Green lease
offering is a significant step toward tapping a gradually growing
market, arising from a compelling need for sustainable
transportation. Further, this will also enhance the competitive
position of the company against rivals like
Ryder has pioneered several such initiatives that promote the
utility of alternative fuel vehicles. The SANBAG (San Bernardino
Associated Governments) project is one such. Under this project,
Ryder collaborated with Southern California Association of
Governments Clean Cities Coalition, to provide 87 heavy-duty
natural gas trucks to customers.
Under the SANBAG project, Ryder received a total of 202 natural
gas vehicles, worth $38.7 million and marked the largest commercial
natural gas truck project in North America.
In addition, the company also received three natural gas
compliant maintenance shops in Rancho Dominguez, Orange, and
Fontana, and two fueling stations through SANBAG.
The company currently supplies alternative fuel vehicles in
southern California and Arizona region, which is also home to
Source Interlink's largest distribution center. As a result, Source
Interlink will also benefit from an easy access to Ryder's fueling
and maintenance centers, which was one of Source Interlink's key
reasons to enter the deal.
One can expect that with the growing demand for fuel efficient
transportation, Ryder will boost its infrastructural capabilities
by expanding into new markets and thus promoting its Flex-to-Green
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