Several Suppliers and Transporters Are Supporting Brown,
Jacksonville, Chicago, Indianapolis Getting the Most Trucks
UPS plans to have deployed between 900 and 1,000 liquefied natural gas-fueled tractors at more than a dozen locations by August, with Jacksonville, CACH (the firm’s Chicago Area Consolidated Hub) and Tennessee each getting more than 100, according to a company deployment plan. Texas will have 80 LNG trucks, mostly in Houston, by the end of this first quarter.
Several fuel suppliers and at least one LNG transport specialist are now talking up their roles.
So Far It’s Kenworth and Mack
As of October, UPS had deployed 114 LNG trucks (as well as 895 compressed natural gas vehicles), VP Scott Lavery said at the World LNG conference in Houston last week.
“The current order is with Kenworth and Mack,” Lavery says of the 2014 plans. Other suppliers may yet participate, but “At this point it’s a Kenworth and Mack show,” he told F&F.
Also in October, UPS expanded on a major LNG commitment disclosed earlier at ACT Expo 2013 in Washington, D.C., outlining plans for an investment of some $50 million to build nine more LNG fueling stations for a total of 13, all to be operational by the end of 2014, supporting the operation of approximately 1,000 trucks (F&F, October 14).
GP Strategies for UPS Fueling Facilites
GP Strategies is building the 13 LNG fueling stations, which come in addition to a long-standing UPS facility for LNG fueling in Ontario, Calif., east of Los Angeles.
AGL Resources’ Pivotal LNG will supply LNG for two UPS stations in Tennessee and for one Jacksonville – where Clean Energy Fuels has just opened a public station, naming UPS as a customer. Jacksonville is getting the most LNG trucks of all the UPS locations: 128 tractors. Nashville and Knoxville already have 66 and 56, respectively, according to the deployment plan as revealed by Lavery.
Indianapolis-based Kinetrex Energy said in October that it is modifying two existing utility peak shaver plants, at a cost of some $14 million, to produce natural gas for five LNG fueling stations at UPS distribution hubs in Indiana, Illinois, Ohio and Missouri. The UPS plan indicates that Indianapolis will have 73 LNG trucks by mid-year.
Wyomissing, Pa.-based UGI Energy Services said this month that it’s expanding its LNG production facility in eastern Pennsylvania in part to supply UPS trucks. There are to be 49 based in Harrisburg by the end of October.
Jack B. Kelley
Ohio’s Kenan Advantage Group said this month that its Merchant Gas Group has completed a transportation agreement with UPS to deliver LNG to 11 of the 13 new fueling hubs. Kenan-Merchant Gas subsidiaries include the pioneering LNG trucker Jack B. Kelley and Cryogenic Transportation.
“We are currently fueling the first two UPS LNG hubs in Knoxville and Nashville,” Jack B. Kelley president Mark Davis says in a Kenan release. “Our operations will include nine additional hubs in Texas and the Midwest.”
“With our combined fleet of over 500 power units and 400 cryogenic trailers (including 35 LNG) we are well poised to successfully manage this growing and exciting business with UPS,” David said. “Our North American footprint also allows us to grow into just about any region required by this valued customer.”
In addition to its NGVs, UPS has 102 all-electric vehicles, 380 hybrid electrics, 41 hydraulic hybrids, and 18 propane vehicles in the U.S., Lavery said in Houston.
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Source: UPS with Fleets & Fuels follow-up