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UPS Deploys Industry's First Alternative Fuel Tractors

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“Rolling Laboratories” to Research Reduced Emissions

ATLANTA, Dec. 17, 2002 – Today UPS (NYSE: UPS) will introduce the package delivery industry’s first alternative fuel Class 8 tractors. Ten Liquefied Natural Gas (LNG) tractors will officially begin operating in the company’s West Coast fleet each day traveling from California to Nevada.

The LNG tractors are part of UPS’s “rolling laboratories” strategy. UPS’s fleet is an ideal framework for testing new technologies to reduce emissions from heavy duty vehicles, the class of vehicles most difficult to address. The company is working with several engine manufacturers to test viable options approved by the Society of Automotive Engineers.

“With the introduction of liquefied natural gas tractors, we now operate alternative fuel vehicles in every part of our fleet,” said Ron Kirby, corporate automotive engineering manager for UPS. “We have a laboratory on wheels to identify the best options for reducing emissions and operating costs in heavy-, medium- and light-duty trucks. It’s a difficult balancing act with today’s available technology, but the best way to proceed is by experimenting with manufacturers.”

Preliminary data shows the new LNG tractors – while substantially more expensive – address four concerns: providing ample power to tractors hauling over-the-road trailers while still significantly reducing emissions, maintenance and operating costs.

• Ample Power: The LNG engines were manufactured using newly-developed Dual-Fuel™ technology. Developed by Clean Air Partners, the Dual-Fuel™ LNG system allows the engine to start on a small amount of diesel fuel before switching automatically to LNG as the primary fuel source.
• Low Emissions: By primarily running the engines on liquefied natural gas, the LNG tractors’ emissions fall well below the EPA’s standard for heavy duty trucks.
• Reduced Maintenance Costs: the diesel ignition process eliminates the need for spark plugs as used in dedicated LNG engines. In addition, natural gas requires fewer oil changes.
• Reduced Operating Costs: The cost of LNG averages about US$0.65 – 0.70 per gallon, compared to US$1.40 to US$1.50 per gallon of diesel (although it does take almost two gallons of LNG to equal one gallon of diesel.) In addition, the LNG and compressed natural gas (CNG) fueling station at the UPS facility in Ontario, Calif., supplies fuel for city buses, waste management vehicles and other companies with LNG or CNG vehicles. However, the lack of nationwide fueling stations currently is an impediment for wide-scale deployment of LNG tractors.

“UPS is really ahead of the curve here, and they’re once again setting the standard for interstate package delivery,” said Kevin Campbell, low emissions vehicles sales manager for Clean Air Partners. “By using our Dual-Fuel™ system, UPS is using the latest LNG technology to address emissions from heavy duty vehicles.”

Because of its density, LNG is a viable alternative fuel source for large trucks that need to go long distances before stopping to refuel. Daily, the 10 LNG tractors will each haul two 28-foot-long trailers on the 545-mile trip between Ontario and Las Vegas. They also will be used to pick up trailers filled by large volume customers. Together, these vehicles will haul more than 31,000 packages a day.

UPS’s alternative fuel fleet includes the United States’ largest private fleet of compressed natural gas (CNG) vehicles; the industry’s first operational hybrid electric delivery vehicle, all-electric delivery vans and propane powered delivery vehicles in Canada and Mexico City. The company also is reviewing plans for fuel cell technology projects.

Clean Air Partners was founded in 1991 to develop technologies allowing diesel engines to operate with the low-emissions benefits of natural gas while retaining the power, efficiency, longevity and cost-effectiveness of compression ignition engines. Since that time, CAP has broadened its scope to include a wider range of diesel and natural gas emissions reduction technologies and applications.

UPS is the world’s largest global transportation company, offering the most extensive range of e-commerce and supply-chain solutions for the movement of goods, information, and funds. With a fleet of 88,000 package cars, vans, tractors and motorcycles, UPS concentrates its transportation efforts in a variety of categories that include safety, technology and the environment.

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• Paula Fulford
  UPS
  404-828-4242
  
• Jackie Leonard-Tackett
  Fleishman-Hillard
  314-982-0283