Fleets Turn to New Technology, Natural Gas to Reduce Expenses During Slow Growth

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BOCA RATON, Fla. — Executives with both for-hire and private fleets said they increasingly are turning to cost-saving technologies and natural gas to reduce expenses in a slow-growth economy.

Speaking Aug. 7 at the PeopleNet User Conference here, officials with five trucking companies that utilize PeopleNet products outlined a broad range of financial and operational benefits from new technology and fuel options.

“There is a proven return on investment for technology,” said Charlie Campagnaro, mobile communications manager for the van division of Laidlaw Carriers, Stratford, Ontario. The carrier, he said, has cut costs by about 90% by using in-cab scanners to transmit shipping documents instead of faxing them from truck stops.

He estimated costs per page for scanning at 20 cents, compared with $2 per image at a truck stop. The company transmits about 15,000 pages annually.

Costs also are being cut by using fuel tax recording technology, instead of error-prone and tedious manual processing, Campagnaro said.

“Accuracy means immediate savings and eliminates some paperwork,” he said.

“There is a new reality in operations,” Campagnaro said, as electronic communication replaces a deluge of telephone calls from drivers about loads, routing and other duties that used to bedevil dispatchers.

“The difference now is like night and day,” he said. “Before, everyone called at once and a dispatcher’s attention span was about 30 seconds. Now, there is more time for one-to-one conversations when there are phone calls.”

Jim Coffren, vice president of asset management for Hirschbach Motor Lines, Dubuque, Iowa, credited improvements such as aerodynamics, engine technology and software for improving the fleet’s average miles per gallon to 7.2 from 6.2 after 400 new tractors were purchased.

“We have gone to a very aggressive strategy,” he told Transport Topics, including special attention to engine performance and fuel economy while the tractor is moving to maximize efficiency.

“You have to change the entire organization,” he said. “If you challenge drivers, they can overcome [fuel issues]. You have to educate customers. They have to identify how they add to inefficiency. Shippers today really understand. They are trying to be as efficient as possible about routing.”

The next step is to help receivers set more flexible unloading times, which would help refrigerated fleets, he said.

Two other executives praised compressed natural gas fuels, saying that they hoped they would not have to buy another diesel-powered unit.

Stacy Stivers, senior manager of transportation innovation for Frito-Lay, said the company hopes to cut $10 million out of operating costs through the use of compressed natural gas (CNG) vehicles and improved aerodynamics.

Frito-Lay intends to have 1,000 alternative fueled vehicles by the end of this year, including 70 tractors powered by CNG, which costs about $2 less per gallon than diesel and reduces greenhouse gas emissions by 23%, he said.

Stivers identified two challenges ahead.

“We face a classic chicken-and-egg-infrastructure challenge,” he said, because only about 10%

of the CNG fueling stations operating now can accommodate heavy trucks.

Frito-Lay, which is part of PepsiCo Inc., is testing CNG tractors in Texas, California and Illinois while seeking a business partner for a fueling network, he said. PepsiCo operates the No. 1 private fleet on the Transport Topics Top 100 Private Carriers.

The other challenge, he said, is the introduction of a 12-liter engine to provide additional power and ex-pand operations.

John Erwin, director of operations support for Saddle Creek Logistics, said that the warehousing and trucking company, which has 40 tractors, has a CNG network around its Lakeland, Fla., headquarters.

“There was no infrastructure in early 2011,” he said. “We looked at our own stations” to serve locations within a 250-mile radius.

“In the city, [CNG tractors] work great,” he said. “They start faster than diesel. We pull 80,000 pounds in very flat Florida with no problem.”

He also noted that fears about long periods of up to 90 minutes  needed to fuel the CNG tractors were unwarranted. Saddle Creek chose “fast fill” fueling that can be done as quickly as diesel, he said.

Scott Howarth, mobile communications coordinator for Contrans Inc.’s flatbed group, Hagersville, Ontario, said the company has cut its engine idling time in half and increased miles per gallon by 5% by using several fuel-saving technologies.

The result has been a saving of $230,000 for the 425-tractor fleet that operates 5.3 million miles a year, he said.

“Drivers absolutely need to know your goals,” Howarth said, citing the fuel economy target. “Unrealistic goals would have made the drivers stop trying [to achieve them].”