We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • Parcel Forum 2022
    • MODEX 2022
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • Parcel Forum 2022
    • MODEX 2022
    • Upload Your Video
Home » Con-way Freight to test CNG-powered vehicles
newsworthy

Con-way Freight to test CNG-powered vehicles

January 26, 2012
Mark B. Solomon
No Comments

Con-way Freight, the less-than-truckload (LTL) arm of trucking and logistics giant Con-way Inc., will launch a pilot program in the spring to operate two vehicles powered by compressed natural gas (CNG), according to one of the parent company's top executives.

The company plans to take delivery of the vehicles in the second quarter and initially deploy them in the Chicago area for local pickups and deliveries, said Randy Mullett, vice president, government relations and public affairs for Con-way Inc., the parent of Con-way Freight.

Mullett said the company chose Chicago as the test venue because there are CNG fueling locations near Con-way Freight's facilities there.

If Con-way Freight deems the pilot to be effective, the vehicles' operations could be expanded to provide over-the-road LTL service within a 300- to 350-mile distance, Mullett said. Con-way would also consider adding more CNG-powered vehicles if the test phase is successful, according to Mullett.

Low price at the pump
The attraction to Con-way is CNG's low pump price relative to diesel fuel and liquefied natural gas, the latter of which has gained wider acceptance than CNG in the trucking industry. CNG is currently priced at about $1 a gallon, said Mullett. By contrast, the average price of a gallon of diesel fuel stood at $3.39 a gallon as of Monday, according to the Department of Energy's Energy Information Administration. The cost of liquefied natural gas is usually about $1 a gallon less than diesel, Mullett said.

A side benefit of CNG-powered trucks is that gas-powered trucks are quieter than vehicles powered by diesel, thus making communication easier between drivers and dispatchers, Mullett said.

The trucks are new builds and not retrofits, and will be manufactured by Freightliner, which builds virtually all of Con-way's LTL fleet vehicles. Each vehicle is expected to cost about $30,000 above the price of a diesel-powered truck.

Mullett said he is unaware of any other LTL carrier using or testing CNG-powered vehicles.

A question of ROI
Mullett acknowledged that the long-term success of the program would depend on driver acceptance of the new vehicles, the costs of maintaining CNG-powered vehicles, and the ability to build out refueling and maintenance infrastructure at a reasonable cost.

"The purpose of the pilot is to put a [return on investment] on the program," said Mullett, adding that the fate of the program could be tied to what, if any, government incentives are available to promote a conversion to natural-gas powered truck fleets.

Another wild card is the price of natural gas, which is currently at near record lows due to abundant supplies and weaker than-expected demand from what has so far been a relatively mild winter across much of the United States.

Prices are also being depressed by the positive long-term outlook for natural gas supplies as increased exploration activity leads to the extraction of large amounts of natural gas from shale rock.

Transportation Trucking
KEYWORDS Con-way
  • Related Articles

    Con-way Freight to boost driver wages early next year; first big nonunion LTL trucker to act

    Con-way Freight workers vote to organize in Laredo

    Con-way Freight to raise tariff rates by 5.9 percent

Marksolomon
Mark Solomon joined DC VELOCITY as senior editor in August 2008, and was promoted to his current position on January 1, 2015. He has spent more than 30 years in the transportation, logistics and supply chain management fields as a journalist and public relations professional. From 1989 to 1994, he worked in Washington as a reporter for the Journal of Commerce, covering the aviation and trucking industries, the Department of Transportation, Congress and the U.S. Supreme Court. Prior to that, he worked for Traffic World for seven years in a similar role. From 1994 to 2008, Mr. Solomon ran Media-Based Solutions, a public relations firm based in Atlanta. He graduated in 1978 with a B.A. in journalism from The American University in Washington, D.C.

Recent Articles by Mark Solomon

Coming together for road safety: interview with Joshua Girard

Off the rails

Freight rate spikes shaking up the C-suite

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Survey: top supply chain risk of 2023 is semiconductor shortage

  • Big and bulky last-mile delivery segment set for hot growth

  • Ports, maritime operators see tide turning as ocean freight tsunami subsides

  • Outlook 2023: What’s in store for logistics/supply chain?

  • In Person: Steve Beverly of Penske

Now Playing on DCV-TV

1b952214 50bc 4b17 8699 b7fd3de34b0c

The Right Way Versus the Wrong Way Equals BIG $ When Conducting Transportation Sourcing Events

DCV-TV 4: Viewer Contributed
What is the "smart" way to source your transportation and why is it so important? Because the carriers are smart and they will provide better rates and service when things are done the right way versus the "wrong" way. In short, from a carrier's perspective sourcing events are a clear indication whether a shipper...

FEATURED WHITE PAPERS

  • The five best applications for robotic lift trucks in warehouse environments

  • Fulfillment Facility Improved Efficiencies by 4x

  • 3PLs: Complete Orders Faster with Flexible Automation

  • Reusable Packaging for the New Wave of Supply Chain Automation

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing