Ryder System Inc. (R), 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 preference.
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 vehicle.
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 companies.