Top 3 takeaways from the 2014 NGVA Annual Conference in Kansas City, Missouri
The Natural Gas Vehicle Association of America (NGVA) recently held its 2014 annual conference in Kansas City, Missouri. 
At the event, panels of experts tackled some of the industry’s persistent questions – and offered interesting insights. Here’s a look at three key takeaways from the event as you consider going “natural”:
- Create a Financial Model to Assess the Economic Case for Your Operation
One of the biggest reasons to move to a natural gas fleet is economic – especially when it comes to over-the-road applications, where heavy-duty, high-mileage trucks use lots of fuel. However, transitioning from diesel to natural gas is about more than the cost of a diesel gallon equivalent or the purchase/lease price of a vehicle. Factor the following into your financial calculations:- Cost per gallon of diesel vs. natural gas equivalent
- Miles per gallon for diesel vs. natural gas engine
- Annual mileage to determine how many gallons of fuel will be burned or consumed
- The cost of adding vehicles and the cost differences between renting, leasing, owning
- Develop a Roadmap to Mitigate Risk
Risk – or the perception of potential risk, rather – is one of the biggest barriers to natural gas adoption. Fleet owners worry about all kinds of risks: cost risk, residual risk, technology risk, safety risk and maintenance cost risk. You have to know where your risk factors lie and how to surmount them. One way to bypass risk is to team up with a transportation partner that:- Has made substantive investments in infrastructure – both fueling and compliant shops
- Operates a large fleet of natural gas vehicles(NGVs) and has a solid NGV customer footprint
- Has logged lots of miles either leasing and/or maintaining NGVs
- Offers a natural gas program with flexible leasing options, an option to transition from diesel to natural gas, on-board technology and freedom to walk away if natural gas isn’t right for you
- Know What It Takes to Up-fit a Maintenance Facility
If you have a larger fleet, maintain your own vehicles and you’re looking to convert some or all of your fleet to natural gas, complying with safety regulations and the National Fire Protection Association Code requires numerous modifications to your shops. Among them: air exchanges, natural ventilation, methane detection systems, electrical systems, alarm & notification systems and heating. Depending on facility size, up-fitting can run upwards of $250,000.
As Vice President of National Sales, Ryder System, Inc., Steve is responsible for Ryder’s national sales team verticals in the strategic solutions for national fleet accounts. He has more than 30 years of experience in the transportation industry and has been with Ryder for 25 years. He has extensive experience in developing strategic national accounts.
