UPS to Invest $70 Million For Propane Vans, Fueling

This story appears in the March 10 print edition of Transport Topics.

INDIANAPOLIS — UPS Inc. said it will spend $70 million to deploy 1,000 propane-powered delivery vans in 50 communities nationwide and build fueling stations at every facility where the trucks are kept, the parcel carrier announced.

“Propane autogas will be an integral part of the UPS fleet for years to come,” said Mike Britt, director of vehicle maintenance and engineering, during a presentation here at the Work Truck Show on March 5. “This is just a start.”

The propane vans are the latest alternative fuel initiative by UPS, which also has announced plans to buy 1,000 road tractors this year powered by natural gas.

Including all services other than the new road trucks, UPS said it has more than 3,150 vehicles using alternative fuels and advanced technology such as all-electric, hybrid electric, hydraulic hybrid, compressed or liquefied natural gas and biomethane.

UPS decided on a wide rollout after testing 20 propane-powered vans in Atlanta.

“We take a rolling-laboratory approach to our alternative-fuel strategy,” Britt said.

Those vans entered the fleet in October, and UPS has recorded no trouble with them in 172,000 miles of service, said Dale Spencer, director of engineering for the delivery fleet. “We have had no problems,” he told Transport Topics. “It’s been seamless.”

The adoption of propane follows the company’s commitment to embrace all types of alternative fuels, while also matching the application, Britt said. In this case, the propane vans will be deployed in 2014 and 2015 in rural areas — starting in Oklahoma and Louisiana — where natural-gas fueling facilities are sparse.

“We try to put a round peg into a round hole, and it’s a strategy that works,” he said. The vans will replace older gasoline- and diesel-powered vans in rural areas and cover about 25 million miles per year. The switch to propane, Britt said, will displace 3.5 million gallons of petroleum fuel per year.

He added drivers in the test offered positive feedback on the vans. Specifically, Britt told TT that the fuel’s 105-octane rating contributes to robust engine power.

The vans are powered by a General Motors-derived 6.0-liter V-8 engine, which also is used for compressed natural gas applications. The vans use underpinnings from Freightliner Custom Chassis.

The conference is hosted by NTEA — the association for the work truck industry.

UPS ranks No. 1 on the Transport Topics Top 100 list of the largest for-hire carriers in the United States and Canada.

UPS already runs almost 900 propane vehicles in Canada.

Separately, Roush CleanTech, a provider of alternative fuel services, unveiled what it said was the first propane-powered Ford F-59 delivery van. Roush, which made the announcement at the NTEA Work Truck show, said the unit would be used by Jon Chase, a FedEx Ground contractor in Buffalo, N.Y.

“The wear and tear of propane autogas engines is significantly less than conventional fuel engines,”  Chase said in a statement. “For anyone interested in reducing both fuel and maintenance costs, propane autogas is the way to go.”

Todd Mouw, vice president of sales and marketing for Roush CleanTech, said, “Our technology provides the same power and torque without compromising Ford warranty that our business partners require to get the job done.”

Senior Reporter Rip Watson contributed to this story.