INTERVIEW WITH
ERIK NEANDROSS
Switching truck fleets from diesel to natural gas can be a game-changer. But Erik
Neandross says the players must know the rules of the game before they hit the field.
It’s all in the
integration
BY MARK B. SOLOMON, SENIOR EDITOR
THE DC VELOCITY Q&A
thoughtleaders
THE EASIEST PART OF CONVERTING A FLEET FROM
diesel to natural gas power is the gas itself. The stuff is
plentiful and is likely to become more so. The trick for the
for-hire and private fleets is figuring out how to weave the
moving parts—commodity, equipment, and infrastructure—into a cohesive network that benefits all stakeholders.
That’s where Erik Neandross comes in. As CEO of Santa
Monica, Calif.-based consultancy Gladstein, Neandross
& Associates, Neandross has constructed conversion programs for some of the nation’s largest private fleets, as well
as for the city of Los Angeles. Perhaps the brightest feather
in the firm’s cap is the program it developed for Frito Lay/
Pepsi Co., arguably the most successful private fleet operation in trucking history.
Neandross spoke recently with DC VELOCITY Senior
Editor Mark B. Solomon about the benefits of natural
gas conversion (which may seem obvious), the challenges
(which may not seem so obvious), and what carriers, shippers, and private fleets need to do to make it all work
Q Your company made its name working with for-hire carriers. In recent years, you’ve expanded into working
with private fleets. Are there differences in how the two
sides think about this issue?
A Both sides have the same goal, which is to create mutual benefits in terms of cost savings. However, carriers shoulder a great deal of risk because they must make
alternative-fuel vehicles fit a variety of routes for different
shippers. It is difficult to find the necessary fueling infrastructure on all routes. To address those issues, we work
with multiple shippers to consolidate regions where natural
gas transportation is desired to make it easier for carriers to
provide services.
Q There are many shippers that can’t justify private fleets but that would still benefit from the cost savings
derived through natural gas conversion. Are they in a position to influence decisions by carriers to invest in natural
gas-powered fleets?
A It’s not a question of shippers being unable to afford the conversion; it’s that they prefer not to manage the
operation of a private fleet and would rather contract it
out. The trick is to fine-tune a project so that the incremental investment necessary to acquire more expensive
natural gas trucks and infrastructure is shared between
the carrier and shipper. Our task is to make that financial
equation work.
Q We’ve attended conferences and trade shows where liquefied natural gas (LNG) and compressed natural
gas (CNG) vendors spent time debating which technology
is superior and why. Does this confuse the issue for users?
It’s all in the
integration
INTERVIEW WITH
ERIK NEANDROSS
