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unique opportunity to determine how their route systems
will evolve, according to Douglas Mueller, president of
Breakthrough Fuel, a Green Bay, Wis.-based transport energy advisory firm. As natural gas use becomes mainstream,
“the shipper can become the anchor of a whole new infrastructure,” Mueller says.
NO EASY FEAT
But it will be easier said than done, experts said. Despite
well-publicized efforts by energy baron T. Boone Pickens to
eventually convert the nation’s entire truck fleet to natural
gas, few expect that to happen. The future of a shipper’s
energy world will likely resemble a composite of diesel and
natural gas, with some biofuels thrown in. For those accustomed to working only with diesel, the addition of other
sources will introduce a new level of complexity into the
equation, experts say. There will be many lanes that, given
their shipment characteristics, will still be best supported by
diesel use.
A heavy-duty natural gas truck costs about $55,000 more
than a comparable diesel vehicle due to the significant
expense of the fuel tanks. Natural gas vehicles take longer to
fill up than diesel trucks. In addition, the heavy tanks
aboard a CNG-powered vehicle result in a reduction in pay-
load of between 600 and 3,000 pounds; shippers of high-
cube, lighter-weighted goods will be less affected by this
issue than will shippers moving heavier consignments,
according to Murdock.
CNG has become by far the dominant natural gas new-build, with about 96 percent of new order market share,
according to truck manufacturers. CNG, which is used by
truckers for short distances of up to 300 miles, is cheaper
and easier to manage than liquefied natural gas, or LNG,
which must be transported to refueling locations. CNG
needs pipelines to act as the delivery mechanism; CNG
advocates said there is no shortage of nationwide pipeline
capacity.
Though many fleets are testing the viability of natural gas
vehicles, there remains considerable reluctance to take the
plunge. Truckers already confronting compressed margins
due to higher operating expenses and stubbornly subpar
freight demand are concerned that tank and engine technology is not sufficiently proven to justify the costs. They
also worry about whether the expensive equipment will
retain its value.
It all boils down to the time required for a return on the
investment, said Donald Broughton, transport analyst and
chief market strategist for Avondale Partners, an investment
firm. “If it pays for itself in 18 months, [fleets] will buy
without testing,” he said. “If it doesn’t, they will continue to
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