Con-way Freight - More Productive Trucks

Report
Moving the World: The Future of
Freight Transportation
Environment/Fuel Efficiency Panel
Randy Mullett
Vice President - Government Relations & Public Affairs, Con-way Inc.
House of Sweden
Washington, D.C.
December 1, 2010
Con-way Today – who we are
• US$4.3 Billion Industry Leader in Freight Transportation, Logistics
• Con-way Freight
• Con-way Truckload
• Menlo Worldwide Logistics
• 30,000 employees worldwide
• Over 500 operating locations
• 11,500 trucks, 35,000 trailers, 20 million sq ft warehouse space globally
• 150,000 customer pickups and deliveries daily in N. America
• Nearly one billion miles annually moving freight on USA highways
• Consume 150 million gallons of diesel fuel annually
2
A Framework to Remember
You can not separate
economic growth from the
growth of transport.
Trucking / Intermodal Statistics
• Over 500,000 trucking companies in the US
• 97% have fewer than 20 trucks
• Pay 40% of HTF total and drive 13% of the miles
• 70% of all goods (by weight) in the US move by truck
• 83% by value
• Future modal shares are expected to stay fairly constant
• Over 80% of US communities are served only by truck
• Shipments traveling >500 miles only 13.4% of the truck freight market
• If rail intermodal capacity doubled by 2020, market share will be only
1.8% vs. today’s 1.5% if capacity stayed constant
EPA SmartWay
• All Con-way operating companies participate in the Environmental
Protection Agency’s SmartWay Transport program.
• Freight, Truckload and Menlo have won the EPA’s prestigious SmartWay
Excellence award
• Award for achieving highest rating as measured by fuel conservation and
carbon footprint reduction.
• In 2008 our company took a simple yet major step to reduce
carbon emissions: turned back speed governors on every truck.
• Con-way Freight’s fleet of 8,400 tractors reduced from 65 to 62 mph
• Con-way Truckload’s 2,700 long-haul fleet reduced from 70 to 65 mph
• Collective impact was substantial:
• Annual approximate reduction in diesel fuel consumption – 6 million gallons
• Annual approximate carbon emissions reduction – 134 million pounds
• Recognized by EPA for highest achievement
Additional Con-way Initiatives
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Single wide tires
Reduced idling time
Weight reduction
Aerodynamic changes; advanced lubricants
Line-haul network simulation and rationalization
Line-haul projection initiative
Local route optimization
Asset tracking
Re-lamping project (warehousing operations)
Menlo spend on SmartWay carriers
Recycling at RSI
SmartTruck Partnership – UnderTray System
ATA Sustainability Task Force Recommendations
• Encourage fuel efficiency improvements through EPA SmartWay
• Reduce idling
• Improve infrastructure to reduce congestion
• Set a national speed limit
• Increase truck size and weight limits
Why does it matter?
• Freight in all modes will increase (26% by 2020) with resulting
capacity constraints
• Rates will increase. Delays will occur. Economy will be affected.
• Supply chain disruptions will result in “near sourcing”
• Feds, States, Ports, and Communities will rediscover that freight
and freight infrastructure are the underpinnings for economic
development.
• Energy and sustainability concerns increase.
Discussion
MWW STRATEGIC HOUSE GOALS
Sustainability SMART Targets
Contact Information:
Local
EMERGING
EffortPROGRAMS
EXISTING
PROGRAMS
Randy Mullett
Con-way Inc.
575 7th St, NW
Washington, DC 20004
202-637-0994
[email protected]
Reduce
SMART Way
LEEDs
Reuse
PLANET
Recycle
LOCAL EFFORT
MEASUREMENT SYSTEMS
Waste
Warehousing
Energy
Reduction
Recycling
CORE SERVICES
Transportation Office
Procurement
Light Manufacturing

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