Anheuser-Busch Converts Houston Trucking Fleet to Compressed Natural Gas Vehicles from Ryder
New 66-tractor, heavy-haul fleet will deliver reduced environmental impact and company savings
MIAMI--(BUSINESS WIRE)--Ryder System, Inc. (NYSE: R), a leader in commercial fleet and supply chain solutions, announced today that it is partnering with Anheuser-Busch to replace the beer company’s 66 diesel tractor fleet in Houston with Compressed Natural Gas (CNG) powered engines. This marks Anheuser-Busch’s first conversion of an entire fleet and represents a significant milestone in demonstrating the company’s commitment to reducing environmental impact in logistics.
“We commend the Anheuser-Busch team for their leadership and decision to convert their entire Houston brewery fleet to cleaner, more efficient natural gas”
“The next generation CNG engine technology paired with support from state incentive programs contributed to our ability to take such a significant step in fully converting our Houston fleet,” said James Sembrot, Senior Director, Transportation, Anheuser-Busch. “Houston is a strategic choice due to the central location to our facilities and distribution radius, as well as its proximity to fueling stations.”
The CNG conversion comes as the 2014 football season kicks off one of the company’s busiest shipping periods of the year – with 17 million cases of beer shipped by the Houston fleet during third quarter. Through the advanced engine technology, the fleet is expected to reduce 2,000-tons of carbon dioxide (CO2) emissions per year when adjusting emissions reduction for consumption rates.
"The city of Houston was an early leader in the pursuit of cleaner, greener energy options,” said Mayor Parker. “It is encouraging to see one of our major companies taking a major step forward in this area. Cleaner technologies benefit all Houstonians because they help improve the air we breathe."
Anheuser-Busch is one of only a few large, heavy-haul shippers to complete a full fleet conversion to alternative fuel power vehicles. In June, the company added an environmental goal to reduce carbon emissions in its logistics operations from network planning, transportation, and warehousing by 15 percent by the end of 2017.
The CNG conversion represents significant business and environmental benefits for Anheuser-Busch. Working with transportation partner, Ryder, the 12-liter lighter-weight engines are expected to emit 23 percent less greenhouse gases (compared to diesel), which is the equivalent of taking approximately 420 passenger vehicles off the road.
“We commend the Anheuser-Busch team for their leadership and decision to convert their entire Houston brewery fleet to cleaner, more efficient natural gas,” said Dennis Cooke, President, Global Fleet Management Solutions for Ryder. “We are honored that Anheuser-Busch has trusted Ryder as its leasing and maintenance partner to help take this important step toward reducing the environmental impact of their fleet.”
Once fully installed, the company estimates it will secure significant savings.
The natural gas vehicles are being made available through Ryder’s participation in the Texas Natural Gas Vehicle Grant Program (TNGVGP), funded by the Texas Emissions Reduction Plan (TERP) initiatives and administered by the Texas Commission on Environmental Quality (TCEQ). As part of the lease agreement, Ryder will maintain the vehicles out of its Houston service facility. This is Ryder’s first project with Anheuser-Busch and Ryder’s largest natural gas vehicle deployment to date.
Ryder is a FORTUNE 500® commercial fleet management and supply chain solutions company. Ryder’s stock (NYSE:R) is a component of the Dow Jones Transportation Average and the Standard & Poor’s 500 Index. Inbound Logistics magazine has recognized Ryder as a top third party logistics provider and green supply chain partner. In addition, Security Magazine has named Ryder one of the top companies for security practices in the transportation, logistics, supply chain, and warehousing sector. Ryder is a proud member of the American Red Cross Annual Disaster Giving Program, supporting national and local disaster preparedness and response efforts. For more information, visit www.ryder.com and follow us on Facebook, YouTube, and Twitter.
For more than 160 years, Anheuser-Busch and its world-class brewmasters have carried on a legacy of brewing America’s most-popular beers. Starting with the finest, all-natural ingredients sourced from Anheuser-Busch’s family of growers, every batch is crafted using the same exacting standards and time-honored traditions passed down through generations of proud Anheuser-Busch brewmasters and employees. Best known for its fine American-style lagers, Budweiser and Bud Light, the company’s beers lead numerous beer segments and combined hold 47.2 percent share of the U.S. beer market. Anheuser-Busch is the U.S. arm of Anheuser-Busch InBev and operates 14 local breweries, 17 distributorships and 23 agricultural and packaging facilities across the United States, representing a capital investment of more than $15.5 billion. Its flagship brewery remains in St. Louis, Mo., and is among the global company’s largest and most technologically capable breweries. Visitor and special beermaster tours are available at its St. Louis and four other Anheuser-Busch breweries. For more information, visit www.anheuser-busch.com.
Note Regarding Forward-Looking Statements: Certain statements and information included in this news release are "forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on our current plans and expectations and are subject to risks, uncertainties and assumptions. Accordingly, these forward-looking statements should be evaluated with consideration given to the many risks and uncertainties that could cause actual results and events to differ materially from those in the forward-looking statements including those risks set forth in our periodic filings with the Securities and Exchange Commission. New risks emerge from time to time. It is not possible for management to predict all such risk factors or to assess the impact of such risks on our business. Accordingly, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.