UPS will buy 700 liquefied natural gas (LNG) vehicles and build four refueling stations by the end of next year, accelerating its planned growth into alternative fuel.
The new stations will be built in Knoxville, Nashville, Memphis and Dallas at a cost of more than $18 million.
The integrator currently boasts more than 1,000 LNG vehicles worldwide, and its alternative-fuel fleet is now composed of more than 2,600 vehicles. UPS’ only self-owned LNG fueling station is in Ontario, Calif., but it currently also uses stations in Phoenix, Las Vegas and Salt Lake City.
UPS Chief Executive Officer Scott Davis said LNG is a viable alternative-fuel solution for the company over the next decade. However, UPS officials have their eyes on other fuels and technologies that aren’t quite ready for commercial rollouts, he said.
"When other shipping and logistics companies are talking about possibilities, we are putting alternative-fueled vehicles on the highway," Davis said in a statement. "LNG is a good alternative to petroleum-based fuel for long-haul delivery fleets, as it is abundant and produces reduced emissions at less cost. At UPS, we are helping to knock down some of the biggest hurdles to broad market acceptance of LNG in commercial transportation by continuing to establish vehicle demand, fuel and maintenance infrastructures.” - Jon Ross