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Q2 2013 Earnings

July 23, 2013
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246 Million Miles and Beyond

Abstract:

In 2000, UPS began calculating the miles the green fleet was traveling annually. In 2011, the green fleet hit 246 million miles, with a goal of logging 400 million miles by 2017.

UPS's First 200 Million Miles

UPS's "green fleet" is composed of more than 2,500 vehicles, utilizing a variety of alternative technologies and/or alternative fuels. Since the late 1980s, UPS has invested in alternative vehicle technology and explored the viability of new fuel types as part of a "rolling laboratory" concept to fleet expansion.

In 2000, UPS began calculating the miles the green fleet was traveling annually. In June 2006, the green fleet hit 100 million miles. In early 2011, the fleet crossed the 200 million mile line.

UPS Technologies at the 200 Million "Milestone"

UPS explores new technologies rigorously to determine if a specific fuel or technology will be able to withstand the demands placed upon our delivery vehicles. Is it efficient enough? Is it durable enough? Is it cost effective? What environment suits it best?

UPS has eight active alternative technologies operating in its delivery fleet:

  • Compressed Natural Gas
  • Liquefied Natural Gas
  • Hybrid Electric Vehicle
  • Electric Vehicle
  • Propane
  • Ethanol
  • Biomethane
  • Hydraulic Hybrid Vehicle

These eight technologies make our company's green fleet one of the most diverse in the private delivery industry.

This 246 Million Miles Has Been Brought to You By...

Approximately two-thirds of our alternative fuel/advanced technology vehicles operate in the united States. The rest are on roads in Brazil, Canada, Chile, Germany, Hong Kong, Mexico, Netherlands, South Korea, Thailand and the UK.

Hybrid Electric Vehicles (HEV)

  • In the fleet since 1998 as various test vehicles. In 2000, the company deployed a hybrid electric vehicle in its Huntsville, Ala.
  • In 2007, UPS deployed 50 third-generation hybrid electric vehicles in Atlanta, Dallas, Houston and Phoenix.
  • In 2010, UPS deployed 200 HEVs to Austin, Houston, Long Island, Minneapolis, Louisville, Washington DC, Philadelphia and Chicago.
  • Thirty-five percent improvement in fuel economy over conventional vehicles
  • These trucks will reduce CO2 by thousands of metric tons annually.
  • UPS purchased 130 new HEVs in September 2010. These vehicles will be deployed in 2011 to Atlanta, New York and New Jersey. 
  • In 2011, UPS deployed another 129 HEVs to cities in California, New York, New Jersey and one in Hong Kong.
  • Our current HEV fleet totals 384.

Liquefied Natural Gas (LNG) 

  • In the fleet since 2000. First in industry to purchase LNG.
  • Eleven Liquefied Natural Gas (LNG) tractor-trailers operate with UPS's West Coast fleet. UPS deployed 48 additional LNGs on the West Coast in 2011. UPS's LNG fleet totals 59 vehicles.
  • As a fuel, LNG is very dense, providing a large amount of energy for the amount of space it occupies. This makes LNG an excellent potential fuel for large trucks that need to travel a long distance before refueling.  
  • Our current LNG fleet totals 93.

Compressed Natural Gas (CNG) 

  • In the fleet since 1989.
  • More than 1,000 CNG package delivery vehicles at present.
  • Particulate emissions 95 percent lower than with diesel engines; carbon monoxide emissions are 75 percent lower; and emissions of nitrogen oxides are 49 percent lower. 
  • In January 2010, UPS deployed an additional 245 CNG vehicles in the United States.
  • UPS operates CNG vehicles in the United States, Germany, France, Chile and Brazil.
  • Our current CNG fleet totals 1,014.

Hydraulic Hybrid (HHV)

  • Tested by UPS in 2006.
  • Hybrid hydraulic technology includes two power sources that propel the vehicle – a small fuel-efficient diesel combustion engine and hydraulic components.
  • Hydraulic hybrid technology replaces a conventional drive train with a hydraulic one, which eliminates the need for a mechanical transmission and driveline.
  • Although there are no HHVs currently operating in UPS's fleet, we are continuing to explore the possibilities of this technology.
  • Our current HHV fleet totals 22.

Electric Vehicles (EV)

  • First electric vehicles used briefly in 1930s in New York.
  • UPS tested an electric car in Santiago, Chile in 2001. UPS tested 13 electric minivans in downtown Los Angeles, CA.
  • In 2004 and 2005, UPS introduced two electric vehicles into its fleet in Manhattan, NY. Additionally, there are 27 electric vehicles operating in Europe.
  • Our current electric fleet totals 65.

Propane-Powered Engines 

  • Introduced in the 1980s.
  • UPS operates more than 950 propane-powered delivery vehicles in Canada, Korea and Mexico.
  • Propane's low pollution characteristics and positive performance have made it a viable choice for inclusion in UPS's alternative fuel fleet.
  • Our current propane-powered fleet totals 904.

Ethanol

  • In 2011, UPS deployed 45 ethanol-powered delivery vehicles in Brazil, where production of this alternative fuel is plentiful.
  • Our current ethanol fleet totals 46.

Biomethane

  • Biomethane is a renewable energy source produced from organic waste, and it provides a number of environmental benefits by reducing the need for fossil fuels. It can be obtained via landfills or by using an anaerobic digester to break down organic waste.
  • Our biomethane dual-fuel vehicles were part of the company's alternative fuel vehicle fleet delivering to official London 2012 venues. The London biomethane vehicles were the first of their kind in our global fleet.
  • Our current biomethane fleet totals 10.

For more information, contact:

404-828-7123

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