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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.

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moving the world the future of freight transportation environment fuel efficiency panel

Moving the World: The Future of Freight TransportationEnvironment/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
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
a framework to remember
A Framework to Remember

You can not separate

economic growth from the

growth of transport.

trucking intermodal statistics
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
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
Additional Con-way Initiatives
  • 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
ata sustainability task force recommendations
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
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
Discussion

Contact Information:

Randy Mullett

Con-way Inc.

575 7th St, NW

Washington, DC 20004

202-637-0994

Mullett.randy@con-way.com