UPS to Buy 1,000 Propane-Fueled Delivery Trucks

Reuters - United Parcel Service Inc, the world's largest courier company, said it would buy 1,000 propane-fueled delivery trucks and install 50 fueling stations in the United States as it expands its already-large fleet of alternative-fuel vehicles.
 

The propane fleet, which UPS is buying from Daimler AG (DDAIF)'s Freightliner Custom Chassis Corp, will replace gasoline- and diesel-fueled vehicles used largely in rural areas in Louisiana and Oklahoma.
 

The new fleet is expected to displace about 3.5 million gallons of conventional gasoline and diesel per year, UPS said.

UPS said it would spend about $70 million to buy the trucks and set up the fueling stations.
 

U.S. companies are turning to cleaner fuels such as propane and other liquefied petroleum gases - byproducts of natural gas processing - from more expensive gasoline and diesel.

A rise in shale oil and gas production has increased availability of such alternative fuels in the United States.
 

UPS, known for its brown delivery trucks, already has a fleet of about 3,150 alternative-fuel vehicles running on propane, compressed natural gas, liquefied natural gas, biomethane and electricity.

The company said on Wednesday it had successfully tested 20 propane-powered trucks this winter in Gainesville, Georgia.

UPS said it expected operations to begin mid-2014 and be completed early next year. The company said it also planned to introduce propane-fueled vehicles in other U.S. states.

UPS shares closed at $96.98 on the New York Stock Exchange on Tuesday.