A leading supplier of linen and garments. Product is rented to the customer, a service that includes processing Currently employing 440 people

Transcription

1 Peter Scallan MBA

2 A leading supplier of linen and garments Hotels & Restaurants Hospitals Industry Product is rented to the customer, a service that includes processing Currently employing 440 people

3 Centralised Laundry in Wexford One of the two largest laundry plants in Europe 1.2m pieces of linen & garments per week (550 tonnes)

4 Covering 26 counties Operates its own fleet Delivery and collection build in back load Five Distribution Depots Urban and Rural Routes

5 Trunking Fleet Goods to & from Wexford and depots at Tallaght, Cork, Carlow, Ballinasloe 500hp Mercedes, Iveco & Scania Double Deck and Single Deck three axle trailers

6 Distribution Fleet Mainly 7.5t trucks with box bodies and tail lifts Also 3.5t vans and 5t & 10t trucks One electric (above), the others are Diesel powered

7 Major Customer Direct Delivery Hospitals (Beaumont, St. James) and some large hotels Single and double axle low profile trailers

8 Fleet Transport Awards Environmental Award Winner 2010 and 2011 Short listed for Own Account Operator Award and for Safety Award

9 Cost Transport energy represents 2.5% of total cost Carbon Emissions Distribution emissions 1,920 tonnes CO 2 per year Particulate Emissions Dublin City is exceeding EU limits Noise Deliveries to Hotels & Hospitals at night and early morning Social Responsibility 85 Years so far!

10 Do Diesel vehicles suit our future needs?

11 Two similar vehicles Borrowed a 3.5t CNG Mercedes Sprinter Running on CNG but with petrol in reserve Celtic s own 3.5t Diesel Mercedes Sprinter Identical load Constant load due to delivery and collection Shadowing The CNG vehicle followed the Diesel vehicle for two days Distance Each vehicle travelled 171km over the 2 days

12 3.5t Mercedes Benz Sprinter (diesel)

13 3.5t Mercedes Benz Sprinter (CNG)

14 171km on CNG Suitable for urban and suburban routes Backup tank with petrol extends range Better than Electric Worse than Diesel (467km)

15 Similar to Diesel powered van Smooth and quiet Gearbox well matched to engine Power and torque sufficient for the job No discernible difference in drivability Many of our drivers familiar with CNG

16 Only a slow fill available 6 8 hours Similar to electric Not a problem in practice with a small fleet Need to install a unit at the depot

17 27.64 litres 283 kwh 124 (29.9 SCM) 303 kwh 164 kwh/100km 177kWh/100km 1.19 per litre (ex VAT) 0.03 per kwh (ex VAT) days per km Includes Fuel Duty & CO 2 Tax days per km 72% cheaper But... Tax? DIESEL CNG

18 264 g CO 2 /kwh 434 g CO 2 /km t CO 2 /year 205 g CO2/kWh 363 g CO2/km 9.08 t CO2/year 16.4% less CO2 Particulates DIESEL Almost no particulates CNG

19

20 A CNG 3.5t van is viable Cashflow gain 9,500 over five years Reduced to 7,035 if a slow fill is installed Fast fill station viability? 100,000 Life of 10 years Would need to operate at least 5 vehicles

21 Purchase a CNG box body truck with 4t payload Run a three way trial comparing with diesel and electric Parameters: Cost Emissions Noise Reliability Driver comfort

22 Convert a direct hospital route to CNG CNG articulated truck Lightly loaded one axle 10m (33ft) Fixed route 300km round trip

23 Fuel duty? When will it be applied? How will it be applied? How much? Carbon Tax? Will there be a shift from duty to CO 2 tax? Road Tax? Tax on unladen weight is unfair Should tax be on payload (i.e. GVW-unladen weight) Example...

24 Road Tax same payload Electric 800 Diesel 470

25 Will the underlying price of gas remain cheaper than that of oil? Currently about half the price of oil per kwh What about Electricity costs & emissions?

26 Filling Stations Fleet owner funded & operated? Gas supplier funded & operated? Third party funded & operated? Or a combination Fast fill or slow fill? Vehicles Suppliers... Give us the vehicles we need... Now! Inadequate Gas Network Letterkenny, Sligo Wexford, Killarney, Tralee, Cavan, Monaghan

27 Cheaper To operate than diesel To own than electric Lower emissions Than diesel Than electric (given current electricity supply) Quieter than diesel Viable for depot based urban and suburban routes Noisier than electric Tax changes required Road Tax Vehicle Fuel Duty Carbon Tax Supply of vehicles Filling stations Positive Negative

28 Peter Scallan MBA