United Parcel Service Buys 700 Natural Gas Trucks image

The United Parcel Service announced it will purchase 700 liquefied natural gas vehicles and build four refueling stations by the end of next year.

The logistics and courier services company said that as prices for natural gas are with 30%-40% lower compared with those of imported diesel, and with the production in the US on a continuous increase, it will ramp up investments in natural gas infrastructure. UPS currently has more than 1, 000 natural gas cars on the world all over the world.

Once the plan completed, UPS will be the company with the largest LNG truck fleet in the world. Although the gas trucks emissions are with 20% lower compared with diesel trucks, truckers argue that the price of vehicles running on cleaner-burning and cheaper fuel is still too high to make such an investment.

Last year UPS acquired Dutch rival TNT Express for $6.77 billion, which offered the company the possibility to expand in Europe. The deal allowed UPS to take out a European rival that has shown a willingness to undercut competitors on price and gain and a stronger position in growth markets Asia and Latin America.

Source: Reuters