Ryder System Inc (NYSE:R) announced that Willow Run Foods Inc has signed a Ryder full-service lease agreement for 15 heavy duty compressed natural gas (CNG) vehicles.
The 63-year-old customized food distributor for regional and national chains throughout the northeast United States is Ryder’s first natural gas lease customer in New York. This natural gas vehicle project is expected to reduce greenhouse gas emissions by 500 tons annually and expected to save Willow Run Foods more than $100,000 annually through a reduction of 175,000 gallons of diesel fuel consumption.
Willow Run Foods will take delivery of the 15 natural gas vehicles in October to replace 15 diesel-powered vehicles in its current fleet. The 15 CNG vehicles will be used to make deliveries to several chain restaurants in New York City, Long Island, and northern New Jersey. The natural gas vehicles were made available through funding assistance provided by the New York State Energy Research and Development Authority (NYSERDA) as part of the Willow Run Foods clean-energy project.
Ryder and Willow Run Foods are working together to upgrade the on-site maintenance facility to meet requirements for servicing natural gas vehicles.
Through a full-service lease, Ryder acquires vehicles according to customer specifications; provides financing, maintenance, and fleet support services; and then manages vehicle disposal to protect customers from residual risk. Ryder also offers a Flex-to-Green Lease agreement on traditional diesel trucks, which features the same benefits of a full-service lease but with the added option to replace the diesel-powered vehicles with natural gas vehicles after one year.
Ryder has deployed more than 300 CNG and liquefied natural gas (LNG) vehicles with about 40 customers in California, Michigan, Arizona, and Louisiana.
For more information, visit www.ryder.com.