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Odaat seeks unique, high-return investments. I am a research, buy, and hold investor. I do not short stocks or play options.
  • APGI...Being In Trucking Just Got Fun Again!  0 comments
    Dec 9, 2013 7:30 PM | about stocks: APGI

    Note: This instablog entry is not the main, detailed analysis to which I refer in the Seeking Alpha article. To view that entry (well worth the read), scroll down to the one titled "Dual Duels in Dual Fuels: Why APGI Emerges The Natural (gas) Champion"

    In this blog entry, we get to gain insights into the positive response and clear customer-driven business argument in favor of APG's novel V5000HD dual-fuel retro-fit conversion units, and the responsive, cost-saving "dual fuel glider truck" approach.

    "Today we have the opportunity to control costs and make a profit - being in trucking just got fun again…"

    At a conference last week, very much supporting the pro-APGI arguments I made in the Seeking Alpha article and Instablog, here are some great testimonials from real-world users of APG's products. Pope has converted eight trucks and Stewart has purchased two gliders with interest for more.

    Prepare for a name you'll recognize... the one presenter, Mr. Brian Orr, is owner of Stewart Logistics, Inc., which is a dedicated FedEx Ground fleet. Guess what happens to APGI when Fed Ex finds out one of their dedicated partners is saving a bunch of money and fuel with an elegant, reliable dual fuel system? :-)

    Here is a link to the video on the website: http://www.ccjdigital.com/video-making-the-decision-to-try-a-natural-gas-glider-truck/?utm_source=daily&utm_medium=email&utm_content=12-06-2013&utm_campaign=CCJ&ust_id=a861033f0c&

    And on YouTube: http://www.youtube.com/watch?v=rp_T6y1acJY

    Both companies presented compelling Powerpoints, which I have copied below. They don't show up as nicely formatted as the companies had them, so I ask for your, and their, forgiveness on that.

    As I mention in my main Instablog, a real explosion of APG sales is going to be fed by a healthy, competitive market. When these cartage companies with APG's technology on board stop charging fuel surcharges, and, as well, start making even larger profits while underbidding their competitors by 20% or more, competetitors without APG's technology on their vehicles will be scrambling to get it...rushing to their nearest dealer or Wheeltime Network member to get their fleet retrofitted as well. Benefit: APGI.

    Or, they may be so underbid that before they know it, their dual-fuel-using competitor has won, and they are closing up shop. The competitor gets to buy their fleet trucks at a fire sale, put APG units on them, and keep rolling on the road, and rolling in the profits. In all this, naysayers will understand why APG wanted to be so thorough with having all the OUL engine families approved.

    Lots of really compelling real world numbers in these presentations below.

    Enjoy! - Odaat

    Here are Pope's and Stewart's Powerpoints, Presented at the CCJ 2013 Fall Symposium, 12/4/13

    Pope Transport, Inc.

    The Drive to Natural Gas

    American Power Group

    Dual Fuel Retrofit Technology

    Presented at the CCJ 2013 Fall Symposium, 12/4/13

    The Discovery

    Profitable opportunity to establish natural gas filling station and

    lead in infrastructure development in Wisconsin region.

    January 2013 - vacation conversations led to a search for natural gas fleet solution.

    (click to enlarge)

    Truck stop conversations led to exploration of dedicated natural gas trucks for fuel savings. Ran into expensive dead ends until original source suggested dual fuel. Investigation of dual fuel options led to APG for broadest number of approved engine families and experience - and Inland Power Group - a WheelTime Network member.

    Presented at the CCJ 2013 Fall Symposium, 12/4/13

    The Solution

    (click to enlarge)

    APG and WheelTime's Inland Power Group traveled to Pope Transport -

    Invited to MATS to see debut of APG Natural Gas Dual Fuel Glider Presented at the CCJ 2013 Fall Symposium, 12/4/13

    APG Dual Fuel System Installation

    (click to enlarge)

    Free Frame Space is Key

    Location - Passenger Rail or Back of Cab

    APG and WheelTime's Inland installed first APG systems

    at Inland Power in Butler, Wisconsin

    APG sent engineer to help optimize the dual fuel calibration

    for specific truck configuration, transmission and gear ratio

    Multiple fuel (LNG or CNG) and tank options ensure fuel range for specific routes

    (click to enlarge)

    (click to enlarge)No invasive or moving parts ECU, sensors, tubes & valves Presented at the CCJ 2013 Fall Symposium, 12/4/13

    First Results

    Inland Power Group installed APG dual fuel technology on

    fleet truck with 10-speed MB 4000 (HP 450) engine

    Truck normally runs at 5.62 mpg - diesel only Drove from Sturtevant, WI to Gary, IN

    •210 miles round trip

    •12.35 mpg - doubled fuel mileage

    •50% diesel displacement average

    •Total cost per mile - diesel + NG = $.54

    •Saved $.17+ per mile

    Presented at the CCJ 2013 Fall Symposium, 12/4/13

    Additional Results 16 + APG Glider Completed Tests

    November 2013

    •Truck 275

    1798 miles - saved $ .21 cpm or $370.71

    •Truck 283

    1832 miles - saved $ .12 cpm or $212.04

    •Truck 275

    2476 miles - saved $ .09 cpm or $222.32

    October 2013

    •Truck 285

    2367 miles - saved $ .13 cpm or $307.05

    •Truck 283

    3103 miles - saved $ .10 cpm or $300.07

    •Truck 283

    2852 miles - saved $ .20 cpm or $568.07

    •Truck 283

    2154 miles - saved $ .10 cpm or $207.57

    •Truck 301

    3015 miles - saved $ .11 cpm or $321.24

    •Truck 283

    2795 miles - saved $ .17 cpm or $488.41

    •Truck 285

    1979 miles - saved $ .19 cpm or $375.66

    •Truck 285

    2983 miles - saved $ .18 cpm or $527.56

    September 2013

    •Truck 283

    1013 miles - saved $ .12 cpm or $212.04

    •Truck 283

    3775 miles - saved $ .20 cpm or $766.68

    September 2013

    •Truck 283

    1013 miles - saved $ .07 cpm or $ 70.57

    August 2013

    •Truck 301

    1013 miles - saved $ .08 cpm or $ 85.69

    July 2013

    •Truck 301

    210 miles - saved $ .17 cpm or $36.32

    APG Glider Test Unit

    164 miles - saved $ .21 cpm or $ 34.02

    Total Fleet Results to Date: November 30, 2013

    -16 tests

    -33,529 miles

    -$4,894.28 ROI

    -$ .15 average savings/mile

    Presented at the CCJ 2013 Fall Symposium, 12/4/13

    Current Pope Transport Fleet Current Pope Transport fleet = 25 MY2005-2009 trucks 8 Pope Transport trucks will be or have been retrofitted with APG dual fuel technology:

    •2 trucks with 10-speed MB 4000 (450 hp) engine

    •4 trucks with Detroit 500 HP Series 60 (running $.03 better than MB)

    •2 trucks with Detroit 500 HP Series 60 (to be done) Investment: $210,000 Payback: 14-16 months Savings: $ .10-.20 per mile* *Variability due primarily to out-of-route miles searching for natural gas.

    Presented at the CCJ 2013 Fall Symposium, 12/4/13

    What can you do with $.10 - $.20 cpm in NG savings? Make a better profit Cover the cost of your Workers' Comp & Truck Insurance Be aggressive in quoting more backhauls Win business from "green" companies who require their haulers to use alternate fuels

    (click to enlarge)

    Presented at the CCJ 2013 Fall Symposium, 12/4/13

    Future Pope Transport Fleet Future Fleet Vision

    •Overhaul trucks at 700,000-900,000 miles

    •APG system + pre-EGR Detroit Series 60 engines

    •50% diesel displacement average

    •Total cost per mile - diesel + NG = $.54

    •Save $.17+ per mile

    (click to enlarge)Full Fleet Projected Savings: 25 Trucks @ 50,000 miles/week $10,000/week or $500,000/year APG Series 60 Dual Fuel Gliders

    •55% displacement

    •Even better value proposition

    "Today we have the opportunity to control costs and make a profit - being in trucking just got fun again…" Presented at the CCJ 2013 Fall Symposium, 12/4/13

    CNG/LNG Infrastructure is Ramping Up

    (click to enlarge)

    *Clean Energy website

    There are more opportunities - the next step in savings -

    fuel contracts with gas suppliers, captive pump options, financing

    Presented at the CCJ 2013 Fall Symposium, 12/4/13

    Additional Savings Opportunities Average On-Road Pricing:

    •$ .29 diesel cost per mile @ $3.76/gallon

    •$3.76/gallon/5.75 mpg = $ .659 per mile

    •$ .156 natural gas/DGE/ cost per mile

    •$ .446 total fuel cost per mile

    •Total cpm savings vs. diesel only = $ .213

    Natural Gas Contract:

    •5-10 year commitment

    •$ .29 diesel cost per mile @ $3.76/gallon

    •$ .09 natural gas/DGE/cost per mile

    •$ .38 total fuel cost per mile

    •Total cpm savings vs. diesel only = $ .279

    Fleet-owned NG Pumping Station

    •$ .29 diesel cost per mile @ $3.76/gallon

    •$ .04 natural gas/DGE/cost per mile

    •$ .33 total fuel cost per mile

    •Total cpm savings vs. diesel only = $ .329

    100% Dual Fuel = 2.5 million miles/year

    X $ .279 savings/mile = $697,500/year 100% Dual Fuel = 2.5 million miles/year X $ .329 savings/mile = $822,500/year

    100% Dual Fuel = 2.5 million miles/year

    X $ .213 savings/mile = $532,500

    (click to enlarge)

    (click to enlarge)

    (click to enlarge)

    And Stewart's:

    Stewart Logistics, Inc.

    The Road to Natural Gas

    American Power Group Dual Fuel Gliders

    Presented at the CCJ 2013 Fall Symposium, 12/3/13

    Belief

    Trucking delivers a simple return on rolling asset.

    How many gallons do you burn per year?

    What if you could add $1 per gallon to your bottom line?

    Presented at the CCJ 2013 Fall Symposium, 12/3/13

    The Decision Path

    One of the largest dedicated contractors for FedEx Ground, Stewart Logistics operates 25 trucks across the lower 48 states.

    Stewart fleet composition: 10 of 25 trucks are gliders

    After nearly one-year of looking into alternative fuels, Stewart Logistics is one of the first to own and operate APG Dual Fuel Gliders and one of the first in the FedEx Ground operation to go into natural gas.

    The company became aware of dual fuel natural gas gliders through conversations with natural gas industry executives at Blu.LNG.

    Presented at the CCJ 2013 Fall Symposium, 12/4/13

    Myth vs. Fact

    Fuel mileage LNG vs. Diesel

    LNG is average $1 cheaper per gallon

    Roughly $2.59 vs. national wholesale average at $3.56

    Presented at the CCJ 2013 Fall Symposium, 12/4/13

    Challenge

    Best way/lowest breakeven cost without disruption to your operation.

    How many gallons do you burn per year?

    What if you could add $1 per gallon to your bottom line?

    Presented at the CCJ 2013 Fall Symposium, 12/4/13

    Myth vs. Fact

    Gliders

    Anyone can work on them.

    Used block with all new components. Same warranty as new.

    No computers needed - less equipment to break - no emissions equipment.

    25% less expensive in cost.

    Presented at the CCJ 2013 Fall Symposium, 12/4/13

    New Diesel vs. Dedicated NG vs. Glider

    New Diesel

    •2014 Freightliner Evolution

    •$128,000

    •Added operations cost - emissions equipment failure

    Dedicated Natural Gas

    •$180,000-$200,000

    •100% LNG - range issues

    •Flexibility

    •Service at dealer - computer software needed

    Glider

    •$98,000 (day cab)

    •Dual fuel - $30,000-$35,000

    •Fix anywhere

    •No equipment to break

    Presented at the CCJ 2013 Fall Symposium, 12/4/13

    (click to enlarge)

    Decision Tree

    Presented at the CCJ 2013 Fall Symposium, 12/4/13

    The Solution

    After months of trying to find a natural gas glider solution, Stewart Logistics met with APG at GATS - came home with the first APG Natural Gas Dual Fuel Glider After receiving the first APG glider in October 2013, Stewart ordered an additional APG Natural Gas Glider from Fitzgerald. Today, Stewart's experience has moved from first adopter obstacles to significant cost advantages including:

    •diesel displacement

    •accelerated payback

    •fuel cost savings

    Presented at the CCJ 2013 Fall Symposium, 12/4/13

    APG Dual Fuel System Installation

    (click to enlarge)

    Free Frame Space is Key

    Location - Passenger Rail or Back of Cab

    6" to 10" rail space for the tank

    access to the valving - 10" is better than 6"

    > HLNG-196 (26"x116") 102DGE 122" to 126"

    > HLNG-150 (26"x90") 78DGE 96" to 100"

    > HLNG-119 (26"x75") 62DGE 81" to 85"

    > HLNG-100 (26"x64") 52DGE 70" to 74"

    > HLNG-72 (26"x50") 37DGE 56" to 60"

    (click to enlarge)

    (click to enlarge)No invasive or moving parts ECU, sensors, tubes & valves

    Presented at the CCJ 2013 Fall Symposium, 12/4/13

    First Results Average APG Dual Fuel Glider Operation:

    •2 APG Glider units

    •5 days per week

    •Atlanta, GA to Meridian, MS

    •Series 60 engine

    Scenario: 71 DGE of LNG per day $2.59 p/DGE $ .96 cheaper than national wholesale average price of diesel Fuel Cost Savings: Displacement is 65% or better $68.16 in cost savings per day $340.80 in cost savings per week $17,721.60 in cost savings per year per vehicle Breakeven: APG Upgrade: $32,000 - $8,000 fuel credit = $24,000 Breakeven = $24,000/$17,721.60 = 1.35 year

    Primary issue to date:

    LNG refilling sites - example GA - MS

    Flexibility of easy transition from NG to diesel relieves range anxiety of dedicated NG:

    Fuel cost savings will increase with LNG infrastructure expansion

    Presented at the CCJ 2013 Fall Symposium, 12/4/13

    (click to enlarge)

    (click to enlarge)

    Stewart Logistics debuted the new

    APG Dual Fuel Gliders as part of the

    BluLNG station opening in College Park,

    GA in October 2013

    Disclosure: I am long OTCQB:APGI.

    Stocks: APGI
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