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McAleese enters administration with McGrathNicol Australasian Transport News (ATN) / August 29, 2016 Recapitalisation deal expires as unhappy shareholders stand firm on property rental Troubled transport firm McAleese is in voluntary administration. Four administrators from forensic accountancy McGrathNicol are now in charge and will now subject each of the group’s four main businesses to an "urgent financial and operational assessment". All up, Joseph David Hayes, Jason Preston, William James Harris and Keith Crawford will control 20 entities, including Cootes Transport Group, WA Freightlines and Jolly’s Transport Services. They are part of four main businesses: Heavy Haulage and Lifting – comprising McAleese Transport, National Crane Hire and Walter Wright Cranes and offers integrated heavy haulage, general freight and lifting solutions across Australia Specialised Transport or WA Freight Group – providing express transport services to and from all major capital cities both interstate and intrastate Oil and Gas – comprising two businesses, Cootes Transport and Refuel International. Cootes Transport distributes liquid fuels, chemicals, LPG and other petroleum products across Australia. Refuel International is a manufacturer of specialist fuel transfer equipment. It is owned by Sunshine Refuellers, an entity to which the administrators have not been appointe Resources – providing bulk haulage and ancillary onsite services to mining companies operating in the key resource producing regions of Western Australia. Resources also operates a quarry in Cloncurry, Queensland. A deal with financier SC Lowy Consortium, which is presently McAleese’s largest secured creditor, was due to end on Friday if a compromise related to property rental arrangements with some shareholders through TTPH Pty Ltd was not found and a waiver from Atlas Iron on haulage contracts was not supplied. TTPH was unmoved. "As a result, McAleese’s uncompromised senior debt and all accrued interest was immediately due and payable," the McAleese board says. "The SC Lowy Consortium declined to enter into any new forbearance arrangement. "This left the board with no choice but to place the McAleese Group into voluntary administration in order to protect the interests of shareholders, creditors, employees, suppliers and other stakeholders." Those supporting the restructuring deal, SC Lowy and interests linked to MD Mark Rowsthorn, will now look for an alternative mechanism to effect the recapitalisation, the McAleese board says. McGrathNicol says the Cootes sale process that began before its appointment will proceed. McAleese’s shares have been suspended on the Australian Securities Exchange (ASX) and the first creditors’ will be on September 8.

McAleese administrator seeks to hold new EGM Australasian Transport News (ATN) / August 30, 2016 Recriminations from both sides increasingly played out in public McGrathNicol administrator Keith Crawford is searching for a new date for the McAleese extraordinary general meeting (EGM) as the atmosphere surrounding the downed firm gets increasingly fractious. Having lost directors Wayne Kent and Kerry Gleeson yesterday on the appointment of McGrathNicol as voluntary administrators, Crawford chaired the meeting to consider a shareholder pitch to spill the board. This had been proposed by the Gilberto Maggiolo-led Havenfresh shareholder entity and would see Harold Price and Maurice Smith join Maggiolo on the board. In the event, the meeting was adjourned, as Crawford "considered that the appointment of administrators was material information for members and members would not have had sufficient information to determine how to vote at the meeting", McAleese tells the Australian Securities Exchange (ASX). The administrators intend to hold the meeting "as soon as the outcome of the voluntary administration process is clearer". During the administration, the administrators exercise all of the powers of the existing directors, whose powers are suspended. The administrators note that the original notice of the meeting did not contemplate that administrators would be appointed to the company. A supplementary notice will be issued that will specify a new time and date for submissions of proxies. In the midst of the turmoil, the company’s shares have risen over the past week, from 1.5 cents each to 2.5 cents, leaving the market puzzled. Meanwhile, public comment from rival shareholders – MD Mark Rowsthorn on one side and opposing shareholding original owners and company-linked property holders for whom Maggiolo has the public profile on the other – have taken each other to task over the company’s predicament. The immediate point of contention is property rentals, with the former charging the latter with scuppering the least-worse option by refusing to negotiate on a lower rate and the latter denying that and noting the opaque nature of the management-led rescue plan made it unclear who negotiations should be conducted with. There appears to be deep mistrust from those opposed to the rescue deal about how Rowsthorn’s position would have emerged, given he negotiated it with financier and major shareholder SC Lowy. It would seem that without a deal with those opposed, SC Lowy, as the major secured creditor, and Rowsthorn, with whom it has been dealing, would have the whip hand in any sell-off of assets or businesses. The administrators flagged yesterday that they would take a detailed look at all parts of McAleese.

CEO blames founders for McAleese collapse Prime Mover Magazine / August 30, 2016 A day after it became public that embattled logistics firm, McAleese, has gone into voluntary administration, Chief Executive and major shareholder, Mark Rowsthorn, has now criticised the company’s founders for standing in the way of a successful recapitalisation. According to The Australian, Rowsthorn said the founders – led by McAleese director Gilberto Maggiolo – had long resisted requests by the company to cut “boom time” rents on properties they leased to it, as demanded by distressed debt investor, SC Lowy, as part of a rescue deal. Background: As one of two vital conditions to allow the company to continue as a going concern and pull off a solvent restructure, SC Lowy ahd asked for a renegotiation of the rental leases held with equity shareholder TTPH, which is owned by a group of investors that include the people that created McAleese in the first place. However, TTPH reportedly refused to engage with management and SC Lowy on renegotiating the rental leases, prompting Rowsthorn to accuse its owners of knowingly pushing McAleese over the edge.

McAleese collapse explained Prime Mover Magazine / August 30, 2016 The collapse of embattled logistics firm, McAleese (www.mcaleese.com.au), at the start of the week could leave shareholders empty-handed, according to Brendan Richards (pictured below), head of Ferrier Hodgson’s Logistics practice. In a CRTNews exclusive, the Melbourne-based industry expert explains where the industry giant went wrong and what will likely happen next. Q: After a long and hard-fought battle, the future of McAleese was eventually decided on the back of a set of six onerous property leases. What tipped the scale? A: It wasn’t just one issue alone. With troubled acquisitions, poor investments, a huge debt burden, disgruntled bankers and weakening operating conditions, McAleese has been on shaky ground for a long time. These factors all stimulated the recapitalisation proposal that was developed by McAleese. Q: But the failed rent negotiation still made the difference? A: True, McAleese finally fell into Administration because it was unable to resolve a dispute with a group of shareholders who were unhappy with the performance of the company, the management led by Mark Rowsthorn, and the proposed recapitalisation of the company that they felt was unfairly prejudicial to them. The dissident shareholders were associated with the company TTPH, who happened to be a landlord. With a breakdown of trust between those shareholders and Rowsthorn, they refused, through TTPH, to accept the rent reduction proposal. The rent reduction was a condition of the funding arrangement with SC Lowy. Having failed to achieve it in time, the SC Lowy debt became immediately payable which resulted in the insolvency of McAleese and the appointment of Administrators. Q: It was a political showdown? A: The circumstances were unique. If TTPH had been genuinely arms-length, an arrangement may have been agreed. But yes, TTPH was ultimately a used as a leverage tool – although I can’t see how the outcome created by the refusal of TTPH to agree to a rent reduction has helped the dissident McAleese shareholders to achieve anything. Q: So where will the whole thing leave shareholders? Is all lost for them? A: The shareholders have most likely lost their entire investment. There is little chance that they will receive anything of value from the Administration process. There may be a Deed of Company Arrangement proposed by interests associated with Mark Rowsthorn, but this will be targeted primarily at the creditors rather than the shareholders. I suspect that the proposal will give a better outcome to creditors than a liquidation of the assets would, and will preserve the business. But it is too early to really know how it will play out. Q: Where do you think McAleese went wrong? A: In the end it was let down by the poor execution of its strategy. When Mark Rowsthorn bought into it, he was looking to emulate the success achieved at Toll, the building of a logistics behemoth in relatively short time powered by rapid acquisitions and using the funding model available in a public company. The model worked for Toll because it acquired businesses that broadened its revenue base without an over-exposure to any particular industry, segment or geographical region. McAleese, however, had its hooks in resources and energy, and most of the acquisitions that were undertaken in recent years deepened this. It became over-levered in its business model and in its funding, so the end of the resources boom had an exponential impact on McAleese’s bottom line. Q: Which role did the troubled Cootes business play in that context? A: The acquisition of Cootes wasn’t a good one. They overpaid for it and what they bought wasn’t what they thought it was. The Cootes family created a business famous for its fleet quality, but after years of private equity ownership and a previous bankrupt owner in ION Group, it was run down by the time McAleese took it on. On top of that, the double fatality involving a Cootes tanker caused the oil companies to take another look, and they took much of their business elsewhere. Cootes quickly contracted from there, but the balance sheet was left with the legacy of having paid too much for a much bigger business. Who knows why investors signed up in droves for Initial Public Offering just weeks after the accident, because the response of the oil companies was fairly predictable. Q: And how about the failed Heavy Haulage Australia (HHA) project? A: When the market finally woke up, other acquisitions were on the radar that just compounded the problem. The HHA investment was bullish at a time that called for restraint [and] the WA Freight Lines acquisition did little to help McAleese’s strategic objectives. These investments caused some to suggest that management were aloof to the issues. Q: Did the heavy exposure to one struggling key client, Atlas Iron, compound the issue? A: It would be easy to point the finger at the problems of Atlas Iron and certainly McAleese suffered in the downstream of Atlas, but it seemed to be off the rails before that. Having a strong business strategy and sticking to it is important. But if the strategy proves to be wrong, or is not well executed, then stop, reflect and correct. Keeping on keeping on when the fundamentals are wrong is a sure fire way into the abyss. Q: Assuming McAleese doesn’t find a way back – what would a large-scale business failure mean for the rest of the Australian transport market? A: Unfortunately, with the transport market being so heavily saturated, there aren’t many businesses that would shift the market in any meaningful way if they failed. Volumes are typically absorbed quickly by others and the market continues on, as competitively as ever. It would take one of our largest integrated logistics players to fail for anyone to sit up and take notice. With McAleese primarily involved in resources and energy, and with such little activity in that market, I am sure that its volumes could be absorbed by others with little overall market impact. .

Western Star Trucks Australia / August 30, 2016 .

Western Star Trucks Australia / August 30, 2016 .

Western Star Trucks Australia / August 30, 2016 .

Western Star Trucks Australia / August 30, 2016 .

Western Star Trucks Australia / August 30, 2016 .

We'll Likely Never See Nikola Motor's Super Electric Truck in Real Life autoevolution / August 30, 2016 A few months ago, a new company called Nikola Motor came out of the blue and announced plans for a heavy duty electric semi that will revolutionize the way we look at trucks forever. It was so much better than our current diesel machines that we all felt like fools for not coming up with this idea sooner. Well, that was on paper, because in reality, the Nikola One isn't that good. In fact, it isn't at all, because nobody's seen even a square inch of its body. As far as everyone's concerned, it doesn't exist. Sure, the company says it will unveil it this December (that's four months from now, in case you were wondering) and also claims it has already received 7,000 pre-orders for the truck that had a combined value of over $2.3 billion. Not bad for a company nobody really knows that much about. The initial concept relied on an onboard gas turbine to produce the required energy, a setup that may not please the purists as it would still produce emissions, but we all agreed it was still better than diesels. Besides, the Nikola One came with 2,000 hp of electric power and 3,700 Nm or 2,730 lb-ft of torque from zero revs, so it had everything going for it regarding its ability to move heavy cargo efficiently. On paper. Now, though, only three months after the first time this project broke cover and two months after the [alleged] 7,000 pre-orders were announced, the company issued a press release. In it, it announces nothing less than a complete change in the vehicle's powertrain. No, it won't get a diesel unit, but it will use hydrogen fuel cells instead. A "custom-built hydrogen-electric 800V fuel cell," to be more exact. Of course, this doesn't change the bombastic claims the company made about the truck. It will still be "more powerful than any other production diesel truck on the road and have a range of over 1,200 miles between fill-ups." Yes, on paper, which is where the Nikola One might live its whole life after all. Tesla co-founder explained why fuel cells would never work in transportation, and it's all down to the energy equation, which is "terrible." "[...] It turns out that the amount of energy per kilometer driven is just terrible. It’s way worse than almost anything else you can come up with." But Nikola Motors is pushing things even further. It claims it will produce the necessary hydrogen in "zero emission solar farms built by Nikola Motor Company. These solar farms will produce over 100 megawatts each and will use electrolysis to create hydrogen from water. Even our manufacturing facilities will be run off of zero emission hydrogen energy.” Right. There's no time frame on the solar farms, but Nikola Motors intends to have at least 50 hydrogen stations ready by 2020 across North America, so it would make sense if they were built sooner than that. It all sounds extremely optimistic and this major change in the vehicle's design will only raise more doubts. We'd be very curious to know how many of those [alleged] 7,000 orders still stand after this new information was released.

Nikola Motor Company's electric truck just became a lot harder to sell CNET / August 30, 2016 The startup has abruptly changed course with its battery-electric truck, opting for a hydrogen fuel-cell power train, instead. Hmm. Remember Nikola Motor Company? The not-so-originally-named startup promised to break into the auto industry with a battery-electric semi truck cab, called the Nikola One. A number of folks put down deposits based on that information, but now, the company has changed the truck's method of propulsion, which is...worrisome. Nikola announced today that its Nikola One would feature a hydrogen fuel-cell power train. It's still electric, although it appears to ditch the natural-gas range extender in favor of hydrogen. The company claims this move makes its truck entirely emissions-free, which is good, but it's still a puzzling move. Here's why it's strange. A number of folks [allegedly] put down deposits on a $375,000 semi cab that was marketed as being entirely electric -- as in, you can plug it into the wall and take power from the grid, all across the country. Now, the trucks will be powered by compressed hydrogen gas, which relies on an infrastructure that's so far into its infancy it's barely experienced cell mitosis. All of a sudden, your ability to fill up around the country has disappeared -- and with it, I imagine, more than a few of those deposits, which I hope are refundable. To that end, Nikola's promised that it plans to produce its own hydrogen, via "zero-emission solar farms built by Nikola Motor Company," per its press release. The company said it will have over 50 filling stations in place by 2020. That's one per state. The truck's purported 1,200-mile range will help out there, because it may take hours to find a station, if you ever do. It's all just very strange. I, and many of my colleagues, still don't know what to make of all this. Either way, we'll know more once the truck is unveiled to the world on December 1 in Salt Lake City.

Nikola Motor Company Announces U.S. and Canadian Class 8 Trucks Will Be Hydrogen Fuel Cell Powered and 100% Emission Free Nikola Motor Company Press Release / August 30, 2016 Nikola (pronounced Neek-oh-la) Motor Company recently announced that it achieved zero emissions with its electric-powered drivetrain. At that time, details about how Nikola achieved zero emissions were kept confidential pending finalization of key supplier agreements. Today, Nikola is announcing that the electric drivetrain used in the U.S. and Canadian markets will be powered by a custom-built hydrogen-electric 800V fuel cell. Nikola’s hydrogen class 8 trucks will be more powerful than any other production diesel truck on the road and have a range of over 1,200 miles between fill-ups. It will achieve nearly 20 MPG with zero emissions under full load, surpassing all the government mandates set forth for the next 10 years, including the EPA’s recently announced Phase 2 GHG standards. “The desire to be 100% emission free in the U.S. and Canada is a critical piece of our long-term engineering and environmental efforts, not just in vehicle energy consumption, but also in how energy is produced. Nikola will produce hydrogen via zero emission solar farms built by Nikola Motor Company. These solar farms will produce over 100 megawatts each and will use electrolysis to create hydrogen from water. Even our manufacturing facilities will be run off of zero emission hydrogen energy,” said Trevor Milton, CEO, Nikola Motor Company. “Nikola plans to have a nationwide network of over 50 hydrogen stations for customers to begin fueling by 2020. This will make Nikola Motor Company the first company in the world to be 100% emission-free from energy production to transportation to consumption. Say goodbye to the days of dirty diesels and after treatment in the heavy duty class 8 market,” added Milton. More information will be announced about Nikola’s nationwide sales, service and warranty network in the coming weeks. Please see Nikola’s website for more information on the location of the future hydrogen stations. The CNG turbine version of the Nikola One will be available for other countries where hydrogen is not readily available. https://nikolamotor.com/pdfs/Nikola_Hydrogen_Final.pdf

Transport Engineer / August 30, 2016 Boughey Distribution has taken delivery of 25 Mercedes-Benz Actros trucks – the first phase of a 100-vehicle order, placed after the Actros came out top in a trial of four marques. Supplied by dealer Roanza Truck & Van, the new additions are Actros 2545 models with BigSpace cabs and are powered by 449bhp 12.8-litre engines, driving through PowerShift 3 automated transmissions. The evaluation was carried out over three months and a key focus was fuel efficiency. But this wasn’t the only criteria, as Boughey’s group fleet engineer Paul Brimelow explains: “The most economical truck in the world is no good if the manufacturer’s network cannot support it. So while the Actros returned the best fuel figures, we had to be sure the back-up will be there when we need it, too. “Roanza and Mercedes-Benz displayed a highly professional and flexible approach, putting together a package that meets our needs perfectly. I have every faith they’ll keep our business moving.” For the initial fuel trial, each manufacturer supplying a vehicle equipped with telematics, and a driver-trainer. The trucks were then sent out on a predetermined route from the operator’s headquarters near Nantwich, with four identical and equally-loaded trailers, first with the ‘expert’ at the wheel and a Boughey driver observing, and then with the roles reversed. After that, the trucks went into normal operation, with the four drivers taking turns in each vehicle. Results were then compared, both between the four trucks and with the operator’s existing fleet. “The Actros delivered the best overall fuel performance, and by a margin,” says Brimelow. “Not only was it the most economical of the contenders, but it was also the most consistent, with smaller variations between the different drivers. When we crunched the numbers it was a clear winner in terms of whole-life cost.” Boughey Distribution maintains its fleet in-house, and Roanza has supplied training and diagnostic equipment for its technicians, as well as installing an imprest parts stock which is managed on site. “The dealer has been very willing to work with us and we’re delighted with this arrangement, which will help to keep our workshop flowing smoothly,” adds Brimelow. .

Transport Engineer / August 30, 2016 Continental haulage business Hannon Transport has taken delivery of 40 Schmitz Cargobull refrigerated semi-trailers, each equipped with the manufacturer’s new TrailerConnect temperature and mapping telematics. The company also specified Schmitz Cargobull’s MF6 Multifunction Floor, claimed to offer 35% longer service life, with an easy-clean profile for hygiene deliveries, while also meeting PIEK* low-noise loading and unloading requirements. * http://www.piek-international.com/ Hannon Transport managing director Aodh Hannon went for 20 mono-temp and 20 dual-temp trailers, bringing the company’s trailer fleet to 150 – all Schmitz Cargobull. “I always buy from Schmitz Cargobull because the company delivers exactly what I want, every time,” states Hannon. “And with TrailerConnect, we now have access to the best trailer telematics system on the market,” he continues. “We’ll be able to track everything that happens with our freight with printed proof of the integrity of our operations – all on trailers that are highly cost-effective to purchase and operate.” The new trailers will operate on routes between Ireland and the Netherlands, transporting flowers and chilled food – with Hannon’s transport office using TrailerConnect for full monitoring. Temperature data is recorded in real time and SMS and email alerts are available for fleet managers and drivers in the event of problems. Maintenance and scheduling data is also available, enabling tracking and recording of every aspect of the trailer’s life. .

Scania Group Press Release / August 30, 2016

Scania Group Press Release / August 30, 2016

Scania Group Press Release / August 29, 2016

Scania Group Press Release / August 30, 2016 Scania’s new generation of trucks has been tested in secret for several years by real customers and drivers from across the planet. One of these extensive testing programmes was conducted in northern Italy. Scania has always seen customer participation in the testing of its new products as an obvious and essential part of product development. Field tests of the latest generation of trucks have involved a large number of customers and professional drivers who, under great secrecy, have tested the new vehicles in real-life operating conditions. In total, Scania’s new generation of trucks have been tested over more than 10 million kilometres – the equivalent of 250 laps around the Earth. “When you’re developing a new generation of trucks, it’s very important to get a grasp on the product’s quality early on,” says Anders Karlqvist, Head of Scania’s Field Test Operations. “For this reason, Scania’s development engineers need to follow field-test vehicles for as large a distance as possible, and under as realistic working environments as possible.” Super-secret vehicles In the city of Trento in northern Italy lies a very special service workshop. Just four people have keys to the premises, and for a few years a number of super-secret vehicles have been serviced here. Apart from field test engineer Ines Kasumovic and service technicians Nicola Mattivi, Eric Stenico and Marco D´Ascanio, only selected transport company owners and their designated drivers have been trusted to get close to these field-test trucks from Scania. Kasumovic has followed and monitored the work of the service technicians, the drivers and the transport companies on an ongoing basis throughout the field tests. What’s working well and what can be improved? Assignment: the first customer ”Put simply, my job is to understand how the customer, driver, and service technicians experience and work with the new truck,” says Kasumovic. ”I report all this back in detail to Scania Research and Development in Södertälje.” Throughout the day and long into the evenings, the camouflaged field-test trucks transport parts for the automotive industry in northern Italy or bottles for the wine industry across the entire country. But every evening, the drivers and vehicles return to their respective transport companies so that the trucks can be protected overnight. When the vehicles come into the secret workshop, they are inspected by Kasumovic, who extracts the data and carries out the necessary updates as quickly as possible to allow the vehicles to get out in service again. In the case of faults or stoppages, she makes a decision with help from the whole organisation on what measures should be taken against the anomalies, be they big or small. Quick decisions “It can be both lonely and extremely labour intensive to work as a field-test engineer,” says Kasumovic. “You’re mostly left to your own devices to make quick and important decisions. This means that you need to know something about just about everything in the vehicle. A good network within Scania can also be handy to have when new situations pop up. However, the fact that it’s sometimes stressful is fully compensated by the fact that I’m able to get close to customers and experience how the new product works in actual operation.” Over two or so days, the field test truck is updated with everything from new rearview mirrors and masking plates to new software. The truck is camouflaged so that none of its new features are revealed. Inside the secret cab, all new panel features are hidden behind black curtains that can be drawn when the drivers need to stop to load and unload cargo or fill up on fuel. Challenging field tests ”It’s very special to be a field-test driver,” says Aris Esposito. “You need to be constantly aware of your surroundings, check where you stop, and who might be approaching the truck. This is especially challenging when you’re loading and unloading. At the same time as you’re supervising the loading, you need to have strict control over what’s going on in the vicinity.” Esposito concludes, “But it’s a big opportunity to be involved in testing and developing Scania’s new generation of trucks. For me it’s the crowning achievement of the 26 years that I have worked as a professional truck driver.” Proud test customer Rigotto Tiziano, who together with his wife owns and operates Autotrasporti Rigotto Tiziano, says he felt honoured when he was asked to take part in a field test for Scania’s new generation of trucks. “I thought only big international transport companies were trusted in this way,” he says. “Now I just felt proud. We’re a little company, but we must be doing something right to be considered for something like this.” Tiziano concludes, “I started planning immediately and chose my best driver for the field-test truck. I want to give as much as possible so that Scania can complete this project in the best possible way.” Photo gallery - https://www.scania.com/group/en/the-italian-job/ .

You have a new truck, under warranty, with just 1,400 miles. When you called Volvo Group's Mack brand customer satisfaction hotline (U.S. and Canada) at +1 (866) 298-6586 , what did they say?

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Nikola Chooses Hydrogen Fuel Cell to Power Emissions-Free Truck Heavy Duty Trucking / August 30, 2016 Nikola Motor Company will be powering its emissions-free Class 8 trucks with hydrogen fuel cells in the U.S. and Canada, the company has announced. The vehicles will make use of a custom-built, hydrogen-electric 800-volt fuel cell that Nikola said will be able to achieve nearly 20 mpg with zero emissions under fuel load and a range of over 1,200 miles between fill-ups. The company also said the trucks will surpass all government mandates, including the recently announced Phase 2 GHG standards. Nikola plans to produce hydrogen with zero-emissions solar farms that it is building and to have a nationwide network of over 50 hydrogen stations for customers by 2020. “The desire to be 100% emission free in the U.S. and Canada is a critical piece of our long-term engineering and environmental efforts, not just in vehicle energy consumption, but also in how energy is produced,” said Trevor Milton, CEO of Nikola Motor Company. “These solar farms will produce over 100 megawatts each and will use electrolysis to create hydrogen from water. Nikola announced the Nikola One zero-emissions Class 8 tractor earlier this year, offering reservations for the as-yet-unreleased vehicle for $1,500. The company received more than 7000 reservations for the vehicle as of August and will offer the vehicle through a truck leasing program. More information will be announced about Nikola’s nationwide sales, service and warranty network in the coming weeks, the company said. The vehicle is set to be unveiled on Dec. 1 in Salt Lake City. A CNG -turbine version of the Nikola One is planned for countries where hydrogen is not readily available. For more information, click here.

Heavy Duty Trucking / August 30, 2016 Glider kits — new trucks that are equipped with older engines and drivetrain components — will be almost outlawed by 2021 due to provisions of the federal Phase 2 Greenhouse Gas and Fuel Economy rules released earlier this month. Starting in January of ‘21, they’ll be allowed only for their original purpose, which was reclaiming late-model powertrains from wrecked trucks. This goes back many years, to when glider kits were bought as service parts. Today, three truck builders produce glider kits for assembly by individuals and commercial concerns. “We support GHG Phase 2 and we are presently working through the details,” stated David Giroux, spokesman for Daimler Trucks North America, whose Freightliner arm builds most glider kits used in the United States. Kenworth and Peterbilt also produce glider kits, and Heavy Duty Trucking is seeking comment from them. Though they make up a small percentage of total new truck sales, gliders produce far more exhaust emissions, says the Environmental Protection Agency, which wrote the new rules with the National Highway Traffic Safety Administration. The EPA became concerned after a surge in sales, from a few hundred per year 10 to 20 years ago to more than 20,000 in 2015. Most of those were undisguised efforts to get around modern emissions limits and the expensive engines needed to meet them, the agency feels. And most were high-mile highway trucks whose older engines, often with electronic controls but no other pollution-control equipment, spew many times the exhaust emissions of new engines. Last year’s proposals to do away with glider kits sparked many comments from producers who argued that total impacts on emissions are minuscule; that many gliders (such as concrete mixer trucks) run low annual mileages; and that they are built mainly by small companies that provide valuable jobs. EPA and NHTSA noted all those arguments but said none addressed the basic issue of higher particulate matter and oxides of nitrogen emissions. “Although glider vehicles would make up only 5% of heavy-duty tractors on the road, their emissions would represent about one-third of all NOx and PM emissions from heavy-duty tractors in 2025,” the agencies said. “By restricting the number of glider vehicles with high polluting engines on the road, these excess PM and NOx emissions will decrease dramatically, leading to substantial public health-related benefits.” Instead of abruptly outlawing them, however, the new rules will phase out gliders over the next four years. Beginning this January, volume production and sales of gliders using “pre-emission” diesels will be greatly curtailed – and the agencies said they hope that this won’t spark a “pre-buy” of gliders between now and January. Meanwhile, low-volume builders, including individual truckers, can continue to buy and assemble glider kits using older engines until 2021. “For calendar year 2017, each manufacturer’s combined production of glider kits and glider vehicles will be capped at the manufacturer’s highest annual production of glider kits and glider vehicles for any year from 2010 to 2014,” the rule states. “All vehicles within this allowance will remain subject to the existing Phase 1 provisions, including its exemptions. “Any glider kits or glider vehicles produced beyond this allowance will be subject to the long-term program,” meaning they must use engines that are certified as emissions-legal for the same year the glider kit is built. The phase-down using that calculated cap will last one year, until January 2018. It appears that provision will curtail and eventually kill off the glider business grown by various dealers and service companies in the United States. Among them is Fitzgerald Gliders, which last year assembled more than 3,000 glider kits, most of them highway tractors. The company primarily used rebuilt and remanufactured 1998-2001 Detroit Diesel Series 60 engines, which are known for their fuel economy and performance. Truckinginfo is seeking comment from Fitzgerald and other builders. It also appears that builders of front-discharge mixers, who derive much business from the glider trade, will also have to phase out their glider assembly operations. They include Oshkosh, Indiana Phoenix and Terex Advance, who’ve also been asked to comment. Terex Advance has said it has built trucks with currently certified diesels combined with used (and usually rebuilt or remanufactured) transmissions and axles. But the dollar savings over an all-new truck were only 10%, versus 30% or more when an older engine is also used. It’s likely that by 2021, they and everyone else in the business will have to use engines certified to meet emissions limits set for the same year that the glidered trucks are built. “The provisions being finalized are intended to allow a transition to a long-term program in which use of glider kits is permissible consistent with the original reason manufacturers began to offer glider kits – to allow the reuse of relatively new powertrains from damaged vehicles,” the agencies say in the rule. Usually, that will mean engines that have run fewer than 100,000 miles are still within their original intended service life for pollution control equipment or are under three years old.

Peterbilt Offers Cummins Westport Near-Zero Natural Gas Engine Heavy Duty Trucking / August 30, 2016 Peterbilt Motors is offering the Cummins Westport ISL G “Near Zero” NOx emissions natural gas engine for its Model 567, 520 and 320 trucks. The new engine’s performance and efficiency matches the current ISL G with 320 horsepower and 1,000 lb.-ft. of torque available. The engine option is aimed at customers with linehaul, vocational and refuse applications. The ISL G Near Zero engine’s emissions are 90% lower than the current EPA NOx limit, made possible with a three-way catalyst in the aftertreatment, advanced engine calibration and a closed crankcase ventilation system. Like the current ISL G engine, the new model will operate on 100% natural gas, which can be carried on the vehicle in either compressed or liquefied form. The ISL-G Near Zero can also run on renewable natural gas. The ISL G NZ is the first mid-range engine to meet the 0.02 g/bhp-hr optional Near Zero NOx Emissions standards for medium-duty truck, urban bus, school bus, and refuse applications, according to Cummins Westport. It meets California Air Resources Board certification eight years in advance of the 2023 California Near Zero NOx schedule. The engine will be available for production in Models 520 and 320 by year's end and in the Model 567 early next year.

Transport Topics / August 30, 2016 Peterbilt Motors Co. will soon offer the Cummins Westport ISL G “Near Zero” engine as an option on three of its vocational trucks, the Denton, Texas-based manufacturer said August 30. Peterbilt is offering the ISL G Near Zero in its Model 567, a vocational truck, and Models 520 and 320, both low-cab-forward refuse haulers. Near Zero refers to emissions of nitrogen oxide compounds, or NOx, at a level of 0.02 gram per brake horsepower-hour — 90% lower than the current federal standard of 0.2 gram. The 8.9-liter ISL G uses natural gas, either compressed or liquefied, as truck fuel and is manufactured by a joint venture owned by Cummins Inc. and Westport Innovations. Peterbilt said the engine produces 320 horsepower and 1,000 pound-feet of torque. Near Zero is the latest version of the ISL G, which has been in production since June 2007. Peterbilt will start making Models 520 and 320 with the new engine before Dec. 31. Production for Model 567 with Near Zero will follow early next year. The ultra-low NOx engine is particularly important in California, where the state government has a program to limit NOx emissions as well as those of carbon dioxide and other greenhouse gases. “Peterbilt is producing increasingly efficient products. The addition of the ISL G Near Zero emissions engine strengthens Peterbilt as an environmental leader,” said Scott Newhouse, Peterbilt’s chief engineer. Related reading - http://www.cumminswestport.com/models/isl-g-near-zero

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