Flexible Lease Offering Allows Customers to Convert to Natural Gas-Powered Vehicles
January 10, 2012 MIAMI--(EON: Enhanced Online News)--Ryder System, Inc. (NYSE: R), a leader in commercial transportation and supply chain management solutions, today announced it has signed its first Flex-to-Green lease agreement with Source Interlink Companies, Inc., an integrated media, publishing, merchandising and logistics company that produces and distributes magazine content to retail locations across the U.S. and abroad. With a Flex-to-Green lease for seven diesel-powered vehicles, Source Interlink will have the flexible option to exchange these vehicles for natural gas-powered vehicles.
“With a fleet of over 300 vehicles that operate across the country as part of Source Interlink’s Sales, Services, and Logistics division, fuel volatility and cost is an important issue for us,” said Jim Tate, Senior Vice President of Operations, Source Interlink Distribution. “The option of using a cheaper and readily available fuel supply such as natural gas to power our vehicles and mitigate fuel costs is an attractive avenue we’d like to explore. We appreciate the flexibility that Ryder makes available through the Flex-to-Green lease offering, which will allow us to pilot alternative fuel vehicles within our fleet,” he added.
Ryder’s alternative fuel fleet includes compressed and liquid natural gas vehicles, which are offered in certain markets in California, Arizona and Michigan, as well as hybrid vehicles, which are available in most U.S. markets. Ryder became the first fleet provider to offer heavy-duty natural gas vehicles for the leasing and rental industry through a ground-breaking natural gas vehicle project with the San Bernardino Associated Governments (SANBAG) in Southern California. In April 2010, it announced a partnership with the San Bernardino Associated Governments (SANBAG) Board to take delivery of 202 heavy duty, natural gas-powered vehicles that would be made available to companies for short-term rentals, long-term leases or Ryder’s dedicated logistics services. As part of the project, Ryder is building two natural gas refueling stations and equipping three maintenance facilities for the indoor servicing of natural gas vehicles in Fontana, Orange, and Rancho Dominguez, Calif.
One of Source Interlink’s largest distribution centers is located in Ontario, Calif. The proximity of its distribution operations to Ryder’s fueling and maintenance infrastructure was a key factor supporting the decision to sign a Flex-to-Green lease.
“We recognize there is a growing need for sustainable transportation solutions, not only as companies search for ways to mitigate fuel costs but also as they work to reduce their carbon footprint,” said Robert Sanchez, President of Global Fleet Management Solutions for Ryder. “We’ve seen great interest from our customers for natural gas vehicles across all markets and will continue to pursue the expansion of our alternative fuel vehicle offering to meet our customers’ needs,” he said.
Headquartered in Bonita Springs, Fla., Source Interlink Companies, Inc. (www.sourceinterlink.com) is the leading publisher of magazines and on-line content for enthusiast audiences, as well as a leading sales and service distributor of magazines and provider of related in-store services across North America. Through its sales and services initiatives, the Company is able to optimize its media properties through its vertically integrated distribution assets. Source Interlink creates content for more than 70 publications, 90 websites, events, television, and radio. Its portfolio includes many respected brands such as Motor Trend, Automobile, Hot Rod, Automotive.com, Surfer and Intellichoice.
Ryder is a FORTUNE 500® commercial transportation, logistics and supply chain management solutions company. Ryder’s stock (NYSE:R) is a component of the Dow Jones Transportation Average and the Standard & Poor’s 500 Index. Inbound Logistics magazine has recognized Ryder as a top third party logistics provider and included Ryder in its 2010 and 2011 “Green Partners” listing. Ryder also ranked 114 out of the top 500 U.S. companies and sixth in its industry sector in the 2010 Newsweek Green Rankings. Ryder is a charter member of the NGV Fleet Forum and a member of the Department of Energy’s National Clean Fleets partnership. Ryder is also a proud member of the American Red Cross Annual Disaster Giving Program, supporting national and local disaster preparedness and response efforts. For more information on Ryder System, Inc., visit www.ryder.com.