Fuel efficiency – Saving truck loads when you have loads of trucks. Winstone Aggregates is one of the highest diesel consumers within Fletcher Building with diesel representing more than 80%
of our costs.
The Challenge
With diesel representing more than 8% of total company expenditure, finding ways to make efficiency gains not only improves the bottom line, it also has a positive environmental impact.*
To identify opportunities to improve efficiency a fleet audit was undertaken, and with part funding from Energy Efficiency Conservation Authority (EECA), energy efficiency specialists Envirostate were commissioned. Although the audit confirmed Winstone Aggregates were already heading in the right direction, it helped to clarify a few important areas such as what could be controlled and what couldn’t. “Most of the fleet is working on ‘premium highways’, roads that are undulating or steep” says National Distribution Manager, Brett Horrobin. “These roads have a negative impact on overall fuel efficiency and while not much can be done about terrain or conditions, there are many things that can be controlled to greatly improve overall fuel efficiency.”
MAKING IT HAPPEN
The most obvious place to start was the choice of power plant and considerable time was devoted to researching engine efficiency, identifying a combination of Detroit Diesel and Scania engines as the best fit for the operation. Both options meet the current minimum Euro4 (emission) standards for diesel engines. Beyond the power plant, Brett says there are five key ways the company has achieved significant savings – and at a very low cost to the business.
Reducing idling time has had a real impact. By turning engines off when picking up loads, and better planning journeys to avoid traffic congestion, idling times have been reduced to just 6%.
Covering trucks, loaded and unloaded creates energy savings of around 8%, even though Winstone Aggregates’ truck and trailer units are already manufactured to high aerodynamic standards. Loaded trucks were already covered to stop particles from blowing out, so it was an easy step to introduce a policy to cover unloaded trucks too. From time to time, there are exceptions to the rule; covers may need to be removed dependant on product size or loading methodology.
Reducing vehicle speed by around 10 kilometres per hour (kph) has reduced fuel consumption by around 0.25 litres per kilometre, prompting Winstone Aggregates to fit all new electronic engines with 90 kph speed limiters. Not only do speed limiters reduce fuel consumption, they also reduce the likelihood of traffic incidents.
Tyre management for the North Island fleet is outsourced to an external tyre company, but an internal programme is operated alongside this, checking one truck and trailer unit per day for tyre pressure and general wear and tear. Operating tyres at optimal pressure can result in fuel savings of up to 3%.
Travel planning and management using GPS route monitoring minimises idling times and maximises backloading opportunities – reducing overall mileage. Where possible, trucks are sent on routes that eliminate travel on congested highways during peak times – a challenge in places like the Auckland region. Winstone Aggregates also operates a number of vehicles at night, estimating a 10% efficiency gain from transporting aggregates between 6pm and 6am.
DRIVER ENGAGEMENT
Ambitious fuel efficiency targets can’t be achieved without the full support of Winstone Aggregates’ drivers. It’s for this reason Winstone Aggregates sent its Auckland drivers on a specialist fuel efficient driving practices course.
Making drivers part of the fuel efficiency solution is also why the company’s actual fuel efficiency performance is monitored against targets each month.
The importance of being able to show drivers how they’re preforming was illustrated when Winstone Aggregates spent three months changing fleet GPS tracking devices. During this period, data access was not possible so drivers could not be provided individual performance feedback – average idling times increased from 6% to 9% as a result. Now that the changeover is complete, drivers are once again receiving regular feedback and idling times are heading back down towards 6%.
Winstone Aggregates employs one of only nine trainers in New Zealand qualified for training and verifying drivers in the SAFED NZ (Safe and Fuel Efficient Driving New Zealand) training programme. This training initiative has delivered significant value to our goal for continuous improvement in fleet energy efficiency, with some drivers showing decreases in fleet diesel usage by as much as 15%.
HEAVY VEHICLE PRODUCTIVITY PROJECT
Winstone Aggregates participated in a haulage productivity trial for the New Zealand Ministry of Transport. The trial covered the operation of specialist truck and trailer units loaded to 50 tonnes gross – an increase in payload of approximately 22% over the 44 tonnes currently legislated.
The trials were an integral step towards the investigation of greater efficiency in the way freight is moved on our roads; a controlled permit system that allows vehicles to operate at heavier weights has the potential to reduce the number of vehicle movements required to distribute the same amount of freight. Consequently, this leads to a reduction in fuel consumption and a contribution to the Government’s sustainability objectives.
Productivity trials show an increase in payload of around 22% resulting in a carbon saving of 14%.
Productivity project results
The benefits of operating two units at 50 tonne gross, compared to two units at 44 tonne gross are both economic and environmental. Over the trial period, the total cost of delivering the equivalent tonnage to and from the same sites was reduced.
The total kilometres driven was also reduced, consequently reducing carbon emissions.
ECONOMIC BENEFITS
The RUC cost throughout the trial period was $43,400 (excluding gst) for the two units running at 50 tonne gross weight. The equivalent cost for two units running at 44 tonne gross weight and delivering the same tonnage would have been $38,300 (excluding gst).
This represents an increase in road user charges of $5,100 or 14%. However, the economic advantage of less man hours and fuel represents greater economic savings.
ENVIRONMENTAL BENEFITS
During the trial, it is estimated that the two 50 tonne units would have released a total of 104.0 tonnes of CO2 emissions. By comparison, two 44 tonne units delivering the same tonnage would have recorded CO2 emissions of 121.1 tonnes.
This represents a carbon footprint reduction of 17 tonnes (14%). In today’s environment, where carbon emission performance is at the forefront of many countries’ environmental policy, this reduction is significant.
REDUCTION IN FUEL USE
A total of 39,552 litres of diesel was used during the trial. The equivalent usage by two 44 tonne units delivering same tonnage would be 46,034 litres representing a reduction of 6,482 litres or 14%. This result provides a compelling incentive for the implementation of heavier productivity vehicles on designated routes. If the entire Winstone Aggregates fleet of 60 truck and trailer units operated at 50 tonne gross weight for a 12 month period, the reduction in diesel litres consumed would equal: 427,000 litres.
REDUCTION IN NUMBER OF TRIPS
A total of 1325 trips were made between Hunua Quarry and Leonard Road, Penrose. The equivalent number of loads required by a 44 tonne unit to deliver the same tonnage, would be 1581. The number of loads was reduced by 256 or 16%. Operating higher productivity vehicles will definitely decrease traffic congestion on key routes.
REDUCTION IN KILOMETRES
Throughout the trial, the two 50 tonne units travelled a total of 79,500kms. To deliver the same tonnage using two 44 tonne units, the number kilometres required would be 94,830kms. This represents a reduction of kilometres travelled by 16%. Although higher productivity vehicles have a slightly greater weight spread over all eight axles of the truck and trailer unit, when compared to a 44 tonne unit, the impact on kilometres required is reduced by 16%.
- 12% increase in RUC
- 15,330 less kilometres
- 256 less loads
- $12,800 reduction in costs
- 6,482 litres fuel saved
- 17 tonnes less carbon emitted
EECA ENERGY SPOT TELEVISION ADVERTISING
Winstone Aggregates was one of only three businesses selected to feature on The Energy Spot™.
The Energy Spot™ – the one-minute episodes promoting home energy efficiency on TV switched to a business focus for three weeks in February 2009. The episodes profiled real-life success stories from companies that are saving money through smarter energy use, including Winstone Aggregates, whose fleet efficiency initiative saved approximately $335,000 in the first year.
EECA Chief Executive Mike Underhill said: “Most businesses could significantly cut their overheads with better energy management. Altogether, New Zealand business spends about $13.5 billion on energy every year, and we estimate more than $2 billion of this goes on wasted energy. The companies profiled are great examples of what can be achieved with some leadership and focus — and what they’ve done isn’t rocket science, but can be easily picked up by others.”
IT ALL ADDS UP
Winstone Aggregates has set a fleet fuel target of 1.90 Km/Ltr for 2011. We are on track to achieve the target and, if results continue this way, we will better previous results by 0.1 Km/Ltr.
While an improvement of 0.1 Km/Ltr doesn’t sound much, it’s a 5% saving that will reduce Winstone Aggregates’ fuel use by 205,000 litres and result in all-round savings of $305,000 in 2011 (at $1.50 per litre fuel prices). It would also mean a significant reduction in emissions.
National Distribution Manager Brett Horrobin says it’s sometimes difficult to quantify individual components within the company’s overall savings – but he can live with that.
“The low implementation costs mean they are all contributing to the bottom line and providing a compounding effect to our overall savings. One key measure in fuel efficiency is Km/Ltr travelled, so if we can see this improving, we know the changes are having a positive impact.”
TIPS FOR IMPROVING FLEET EFFICIENCY
- Start monitoring your fuel use
- Do your homework on your engine choice
- Limit speed
- Cover trucks and trailers, loaded or not
- Reduce excessive idling
- Keep tyres at optimal pressure
- Plan trips and optimise vehicle use
- Get your drivers on board
