UPS Invests in Nat Gas Station - Analyst Blog
10 Oktober 2013 - 12:05AM
Zacks
Leading freight carrier United Parcel Service,
Inc. (UPS) announced an investment of $50 million for the
construction of nine additional liquefied natural gas fueling
stations. The company had already announced construction of four
such fueling stations in Apr 2013. UPS expects these fueling
stations to begin operations within 2014.
UPS’ investments in building infrastructure for LNG would
facilitate 1,000 UPS LNG tractors replacing 24 million gallons of
diesel fuel per annum. As a result, the company expects to gain
from the prevailing price of natural gas and improve its cost
structure going forward.
Further, to enhance growth of its alternative vehicle fleet,
management aims to buy nearly 700 liquefied natural gas (LNG)
vehicles by 2014 end. Further, the company also introduced UPS
Worldwide Express Freight, which offers day-definite, door-to-door
freight shipment in key markets. The new service is expected to
boost revenues for premium businesses in airfreight.
The company is also seeking growth through Ocean networks by
expanding the UPS Preferred LCL (Less-Than-Container-Load) service
to key markets in Europe. We believe the introduction of products
and services adds opportunities for revenue generation.
UPS has undertaken a number of initiatives to improve its
performance level. The company launched a new shipment monitoring
and risk management solution – UPS Proactive Response Secure. The
new service – that is available throughout the U.S. and Puerto
Rico, and to outbound ships from the U.S. to the European Union and
Switzerland – will make sure that time and temperature sensitive
products reach their destined places.
Additionally, UPS announced the expansion of UPS Worldwide
Expedited service to cover more than 220 countries from the current
145 destinations. UPS Worldwide Expedited includes air service for
international shipments and provides delivery within two-to-five
working days. This would facilitate UPS’ customers with cost
effective freight solutions across continents. The company expects
its international segment to register revenue and daily volume
growth of 4% to 5%.
UPS, which operates with the likes of FedEx
Corp. (FDX), Expeditors International of
Washington Inc. (EXPD) and Radiant Logistics,
Inc. (RLGT), retains a Zacks Rank #3 (Hold).
EXPEDITORS INTL (EXPD): Free Stock Analysis Report
FEDEX CORP (FDX): Free Stock Analysis Report
RADIANT LOGIST (RLGT): Free Stock Analysis Report
UTD PARCEL SRVC (UPS): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Expeditors International... (NASDAQ:EXPD)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
Expeditors International... (NASDAQ:EXPD)
Historical Stock Chart
Von Jul 2023 bis Jul 2024