Issue link: http://read.dmtmag.com/i/616038
To withstand -260 degrees F of LNG fuel, the cryogenic tanks are double-wall insulated. Fueling an LNG tank requires a special double-handled nozzle. Raven LNG drivers are issued insulated gloves and face shields. Scranton, Pa., and all points in between. Although the market may classify Raven Transport as a general freight carrier, there is nothing general about their customer base that reads like a who's who in con- sumer products — companies like Procter & Gamble, MillerCoors, JM Smuckers and Hershey Foods, to name a few. "We like to think of the core products that we ship and the companies they rep- resent as recession-proof," says Executive Vice President David Teichert. "No matter what economic cycle we're in, people will always need paper products, beverages and every day household items. "Because of the nature of the freight we haul, up until not too long ago, 75 percent of our loads would cube out before they grossed out," he says. "Now because of lightweight component spec'ing and LNG, we've reversed that percentage." A man with a plan During his speeches, Pickens often quotes his father who once said to him, "Son, a fool with a plan can beat a genius with no plan – get a plan." Silverman chuckles at the recollection, but embrac- es the "get a plan" mantra wholeheart- edly. "When we made the decision to transform our business from a non-asset based carrier to an asset-based carrier in mid-January of 1999, our goal was to begin operations on March 1 of that year," he explains. "Six weeks isn't a lot of time to essentially start a new trucking company, and it would not have been possible without a solid business plan. "Our then VP of Human Resources — my wife Judy — hired 236 people in that compressed time period," he continues. "It was an exhilarating ride and a text- book MBA case study (Silverman earned an MBA from the University of Michigan) of how to start a business: hire the right people, purchase dependable assets, and gain customer trust and confidence." Raven's banking partners required a 36-month business plan complete with annual revenue forecasts. A 3-year plan was submitted forecasting $22 million in year one; $27 million in year two; and $32 million in year three. The actual results were $27 million, $36 million and $41 million respectively. Current Raven revenues are hovering around the $90 million mark. The plunge into LNG Raven Transport's new plan calls for establishing a 100-percent, LNG-powered fleet of Peterbilt sleepers and day cabs. "Our trade cycles will drive the conver- sion to LNG," says Teichert. "We antici- pate 180 trades in 2017, and believe that there will be strong demand for these Peterbilt LNGs – particularly the day cabs in the California and Texas markets. And yes, we expect that they will fetch a pre- mium price." Silverman cites numerous reasons for his total commitment to LNG technol- ogy. "We have 200 years of natural gas capacity in the United States," he says. "Plus, we always try to do the right things for the right reasons, and LNG is the right thing for Raven Transport and our country to do." Teichert acknowledges that the com- mitment to LNG requires an additional up-front investment of about $50K per vehicle. "We're not going to fully recoup that cost by proportionately increasing our hauling rates," he explains. "However, our customers are our partners. They are truly committed to sustainability, and therefore allow an LNG surcharge." According to Teichert the current LNG infrastructure is more than suffi- cient to service Raven's fuel requirements. "There are twenty-two LNG filling sta- tions along our shipping routes as com- pared to 125 diesel stations, so we have plenty of outlets available to us," he says. 8 l FIRST CLASS