Fleet Management News & Business Info | Commercial Carrier Journal
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INNOVATORS M&M Cartage has big plans to become the greenest carrier in Kentucky BY AARON HUFF I n 1972, Don Hayden began working at M&M Cartage under his father's tutelage. Hayden always enjoyed working for his dad and being around trucks. Diesel must have been in his blood, he says. In the late 1990s, Hayden was the one making the decisions and on his way to becoming chief executive officer of the Louisville, Ky.-based family business in 2003. Moving forward, diesel does not fit in his plans for M&M Cartage. About four years ago, Hayden turned down a path that would lead to a decision to convert to natural gas. It all started by studying the new technical developments and products that soon would be entering the Class 8 market. "I started trying to learn all I could," he says. By the end of 2011, Hayden was convinced that natural gas would be a viable option for M&M Cartage, which hauls dry van and flatbed truckload shipments in 24/7 relay operations between its terminals in Louisville, Indianapolis, Cincinnati and Morristown, Tenn. The company's current business model is a far cry from its origins as an expe- M&M CARTAGE Louisville, Ky. dited hauler for commercial airlines and less-than-truckload carriers in Louisville and surrounding regions. Over time, M&M Cartage had to cede airfreight business to FedEx, but in the early 1980s, it already was pursuing new post-deregulation opportunities in truckload transportation. Going forward, M&M Cartage will be a leader in green transportation, Hayden says. As part of this goal, the company will invest $7.5 million in building materials and capital equipment. The construction of a new headquarters with green efficiencies soon will be underway. Adding new trucks powered by compressed natural gas already has started. Last year, Hayden decided to begin replacing 120 of the company's 170 trucks with new CNG-powered trucks, a conversion that falls in line with M&M Cartage's replacement strategy for its fleet. All of the 120 tractors are model-year 2006 and older. The company's lifecycle strategy has been to overhaul engines and cab interiors at the 800,000- to 1-million-mile mark. At 1.6 to 2 million miles, it then replaces trucks after 10 years in service. With this strategy, all 120 are due for replacement by 2016. Hayden says when running the numbers, the knowledge he gained about CNG equipment entered into the analysis. The numbers were convincing enough to make the natural gas leap – even without grants or other financial incentives from state or fed- The company is investing $7.5 million in new CNG-powered trucks and a new headquarters with green efficiencies. COMMERCIAL CARRIER JOURNAL | DECEMBER 2013 39