Highlights from The NATSO Show 2013 from Gilbarco-Veeder Root

Editor’s Note: Every year at The NATSO Show, innovative industry suppliers help attendees discover new products and solutions. As an exhibitor at The NATSO Show 2013, NATSO Chairman's Circle member Gilbarco-Veeder Root recently shared these post-show insights on their blog, C-store Advisor, and is allowing NATSO to reshare them here. - AT

Highlights from The NATSO Show 2013 from Gilbarco-Veeder Root
/// Guest post by contributor Chad Johnson, Gilbarco Veeder-Root

The NATSO Show held in Savannah, GA recently concluded with many topics affecting the truckstop and travel plaza industry. For those that did not attend here’s a quick overview of the show’s highlights and some new products and technologies showcased affecting truckstop and travel plaza operators and their forecourt business.

Oil Price Information Service (OPIS)

• Crude prices will remain in current $90 – $120 range being seen
• Higher production in US / Canada in Lighter Crude (easier to make gasoline vs. diesel)
• North America will enjoy cheaper crude than most other through the decade
• Cheapest natural gas in world offers opportunity for industry and transportation

Key Takeaway: Diesel prices will most likely remain in current range as US continues to be net exporter of diesel.

CSX Railroad:  Intermodal Transportation

• Intermodal or two forms of transportation to deliver goods
  o Truck loads at factory
  o Freight is then loaded on railcars
  o Then it is transferred back to truck for final delivery
• Intermodal volume increased 4x since 1980
• Intermodal currently handles majority of long hauls greater than 1,500 miles.  Railroads are targeting the 500 – 1000 miles loads where they can offer cost advantage

Key Takeaway: Truckstops and travel plazas need to look for ways to differentiate and drive their business as competitors exist outside core competitors.

Future of Fuels

• Diesel will remain the prominent player in the heavy truck market
• Biodiesel suitable for blending.  Good stop gap measure
  o Lack of low cost option limits full market adoption
• Compressed Natural Gas and Liquid Natural Gas
  o Low cost – readily available
  o Lack infrastructure and de-rating of the engine current drawback
  o Three year payback given current pricing spread
  o Biggest potential replacement for diesel in Heavy Duty Truck industry
• Hydrogen / Fuel Cell Technology still in infancy after many years of research
  o Theoretical efficiencies abound
  o Technology maturity for widespread application lacking
• Electric for Heavy Duty Truck – Some local transportation opportunities
  o Durability and cost magnified in heavy duty truck market
• Coal to Liquid and Gas to Liquid Technologies
  o High capital cost

Key Takeaway: Natural Gas potential for significant growth if CNG / Diesel price spread remains in current state over time.

Fleet Fueling and Payment

• RFID fueling was highlighted by several vendors to control cost and minimize fraudulent fuel transactions
  o Expedite the speed of fueling transaction for travel plaza
• Mobile payment with fleet fuel management services were highlighted by several vendors
  o Ideas around managing your fleet with integration to a mobile phone
  o Expedites the payment processing for the travel plaza

Key Takeaway:  Evolution of fleet payment arena will continue as more smart phones allow for easier access to home office data and diagnostics. 

DEF Supply and Equipment

• Several vendors highlighting various DEF equipment and DEF supply
• Equipment providers spoke of the benefits to offering in bulk
• DEF suppliers spoke of various ways to meet the growing demand which is expected to reach 250 plus million gallons in 2013.

Key Takeaway:  DEF growth will continue into the future with projections to add 100 million plus gallons per year of demand over the next 5 years. Offering in bulk is the only way to keep ahead of your customers and competitors. Learn more about DEF here!

Editor’s Note: Gilbarco Veeder-Root was on hand as an exhibitor at The NATSO Show 2013. The NATSO Show 2014 will be held Jan. 26 - 29 in Nashville, Tenn. Learn more about the conference here. - AT

{Guest Post} Guest post reposted and modified with permission from C-store Advisor, the blog of NATSO Chairman's Circle member, Gilbarco Veeder-Root, and may not be further reprinted, modified or otherwise used without the express written permission of Gilbarco Veeder-Root. Gilbarco Veeder-Root, the worldwide technology leader for retail and commercial fueling operations, offers the broadest range of integrated solutions from the forecourt to the convenience store and head office. Gilbarco earns the trust of its customers by providing long-term partnership, uncompromising support and proven reliability. Read the C-store Advisor here.

The opinions and advice given by guest post contributors are not necessarily those of NATSO or Gilbarco Veeder-Root, and are not intended to be legal advice. Please seek the advice of a qualified professional regarding your specific circumstances.