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Interview with Harry Muhlschlegel, Chairman and CEO of New Century Transportation, Inc.

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01/15/2009

An interview with Harry Muhlschlegel, Chairman and CEO of New Century Transportation, Inc.

New Century Transportation was founded in July 2000 by Harry Muhlschlegel. Prior to forming New Century, Mr. Muhlschlegel founded and was Chairman and CEO of a publicly traded, award winning LTL and Truckload firm that served the logistics needs of many Fortune 500 companies. The formation and extraordinary growth of New Century is a testimony to Mr. Muhlschlegel’s entrepreneurial spirit.

Today, New Century is a leading provider of unique Load-to-Deliver (LTL) regional and national truckload services. The company optimizes service levels and provides flexibility thanks to an innovative network and business model, satellite communications system and highly specialized operations and customer service teams.

New Century Transportation, Inc. offers a full range of services through its affiliates New Century Transportation, NorthWind Logistics and Western Freightways LLC.   

Q.  Mr. Muhlschlegel, what stands out most from your recent visit to Germany to see SCR in action?

A.   As a customer of the heavy duty industry, what stands out the most was how much information I was able to get this far ahead and in a short amount of time. In the past, no one laid out the facts and we got the information we needed way too late. Thanks to visiting with Daimler customers (in Europe) I know how much urea (diesel exhaust fluid) we’ll need, how to store and handle it and how it will be distributed. It will be easy. SCR will not be an issue. And, at 2 percent consumption rates, and at less than the cost of diesel, I know a 33 gallon tank full will last more than 7,000 miles, which will be more than adequate to cover North America. We’ll actually end up saving money. 

“Talking with European customers eased any fears about 2010 urea availability and infrastructure. How much is needed, how it will be handled and distributed is simply not an issue.”

Q.  What impact will the economy have on your decisions about SCR technology and 2010 engines?

A.  I’m satisfied and confident and looking forward to the 2010 engines. The engines may cost more, but they will run better with SCR and urea (diesel exhaust fluid). SCR should be a good pre-investment to keeping the trucks longer.  Customers in Europe have been running these engines in their trucks for two years now and find that they are consistently getting good fuel efficiency with an average 3-5 percent savings overall, less fuel degradation and a better return on their (truck) investment. When you have more than 1,000 trucks traveling 700 miles daily, coast to coast, the challenge may be resale of current trucks to make room for the new 2010 replacements with SCR.     

“I’m satisfied, confident and looking forward to 2010 (SCR) engines compared to what’s available now.

The engines might cost a bit more, but they run better with urea. Good fuel economy means you get more miles. That was proven by European customers who have been running with SCR for two years.”

Q.  What else impacts your consideration of emissions control technology for 2010?

A.   No matter what engine you choose, when you buy a new truck and trailer, you also buy the service network. This service network is a key factor. With CAT (Caterpillar) going out, the service network is limited to few other players. Meanwhile, while the engines operate well and pollute less, their complexity is greater. Engines are being engineered away from the driver, which is not a bad thing because the electronics add greatly to the control of costs and fuel efficiency. But, the complexity does add to our need for a reliable service network. I’m pleased and confident that with 2,500 points of service, SCR technology won’t be a problem. Detroit Diesel really has it together.    

“When you buy a truck and trailer, you buy the engine and service. Detroit Diesel really has it together.”

Q.  Do you think it will be difficult for drivers to deal with SCR technology and diesel exhaust fluid refilling?

A.  Today, nearly 40% of our fuel is refilled “in-house.” Considering that one tank (of diesel exhaust fluid) will cover several thousand miles and one gallon will last a few hundred miles, refilling (diesel exhaust fluid) will not be an issue. While it may take a while to fully integrate (diesel exhaust fluid) into the fuel lanes at every truck stop, it will happen over time. Meanwhile, it will be in bulk at some truck stops and at home depots. In addition, most trucks will carry an extra 2-2 1/2 gallon quantity on board that will get them several hundred miles. It won’t be a problem for the drivers we hire.

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