Collins wind turbine challenges v 4-30-16

1. Transporting Wind Turbine Blades
The Challenges and Myths
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2. Transportation Industry Overview
• Infrastructure neglect
– Delays cost trucking industry $7.8B annually in lost
productivity (1)
– Impacts over size loads
• Driver demographics
– Average age 55 (2)
– Driver turnover = Lifestyle, Avocation vs Job
– Millennials aren’t interested in driving
• Auto liability & Cargo Insurance Cost Increasing
– Zurich & AIG exit truck insurance market
(1) Federal Highway Administration
(2) American Trucking Association
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3. Business Perspective Carrier Values
• Safety is # 1 Priority
– Compliance, Safety and Accountability (CSA)
– Electronic Logging Device (ELD), eliminate non compliant
carriers & drivers
• Drivers are a scarce resource
– Requires patience, skill and experience
– Pair inexperienced with mentoring blade team
– Must be well versed in the Wind Blade Transport
Process
– Must enjoy a challenge
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4. • 6 May, 1954, Roger Banister, ran the first sub
4 minute mile 3:59.4
• Current WR 3:43.13
Challenging the Myth
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5. 55M+ blades were our sub 4 minute mile.
• Time, Planning and Money = longer blades
• If States infrastructure can accommodate the
longer blades and issue permits, Carriers will
execute
Dispelling a Myth
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6. • 2005 thru 2007: 34M – 40M
• 2008 thru 2010: 37M – 49M
• 2011 thru 2012: 40M – 53M
• 2013 thru 2015: 50M – 60M
• 2016 & Beyond: 52M – 62M
Blade lengths have nearly doubled since 2005
Rapid Pace of Change
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7. 49M Blade Tail Swing
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8. 62M Blade Tail Swing
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9. Blade Transport Challenges
• Niche market, evolved quickly, significant barriers
to entry
• Requires safe, skilled drivers, escorts, steermen,
capital, operational and administrative personnel
– Single use trailers with utilization generally 6-8
months back half of the year, pressures ROI
– Most blade trailers purchased prior to the 55M+
blades
– New trailers improved, longer, well designed
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10. Blade Transport Challenges
• Carriers have retrofitted fleet with beam
inserts to meet customer requirements, up
to 58M
• Can not collapse into 53’ must permit when
empty, increased operating cost. Est 50% of
industry capacity
• New trailers capable of > 60M $160,000-
$220,000 +
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12. Permitting Challenges
• Generally, carriers determine routes and submit to State
• If not approved, State may provide route, or carriers
resurvey until a route approved
• A route through any given State may not coincide with next
States desired point of entry. Carriers collaborate with State
permit offices on acceptable routes across multiple States
simultaneously.
The American Association of State Highway Transportation
Officials (AASHTO), Specialized Carriers and Riggings and
AWEA are working towards a common goal of harmonizing
State requirements.
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13. With Each Generation of Longer
Blades
• Routing is a challenge with a average of 700 miles per
trip to project sites
• There are known corridors for blade travel, as size
increases, those routes may not be valid
• Fewer routed miles on interstate highways, more 2
and 4 lane divided highways. Two lane roads, more
turns (turns are not a blade driver’s friend) & more
exposure to risks.
• More circuitous miles are incurred, increasing transit
time, permit, and escort cost.
• Longer transit time may require more drivers,
equipment and escorts based on equal demand
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14. Challenges as Blade Lengths Increase
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15. Two lane
highway &
construction
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With Each Generation of Longer
Blades
• Insurers have had discussions with carriers on
limiting coverage to 60M
• Accommodating Truck/Trailer/Blade parking
is an issue, limited parking is considered
when preplanning routes, may add transit
time
• Increased blade width on drivers or curb side
brings more obstacles and traffic into play.

17. Challenges as Blade Lengths Increase
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With Each Generation of Longer
Blades
• Even after the permit is approved and issued
localities are not always favorable to
permitted wind traffic transiting though their
area, requiring carrier to reroute.
• Transportation cost increases.
• Weather impacts productivity
– Established routing may change due to weather
and/or halt construction activity

19. With Each Generation of Longer Blade
Trailers
• Why does Carrier pricing increase?
• Similar origin & destination for a 52M vs
57M
• 57M different route
• 57M additional miles & time
• Additional escort (3 total)
• Increased permit cost
• Police escort (per State requirement)
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20. • Collaboration, Expertise and Execution
among stakeholders, early and often.
• OEM 2 piece blade?
• >58M blade volumes will drive purchase of
new blade trailers
• Purchasing >58M trailers may not be an
option for some carriers due to insurance
cost/lack of coverage, driver availability, ROI.
Summary
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