TransportingWindTurbineBlades

TheChallengesandMyths

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TransportationIndustryOverview

• Infrastructureneglect– Delayscosttruckingindustry$7.8Bannuallyinlostproductivity(1)

– Impactsoversizeloads• Driverdemographics– Averageage55(2)– Driverturnover=Lifestyle,AvocationvsJob– Millennialsaren’tinterestedindriving

• Autoliability&CargoInsuranceCostIncreasing– Zurich&AIGexittruckinsurancemarket

(1) FederalHighway Administration(2) AmericanTruckingAssociation 2

BusinessPerspectiveCarrierValues

• Safetyis#1Priority– Compliance,SafetyandAccountability(CSA)– ElectronicLoggingDevice(ELD),eliminatenoncompliantcarriers&drivers

• Driversareascarceresource– Requirespatience,skillandexperience– Pairinexperiencedwithmentoringbladeteam– MustbewellversedintheWindBladeTransportProcess

– Mustenjoyachallenge

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• 6May,1954,RogerBanister,ranthefirstsub4minutemile3:59.4

• CurrentWR3:43.13

ChallengingtheMyth

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55M+bladeswereoursub4minutemile.• Time,PlanningandMoney=longerblades• IfStatesinfrastructurecanaccommodatethelongerbladesandissuepermits,Carrierswillexecute

DispellingaMyth

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• 2005thru2007:34M– 40M• 2008thru2010:37M– 49M• 2011thru2012:40M– 53M• 2013thru2015:50M– 60M• 2016& Beyond:52M– 62M

Bladelengthshavenearlydoubledsince2005

RapidPaceofChange

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49MBladeTailSwing

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62MBladeTailSwing

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BladeTransportChallenges

• Nichemarket,evolvedquickly,significantbarrierstoentry

• Requiressafe,skilleddrivers,escorts,steermen,capital,operationalandadministrativepersonnel– Singleusetrailerswithutilizationgenerally6-8monthsbackhalfoftheyear,pressuresROI

– Mostbladetrailerspurchasedpriortothe55M+blades

– Newtrailersimproved,longer,welldesigned

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BladeTransportChallenges

• Carriershaveretrofittedfleetwithbeaminsertstomeetcustomerrequirements,upto58M

• Cannotcollapseinto53’mustpermitwhenempty,increasedoperatingcost.Est50%ofindustrycapacity

• Newtrailerscapableof>60M$160,000-$220,000+

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PermittingChallenges

• Generally,carriersdetermineroutesandsubmittoState• Ifnotapproved,Statemayprovideroute,orcarriers

resurveyuntilarouteapproved• AroutethroughanygivenStatemaynotcoincidewithnext

Statesdesiredpointofentry.CarrierscollaboratewithStatepermitofficesonacceptableroutesacrossmultipleStatessimultaneously.TheAmericanAssociationofStateHighwayTransportationOfficials(AASHTO),SpecializedCarriersandRiggingsandAWEAareworkingtowardsacommongoalofharmonizingStaterequirements.

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WithEachGenerationofLongerBlades

• Routingisachallengewithaaverageof700milespertriptoprojectsites

• Thereareknowncorridorsforbladetravel,assizeincreases,thoseroutesmaynotbevalid

• Fewerroutedmilesoninterstatehighways,more2and4lanedividedhighways.Twolaneroads,moreturns(turnsarenotabladedriver’sfriend)&moreexposuretorisks.

• Morecircuitousmilesareincurred,increasingtransittime,permit,andescortcost.

• Longertransittimemayrequiremoredrivers,equipmentandescortsbasedonequaldemand

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ChallengesasBladeLengthsIncrease

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Twolanehighway&construction

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WithEachGenerationofLongerBlades

• Insurershavehaddiscussionswithcarriersonlimitingcoverageto60M

• AccommodatingTruck/Trailer/Bladeparkingisanissue,limitedparkingisconsideredwhenpreplanningroutes,mayaddtransittime

• Increasedbladewidthondriversorcurbsidebringsmoreobstaclesandtrafficintoplay.

ChallengesasBladeLengthsIncrease

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WithEachGenerationofLongerBlades

• Evenafterthepermitisapprovedandissuedlocalitiesarenotalwaysfavorabletopermittedwindtraffictransitingthoughtheirarea,requiringcarriertoreroute.

• Transportationcostincreases.• Weatherimpactsproductivity– Establishedroutingmaychangeduetoweatherand/orhaltconstructionactivity

WithEachGenerationofLongerBladeTrailers

• WhydoesCarrierpricingincrease?• Similarorigin&destinationfora52Mvs57M• 57Mdifferentroute• 57Madditionalmiles&time• Additionalescort(3total)• Increasedpermitcost• Policeescort(perStaterequirement)

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• Collaboration,ExpertiseandExecutionamongstakeholders,earlyandoften.

• OEM2pieceblade?• >58Mbladevolumeswilldrivepurchaseofnewbladetrailers

• Purchasing>58Mtrailersmaynotbeanoptionforsomecarriersduetoinsurancecost/lackofcoverage,driveravailability,ROI.

Summary

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