COMMERCIAL E-NEWSLETTER | OCTOBER 2012

Greetings, We supply about a third of New Zealands fuel needs. That means were responsible for keeping New Zealand and New Zealand businesses running. We take that responsibility seriously. Part of that responsibility is to keep up to speed with whats happening in our industry both here in New Zealand and internationally. The Road Transport Forum, the biggest annual event in the road transport industry, was held in Rotorua in September and we attended. Our goal was quite simply to talk to you, our customers, be part of your world for a few days and talk about our active stand to help you use less fuel. Hayley Jones, our Fuelwise Manager, chatted to plenty of you! On an international scale, Dom, our Logistics Manager, attended the Heavy Vehicle Transport Technology symposium in Stockholm, Sweden. There he connected with global leaders in fuel and vehicle technology. This special edition of the energy drop is dedicated to the heavy vehicle and transport sectors. Until next time, Lindis Jones, GM Commercial

Making safety about people

Weve recently appointed two human factors specialists to help us boost our health and safety performance. Dr Kathleen Callaghan and Bridget Mintoft previously with the Auckland University School of Medicine Human Factors Group joined us at the beginning of September. Human Factors is the science which aims to optimise the effectiveness, efficiency and safety with which work is carried out by people.
Harnessing the expertise of these two experts will help us work towards our commitment to run a Zero Harm business and at the same time make a real contribution to safety in New Zealand, Zs Chief Executive Mike Bennetts says. Kathleen and Bridget will work in house with us to enhance our staff performance around health and safety. We see bringing these two leaders in occupational health and safety into Z as an opportunity to generate some leadership and debate around turning around New Zealands decidedly average workplace safety statistics, Bennetts says. If you put people at the forefront of your thinking, and you do everything you can to maximise human strengths while minimising human weaknesses, you get everything, Callaghan says. You get healthier people, safer working people, more productivity, and you get happier people in the work place.

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COMMERCIAL E-NEWSLETTER | OCTOBER 2012

Transport and heavy vehicle special

At Z, were interested in new technologies for the energy industry. To find out whats at the cutting edge around the world we sent Dom Kalasih, our Logistics Manager to the Heavy Vehicle Transport Technology symposium (HVTT12) in Stockholm, Sweden. Here are a few innovations that interested us that wed like to share with you.
The latest in European fuel and vehicle technologies There were presentations on a whole host of different technologies, but one area that really interested us was work by Dr. Michael Krail and Andre Kuhn, both of Germany, on The potential of alternative fuel technologies and Efficiency technologies for heavy goods vehicles. Krail and Kuhn note that in Europe, one of the main challenges of the freight transport sector is reducing carbon emissions. Theres technology out there thats providing better efficiency but studies confirm that theres still significant potential for improving fuel efficiency of trucks. Another area of technological advancement is in the research and development of alternative fuels. Trucks running on Compressed Natural Gas (CNG) and electricity are already on the roads in Europe. The pair presented a paper that looked at the benefits in fuel efficiency versus the cost of implementing the technology. They found that one of the alternatives to traditional diesel combustion engines was hydrogen technology. The high share of fuel costs in the overall costs and the high demanded range of vehicles make hydrogen technology competitive. Or, put another way, the savings that can be made outweigh the cost of the technology. Unfortunately, were not that close to having hydrogen technology in Europe let alone New Zealand. Diesel looks set to dominate until at least 2030. Are we closer with electric technology? Electricity is the future of heavy vehicle transport according M.Winter and S. Pretsch, who also presented at the HVTT12 in Sweden last month. They looked at how electrifying a commercial vehicles auxiliaries could reduce fuel consumption and carbon emissions. Winter and Pretsch had seen that electrifying a vehicles auxiliaries, like steering pumps and air compressors, had already had positive results in passenger cars, but hadnt seen the technology applied to heavy vehicles. The pair undertook research to test the potential fuel savings of a heavy vehicles steering pump and air compressor and were pleased with the results. Simulations have shown that the total fuel consumption of a truck on a long haul run can be reduced by 1%, on average, for electrification of the hydraulic steering pump and around 2% due to electrification of the air compressor unit (Pretsch & Winter, 2011). Siemens Company in Europe have taken electrification one step further. Theyve built an eHighway system in Germany.

Overhead contact line, roadway and protective equipment, Germany Worldwide traffic is predicted to increase for all modes of transport, according to Siemens, Germany. The growth is going to cover all modes of freight transport, via rail, road, water and air. Freight rail in Europe will continue to grow but will not be able to increase its share versus truck transport, due to the priority of passenger trains on most railway networks. With this in mind, Siemens sought to assess the possibility of providing an electrified highway. It had to guarantee a safe, economical, and ecological solution for electrified trucks on public roads. For passenger vehicles, the energy required can be supplied by vehicle mounted energy storage, or electric engines. However, for heavy vehicles an on-board energy storage system has been ruled out due to restrictions around weight and space. To electrify heavy vehicle transport the solution is a conductive system of continuous power supply or, put simply, power lines. The option they went with is contact lines above a normal highway. If youve ever been to Wellington, you would have seen the trolley buses operating in the same way. General traffic can still

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COMMERCIAL E-NEWSLETTER | OCTOBER 2012

travel along the same route, but the buses can connect to electrified lines. This is the same principal for trucks on the German eHighway. What does all this mean for us in New Zealand? Because Z is not wedded to fossil fuels, as were not in the business of oil exploration, were interested in new technologies like these. We might not see hydrogen powered trucks or eHighways in New Zealand anytime soon, but other innovations will make a difference here. We already have an electric charging station at Z Harbour City, Wellington, for electric passenger vehicles and well be leading the debate on other energy industry innovations, which well share with you through the energy drop. We also have Fuelwise, our programme to work with customers to help them use less fuel read on for more details on this. At Z, were committed to a sustainable future and reducing carbon emissions and were committed to Z having a leading role in four key sustainability areas by 2015. These are: 1. Using less and wasting less in our own business 2. Reducing the carbon intensity of our customers 3. Reducing the reliance on fossil fuels 4. Supporting New Zealand businesses and communities

Our resident EECA expert can help you use less fuel
As well as being Zs Logistic Manager, Dom is also our resident EECA expert. Dom has over a decade of experience and expertise in: vehicle safety, heavy vehicle dynamics, performance based standards and high productivity vehicles. Hes an expert on the way transport impacts on our environment, especially on road safety, emissions and fuel use. Weve set up some serious goals at Z, one of them being to help our customers use less fuel. One of the steps we have taken to achieve this is by Dom taking part in a Heavy Vehicle Fleet Performance Programme, run by EECA, so he can pass his learnings on to you, our customers. The way we help our customers use less fuel is by working together to analyse fuel use in detail, come up with a plan to pilot, help you implement that plan and monitor the results. The benefits of our Fuelwise programme include: Better profits through fuel savings and more efficient fuel use Being recognised for a focus on sustainability Having a safer operation. If your fleet is more than 10 vehicles, or you use more than 700,000 litres of fuel per year, then you may qualify for EECA funding to assist with such a review. If youre interested then please drop Dom, or Hayley Jones our Fuelwise Manager, a line at hayley.jones@z.co.nz or dom.kalasih@z.co.nz.

Our commitments to fossil fuel reduction for 2015

By working with other organisations, investing in new technologies and researching and commercialising alternative fuels, Z has reduced New Zealands reliance on fossil fuels We are the leading New Zealand supplier of fuel products and services that minimise the environmental impact of our customers businesses, by: Becoming New Zealands leading biofuel supplier by 2014 Using more than 10% biodiesel in our business Becoming the leading implementer of emergent transport energy in New Zealand

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COMMERCIAL E-NEWSLETTER | OCTOBER 2012

The run down on whats new at our service stations

Good in the Hood
As a Kiwi company, our customers have told us they expect us to be a force in the hood for good and give back to our local neighbourhoods, supporting the things that matter.

Z Espress is here!
New Zealanders love coffee, thats why weve put a lot of energy into getting our coffee right. Z Espress we call it. Thats not express or espresso, but Z Espress, a sharp new name for a superb coffee when youre out and about. Made from premium Rainforest Alliance Certified, 100% Arabica beans then blended and roasted here in New Zealand, its an awesome roast. And, with these beans in the trained hands of our baristas you can be guaranteed a perfect coffee every time. The rich crema, the aroma, the hit, its part of our daily life. So when you need a hot cup of the good stuff, pop in and ask for your favourite Z Espress. Visit z.co.nz to find your nearest Z station serving Z Espress.

GOOD

In 2013, every Z station in New Zealand will be giving away $5,000 to groups and projects that help people who need it in their neighbourhoods. We have 210 service stations so thats over $1 million across New Zealand to do good in the hood. Well be taking applications through our website during November, with each station then selecting the groups or projects theyll support. These groups and projects will be announced on z.co.nz in February 2013. If youd like to apply or find out more visit z.co.nz/goodinthehood

Fly Buys Swipe to Win

Throughout October, November and December Fly Buys are running Swipe to Win. Each time you swipe your Fly Buys card at retail participants, like Z service stations, youll go into the draw to win a monthly prize pack worth $100,000. And every time you collect a point, you get another entry into the draw. For Z Card customers, because you dont need to swipe, youll be entered automatically. Youll get five entries into the draw at the end of each calendar month (assuming youve collected at least one Fly Buys point that month), in addition to an entry for every point you earn. Thats a lot of entries! Therell be one winner each month wholl win their choice of three $100,000 prize packs. Entries apply to both Fly Buys collectors and those who prefer to collect Airpoints. Check out flybuys.co.nz/win for more details.

People profile

Z career: I joined the company in August 2008 as the Fleet Manager; Im currently Zs Logistics Manager Favourite part of the job:
I have lots of equal favourites. Firstly, I like the satisfaction in getting our product to customers in a safer and more sustainable way. Secondly, I like that Z is changing from being just a commodity supplier to a company that really provides the energy that matters to our customers. Lastly, that Z is firmly establishing itself as a thought leader in the logistics industry

Vision for future of Z Energy:

Meet Dom Kalasih

Z position: Logistics Manager

That Z will be an end-to-end energy management company.

Hobbies/interests outside work:

Family, motor-racing, sailing, and home renovation.

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