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HomeNewsNew STI Contract in Pennsylvania Helps School District Switch to Propane

New STI Contract in Pennsylvania Helps School District Switch to Propane

School-bus contractor Student Transportation Inc.’s recently secured contract with the Gateway School District makes the district the second in the state to switch from diesel to propane autogas.

The company said the contract, which is for six years with an option for an extension, includes 80 new propane autogas school buses for use beginning next school year. It is expected to help Gateway save about $372,000 compared to the current estimated transportation cost for the 2013-2014 school year. Located in western Pennsylvania, the district is the first in its area to go to this alternative fuel.

STI officials said the new contract increases the regional density of its existing operations in the state, and provides $3.5 million in annual revenues under this contract.

Patrick Vaughan, COO of STI, said the company has had less need to return to the market as in the past to seek business growth, due to its recently extended and amended credit facility, its new “managed contract program” where school districts continue to own or control the fleet, and by using the “low-cost leasing program” it has developed with lenders. 

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“We can deploy more alternative-fuel vehicles, lowering our fuel cost and reducing carbon monoxide around schools,” He added. “This is our ‘less pollution, less dilution’ program we have been working towards,” he said. 

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