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Truck operators moving to multi-axle, at last?

Raja Simhan T. E.

WHEN THE world has shifted to multi-axle trucks, India continues to rely on the single-axle type which, because of overloading, contributes significantly to road damage.

Though no official figure is available on the number of multi-axle vehicles, industry experts put the figure at around 50,000, out of more than 30 lakh trucks in the country.

But things are changing, and rapidly too. Take for instance the case of Namakkal, the `transport city' of Tamil Nadu. Till a couple of years ago, most truck body-building units at Namakkal had single-axle vehicles (usually the nine-tonner) coming to them . Not any more.

A recent visit to the transport city revealed that the body-builders were increasingly receiving multi-axle vehicles. This is because the fleet operators are slowly disposing off their single-axle vehicles.

And the figures from Ashok Leyland substantiate this. The sale of 4X2 haulage trucks dropped to 5,700 in April-February 2000-01 compared to 8,000 during the same period last year. On the other hand, sale of multi-axle trucks rose to 3,600 in April-Februa ry 2000-01 compared to 2,500 the year before.

The reasons for the gradual increase in multi-axle vehicle sales in the South are many, including the consolidation among truckers in the region. For instance, the truckers in Namakkal have started avoiding overloading, thanks to initiatives from local a ssociations such as the Namakkal Taluk Lorry Owners Association. In fact, the cases of overloading have dropped significantly. Previously, a nine-tonner would carry even up to 15 tonnes. But, today, the 15 tonne is split between two trucks, thus creating business for more trucks, experts say.

Further, major industries have started relying on loyal transporters with dedicated fleet. They also tend to pay economic freight without delay. Industries such as cement have come to appreciate the importance of quality service and loyalty. In fact, as is pointed out, every major industry has a well-established logistics division today which are manned by people drafted from the transport industry.

When there is normal availability of loads, the preference shifts to multi-axle vehicles because higher average payload -- double the load at almost the same fuel consumption. There is not much increase in the fixed cost for multi-axle vehicles vis-a-vis the nine-tonners, hence profitability is better in the case of multi-axle vehicles.

Says Mr P. Sengodan, President, All India Motor Transport Congress (AIMTC), and himself a Namakkal-based fleet operator, the main advantage of a multi-axle vehicle is the load capacity, at a lower fuel consumption. For instance, a nine tonner carries 10- 12 tonnes, and for one litre of fuel, the vehicle can travel 4-4.25 km. On the other hand, a multi-axle vehicle can carry over 15 tonnes, and travel 3-3.25 km. for one litre of fuel.

While the multi-axle vehicles fuel consumption is marginally higher than the single-axle types, the load capacity is almost double. The multi-axle trucks are also `kinder' to road surfaces, since the vehicles cannot go at high speeds, compared to the nin e-tonners. This, in turn, protects the tyres from `wear and tear', he says.

Incidentally, a similar phenomenon happened between 1996 and 1998, when the multi-axle vehicle sales shot up considerably. But it did not sustain because of the long industrial recession.

In the past, multi-axle vehicles were mainly limited to carrying gas and fuel. But, today, these vehicles are also used for carrying general cargo, including cement and steel.

As the truckers in Namakkal claim, around 25 per cent of the vehicles in the transport city are multi-axle compared to less than 10 per cent five years ago. The all-India figure is less than 20 per cent

For some fleet operators in Namakkal, the switch to multi-axle vehicles has been good, not only in terms of revenue generation, but also in the overall efficiency of the vehicles compared to the nine-tonners. ``My margin has gone up by over 15 per cent, compared to the nine-tonner,'' says a trucker, who recently switched to a multi-axle vehicle from a nine-tonner.

In the past 18 months, as a big fleet operator informs, he bought around 30 multi-axle vehicles, in lieu of the nine-tonners, which at one point was around 100.

In the last two years, Mr K. Palanisamy of RCS Transport, Namakkal, phased out his 10-odd nine-tonners, and bought 12 multi-axle vehicles. ``I will never go back to a nine tonner,'' he adds.

To boost the sale of multi-axle vehicles, the transport industry has been asking the government, among other things, incentives such as 100 per cent excise exemption, reduction of road tax, concessional sales tax and national permit fees.

Experts feel, the government should promote the use of multi-axle vehicles by giving tax concessions and other incentives. The vehicle manufacturers too should reduce the price of multi-axle vehicle, which now costs about 1.5 times a single-axle truck. N o special discounts are offered for financing multi-axle vehicles. Each finance company decides according to its priority. But manufacturers/dealers are giving discounts for bulk purchase of vehicles, say upwards of five at a time, according to sources.

In the long run, single-axle vehicles would get phased out or may get confined to short-distance haulages. The market will settle between LCVs and multi-axles, observes an expert.

A multiple approach

`UNITED we stand. Divided we fall.' This is the new mantra in TAmil Nadu's transport city, Namakkal. Single-vehicle operators, who own over 90 per cent of trucks in Namakkal, once fought among themselves for a share of the pie. Today, they are forming groups, and approaching customers jointly for business under a single banner.

According to a single-vehicle owner, typically in a group there are some 10 people, though the number can up to 50. Earlier, each operator went to a customer, and tried to get business on his own with a single truck. However, if the customer wanted two o r more trucks, the operator was not in a position to supply them, and thereby lost the business to the fleet operator.

But, today, as part of a group, a single-vehicle operator goes to a customers under a `big banner', and is prepared to supply any number of vehicles.

The single-vehicle operators may be from different villages, in and around Namakkal, but share a single office in Namakkal, and share information, unthinkable a few months ago, because of the cut-throat competition. The office would be the singe-point co ntact centre for all the single-vehicle operators in the group, says a vehicle owner.

``We have seen a remarkable change in the way business is done, after pursuing the group approach. Customers too are prepared to give us business, seeing our banner, and the number of vehicles. We can provide vehicles even at a lesser freight rate, compa red to the large fleet operators,'' he says.

``If we continue to be united, which we are confident of, and provide quality service, the large fleet operators are going to be in trouble in a few months,'' he says.

A fleet operator too felt the formation of groups by single vehicle operators is likely to have a big impact in a couple of years. ``If over 100 single operators form a group, under a single banner, they can overthrow everybody, including the large, trad itional fleet operators.''

Pic.: A multi-axle truck... Offering multiple benefits.