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Financial Daily from THE HINDU group of publications Monday, April 16, 2001 |
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Truck industry overloaded!
Raja Simhan T. E.
Recently in Namakkal
ONE ISSUE causing major concern to the truck industry today is the problem of overloading. And the problem persists, despite the best efforts of the truck federations and the State governments to curb it. Overloading takes place when a goods vehicle
carries load much in excess of what is specified in the Registration Certificate issued by the State Transport Department.
Though no official figure is available on the extent of overloading indulged in by the vehicle operators, industry sources estimate that over 60 per cent of trucks in the country are overloaded. As a result, many trucks, about 20 per cent of the vehicle
population, do not get their due share of cargo.
In Tamil Nadu, the Namakkal-based State Lorry Owners Federation (SLOF), representing the truck industry in the State, initiated several measures late last year to curb overloading. Truck operators were asked to restrict overloading, and to stick to the s
pecified norms. The Federation also organised several meetings at taluk, district and State levels to create awareness among its members about the ill effects of overloading.
In a step further, the Federation president, Mr P. Sengodan, now President of the All India Motor Transport Congress (AIMTC), the apex body of transport organisations, along with other Federation members, stopped overloaded vehicles on the road, and off-
loaded the excess cargo.
However, despite the initial success (for a couple of months), the Federation could not stop the overloading which goes on unabated throughout the country, particularly in the South, it is alleged. The vehicle operators, on the other hand, defend overloa
ding pointing out that it is the result of the imbalance in the market. ``Too many trucks are now chasing too little cargo. There is cut-throat competition among single-vehicle owners who therefore grab whatever little cargo that is available in the mark
et. They are not bothered about the problem of overloading as long as they are able to get a bit more to maintain the vehicles,'' they observe.
Some times overloading is insisted upon by the consignees. A consignee having 13-14 tonnes of cargo prefers to hire a nine-tonne truck and overload it to have the consignments transported instead of hiring two trucks of the same capacity. He does this to
cut cost, and the vehicle operator too is happy to earn a few thousand of rupees more, thus depriving the other operators of their due share.
In the past it was only the single-truck operators who indulged in overloading. Today, even large fleet operators practice it, presumably to survive the intense competition. ``Overloading is the single biggest threat for the truck industry at the moment
,'' feels Mr Sengodan.
Truck-owners overload just to keep their vehicles running, and get some additional amount. However, they are not worried about the damage it (overloading) does to the vehicles, especially to the tyres and engines, in the long run. Overloading also damage
s the roads, he says. ``Overloading only brings short-term gains to truck owners while in the long run it leads to disaster. Unfortunately, the truck owners do not realise this.''
One way to stop overloading, he suggests, is for the government to fix a uniform per kilometre freight rate, based on the overall cost of operation of vehicles. This will ensure fair deal for truck owners and consignees, irrespective of the distance the
vehicle travels.
Further, there will not be any discrepancy in the freight structure, which at the moment is fixed taking into consideration the demand and supply of vehicles in the market. For instance, the freight rate for a nine-tonne truck between Chennai and Delhi i
s around Rs 18,000. This rate varies significantly depending on the demand and supply of vehicles, which the intermediaries, a dominant force in the road transport sector, decide.
However, by having a uniform freight rate, irrespective of the fluctuations in the demand and supply of vehicles, the consignee needs to pay the freight rate only based on per kilometre basis. This will be a win-win situation for both the truck owners an
d the consignees, he says.
The Federation has been taking up the matter of fixing uniform rate for trucks at various forums. However, the government is yet to respond. ``We will keep trying,'' he observes.
As per the rules, a goods vehicle should carry cargo only as specified in the vehicle's Registration Certificate (RC). Further, to curb the rising trend of overloading in goods vehicles throughout the country and corruption in the transport department, s
ome amendments have brought in Sections 113, 114 and 194 of the Motor Vehicles (MV) Act in 1994.
The Centre also advises State governments from time to time on the need to check overloading of goods vehicles. However, no concrete efforts have been taken so at the State level to curb the problem. The provision for heavy penalty for overloading as inc
orporated in the MV Act is never enforced. ``When caught for overloading at check-posts, we grease the palms of the officials,'' says a truck operator.
At a recent SLOF executive committee meeting at Mettupalayam, the 150-odd members voiced in unison their concern over overloading. According to Mr V. Senakesavan, president, Salem Lorry Owners Federation, the government was neither taking measures to cur
b overloading, nor helping the initiatives taken by the Federation to stop overloading. During the Federation's anti-overloading campaign launched late last year, it was pointed out, the State transport officials declined to check the overloaded trucks.
The officials on the other hand insisted on inspection at a particular time which was impossible to arrange.
Mr Senakesavan suggested that the government should permit the Federation and its affiliates to monitor overloading of trucks, and also vest them with necessary powers to penalise the truck owners on the spot for overloading. The members, however, felt t
hat the Federation could only create awareness among its members about the ill-effects of overloading while the job of giving punishment should be left to the government. The consignees too should not insist on overloading, the members suggested.
At the end of the meeting, it was resolved that the Federation would suggest to the government to bring in a legislation, forcing overloaded trucks to offload the excess cargo at the place the overloading is detected. This would curb overloading to a lar
ge extent.
Pic.: Despite attempts by the truck federations and the State governments, the problem of overloading goes on unabated throughout the country.
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