Road Transport, the bright future-3

Ramesh Kumar*

Over the past few days, I have been poring over the “Report of Working Group on Road Transport for the Twelfth Five Year Plan (2012-17)” released recently. It is an interesting document and felt I will not be able to do justice to this precious tome in one single long piece. Moreover, to retain the attention span of potential readers, the offerings have to be in small doses. Like it is said that even the tastiest pizza has to be cut into small pieces to be cherished. Small indeed is beautiful and meaningful. Here is the Third Installment. Check out http://goo.gl/2KeOU to read the First Installment  and  http://goo.gl/4x073 to read the Second Installment.

Fifty plus Arun Kumar Agarwal, Divisional Manager-Driver Training at Ashok Leyland Driver Training Institute in Burari, on the outskirts of urban Delhi, is clear. Our focus of discussion on what causes accidents on road and he has his list of “Common Driving Mistakes”. What are they?

1.      Loosing attention – “zoning out”

      2.      Driving while drowsy
      3.      Distracted inside vehicle (cell phone, radio, passenger chat)
      4.      Failing to adjust to adverse weather conditions
      5.      Aggressive driving (tailgating, jumping signals)
      6.      Making assumptions about other drivers’ intentions
      7.      Lane changing without checking blind spots
      8.      Driving while upset
      9.      Ignoring essential maintenance

Well, each one may have his or her list. But what is pertinent is all of us make fatal mistakes while at the steering wheel – whether it is a commercial vehicle or personal cars. End result is serious, we all know. India’s road accident is pathetic.

As I had mentioned in the First Installment, “technological upgradation” is talked about at length in this Report. The emphasis is on introducing Intelligent Transport System (ITS) which the Report recommends “can be done selectively, step by step as resources permit”. ITS goal is three-fold:

(i)                 Efficiency with a view to enhancing mobility for both people and freight; reducing congestion and managing the transportation infrastructure more effectively and economically

(ii)               Safety with a view to reducing the number and severeity of crashes, to lower the number of traffic-related deaths and injuries
(iii)             Environment with a view to reducing the environmental impact of cars, trucks, buses etc. by reducing fuel consumption and emissions. 

Europe, US and Japan are at the forefront of using ITS which has led to ‘lowering barriers for the movement of people and freight” throughout Europe. Interestingly, these countries have achieved a lot more than originally envisaged. The US has several pieces of legislation that emphasizes on ITS such as Intermodal Surface Transportation Efficiency Act, the Transportation Eqauity Act for 21 Century.  “511” services is gaining momentum. The digits 511 have been reserved as a national telephone number for obtaining traveler information. As part of 511 services, callers get information regarding current traffic informaotn, weather and road conditions etc. Japan uses its car navigation systems and the nationwide deployment of the vehicle Information and communication system (VICS). Eurovignette is a road toll system that is catching up fast in the European Union. Heavy commercial vehicles are charged based on vehicle weight, distance traveled and other criteria.

Coming back to India, efforts are underway to usher in ITS as early as possible. The Ministry of Road Transport & Highways (MORT&H), with National Informatics Centre (NIC), is rolling out the National Registers and State Registers of Driving Licenses and Registration Certificates of motor vehicles which involves computerizing of Regional Transport Offices and State Transport Authorities and later to link them to the national and state registers. Vahan ICT based vehicle registration, Sarathi licensing solution for RTOs, Electronic payment for toll collection, Road Accident Data Management System etc are some of the initiatives in this direction.

Freight hauling industry is yet to gain acceptance and popularity with the public at large, notwithstanding the fact that second-by-second survival on Plant Earth hinges on this critical and vital industry. We cannot wake up to brush our pearly teeth with brushes and pastes without Colgates, Pepsodents etc awaiting us in our washing rooms; nor breakfast, lunch or dinner can be imagined. We will go around Adam-Eve like unless cotton etc are picked and sent to factories to turn them into clothes and then the labeled stuff reaches shelves of super- or hypermarts.

The industry is still unorganized. But the potential upside is huge. If professionally managed, it can attract investments – both private equity as well as public at large. To become professional, these freight haulers have to pull up their socks and clean up their acts and technology – IT to begin with – can help them move up the ladder. Fleet management is no child’s play is something the unorganized industry is coming to grips with. Data capture and management will not only fetch better earnings, it will also certainly make them more mate-worthy for prospective suitors.

(To be continued)

·         Author of 10,000 KM on Indian Highways, Publisher of Supply Chain India and Consulting Editor of SAARC Journal of Transport

Road Transport, the bright future-2

Ramesh Kumar*

Over the past few days, I have been poring over the “Report of Working Group on Road Transport for the Twelfth Five Year Plan (2012-17)” released recently. It is an interesting document and felt I will not be able to do justice to this precious tome in one single long piece. Moreover, to retain the attention span of potential readers, the offerings have to be in small doses. Like it is said that even the tastiest pizza has to be cut into small pieces to be cherished. Small indeed is beautiful and meaningful. Here is the Second Installment.

To read the First Installment, check out http://goo.gl/m8gYd

Ask the Government of India the following:

(a) What is the total length of National/State Highways?

(b)   What is the budget allocation for the Ministry of Road Transport & Highways?

(c)    How much money has been pooled under the Central Road Fund through the cess on petrol?
(d)   How much money the government will be collecting through Bridges and Roads this fiscal?
(e)   What is the actual freight carried on Indian roads?
(f)     What is the actual transaction cost of freight carried by lorries?

Be rest assured that you will receive the most authentic information for items (a) to (d) because the government has managed to collate, assimilate and aggregate these data over years.

Be rest assured that you will receive a vapid and not-so-sure kind of response to items (e) and (f). Why? Lack of reliable and authentic data, a fact admitted to by the Sub Group on Passenger & Freight Traffic Assessment and Adequacy of Fleet & Data Collection and Use of IT in Transport Sector released recently. Let me quote from the Report:

“Currently the database on road transport is restricted to number of registered  motor vehicles category-wise as required by the Motor Vehicle Act. There is a complete lack of regular and reliable data on freight movement, passenger movement on private buses, trucking industry, transaction costs involved in inter-state movement of goods and passengers etc.” (emphasis mine).

That’s fine. Diagnosis is complete. What next? The treatment or remedial action. What that is going to be? The Sub Group recommends that “to overcome data gaps… detailed surveys be carried out by NSSO which could be supplemented by professional organizations … in the interim period as data on freight commodity flows origin/destination under the Carriage by Road Act 2007 will take some time to get streamlined/organized”. These surveys, it is recommended, be carried out every five years, covering the following:

Ø  Freight movement by road transport: origin, destination, size, type of freight and its movement by type of vehicle and age.
Ø  Trucking industry: For evaluation of trucking operations and policy formulation, acquisition cost of vehicle, operating cost, financing, vehicle technology, vintage, turnaround time, utilization (distance covered in a month/year), time and resources spent on detention of vehicles at check posts/barriers.
Ø  Time Motion Surveys: To assess time spent on various activities related to document compliance/clearances at barriers to ascertain transaction costs faced by road freight/passenger industry
Ø  Motor Vehicle Statistics: Motor Vehicles Act provides for maintenance of State registers of motor vehicles. ICT based vehicle registration “Vahan” launched July 2011 will enable RTOs to process vehicle registration, fitness, motor vehicles taxes, permits and enforcement on line and get data computerized for storage, retrieval and investigation/analysis.

Across the globe, the data on vehicles is in terms of “vehicles in use”.  This is where, the use of information technology can come in handy. An “Intelligent Transport Systems” or ITS is mooted in this regard. A baby step for India, no doubt. It will some time before things fall in place. Matured economies had gone through a significant period of trial and error. Late start in India is not a dampener because costs have come down and products are more refined.

Okay, the Sub Group has recommended something. What’s the ground reality?

Let’s examine this in the next dispatch.

(To be continued)

·         Author of 10,000 KM on Indian Highways, Publisher of Supply Chain India and Consulting Editor of SAARC Journal of Transport

Road Transport, the bright future-1

Ramesh Kumar*

Over the past few days, I have been poring over the “Report of Working Group on Road Transport for the Twelfth Five Year Plan (2012-17)” released recently. It is an interesting document and felt I will not be able to do justice to this precious tome in one single long piece. Moreover, to retain the attention span of potential readers, the offerings have to be in small doses. Like it is said that even the tastiest pizza has to be cut into small pieces to enjoy. Small indeed is beautiful and meaningful. Here goes my maiden dispatch.

One thing that stuck me is the scope for technological induction in the road transport segment. It certainly will be a panacea for many ills plaguing this sector crying for reforms. This recommendation from the Sub-Group on ‘Passenger & Freight Traffic Assessment and Adequacy of Fleet & Data Collection and Use of IT in Transport Sector’ as part of this Report has a reason to show its eagerness for IT. Road transport’s share of both passenger & freight traffic vis-à-vis other modes of transport has notched up 4.7% of India’s GDP as against Railways’ paltry 1%.

That is truly amazing given the fact that unlike railways, air and inland waterways which are ‘seamless’ compared to the ‘rigorous en route checks/barriers’ Road Transport faces daily.

Why road transport is likely to dominate in the years to come? Good question. Let me quote from the abovementioned Report:

“Both freight and passenger movement by road is expected to rapidly expand in the coming years. In particular, freight movement by road transport is expected to show robust growth over the medium term due to a number of factors.
(a)   Substantial investment in improvement in national highway network which will facilitate speedy, reliable and door to door services
(b)   Freight movement by road transport offers a compolte logistic solution that minimizes the cost of transport, logistics and inventories;
(c)    Rising volumes of exports and imports”

Given the 12^th Plan’s emphasis on increased exports to achieve desired GDP goals, the demand for inland transport to move “cargo from production centres to gateway ports (air and sea)” is bound to shoot up.

What’s the freight volume projection during the next five years, as envisaged by this Report?

Projected Road Freight Traffic (in billion tonnes KM- BTKM)

Years	Scenario 1 (@ 8.7% growth)	Scenario 2 (@ 8% growth)	Scenario 3 (@ 8.5% growth)		Scenario 4 (@ 9% growth)	Scenario 5 (@ 9.5% growth)
2012-13	1,315	1,337	1,351	1,366		1,381
2013-14	1,429	1.465	1,489	1,513		1,538
2014-15	1,553	1,605	1,641	1,677		1,714
2015-16	1,688	1,760	1,808	1,858		1,909
2016-17	1,835	1,928	1,993	2,059		2,126

Note: elasticity of 1.2 maintained from Scenario 2 to Scenario 4)

Source: Planning Commission Report, 2012

Yes, these are just numbers, one may say. I have my own reservations on looking purely at numbers alone. Still, I believe these projections certainly sound interesting and believable because having travelled over 17,000 KM on Indian highways in trucks over the past two years (this odyssey will continue), the freight movement is mind-boggling. Step out of your air-conditioned cubicles and make at least a 250 km intercity travel in your own air-conditioned passenger cars – not trucks! – and see for yourself. The moment you hit the highways, the movement of HCVs will be visible: crawling at 40 kmph at least, occupying one lane seamlessly.

Yes, India is growing. Salute the satellite television that has revolutionized the mindset of India and Bharat (urban and rural) with aspiration levels touching skyhigh, warranting all kinds of consumer goods – branded and otherwise – to reach out the remotest outlet. If so, they have to be produced in the first place. So raw materials have to be sourced from various locations and brought to the manufacturing sight. What do you need to move them? Vehicles: LCV or HCV. Then, once products are ready, they need to be moved to consumption points – your neighbourhood provision store or whatever. What do you need for this? Vehicles: LCV and HCV again. HCV for long hauls and LCVs for last minute connectivity.

Eighty plus Chittaranjan Dass, the walking encyclopaedia on road transport (who incidentally was a member of the Planning Commission’s Working Group that prepared this Report), and R C Acharya, ex-Member (Mechanical), Railway Board, used to say rail and road cannot do without each other. “They are complementary to each other. Rail for long haul and road for short hauls,” is how used to put it. Rail is a perfect for certain bulk items: iron ore, foodgrains, iron ore, coal, oil, cement etc. Road for the first/last mile connectivity and both long and short haul for everything else. That’s why, this Report harps on road transport’s BIG PLUS of offering “a complete logistic solution that minimizes the cost of transport logistics and inventories”.

Let us look at this Report’s recommendation on technology in road transport sector in the next installment.

(To be continued)

·         Author of 10,000 KM on Indian Highways, Publisher of Supply Chain India and Consulting Editor of SAARC Journal of Transport

Pune-Ahmednagar SH 60

Check out this new posting:

http://myroadiary.blogspot.in/2012/04/letter-to-pune-collector-on-pune.html

Rampur-Rudrapur NH 87 pathetic

Check out this new posting:

http://myroadiary.blogspot.in/2012/04/nh-87-rudrapurpant-nagar-to-rampur.html

Congrats, Onno Boots!

MNX, a premium global provider of expedited transportation and logistics services, is pleased to announce the appointment of Onno Boots as managing director, Asia Pacific. In this role, Boots will be responsible for implementing MNX’s long-term strategy in Asia Pacific, and will be based in Singapore. This is the first in a series of appointments, marking an increased focus on the Asia Pacific region for MNX, and a major milestone for the company globally as it continues to provide innovative and leading logistics solutions for its clients.

Elaborating on the opportunity behind his move, Boots said, “I am excited at the prospect of leading MNX’s operations and business growth in Asia. MNX is already a recognized service leader in several industries, and with expanded capabilities throughout Asia, MNX can meet our customers’ expedited transportation needs and can tailor services for individual customer demands. Continued growth of trade within Asia makes this a critical market for growth, where accelerated logistics services will become increasingly relied upon.”

A primary focus area for MNX in Asia Pacific is in transportation related to clinical trials. Clinical trials require very detailed and precise processes and the logistical elements backing these processes are critical. Under Boots’ leadership, MNX is well placed to tap the growth of the biopharmaceutical and clinical trials markets throughout Asia.

“We are delighted to have someone of Onno’s talent, experience and reputation join our senior management team. Having a strong team in Singapore is essential to meeting our customers’ global needs. Onno brings with him strong relationships and a thorough understanding of our customers’ needs in Asia. He truly represents the MNX core values of flexibility, reliability and the ability to go above and beyond for our customers. With Onno in place, we are better prepared than ever to meet our long-term growth plans in Asia,” said Scott Cannon, MNX CEO.

Kelvin Wong, executive director of logistics at the Singapore Economic Development Board, said, “MNX’s continued investment in Singapore underscores the country’s location as the Asian hub and as an international gateway for U.S. companies seeking to capitalize on the fast-growing market. MNX will be able to leverage demand in Singapore to develop innovative supply chain solutions for its transportation needs and tap our supply chain management talent.”

Before joining MNX, Boots was TNT Express Worldwide’s regional managing director for Southeast Asia and India. He was based at TNT’s Netherlands headquarters for nearly 18 years before relocating to the TNT Asia regional office in Singapore in 2007. Simultaneously, Boots served as the director of global account management where he was responsible for overseeing the growth of TNT's global accounts across the world.

About MNX, Inc.

Headquartered in Los Angeles, CA, MNX is rapidly emerging as a leading innovator in the expedited transportation and logistics industry. The company’s diverse client base includes global leaders in life sciences, entertainment, aerospace and medical devices industries. These organizations rely on MNX’s exceptional track record in transporting critical items around the world, and within the United States. The company has offices on four continents, and operates a series of partnerships that extend its network to over 220 countries worldwide.

Come on your own, if you want lunch!

Date: 24 April 2012

It was a sheer coincidence that Arun Modgil (see above), India-born, IMT-Ghaziabad-educated, Canada-based environmental-friendly packaging expert focused on global automobile and aeronautical industries, was in India when I sought timeslot to visit one of his Indian facilities.

Since I live in Delhi, my choice was to visit his Gurgaon 25,000 sq.ft facility.

Actually, my request was despatched a couple of weeks ago while he was still in Toronto.

He responded two days saying that I am most welcome on April 24.

I did land up.

We had known each other through Automotive Logistics India conferences over the past two years.

He is an avid reader and read many of my articles on INdian automotive logistics scenario in Automotive Logistics and Finished Vehicle Logistics magazine of London for whom I work as EDITOR India. (www.automotivelogisticsmagazine.com, www.fvl.).com)

He also read my book 10000km On Indian Highways and felt it was a good work. (www.10000kmonindianhighways.com)

When we agreed to meet on 24 April, the only rider was he would provide me lunch if I can reach his factory-cum-office on my own!

I lost the wager because no way I could have knocked on my own given its remoteness - despite the fact that I know Gurgaon like the back of my palm.

One of his Office colleagues (He hates the "Sir" business. Everybody is equal, to him), Manoj, pillionrode me for the last 2 km ride!

The next three hours spent in the company of this Valentine Day born boy (14 February 1965) on packaging design, his take on global automakers and their packaging tastes (inbound), the Indian design engineering talent, his global operations (Canada, US, SouthAfrica, Germany, Czech, China, Thailand .... uf... pardon me, Arun, if I have missed any country) was informative and educative.

His story was interesting. With IMT Ghaziabad degree, he worked for a while in India before packing bag and baggage to pitch tent in Australia with just $400 in his pocket, a career-oriented spouse and a daughter in 2000s. Within six weeks, he found job and got immersed while wife pursued a chartered accountancy career with a global giant. But felt there would be more opporutnity in northern America and chose Canada as his next base. Within no time, got his permanent resident visa. Again, no job in hand prior to his landing in the land of Maple Leaves.

When he landed up his maiden contract with General Motors after almost two years, he blew up all his savings. But the contract was huge. Yes, there was some teething problems in getting the  requisite moolah as every bank refused to bankroll despite Canadian govt's backing.

He is a born risk taker,  no doubt.

Today, his global empire is across several continents.

In India, he serves Tata Motors and Ashok Leyland and several others.

By the time, we ended our conversation we stepped out for a bite @ Cafe Coffee Day at Ansal Plaza, Palam Vihar. We eat some 'solid' stuff too, despite his 'open offer of no lunch if 'I don't come on my own' rider!

Before parting, we visited Carter Road (opposite Maruti Suzuki plant in Gurgaon)  where roadside car carrier fabrication facilities are always in full swing...

Why? He wants to design a car carrier with side openings.

His design team has begun preliminary work six weeks ago.

For a more detailed story you have to wait for sometime!