ISSUES RELATED TO ROAD

INFRASTRUCTURE : TRUCKING
Diwas, Faridnajam, Sourabh
 Service
 Increase of trucks in share of freights transport
to 70% to date
 Serviceablilty consists mainly of
 Transit time
 Reliablity of serie
 Safety of cargo
 Higher transit time
 Average speed 30-40 kmph against 60-70kmph
in developed countries
 Line haul time 15-25% at checkpoints
 Structure of Industry
 Entry and exit of players is easy
 Large number of small truckers
Fleet size Operators
Upto 5 77%
6-10 10%
11-15 4%

 Information assymetry between the buyers and sellers of trucking

 Truckers don’t have enough bargain power
 Intermediaries have the contacts who charge truckers a commission of about 20%
 Vehicle technology
 Demand of market for high technology trucks
not picking up( due to the structure of
industry)
 Players in truck making
 Tata Motors & Ashok Leyland
 Fuel efficiency of two axle vs multi axle
Fuel efficiey per 100 tkm
2 axle 2.95
3 axle 2.47
6 axle 1.77
 Roads Infra
 Nearly 6% roads of the network carry 75% of the total
traffic
 NHDP for designing highways that support vehicle
movement of 100kmph
 CRF is being contributed by the Re. 1 cess on petrol and
diesel to revamp the road infra
 Constraints in private sector financing
 Shady dispute settlement
 Toll determination, absence of reliable info on traffic flows
 Road development plan has budgeted Rs. 225 thousand
crores for revamping NH, SH and expressways
 Taxation
 Charge on road users
 Through Re. 1 cess on fuel going to CRF
 Through Toll on highways
 Road user charge on
 Charges on lower side
 Undercharges trucks which levy more wear and tear
to roads
 Non attributable charges are distributed according to
the area covered by vehicle
 Suggestions
 Aggregation
 As sellers of trucking service, industry is fragmented
 Individual truck operators don’t have bargain power as well as information
 Upgradation
 The technology used in present day 2 axle truck is outdated
 Using multi axle truck give higher fuel efficiency and less wear and tear to
the roads
 Barrier to movements
 Due to a lot of inter state movements, the time elapsed in the transit is large
 This leads to lower serviceability by truckers
 Finance
 The banks tend to remain away from truckers, due to low reliablity
 Private finance is at high rate
 Aggregation can help the truckers to get better finance
 Suggestions
 Insurance
 The insurance based on driving ability of the truck drivers would
enable them to get better insurance products
 The truckers are also at the receiving end when the law regarding theft
and dacoitry is considered
 Infra
 Road maintenance is necessary process
 Rise in MAVs would lead to decreased wear and tear rate of roads
 High investment in road projects
 Human resource
 Truck designs to be made to give better working environment to
truckers and helpers
 Wayside amenities to be developed
 Conditions to enhance safe working conditions for truckers necessary
 References

 Enhancing the Quality of Trucking Services in

India, Mr. K.L. Thukral, AITD.