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Land Transportation Research 2015

Company Name Transport4U - Owned by Triple Eight Strategies Enterprise


Registration Number - 002282235-H
Founded December 2013 by Juli Binti Mohamad & Amar Firdaus (bio below)

Research Objective
To assess the impact of empty return load trucks on the land
transportation sector in Malaysia

Background Research
Empty back haul (percentage of empty return load trucks
worldwide where data is available)

Hong Kong 46%


Holland - 40%
UK - 29%
USA - 28%
Germany - 25%

Source: European Environment Agency:


http://www.eea.europa.eu/publications/ENVISSUENo12/page029.
html
Source - NPTC National Private Truck Council USA:
http://www.nptc.org/index.php?option=com_content&view=article
&id=538:benefits-of-fleet-optimization-center-march-2009issue&catid=24:fleet-owner&Itemid=534
Hong Kong Transport Department:
http://www.td.gov.hk/filemanager/en/publication/gvtcs2003_e.p
df
http://www.transport4u.my/

Early Research Trends


We found that the very large transportation companies in
Malaysia seldom suffer from empty return loads and claim less
than 5% empty return journeys. So we asked how they achieve
this, here is what we found.
A typical large player set up is; A main hub in Klang valley with
further hubs in Penang and Johor (some have more but this is
the basic set up).
Example scenario on any given day:
If they have volume of goods to be carried equivalent of 40
trucks going to Johor but only goods for 25 trucks on the
return journey then they will send only 25 of their own trucks
and use hauliers from their list of approved sub-contractors
for the balance of 15 trucks.
Further to this some large players use only small players for
certain routes because they know it is difficult to get
backloads.
This does not solve the empty backload scenario, it just passes
the problem to smaller players with less resources to deal with
it.

Because of this we decided early on to concentrate


our research on small transport companies only.

http://www.transport4u.my/

Survey Questions - 100 Small Cos Surveyed


1. How many trucks does your company own?
2. On average, how many deliveries per month do you do in excess of
100km (distance not including return journey)?
3. On average, how many empty truck return journeys per month on
these in excess of 100km deliveries?
4. What percentage of these deliveries in excess of 100km are subcontract to larger company?
5. Why do you choose not to do sub-contract work to larger Cos?
6. Did you ever do sub-contract work for larger Co?

Results Of Survey
1.
2.
3.
4.

Total of trucks owned 329


Deliveries over 100km 1103
Empty truck returns 849 (77%)
188 (17%) of these deliveries were sub contract to larger Co's
while 42% of Cos surveyed currently sub-contract to larger Cos
5. On sub-contract work margins are very small so if no backload we
are lucky to break even or make small profit - Also blame late
payment (these were majority answers)
6. 93% have previously done or currently do sub-contract work

Summary Of Survey
77% of deliveries suffer empty truck backload
84,900kms driven by empty trucks/month
169,800kms will be driven delivering goods on these routes where
our survey respondents are driving back to their base empty
Extrapolated figures for 1,000 small Cos would be 849,000 kms
driven by empty trucks every month in Malaysia
Extrapolated figures for 10,000 small Co's would be 8,490,000 kms
driven by empty trucks every month in Malaysia
93% of small Cos have previously been a sub-contractor to larger
company while 51% choose not to anymore.
Of the sub-contract jobs 160 had empty backload, that is 85%
#NOTE# These figures are for the minimum 100km delivery scenario, real
world distances will be much higher.
http://www.transport4u.my/

Study Conclusions
We have identified major inefficiencies in the land
transportation sector of Malaysia.
We want to share our research & propose a solution to the
empty backload issue in Malaysia that is affecting tens of
thousands of small hauliers.
Small hauliers in Malaysia do not have a voice and after
speaking at length to hundreds of them we have identified a
massive issue that is an unintended consequence but never
the less is severely affecting the whole logistics industry in
Malaysia, Namely; Empty Backloads.
This inefficient running of empty trucks eats into a limited
driver resource that has been an issue for a long time in
Malaysia but never properly resolved.

What Is The Solution?


The solution is simple - Target Goods Into The Tens Of Thousands
Of Empty Trucks Operating Every Day On Malaysian Roads.

How?
Follow the German and British method of reducing empty backloads
for hauliers by encouraging the use of online freight exchanges.
In the UK the proportion of empty back loads dropped from 33% to
29% over a period of 16 years. The main reasons cited as
contributing to this were the expansion of load matching services
(freight exchanges) and hauliers making greater efforts to get return
loads.
A good example of a freight exchange from UK is:
http://www.returnloads.net/
http://www.transport4u.my/

Freight Exchange Benefits


Hauliers can list their empty backloads and if you need
goods transporting that match the route and date then
just call the haulier.

Not Just Backloads


Anyone can list their goods or load for transportation for
free knowing that approved transport companies will
contact them wanting to deliver their goods.

Specific Benefits
Deflationary, Goods Can Be Transported At Reduced
Costs On Backloads
Creates Competitive Environment, More Options For
Business To Deliver Their Goods
Reduce GHG Emissions
Reduce Congestion
Less journeys without impacting volume of goods
delivered eases demand on small resource of drivers

Is The Benefit Measurable?


Yes, we can record the reduction in the number of kilometers
saved and aggregate this total.
Then we can use the kilometers saved to calculate the volume
of GHG emissions that have been saved (see last 3 pages for
example calculation).
http://www.transport4u.my/

Who Benefits?
Everyone - But I Will Name Five
1. The customer is happy if they can book an
empty return load for the transportation of
their goods because the rate is reduced.
2. The trucker is happy because he has increased
his margin on what would have been non
paying return miles driven without a load.
3. The environment, because a more efficient land
transportation system reduces the kilometres
driven while still delivering the same volume of
goods, in short less GHG's unleashed on the
environment.
4. All road users, because a more efficient road
transport system reduces congestion.
5. Large logistics companies, because when the
volume of goods to be delivered is not
impacted by a reduction in transport journeys
of goods vehicles due to diminishing
ineffieciencies this means there is less demand
on the resource of drivers available.
Put simply, Online Freight Exchanges aim to create a Win/Win
situation for both parties in the transportation of goods as well
as helping the environment, helping to reduce traffic congestion
and easing the burden on a limited number of drivers

http://www.transport4u.my/

GREEN LOGISTICS
Reducing the kilometers driven
by trucks without impacting the
volume of goods delivered
Achieve this and everybody wins
What is needed to achieve this?

PUBLIC AWARENESS
http://www.transport4u.my/

Meet The Team


Juli Binti Mohamad
Founder
Originally from Melaka, I'm just a Kampung girl with
big ideas & bigger dreams. Only a form 3 education but
I do possess a burning ambition to succeed even
though we are operating on a shoestring budget.

Amar Firdaus
Web Design & Site Maintenance
Originally from Penang, Transport4U is the 11th website
I have created. It was technically challenging integrating
everything together & it can be easily extended now all
the major building blocks are in place. My favourite
feature is the instantaneous search & filter function
using Tablesorter.

Aesha Nurdin
Head Of Sales
I come from Sabah with a background in sales and I am
relishing the challenge of getting to grips with the
logistics industry & promoting Transport4U to achieve
the level of growth anticipated by all involved.

Michael Joseph
Non Executive Consultant
From Birmingham UK. This start up excites me because
they are the first to do this in Malaysia. My input is to
give the team direction and strategise their business
development. Also advise on research, copywrite, web
development & SEO.
http://www.transport4u.my/

Green Logistics - Calculations


How we will calculate the carbon footprint of truck transportation, numbers
are for a Mid to Large truck at full load.
For demonstration purposes the following assumptions have been made to
determine the basis for this calculation.
US EPA uses 6 miles/gallon as average basis for their truck emission
calculations, so from this:
US EPA = United States Environmental Protection Agency
1 gallon diesel = 3.78 liters
6 miles to a gallon therefore - 6 miles to 3.78 liters of diesel
1 mile = 1.6km therefore 6 miles x 1.6 = 9.6km
3.78liters diesel = 9.6km
37.8liters diesel = 96km
We need to calculate how many liters of diesel will be used for 1 kilometer:
100/9.6=10.416 then
10.416x3.7=39.37
For simplicity we will round down to 39, so:
3.9liters diesel = 10km
39liters diesel = 100km
0.39liters diesel = 1km
We Need To Calculate How Many KGs Of c02 are emitted during
combustion:
Next data (2.7kgc02) is taken from http://timeforchange.org/what-is-acarbon-footprint-definition
2.7kgc02 is the volume of KG's of c02 emitted during combustion for 1 liter
of diesel.
for corroboration:
this site calculates it at 2.63kgc02
http://www.sunearthtools.com/tools/CO2-emissions-calculator.php
There are other online calculators that calculate KGs of c02 within a similar
range of 2.63 to 2.7.
For disclosure we are going with the upper figure of 2.7;
pto....
http://www.transport4u.my/

1. Our rationale behind using the 2.7 figure is the fleets of trucks
operating in Malaysia use less green technology than their contemporary
logistics company's in Europe and North America.
2. There is less driver training in Malaysia on how to operate a truck at
its optimum environmentally friendly level.
Next We Calculated How Many kgc02/km
Diesel 1 liter = 2.7 kg c02 per unit
0.39liters diesel = 1km therefore 1km = 1.053kgc02/km
This is how 1.053kgc02-km is calculated
2.7x39%= 1.053 so we rounded down to 1.05
Example Scenario
For Clarity, Figures Below Consider Savings Made When Goods Are Placed
Into Trucks That Would Have Been Travelling Anyway (goods in return
truck with empty load).
10000 trucks at average saving of 500km each would be 5,000,000km
saved in one month then - 5,265,000kg c02/km would be saved from
Malaysia's carbon footprint.
5,000,000x1.053=5,265,000
5,265,000kg c02/km = 5265 metric tonnes
Multiply by 12 months = 63180 metric tons reduction in one year
The above, although close to being accurate is for illustration purposes,
in real world scenario each category of truck will have an agreed upon
standard calculation with the kilometers saved and the loading (weight)
of truckload will have to be included to garner more precise information.
The above example scenario is using figures to give an illustrative
indication of what organised freight exchanges are capable of.

pto.....

http://www.transport4u.my/

#note# in a the real world example the KM savings actually double up;
For Example;
If goods are put into an empty backload from Johor Bahru to KL then
approximately 700km has been saved. This is because if no backload was
found then a different truck would have to be booked in Johor which
would then require a return journey from KL to Johor.
Therefore one return load empty truck that has successfully gained a
load for its journey will save a two way truck journey of the same route.
There is serious potential to give major savings to Malaysia's overall
carbon footprint by targeting goods into empty backloads.

Added Data From WorldBank


total c02 output in Malaysia in 2011 was 8,000,000 metric tons (for land
transportation)
8 million being 18% of overall total of 43+ million metric tons (worldbank
figures)

http://www.transport4u.my/