Pakistan road freight industry: An overview & by J L Hine and A S Chilver , d ~—-—----.-----—- ---. —----- --- ------...-—— ., TRANSPORT AND ROAD RESEARCH LABORATORY Depadment of Transpoti RESEARCH HEPORT 314 Pakistan road freight industry: An overview by J L Hine and A S Chilver Crown Copyright 19S1. The work described in this report forms pati of the programmecarried out forlhe Overseas Development Administration, but the views expressed are not necessarily those of the Administration, Extracts from the text may be reproduced, except for commercial purposes, provided the source is acknowledged. e Overseas Unit Transpod and Road Research Laboratoy CroWhorne, Berkshire, RGI 1 6AU 1991 ISSN 0266-5247 . .........— _- .. .... . .—— 9 ‘?] I I ,, L CONTENTS Abstract 1. Introduction Z. The context 3. Suweys and data sources 4. The fleet 4.1 4.2 4,3 4,4 Vehicle impcfl and assembly Fleet composition Vehicle modifications and repairs Vehicle value and age structure 5. The role of consignors and freight agents 5.1 Freight consignors 5.1.1 Choice of transport mode 5.1.2 Consignors ownership and use vehicles 5.1.3 Contact with freight agents 5,2 Freight agents 5.2.1 5.2.2 5.2a3 5.2.4 Ownerst,ip and operations Consignments and rates of commission Freight agents’ business channels Time taken to find transpoti 6. The structure and finance of the Industry 6,1 The institutional structure 6.2 Vehicle ownership and management 6,3 Vehicle purchase and finance 7. Operational performance, loads and tariffs 7.1 Vehicle trip length distribution 7,2 Operating performance 7.3 Loads and tariffs Page 1 1 1 2 4 4 7 8 9 11 11 it 12 12 12 12 13 13 14 14 14 14 15 18 18 20 22 8. 9. 10. 11. 12. Page Costs, revenues and profitability 24 8,1 Vehicle operating cost components 24 8.2 Vehicle revenue 25 8.3 Total operating costs and profitability 26 Dfivers’ problems and road accidenis 28 9.1 Drivers’ problems 28 9.2 Road accidents 28 Summa~ of main results 29 Acknowledgements 30 References 30 Appendix A: Additional tables to main text. 31 ., ,‘1 e ) I , \, _— ● —.— —-— -_ .. _.—... . ________________ PAKISTAN ROAD FREIGHT INDUSTRY: AN OVERVIEW ABSTRACT The Report describes the main operetiondl characters. tics of the private road freight industry of Pakistan. It is based chiefly on the results of a nationwide survey carried out in 1986, In which 3500 truck drivers were interviewed at 39 sites Iocaied at inter. disttict boundaries. Information was collected on vehicle age, make, body type, value, ownership, fleet management, finance, tariffs, load, operating performance, costs, and accidents. Additional information is presented from surveys of freight consignors and freight agents and from drivers’ own records of operating costs and revenues, Until the early 1980s the industry was totally dominated by Bedford tr~cks with a design capacity of 7 tons, This truck is now declining in importance as more profitable, larger capac. ity trucks are introduced. Overall the industry is very competitive and the vehicle Ileet is run efficiently. How. ever there appears to be considerable scope for the Introduction of greater numbers of larger vehicles. 1 INTRODUCTION Road freight transport is one of the most important components of the transport sector wi!hitl developing countries, lnPakistan Ilaccounls forthree.quarfersof the ;ntal intand freight tonne. kitometros and in expenditure terms it is equivaltinl to between three and four por cent of GDP. To predict the effects of policy measures on freight transpod it is necessary to gain a thorough understanding of the industry, The research reported he,e.was designed to achieve this through a range of different surveys. Data were collected on tho organisation and performance of the industry and on the costs, tariffs and utilisation of freight vehictes, The main data cotleclion period of the study was during 1985 and 1986. This report provides a general description and presents data on a wide ranoo of subiects relatin~ to the industry, TOPICScove!od lnc~udeveh~le age, vf~cte value and” fleet composition, frelghl consigning and the role of freight forwarding agents, costs, tariffs, productivity and profitability, and the ownership, Iinance and management of the industry. More detalle’J anatysesof freight tariffs, opelating costs and vohiclo time utitisatlon wilt be presonfed In subsequent reports. The overatt study was carried out uol!er a prograrnme of cooperative research between the Overseas Unll of the Transpoti and Road Research Laboratory and the Nationat Transport Research Centre. Islamabad. It is inlanded that the resutts of the research will be useful both !n formulating gellerat freight transporf policy and in assisting with the more specitlc aspects of modetling vehicle operating costs used in road investmonl planning, 2 THE CONTEXT Pakistan has an are,l of 796,000 sq, km and its popula. tion is about 100 mittion. The country is divided between the Provinces of Ratuchistan, Punlab, North West Frontier, Sind and Azad Kashmir and the Northorn Areas Region. Most of the country is desert. The rurat poputa. tion is concentrated in the irrigated areas of the Punjab and Sind. Irrigation water andhydro otectricityaru supplied from the River tndus and ils tributaries (the Jhelum, Chenab, Ravi and Suttej). These rivers run from the Himatayas and the Karakoram mountain ranges in India and north Pakistan. Karachi (7 million) is the largest town and the major port. Other Iargo towns, (Lahoro, Faisalabad and Rawalpindi.lslarnabad) are situated in the north PunJab. A general map of Pakistan is shown in Fig, 1, Agriculture is ttl~ most important sector of the economy accounting forabout31 percent of GDP. Manufactllring industry accounts for a further 17percent, Alttlough Karachi and Ifle other large towns are important industrial centres, manufacturing is widely spread throughout Punjab, Sind and parts 01the North Wesl Frontior Province, Pakistan produces a smalt amount of oil but is self sufficient in natural gas. About two million tons of coal aro produced together with six m;lkon tons of other minerals. In 19B3 Pakistan had 8,800 km of railway and 104,000 km of roads of which 43,000 km were bitumen surfaced. In llld same year it was estimated thal there wero 36,OOO railway freight wagons and 45,000 privalely registered trucks (Hundal 1985a). The National Transport Study (JtC,4 1983) estimated that in 1981 there weto 26,1 bn ton km of inland freight transport of which road transport was estimated to lake 70 per cent. As rail freight traffic has remained static the proportion of traffic taken by road has increased over recent years. The locations of the main reads are shown in Fig, 2, The,e is a very high concentration of inter-district freight movemenfs along the N5 route - the corridor from Karachi lo Lahore and Poshawar. Some sections of this road (particularly between Lahoro and Guiranwdla and between Rawalpindi and Peshawar) are dual carriageway. With tho exception of some lightly trafficked roads in Baluchistan all main roads are surfaced, with typical roughness measurements of between 4000 and 5000 mm por km on the El scale. Lon~ hauls are very commori for both road and rail. The main towns of Lahore, Faisalabad, Rawalpindi, Gulranwala and Peshawar are allmorgtllan 1000 knlfron~ttle port olKaraclli. There is a malor imbalanc~ of imports over exports wifh o netmovement ofgoods inland, lnttleyear 1982.83 1.9 million tons ofdry goods and 1.2million tonsof oil and petroleum products were exported. Cotton, textiles, rice . . ... ..–-. .— \ u .~ -———— —-- ..--. _” —. .-— -—— . . . . . . .._ --——— ! I j’/ S“hh,,l -. / Fig,l A yeneral map of Pakistan and fertilizer accounted for 70 per cehl of dry export tonnage, In the same year 4.8 million tons of dry goods and 6.9 mllllon tons of 011and petroleum products were imported: other major Imports include cement, wheat, fertilizer and Iron and steel, In 1982.83 these commodities accounted for 45 per cent of dry cargo imports, In 1978 and f 979a major harvest failure stimulated a large Increase In the Imports of grains and fertilizer, Because of the difficulty of moving these bulk commodl. ties, the National Logistics Cell (NLC) was setup under p the control of the armed forces. Tt e NLC was made I responsible for allocating the movement of bulk freight traffic from Karachi to the railways and to road transport, ;0 In addition 800 high capacity trucks were Imported f~r the NLC to use for the transport of bulk cargoes. Since 1978 the NLC has continued to play gn Important role in Pakistan’s freight transport, { Under an International relief effort additional imporis were brought Into Pakistan for the 3 million Afghan r61ugees, The NLC was made responsible for runnln{] an extra 600 ,,, @ ~ vehicles brought In for the movement of rellef goods, 1 Afghans have also taken a more direct role In Pakistan’s frel?ht transport; 2500 lrucks belonging to the refugees ‘U were brought Into Pakistan, Although these vehicles 2 \ have, at times, been subject to various restrictions many Afghan trucks compete for business alongside Pakistani trucks, 3 SURVEYS AND DK SOURCES Prior to the main surveys being under R lken, background information was collecied by a-series of Informal inter, views with truck drivers and owners, freight forwarding agents, freight consignors, banks, Insurance companies, vehicle manufacturers, spare parts importers, vehicle repairers, port and railway officials, and reptesentalives fro h customs and other government departments. The Roadside Interview Survey was the main data collection exercise of the whole study, In total 3500 truck drivers (equivalent to 7 per cerlt of the total fleet) were stopped and intewlewed al 39 sites throughout Pakistan, The locations of the suwey stations are shown In Fig. 2. The survey stations are Ilsted and a breakdown of the makes and types of vehicles surveyed is presented in Tables Al and AZ In the Appendix, The survey statiorls . 111 L ,---,-,--,<.$ .J , Fig,2 Roadside intotviow survey station$ Notu: ThaIoeatio!ls of tho %UIVI)V stti!tiol!s atu Iostud In TOIJIU Al i)) Iho ApuotldIx, were principally located at district boundaries and so the data collected primarily represents long distance travel, As the main focus was on the private trucking Industry, interviews were not carried out with trucks be!onglng to the military or the NLC, Information gathered Included data on vehicle age, make, body type, value, ownership, fleet management, finance, tariffs, loads, operating performance, costs, accidents and insurance, The survey form was printed In Urdu and the interviews conducted In Urdu, Punjabi or Pushto. Besides the Roadside Interview Survey five other surveys were undertaken as follows:. i) Freight Consignors and Agents Survey Structured Intewlews were hold with i 88 freight consign. ors and 237 freight agents, Information was gathered on the methods of consigning freight, freight modal choice and on the role of freight agents, In addition opinions were sought on a number of possible futuro develop. ments in the industry. ii) Vehicle Activity Survey In this survey data were collected from a number of vehicles on the time spent moving, loading, unloading or at rest. Data were Sathered over periods Iastlng between one and four weeks and, In total, 47 periods of data were collected, Information on the distances travelled, costs Incurred and revenue eatned was also recorded, Iii) Truck Drivers’ Cost Ahd Revenue Diaries Many drivers keep deta,od records of their costs and revenues. In total the diaries of over 50 different trucks were collected for this survey covering about 600 vehicle months, iv) Past Tariff Data In order to Identify trends and saasonality In tariffs, past tariff data were collected from records of freight agents relating to particular journeys with standard loads. In total 120 different series of data were collected, Most of the data covered the period from the beginning of 1982 to mid 1986, v) Road Roughness Survey In order to assist with the analysls of cost and tariff data, information on road roughness was required. To suppla. ment data already collected for most of the main roads an additional survey of the rough unsurfaced roads of 3 Baluchlslan and the more important interior roads of the Punjab was undertaken. In total data were collecl~d on 70 road links covering a distance of over 5700 km, 4 THE FLEET 4.’1 VEHICLE IMPORT AND ASSEMBLY During the i 970s and 1980s Pakistan’s freight vehicle fleet was dominated by one vehicle type: a two axle Bedford truck with 7 tons carrying capacity and a 98 hp engine. The design of this vehicle has changed little over the past 30 years. Bedford trucks were imported In “completely knocked down” (ckd) form and assembled locally. Over the years, the Iocaf content was progres slvely Increased and by 1987 amounted to about 55 per cent of the vehicle value. During the 1970s the protection given to the Bedford helped to prevent other makes from becoming more established. However during the 1980s protection was relaxed and the import and assembly of many Japanese trucks became possible. In 1979 Bedford sales accounted for over ninety per cent of total truck sales In Pakistan: since then the ratio has declined and by 1984 they accounted for only 58 per cent of total sales. Data on freight vehlcfe sales provided by Pakistan Automobile Corporation (pACO) is shown in Fig. 3. Plates i to 4 are examPfes of tYPical Irucks found in Pakistan. Three principal makes of Japanese trucks (namely Isuzu, Hino and Nissan) are assembled in pakislan. In 1986 the local content by vaiue of these vehicles was well below 20 per cent. Details of the most common vehicle types used bytheprivate market areshownin Tablel with the ex.factory price for the chassis. Estimates of the full vehicle value, including the body, are shown in Tables A3 and A4 of Appendix A. Under agreements with the Government each manufao turer is obliged to increase pro9ressiv@lYthe local content of the imported vehicles that it sells. The manufacturers have plans to widen the model ranges that are made and as a result it Is likely to prove even more difficult to achieve the ambitious local content targets (up to 80 per cent within 7 years) that have been planned. Other vehlcfe makes have been brought Into Pakistan already assembled. The NLC imported Mercedes Benz, Saviem, Hino and Fiat trucks A number of Mitsubishi tractor units have also been Imported privately under a regulation which allows tractor unlls to be Imported as “machinery”, Many very old secondhand vehicles (Particularly Mercedes and Badford trucks) were brouoht Into Pakistan by the Afghan Refugees, 4 aooc 74 ❑ Others ❑Bedfords 76 7a 79 ao 81 Year Fig.3 Vehiclo sales 82 a3 84 Plete 1 A typical Bedford truck Plete 2 An Isuzu truck .’ ,, .. _-_, ,,. ..,,.,.>., ~~ — —— Vehicle Model Type Axles GVW. GCW. HP Make Price Rs. kg kg Sept t986 Bedford CJP Rigid 2 10,920 nla 98 275,000 Bedford TM2500 Tractor Unit 2 nla 25,000 171 nla Hino FF 170 Rigid 2 nla nla 200 412,000 Isuzu JCWFTR Rigid 2 12,000 nla 160 Isuzu 398,000 TDJ/DVR Rigid 2 15,000 27,000 220 51s,000 Mitsubishi FP415ER Tractor Unit 2 15,400 39,000 310 Nissan 730,000 TK20GT Tractor Unit 2 14,175 26,000 190 Nissan TK20 570,000 Rigid 2 16,500 26,000 190 475,000 Nissan TDIO Rigid 3 23,000 nla 160 Nissan 480,000 U780E Rigid 2 12,000 nla 140 342,000 — “ Gross Vehicle Weight ‘. Gross Combination Weight Source: Manufacturers Specifications 4.2 FLEET COMPOSITION The composition, by make and body type, of the trucks intercepted In the Roadside Intowiew Survey is shown In Figs. 4 and 5. A breakdown by vehicle type and Province Is given In Table AZ In the Appendix, The data Is only representative of vehicles engaged on Inter.district truck moveme~t and Information relating to NLC and military vehicles Is excluded. In the Suwey it was not possible to distinguish the exact model type of the vehicle although other characteristics such as the number of axles, and the vehicle configuration, make and body type were recorded. An additional complication Is that vehicles are often modified so that they can take heavier loads, Sometimes an extra axlo Is added so that a two-axle truck becomes a Ihree.axlo truck, and rigid trucks are convorted to tmctor units, Vehicle strengthening and modification Is discussed later In the report Plrste3 Athree-axle Nissan truck Pleta4 ANiasan tractor.trailer combination 6 .. . ... -—, —.X-. . . . . . . . . /4 :7\ TABLE 1 Common Trucks In Pakistan *-. . t r-a \ \ \ Fig.4 Vehiclomakc~ ❑ HI~ll sidt$d M LOW sldcd ❑ Mo’h”’ Tonkur ❑ “u’ Fig,6 Body types 7 ,, ; . I A-. .,m .——-— ——.—— -- —--- - -. . Figure 4 shows that the twoaxle Bedford truck accounted for 77 per cent of the trucks surveyed. The newer Japanese trucks are growing in importai~ce, particularly in Baluchlstan where they accounted for over 40 per cent of the trucks suweyed. Overall, they formed 20 per cent of the total. M8rcedes trucks imported from Afghanistan accounted for a further one per cent, Three-axle vehicles made up four percent and tractortrailer combinations another three per cent of the total surveyed: in both calegofies Nissan was the dominafit make. lnPakistan’s commercial fleet seml-trailersaro nearly always operated with the same tractor unit and for the purposes of !his report they are regarded as one vehicle. A!though the NLC does use draw-bar trailers these are very rare in the commercial fleet: the Roadside Interview Survey collected no Information on their use. Vehicle bodies are made locally In Pakistan and are added to the truck chassis after it has left the factory. Apart from tankers, vehicle bodies are made almost exclusively of wood and in most cases are highly decorated. Thare Is usually a purpose built space on top of the cab where assistants and second driver can rest or sleep while the vehicle is in motion, In all categories, apart from tractor. trailers, high sided bodies are the most common, accounting for 80 per cent of the total The flexibility offered by high sided vehicles is most appropriate to Pakistan’s conditions. They can easily carry loose building mate~als, 9enQral car90, and animals: tarpaulins are carried for when it rains. Pakistan’s high tempera. tures make boy bodies less appropriate because of the difficulties of carrying out manual loading and unloading in hot unventilated conditions. Flat bodies are most common with tractor-trailers. These are most suitable for carving bagged commodities, containers and large sized loads such as motorcars. LOWsided Bedfords aro mainly used for transporting sand and gravel. After high sided bodies, tank bodies are the second most important body type accounting for about 8 per cent of Bedfords and about 23 Percent of tile Japanese two and three-axle trucks. 4.3 VEHICLE MODIFICATIONS AND REPAIRS Most trucks in Pakistan, including the newer Japaneso vehicles, are strengthened after they leav~ the factory to take heavier loads, Table 2 gives data on some of the modifications which are frequently made, the most popular being the strengthening of the chassis, axle springs and engine compartment. Wheel rims, tyres, and TABLE 2 Common Vehicle Modifications 8 2 Axle Trucks Modification 3 Axle Nissan Tractor Bedford Hino Isuzu Nissan Nissan Trailers Fdt Cent Vehicle Yes 90 81 90 90 strengthened? No 91 88 6 13 7 5 1 11 Don’t Know 4 6 3 5 8 1 Chassis Yes 59 30 43 strengthened? Nr 57 80 59 32 53 47 34 11 29 Don’t Know 9 17 10 9 9 12 Engine comparfmert strengthened? Yes 89 48 64 No 69 4 64 53 34 26 22 27 34 Don’t Know 7 18 to 9 9 t3 Springs Yes 66 80 86 66 86 74 Strengthened? No 3 2 2 Don’t Know s 4 9 Ii 18 10 9 10 13 Extra axle Yes 40 added7 No Don’t Know 51 9 Truck into Yes tractor unit? No 2 75 Don’t Know 23 Source: Roadside Interview Survey .._.— .G. - -.. — axles tlfe aiso ollen changed for heavier duty items. By contrast little evidence was found to suggest that brakes are im~rc’(ed to cope with the increased loads. Bedford trucks designnd to tako 7 tons are commonly modified 10carry 11 tons, while two.axle Hines, ISUZUS and Nissans designed 10take 11 tons will carry 16 tons, The two-axle Japanese trucks that are converted to three-axle vehicles carry up to 30 tons, The larger two-axle Nissatl and Isuzu trucks have often been converted to tractor units with the addition of a “fifth wheel”. in addition the chassis of the semi-trailers are strengthened (see Plate 5). Loads of 55 tons and more are not uncommon for tractor-trailer combinations, No evidence was found 10suggest that the performance of existing engines is improved nor that more powerful engines are put into existing vehicles. It appears that attempts to improve productivity by modifying vehicles is directed entirely !owards carrying heavier loads rather than to running faster. ln,t’~rted second hand vehicles are also strengthened. Af$l .II truck drivers take advan. tage of the flatter terrain ir Pakistan by strengthening their vehicles to lake heavier loads. Although some authorities are toluctant to register the use and conversion of the heav!e:,t trucks others are less hesitant. A high proportion of the Ik]aviest trucks are registered In Las Bela, in Baluchist&n, rather than in Karachi, Once a vehicle is registered by one authority there Is little to stop it being used a!l over Pakistan. There is very little police enforcement of the official mdximum gross vehicle weight regulations or the eight ton axle load limit, Vehicle modifications and repairs are carried out by groups of small workshops, Each workshop has relatively little working space, employs no more than a handful of people and has only a limited acce~s to machinery, They tend to specialise In providing a particular service, but In most towns a wide range of skills and machine tools are available and usually a full range of vehicle repairs can be cairled out, A typical workshop Is shown in Plate 6, Spare parts for the Bedford truck are cheap and very widely available, m. ny being made In Pakistan. In most cases if a part Is not Immediately available it will be made locally, In the larger towns original parts for the Japanese trucks are aval;able, but these tend to be about three times the price 01the equivalent part for the Bedford. 4.4 VEHICLE VALUE AND AGE STRUCTURE Data collocted by the Roadside Interview Survey sug. gested that the mean age of Pakistan’s freight vehicle ffeet was 9 years at the time of the survey, This is higher than might be normally expected but it can be explained by the docllne In freight vehicle sales that occurred during the 1970s and early t 980s (See Fig. 3). By comparing the age spectrum of the Bedfords observed in the Roadside Interview Survey with the number of Bedfords known to have been assembled each year, it is possible to make an estimate of vehicle survival rates. (See Table A3 in Appendix.) Of Ihe Bedfords assembled in 1984, nine per cent were seen in the Roadside Intefi view Suwey, but this diminished to only three per cent for thosa assembled in 1973, The change in this percentage from year to year was not uniform partly because of sales to the military and the NLC (whose vehicles were not recorded in the Survey), Nevertheless there is a clear trend, and it was found that the data could be fined to the following equation, Ln ( N/hi) - -i.81 . 24,9/ Year (1) (se = 13,2) Coefficient of determination (R’): 0.26, Observations: 12 Irl the equation ‘N’, ‘M’ and ‘Year’ are defined as follows:. N(x) = Number of Bedfords observed In the Roadside Interview Survey assembled in year x, M(x) = Total number Bedfords assembled In year x, year = year(x). 1956! i,e. Year= 28 for 1984) If this equation represents tho true rate of survival then a mean expected life of 12.Gyears is Implied. However the result should be treafod with caution because the Bedford sales data were Iimifed and t; s survey was not corn. pletely representativ~ of all traffic. Because the survey omitted trucks rulming on short distance urban and intra. district routes (these trucks are likely, on average, to be older than those traveling on Inter-district routes) there are grounds to suppose that the calculated expected life Ijndorostlmated the true value. A life expectancy of 15 years could well be a better estimate, Hundal (1985b) found a mean expected life of 1i.9 years in a study of the survival ,ates of 81 trucks first registered in 1961. Hundal’s survey related to a wide variety of trucks and in view of the later standardisation on the Bedford model and the consequent improved availabltity of cheap spare parts It Is reasonable to believe that the expected life of the later Bedford trucks would be higher, The mean age of Bedford tru~ks found In the Survey was ten years, However since 1982 Bedf~rd registrations have declined while Japanese truck registrations have Increased, Over three quarters of the Hines were less than two years old and the mean ages of the Nissans and Isuzus were between three and four years, The oldest trucks In use were found to be the Afghan-run Mercedes with a mean age of i 5 years. Most of these trucks were brought second hand Into Afghanistan, The data collected from the Roadside Interview Survey demonstrated a strong relationship between the driver’s estimate 01current value and vehicle age. This is shown in Fig, 6 and in Tables A3 and A4 In the AppendIx, During the period covered only relatively minor changes were made 10the basic Bedford truck model, As a result the -.. ,,- ., \.-A . . . . . . .’. ..J. ., >-”-. -., -- ,-. —_ ———_—.. -.— .._. ___. _—__ 0’ 400 300 100 0 Plate 5 An example of chassis strengthening 60 62 64 66 68 70 72 74 7G 7S 80 62 64 86 Mode;VOaf Fig.6 The value of Uedford trucks data shows a more consistent relationship between value and model age for Bedfords In comparison with that for J Plete 6 A typicel workshop with a lathe o ,/ 10 the Japanese trucks. Using the raw data from the SurvQY for Bedford trucks the following regression was found:- VehlcleValue(000sRs)u 2S7. i 56’ Log(VeHcleAge) (2) (se= 3.36) Coefficient of determination (R’): 0483, Observations: 2139 6 THE ROLE OF CONSIGNORS AND FREIGHT AGENTS 5.1 FREIGHT CONSIGNORS A survey of major freight consignors was carded out during 1986. The transport or marketing managers of 188 large Irrduslrial firms were Interviewed in Ien major towns of Pakistan (listed In Table A5 of the Appendix), The interview of consignors focused on the tvpe of freight consigned, the mode chosen, the degree to which lreight aoents were used, and VIOWSon fulure developments w~thlnthe freight industry. A wide range of business types was represented, (See Table A6 in the AppendIx,) Overall, the survey was representative of those concerned with the movement of freight by private road transport, However, because rail transport and NLC vehicles tend to be used by a relatively small number of large consigning organisalions such modes were unde~ represrmted In the survey sample, 5.1.1 Choice of transport mode Of the tl’i$eAquarters of the consignors intewiewed who were responsible for the decision as to which mode to use, one third stated that the time factor was the most Important reason for their choice. Concern for damage to goods and convenience also ranked highly, but costs were only quoted as being of prime importance by 10 per cent. 11 Although most goods are moved by conventional rigid trucks t Oper cent of the consignors’ raw materials and finishe,i p;oducts were Iransporfed by trucks willl trailers and ? further 4 per cent were moved in containers. Of the two Illirds of the consignors suweyed who cotild give a positibq answer 91 per cent said that they cculd get a tractor.t ‘ailer combination onto their premises. The use of containers was found to be limited; only 23 per cent of consignors used them and t,”;c.third$ cf these used them less than three times a month. Rail transporf was found to be a far less important mode, accounting for less than one per cent of afl freight consignments, despite the fact that 15 per cent of consignors had a rail siding on site and seven per cent of consignors (largely cement manufacturers and petroleum companies) stated that they used a rail siding regularly. An examination of the Individual ttips for which rail was chosen revd~led clearly that It was the preferable mode only over long distances such as betweenKarachiand ● - .—-—-——.—. — ,---- ,. ..,_ ____ —. Rawalpindi or Lahore, A similar result was found by Cundill (1986) in Kenya. The general attitude towards the railways was very negative, Sixty per cent felt the delays associated with rail transport and the extra loading and unloading charges incurred in transporting th6 freight from the railway depot to the factory prevented their use. Widespread concern was also expressed about the aPParent lack of accountability for damaga to goods transported by rail, despite the legal responsibility of the railways in such instances. These feelings are reflected by the fact that 30 per cent of the consignors In the survey who had a railway siding had relinquished its use and wished to be rid of it. Thus despite the apparent cost ad’~antages that trains have over roads, it would aPPear that the flexibility, rapid delivery, convenience and greater accountability for damage associated with road transport, all of which were highly valued by the consignors inte~ viewed, accounted for the insignificant role of the rail. ways. A small proportion 01the consignors interviewed used NLC trucks to transport their raw materials: very mixed comments on the quality of service were given, ranging from the advantages associated with the large trucks used to the disadvantages of the extra documentadon involved and the rigid regulations regarding drivers’ hours, 5.1.2 Consignors ownership and use of vehicles A key feature identified by both the Consignors Survey and the Roadside Interview Survey was the lack of vehicles run on an “own account” basis, For the majority of the conslgnor~, traffic was contracted out to “hire and reward” operators, Approximately one third of the consignors had transport of their own but these vehicles were predominantly used for the movement of goods and raw materials In the local viclnitf; only 12 consignors used their vehicles ovei long distances. The maior advantages of vehicle ownership wero felt to be a reduction In delays and the reduced Probability of freight damage or theft; this I. shown in Table 3. TABLE 3 Advantages of Vehicle Ownership to Consignors, Advantage of Per cent owning vehicles of responses Less delays 53 Less damage to goods 32 Fewer incidents of theft 8 Increased customer contact 7 Total 100 Table 4 identifies the main disadvantages associated with vehicle ownership that were poinled out by consignors. It was felt tflat the difficulties of managing vehicles and staff 12 in situations of fluctuating demand were the most important problem, and the difficulties of trying to obtain return loads were also cited as maior disadvantages of running “in-house” transport operations. Over half of the consign. ors simply stated that such operations would not be financially viable or appropriate to ttleir business, and the comment was frequently made that they could not compete with the ptivale “hire and reward” truck operators, Further avldence of this pattern was revealed from the Roadside Interview Survey where less than 1 per cent of the trucks intercepted wero operated on an “own account” basis. Sixty per cent of alt vehicles operated by these consign. ors were Bedfords: other popular vehicles included the Mazda truck (a vehicle with up 10three tons carrying capacity) and the Suzuki pick-ups: these vehicles accourlted for, respectively, i 5 and 10 percent of the total owned by the consignors 5,1.3 Contact with freight agents Over half of the consignors rnalntalned regufar contacls with freight agents (freight forwarders): the large majority of these were In the form of a written yearly contract sottlng fixed freight rates for that period, About 20 per cent of consignors had established more informal relationships with one or more agents agreeing to direct work to an agent over a shorter time period. Details of the relationships between consignors and freight agents are given in Table 5. It was not possible to draw any conclusions with regard 10 the difference In rates charged per ton kilometre between those consignors who had a formal contract with an agent and those who did not, due to the lack of directly comparable data of toad types and routes. 5.2 cREIGHT AGENTS A parallel survey of frei(,ht agents was also undertaken. In total 237 freight agents were interviewed in ten major towns (listed in Yable A5 In the Appendix), The agents were asked the type of work undertaken, the type, size and mode of freight consignments dealt with and the Importance of ancillary services sucf~as telephones and warehouses, Opinions were also sought on posslbla future developments in the industry and on particular problems experienced, 5.2.1 Ownership and operations Most freight agencias surveyud were either owned by individuals or operated as parfnershlps; just over half of the agencies operated from one office only, while a handful had as many as zo other offices. The forwarding of freight was very clearly the major operation for the agents: 43 per cent also operated a small number of vehicles of their own and 65 per cent ran a warehouse of some sort. Less than 5 per cent wore Involved In the financing or trade of trucks or other freight related business such as importing, exporting, wholesaling or retailing, TABLE 4 Disadvantages of Vehicla Ownership. Disadvantage of Most important problem Proportion of all owning vehicles (per cent of consignors) problems mentlonad Managing staff/vetlicles 43 34 Flnanciat problems 32 49 Empty relurn Iournoys 5 9 Other 1 8 No reply t9 Total 100 100 Source: Consignors Survey TABLE 5 Consignors Relationship with Freight Agents, Relationship with Freight Ag#tlt Consignors T01,71 Per cefll No relationship with any agent 86 46 Informal relationship with one agent 15 B Informal relationship with several agents 7 4 Written contract with fixed ralos for ono year 00 43 Total i 88 i 00 -. Sourco: Consignors Survey Yhe freight agents WI1Odid nol oporate n warehouso tended to deal mainly with bulky raw materials such as stone, qravel, or iron and steel, Covered warehouses were utilised by 63 per cent of the agents, whilst a handful relied entirely on storage in the street. The capacity of the warehouses varied widely from thosa able to store the equivalent of one Bedford truck toad (approxi. matoly 8 tons) to those able to cover 30 loads, although the malorily w~~resomewhere between 2 and 5 Bedford loads. For the agents interviewed, private road transport accounted for over 99 per cent of all consigned freight, with a srn:lll atnount consigned by the NLC and sea transport; no freight was consigtlod by rail or air fit all. The resl~ltsfrom the Roadside Intervlow Survey of truck drivers also indicated that freight agents wore rarely approached for short iourney distances (see Table 6). For all drivers with loaded trucks making iourneys of less than 50 kilometres, only 20 per cent made use of a freight agent, whilst around 80 per cent of those making journeys over 500 kilometres used an agent. It also became claar that lreight agents were less likely to be used for particular cargo types. Agents ware not used by 45 per cent of drivers consigning quarried material and the movement of petrol, diesel and oit rarely Involvod an agent: however, bolween 60 and 80 per cent of trucks transporting manufactures or agricultural produce had made use of an agent, 5.2.2 Consignments and ratas of commission Table 6 shows thal agents’ charges were a significantly tligher percentage of the total tariff for shorter iourneys About one qusrter of the agents interviewed dealt largely and smaller loads (as tnighl be expected), Also, it was with general merchandise especially those based in the found thut as a proportion of total tariffs agenls’ charges large urban centros of Karachi, Lahoro and Rawatpindi. wore slighlly lower for freight tnoving away from Karactli The remainder tended to specialise in commodities such than in the reverse direction. Little conslstont pattern was as quarried builditlg materials or iron and steel. found between freight agents’ tariffs and vehiclo types. Almost one third of all the consignments wore “smalls” 5.2.3 Freight agents’ business channels (i.e. less than one ton), Only 16 per cent woro between 7 and 12 tons, which is tho size ideally suited to the Ninety por cent of the freight agents interviewed wero Bedford truck, while a quarter of consignments wero found to have a working telephone and 96 per cent reported to be over 20 tons, claimed they had a satisfactory postal service, However 13 .- ~ -—.----—— --—-___—-- ..J —------ .-. .\__,” .. - —..—.——--.-—.—- -——---- ..-..—.—. . TABLE 6 hire-purchase arrangement: the vehicle seller or provider of Ilnance safeguards hls investment by registering the truck In hls own name until the vehicle is fully purchased, Survey over 40 per cent of the Japanese Iractor.trailers wore found to be part of a Ileel. For those tractor-trailers managed in fleets a mean fleet size of 28 vehicles was recorded. 6.3 VEHICLE PURCHASE AND FINANCE I Use of freight Agents, Agents’ Charges and Trip Distance. - Trip Number of Per conl of Mean charge distance loaded trucks drivers using by agent as surveyed an agent a per cent of Kms total tariff less than 50 149 20 11,3 50- 100 225 28 8.8 101- 200 371 49 7<1 201. 500 608 66 5.6 501.1000 528 75 5.0 1001.1500 352 85 4,8 more than 1500 146 79 5,8 Over 90 per cent of the trucks were owned by a single private Individual; partnerships accounted for just 7 per cent of the total, Non.lransport companies owned less than one per cent of the total trucks surveyed but a much higher proportion of the tractor-trailers. A breakdown of ownership is given in Table 7. In the Roadside Interview Survey drivers were asked a number (~fquestions on the purchase and finance of their Iruck. Even though most drivers wero employees it was found that they were well informed on Iho Iinancial details of their oporalion. Most knew the details of how tfleir trucks were financed and what repaymerrls were required. Each driver was made responsibto for alt aspects of their vehicle’s profitable operations; including collecting and paying out monoy and rolurning profits 10the owner. In 20 per cent of interviews drivers were foutld to have either a full or part share in the ownership of the truck; in the remainder the principat driver was an urnployee. Table 8 gives data on vehicle fleets under common management, fleets of two or mare vehicles accountod all journeys 2379 62 5.8 far ab~ut 13 pur cenl of the tolal. The data suggesls’~~al the more expensive the vehicle [hen tho greater II1O Iikelihaad that the vehicle will be part of a fleet and tho Tablo 9 gives data on thu date af purchasu of trucks by Ihoir currenl awner, II poicfs to a high turnover in the TABLE 7 Truck Ownership Source: Roadside Interview Survey greater tho probability that the flecl will bo large. In the IWOthirds af all business was oblalned by persanal callers and one third by telephone. The post was a relatively unimportant way of obtaining business and tetex ar telegrams were not used at all, determined bv SUDDIVand demand, and a~art ,-----from thp apetalians of.the ‘NLGthere is little direct governtnenl intervention In the Industry. Entry is cheap and easy: thero is a relatively lax Iicenslng systetn and there is little enforcement of axte load Iimlts or af vehicle construction The methods used and use regulations, to abtaln business were dependent an the Iocatlon af majar customers for the agents. Most demand tended to came from the urban centre in which tho agenl was located and this was reflecled in the high praporfion (between 60 and 80 per cent) of business abtalned through personal callers. However In Karachi (Wtiere the major custamers were located [n Lallore and Rawalplndl) the agents acquired, on average, 53 per ce~ll of their business by telephane, 2 Axle 2 Axlo 3 Axlo Japanese The pattern of numerous small scalo entrepreneurs is a Bedford Jauarlese J[l~nrrese Tractar Trailer camman feature of the industry with garaqe mechanics, truck awners and freight agents all exhibiting this charac. teristic, Driver 458 103 14 2 Other Privato Individual i 958 365 88 77 Fotnily Partnership 146 15 6 12 Commercial Campany 11 2 0 14 Federal Government 2 0 0 0 Provincial Govermnont o 0 0 1 Public Corporolion 3 i o Others 1 2 0 0 0 Tatal 2632 492 i 09 ● 108 Source: Roadsido Interview Survey Large Industrial campanles awn very fow vehicles and rely mainly an hiring transport, The few vehicles they da own tend to be used far local delivery work, The largest “own accaunt” fleet is run by Ihe Waler And Powor Development Authority (WAPDA) which likes 10use its own vehicles ta transport Its exponslve electrical equip. menl, althaugh it will hire transport when necessary, A quarter of all agents surveyed aperated long term contracts with freight canslgnors and, on :,verage, these accaunted far just over half af their business. It was hawever common practice ta affar regular services to particular destlnatlons; these were usually major urban centres and the towns af Lahore, Karachi, Rawalplndl, Faisalabad and Peshawar were the destinations for over half af the regular services offered, There are a few large transport organlsatlons in Pakistan. The NLC Is by far the biggest wkh about 2000 Irucks. A small number af large privately run firms concentrate on running tractar-lrallers and on moving containers, specialised equipment and autsized loads. TABLE 8 5.2.4 Time taken to find transport Truck Floots 2 Axlo 2 Axlu 3 Axle Tractor-Trailer Bodfard Japanesu Japanoso Japanese A crucial feature revealed by tho survey of agents was the speed with which vehicles were obtained to cape with demand, Far 64 per cenl of the agenls there were usually no delays at all In finding a vehicle and on averaae, 89 As Is apparent from the previous section, freight agents play a pivotal rale In the operations af the industry (see Secllon 5,2); they place consignments, run warehouses, and act as middle men In buying trucks and selling them on a hire.purchase basis. Banks and ather large instilutiOnSplay little rale In providing finance for the Industry. per cent af the agents could obtain a truck wlthln-lhe hour and 94 per cent cauld pracure one within z hours, Is truck managed in common with olhtir trucks ? Yes ?& 10 i6 26 43 No Ya 90 84 74 57 To[al replius 2623 485 109 i 07 Moan Fleet Sizo (excluding singlo 4,62 4,0 9.6 283 vehicle fleets) 6.2 VEHICLE OWNERSHIP AND 6 MANAGEMENT 6.1 THE STRUCTURE P!ND FINANCE OF THE INDUSTRY THE INSTITUTIONAL STRUCTURE Data on the ownership and management of II1OIndustry was collected In the Raadslde Interview Survey. In over 65 per cent of cases the registered ownor of the truck was the pravlder of finance for the :ruck purchase and not the person who gained profits and losses from the truck operatian. In Pakistan It is usual for trucks to be said by a Road freight transport in Pakistan Is targely organised on a free market basis; freight tariffs are competitively Source : Roadside Interview Survey 15 - .H . ----- —,.— ----- .. . . ---- TABLE 9 20 Dale of Purchase by Current Owner Year of 2 Axle 2 Axle 2 Axle 2 Axle 3 Axle Tractor.Trailer purchase Bedford Hino Isuzu Nissan Nissan Nissan Per Cent Before 1976 4.3 1976 2.9 i 1977 i ,2 2 1978 2.6 i 2 1979 2.3 1 i 1 1 3 I980 4,1 4 4 7 1981 5.6 2 4 1 8 1982 8.7 1 t4 6 7 1983 14.8 4 1: 17 10 11 1984 24.4 4 37 17 19 1985 30 26.2 57 42 35 45 1986 30 2.9 30 7 6 13 3 100 100 i 00 100 100 100 Total Replies 2206 170 i 67 69 69 61 I Source: Roadside Interview Survey - ,’ ... ...... .. -. -.--., ..-, —._-_— “ , ,’, ,... ..-.: —L..:>. . . . . . . <—- -- —~. I I 1 ~-.. ..—-.— ___ ..__...__ . ..— ,.. . .. .. .. . ourchase and resale of second hand trucks, Over 50 per cent of the Bedford trucks had been purchased by their current owners durirlg the previous two years, and 86 per cent were second hand. Approximately three quarters of the privately owned fleet was purchased on a repayment, (or “hire.purchase”) basis. Within each category of vehicle type, those trucks purchased through an outfight payment tended to be older and less valuable, allhotlgh a much greater propor. lion of the more expensive tracto~trailers were pur. chased by a single payment, The latter is probably a reflection cl the larger firms Irlvolved In running them, In Pakistan businessmen rarely think in terms of an Interest rate as such although usua!ly one can be Inferred from the terms of a vehicle sale. if a vehicle is to be bought by hire.purcha~e then a higher overall price Is quoted, Repayments are usually made on a nlonthly basis ftistlng between 40 nnd 60 months. From the dala provided on purchase time, value, initial deposit, and the monlhly repayments an estimate was made of the effective rates of interest, The results are shown In Fig, 7, In 13 per cent of the cases the Interest rate was estimated to be above 60 par cent: It Is possible that the data proulded for many of these cases was faulty, Overall the analysis shows a very wide spread Of rates but the modal value lay betwflen 16 and 20 per cent. In many ways the range of Interest rates paid IS unsurprising, When the rate Is not specified it Is dif{icult to calculate the “best buy”. Furthermore In many courntrles, including the UK, a wide range of Interest rates are paid for credit and small loans when the full implications for repayments are not immediately obvious or understood, 16 In most countries the cheapest form of credit Is from banks but in Pakistan truck owners complain that it is difficult, time consuming and expensive to use bank loans for truck purchase, The banks usually demand compre. hensive insurance of the truck which is normally very expensive, In addition the banks may also demand legal entitlement to other assets (such as property) as security for the loan. This too can be expensive to arrange. The informal sources of credit that are used appe?r to be much more flexlble and easier to arrange. Table 10 shows that most repayments were made to the vehicle seller or to an agerrVmoney lender and repayments to banks account for only one per cent of the total, For cases where the rate of Interest was below 60 per cent the average rate paid was 25 per cent, However, the average rate weighted by the amount borrowed was 22 per cont. This Is shown In Table 10, which ~iso shows that owners of Bedford trucks paid the highest rates of Interest and owners of tractor. trailers the lowest, There appears to be a consistent pattern that the larger the sum borrowed then the lower the average rate of Interest paid Table 11 gives data on trucks purchased on a repayment basis by their current owner. over 80 per cent had outstanding payments, reflecting the high turnover In truck ownership shown In Table 9, With tho possible eXception of two.axle Nlssans, Bedford trucks appear to have a higher proportion of tate repaymetlts than other trucks, Nissan tractor- trailers have by far the lowest proporflon of late repayments and their owners find making repayments the easiest. tf the ow~,ergets too far behind In hls repayments then ttle deal ISpresumed to b~ broken and the truck reverts to the seller or money lender, I 15 0 / RutII of itltt!t(!$t Fig,7 Efftictivo rato of Intorost pnid for truck purchase TABLE 10 Repayments and Interest Paid for Truck Purchase 2 Axle 3 Axle Traclor.Trailer Bedford Hino Isuzu Nissan Nissan Nissan Fo~ Ctises wilh &//ective /rr/eres/ Rate Between I % and 60%: Average rate ‘/. 26 23 23 23 22 20 Average rate wel~hted by amount borrowed O/. Average borrowed Rs. 000 Average monlhly payment Rs Average payment Der]od months 22 21 21 21 i 37 267 245 249 4230 9480 8670 8430 52 40 41 44 21 i7 39i 467 t 3,600 15,070 44 45 Source: Roadside Interview Survuy 17 ~~ ....... -:,.... . . . .. .. . . . . _______ ---- . ~.. ,, ,. )I TABLE 11 Trucks Purchased on a Repayment Basis 2 Axle 3 Axle Tractor-Trailer Bedford Hlno Isuzu Nissan Nissan Nissan For trucks wllh repaymerrls: per ten/ o/posil/ve replies Oulstandlng Loan? No 17 3 20 3 Ii Yes 83 97 t: 80 97 89 Late Repayments? No 65 84 77 64 79 97 Yes 35 16 23 36 21 3 Ease Of Meeting Repayments? Easy 17 26 i5 14 28 32 Difficult 45 41 39 39 35 44 Very Difficult 38 33 45 48 37 24 Impossible o 0 0 0 0 0 Repayments to: Bank 1 1 4 7 6 6 Relative 1 i i 5 0 0 Frland 1 4 0 0 0 Vehicle Seller 81 77 7: 79 61 83 AganVMoney Lender 15 17 15 10 13 11 No. of trucks with multiple repayments 1709 165 i 36 53 61 37 Source: Roadside Interview Survey 7. 7.1 OPERATIONAL PERFORMANCE, LOADS AND TARIFFS VEHICLE TRIP LENGTH DISTRIBUTION The Roadside Intervlaw Survey provided a rich source of data on the operational performance of freight vehicles. However It was not designed to provlda a precise picture of Pakistanis trlplength dlstributlon. Forthlsit Isuseftilto consider an analysls of the Orlgln . Destlnatlon (0.D) Survey carried out during 1979.60 when over 93,000 truck drlve{s were interviewed at 110 survey stations located at ciistrlct boundaries throughout the country (Majeed 1963). The distribution of freight vehicle trip fangths from the Roadside Interview Survey Is shown In Fig, 8 find data from the O-D Survey Is shown In Fig. 9, As exp?cled the Roadside Interview Survey recorded a much greater proportion of long distance trips, Trips of over 1000 km accounted for 15 per cent of the cases and 45 per cent of the vehicle kms In the former survey but only 6 per cent of the cases and 29 per cent .’ the vehicle kms In the latter survey, i8 To assist with the analysls of the Roadside Interview Survey data the traffic dlrectlon at each survey site was cla~slfled as being either “to Karachi” or “from Karachi”, The empty and loaded vahlcle trip length dlstrlbutlon classified by dlrectlon Is given In Table ~17In the Appendix, Sevent~slx per cent of trucks traveling In the “from Karachi” dlrectlon were loaded compared wkh 62 per cenl in the opposite dlrecllon, This reflects the general Imbalance In the movement of freight found throughout Pakistan, In overall terms 69 per cent of trips and 84 per cent of vehicle.kms ware loaded, As expected, empty running docllned as trip length Increased, This Is shown in Figure 10 where both UK and Pakistan data are given for comparative purposes, Although the data Is not strictly comparable (the UK data omits tankers) a fairly close relationship exists between tha two data sets for distances Up 10500 km, The drop In the proportion of loaded vehicles recorded at 75o km In the Pakistan data relates to tha parflcular difficulty of finding return loads from the remote Mekran area of Baluchlstan, The UK data were drawn from a study by Cundlll and Hull (1979) on empty rUMdngof goods vehicles, Empty trucks travelllng to Karachi had tonger trip distances, on average, than those travelllng In the opposite 25 m ~rlp [Ilsto,lce, (k,,,!) Fig,8 Freight $urvoy trip len~lh distribution I Trip lIISIIIIICU, (k!ns] Fig,9 O-D survey trip lcnyth distribution 19 I —. . . 100 , 80 60 40 20 t I Tr#p length lktns) Fig.10 Graph showing proportion of loaded vehicles against trip length direction. For those traveling to Karachi 43 per cent travelled more than 200 kms compared with only i 7 per cent In the opposite direction, The differences In loaded trip distances are not so marked, 7.2 OPERATING PERFORMANCE In Pakistan height vehicles are abll?to achieve a high degree of utilisation by working long hours, night and day, Most trucks have two drivers and when one is working the other Is able to rest and sleep making use of the wooden compartment built above the cab. Apart from the tankers there are very few specialised trucks, so It Is possible for vehicles to go Iooklrrgfor work from job to job with themlnlmum of difficulty. Inpractlce vehicles are often away from base for periods of Upto three weeks at a time seeking work throughout the country. The widespread dispersal of frelghi agenis makes Ii relatively easy io find any work ihat is available, Unlike ihe paiiern common In oiher counifles, It Is ihe principal driver of each iruck, raiher ihan ihe firm’s office, who is responsible for finding work, schedullrrg vehicles, collecting revenues, and organlslng repairs, Alihough vehicles wotk long hours and are modified io take heavy loads, produciiviiy Is consiralned by relatively low running speeds. A highway speed survey (Majeed 1980) esiimaied an average spot running speed of 52 kph (34 mph) for irucks, The Roadside Iniervlew Survey found overall loaded journey speeds (I,e. wiih rest porlods) of 23 kph for iwo-axle Bedfords, 20 kph for iwo. axle Japanese trucks,21 kphforihrae.aYle Japanese irucks, and 17 kph for iracior.iraller combinations, Key operating s!aiistlcs (broken down by vehicle type) derived from ihe Roadside Iniervlew Suwey are given In Table 12, Loaded irip distances range beiween 500 kms for Bedford irucks to 1000 kms for ihe larger ihre~axle vehicles, Empiyirip dlsiances were muchness, To estimate the degree of empiy running and ilme speni empiy drivers of loaded vehicles were asked aboui thalr curreni irip and aboui any ampty period or empty running underiakan during ihe time beiween ihe Iasi loaded irip 20 and ihe currani one. This data is presenied in Table 12 wiih data from Interviews of drivers of empty vehicles. The Roadside Inierview Survey ihus provided two seis of daia on empty iravel, one directly from empiy vehicles and one from the previous activiiy of loaded vehicles. irip lengths foriheformer weresomewhai larger (Table 12). The difference Is because some irucks were able io pick up loads after only a very short empiy journey wiihin ihe iown where ihey had dropped ihelr previous load. These empiy irips were recorded as past empiy journeys but were not picked up as curreni empiy irlps at ihe iniev disirici suwey siies. The percentage of vehicle kllomeires loaded given in Table 12 for Bedford irucks is Iitile differeni from the oiher irucks, This is largely because of the higher proportion of iankers (which have much greaier difficulty In finding reiurnloads) amongsi iheheavierirucks, Excluding iankers, Bedfords do more empiy running ihan oiher trucks because of ihelr shorter irip disiances, Information on empiy trips showed thai for 83 per ccni of cases ihe primary purpose was to look for a load, and in 14 per ceni ii was to reiurn to base or io home. Journeys io make repairs amounied to just two par ceni of empty irips. On average Bedford irucks reiurned io base ufier 7 days andothor trucks returrledafter8to 12days. The drivers were away from ihelr homes for much longer periods, The drivers of Bedfords and the oiher iwo.axle iruck drivers were found io return to iheir families after 16 to 21 days bui ihe drivers of ihree.axle Nissans and Nissan iracior-trailars reiurned after 27 and 38 days respectively Three different esilmaies of the annual distance iravelled were calculated from ihe Roadside Iniervlew Survey, ihese are given In Table 13, The esiimaies were based on: a) weekly disianceiravelled b) monthly revenues andcurreni idprevenugs and disiances, and c) curreni iripilmes and distances, Only one esiimaie of annual disiance travetled shown in Tablo 13 Is below i 00,000 kms, Alihough ihere Is some varleblliiy In the resulis It appears ihai ihe higher capaciiy irucks iravel further ihan ihe Bedfords. Because ihe daia were collecied from Inier.dlstrlci iruck movemenis ihe results are likely io overesilmate ihe average disiance iravelled. Alihough Bedford trucks accounied for 77 per ceni of ihe irucks surveyed ihey provided jusi 50 per ceni of ihe measured iotal ion.kilomeires. The capacity ihaf different vehicles provldedlsshownln Fig, 11, which demon. slraies the Importance of ihe iracior-irailers that ac counied for 15 per cent of the capacity provided but only 3,5 per ceni of ihe vehicles surveyed. TABLE 12 Time and Disiance Operating Siaiistics 2 Axle 3Axte Tracior-Trailer Bedford Hino Isuzu Nissan Nissan Nissan Per ceni irips Ioadoa 68.5 Per cent vehicle kms loaded 85,4 Overall mean trip disiance kms 403 For loaded irucks: mean irip Iengih kms 502 mean trip duration hrs 20 mean previous empty iriplengih kms 98 mean previous empty running & waiting duraiion hrs For empiy irucks: mean itlp Iengih kms Mean period before: reiurrzing io base days r~iurning to family days Number of iimes a clay’s rest Is iaken per month Number of days resi iaken each time Days under repair per year 26 188 6,7 17.t 245 t,7 52 75,7 87,5 726 839 39 325 40 373 7.9 16.3 2.1 i .7 33 66.8 73,7 607 665 34 235 31 487 10.2 21.1 2.4 i ,7 34 67.1 75<0 76.6 86,1 598 887 666 iOi8 36 47 205 2TJ 32 46 448 495 8.8 11,8 i 7.3 27.i 2!1 1.7 i .8 2!8 46 42 74.1 87.6 809 957 5i 318 35 387 9>0 37.8 1.6 3,3 51 Source: Roadside Irrtowlew Survey TABLE 13 Three Estimates of Annual Disiance Travelled (t 000 kms) 2 Axle 3 Axle Traclor.Trailer Bedford Hino Isuzu Nissan Nissan Nissan based on: a) weekly distance 117 i 59 t47 i 32 143 136 b) irip revenues’ i 09 116 104 95 112 129 c) (rip iimes 109 129 117 i 08 120 127 Mean of esiimates 112 135 i 25 112 t25 13i Source: Roadside Iniewlew Survey ‘ Excludes data from Survey Staiions 1. i 1. 21 from Rawalpindl 10Gllgit (7.8 RSper km). These were more than double the average, reelectingthe absence Of return loads and the difficult operating conditions of driving in Mekran (for Turbat) and in the mountains (for Gllgit). Table 14 provides a summary Oftariffs, distances a,.,i load weight data for different vehicle types. overall Bedford trucks earned Rs 2.7 Per (empty and loaded) kllomelre Iravelled, The twmaxle Japanese trucks earned belween 3.5 and 4.1 RSper km travelled and the larger Nissan trucks earned belween 52 and 5,4 RSper km, The overall tariff per ton-km for Bedfords was Rs 0.38, The overall rates for two.axle Japanese trucks were sllghtly lower with an average OfRs 0.35 per ton.km: the difference can be explained largely by the longer average trip distances for tho Japanese trucks, Three.axle trucks and tractor-trailer unlls had overall tariff rates of about RS 0,25 per ton-km (i.e. equivalent to about 65 per cent Of the Bedford truck rate). Table 15 provides a comparison between rail and road tariffs for a selection of key commodities. The rail data were compiled from statistics for freight carded during June 1985. Yhe road tariff data (collected from the Roadside Interview Survey) relates to the period January to May 1986. All two.axle vehicle data Is combined as Is data relating to three.axle trucks and tractor-trailers. The rates quoted for each category relate to the total revenue earned divided by the total Ion-kilometres, Thg overall rates shown for rail relate just to the cargtt=s carried commercially, Cargoes with rates of below Rs 0,05 per ton.km are ignored; these are mostly used for tha transport of the Railway’s own materials. The Table shows that while there Isa substantial varia. tion In the rates for the different commodities, in total, rail tariffs are about 70 per cent of the tariffs of the two.a~le trucks, For most commodities the tariffs of the larger trucks are slightly above rail tariffs. However, In overall terms there Is little difference In the rates, The analysis suggests that the larger trucks are able to compete on price with the Railways, In the Roads[de Interview Survey, tankers accounted for jUst 8 per cent of Bedfords but 23 per cent of the Japa. nese Iwo and three-axle trucks; they earned Ihe equivalent of i,8 times those of other trucks per loaded kllome. tre travelled, Yhls makes up for the very much higher rates of empty running encountered (i.e. 44 and 50 per cent of the total distance travellod for two.axle Bedford tankers and non.Bedford tankers respectively) and compares with 13 per cent empty running for the non. tanker Bedfords arid 9 per cent for the other non.tanker trucks, 7rIP distance, fkrm) Flg,12 Freight ratesto Karachi -. (li%l Fig.11 Breakdown of total ton.kms provided 7.3 LOADS AND TARIFFS In this section the main differences In tariffs are Identified for the different vehicle types, A more detailed analysls of the effects of time, distance, roughness and seasonality will be presented In subsequent reports, Because of the responsibility given to drivers, It was relatively easy to gather Information on the loads carried, tatiffs charged and revenues earned, Yhese data were collected from three different sources; the Roadside Interview Survey, the Vehicle Activity Survey and the Drivers’ Cost and Revenue Dlarles, Past trdnds In tariffs were also collected from freight agents. The data from the different suweys were found to be very consistent, Figures 12 and 13 show how tariffs vary with journey distance, direction and vehicle type. The data relates only to trucks traveling outside the Mekran area and where the driver has given his load Inweight tarms, (The Mekran area of Baluchlstan was excluded because of the very rough roads which Increasestariff levels, Tanker trucks, and some vehicles taking animals or sand and gravel+were excluded because the drivers did not give their loads In weight terms.) The average load carried by Bedfordswas 8 tons whilst for othar two- axle trucks the averagewas IZ tons, Average loads for three,axle trucks and tractor-trailer combinations were 21 tons and 2? tons respec~vely,For TABLE 14 Summary Of Yariffs, Distances And Load Weights’ 2 Axle 3 Axle Yractor-Yraller Bedford Hino Isuzl’ Nissan Nissan Nissan o I 1 I 1 I I I i I I I 1 I I I 7,, !,,” ,,,,, !,!,,, ,!,,, ,,,,,, , ,,”, ,,,,1, ,,,,,,, Trip disfntlcb!, (km$l Fig,13 Freightratesfrom Karachi Mean Tariff Rs 1702 3918 290i 3850 5682 5940 the latter two categories average loads from Karachi were SIXtons more than average loads 10Karachi, For Bedfords and other two-axle trucks, direction made no significant difference to the weight of load carried, Mean Loaded Distanco Km 547 921 724 850 1051 957 Mean Empty Distance Km i 58 242 359 236 i 98 387 The figures demonstrate a clear decline In tariff per tonkllometre as trip distance increases, They also show Ihal rates from Karachi were much higher than rates to Karachi: for Bedford trucks an average of 38 per cent, for three-axle trucks 62 per cent and for troctor.trailers 110 per cent. Per Cent Kms Loaded 86<5 937 86>8 91.3 967 87.6 Mean Load Weight Tons 8!1 12,4 tl,4 13.6 20!0 25.7 Comparing each distance and direction category there was little difference In tariff per ton.kllometre between Bedfords and other two.axle trucks, although the rates for three-axla trucks and tractor-trailers were substantially lower, (Total Taflff~otal Loaded Distance)/Mean Load Welghl Rs per Ton-Km 0.38 0!34 0.35 0.33 ‘e 0,26 0.24 I Yotal Tariff/(Total Loaded + Empty Distance) Rs per Km 2<7 4.0 3.5 4.i 5.2 584 , A further detailed comparison of tariffs between pairs of majOrtowns found that the freight tariffs In directions from Karachi were persistently higher throughout the whole country than those In the opposite direction, (The only exception was the rate from Hyderabad to Karachi.) i Total Tariffflotal Loaded Dlslance Rs per Km 3.1 4,3 4,0 4.5 5,4 6,2 Source: Roadside Interview Survey ‘ Excludlng Yankers and Trucks Yravelling TOAnd From Mekran Particularly high rates were found for Bedford trucks traveling from Karachi to Turbat (7,0 Rs per km) and 22 23 I I ‘~ .—— .... .. . . .. . .. /~”. .—.. .—-———-. .—...__ ._. ... . . .—_ ._— ——-—.——— ____ TABLE 15 TABLE 16 Vehicle Running Costs (Mean Values From Different Surveys, 1986 prices) Two.Axle Three-Axle Trac!or.Trailers Bedlords Japanese Japanese Japanese A Comparison Of Road And Rail Tariffs Tari// Mean Distance Commodity Rail 2 Axle 3 Axle& T&T Rail 2 Axle 3 Axle& T&T Trucks Trucks Trucks Trtjckc ------ Rs per Ton-Km KmsFuel consumption ltr/km Kerosene 011 0.59 0!95 Diesel Oil 0.54 0.70 Petrol 044 0.94 Furnace Oil 0,27 0.42 (Diesel = 425 R#llr) Diaries Roadside Interview Vehicle Activity 0,74 0!53 0.32 488 409 277 844 432 411 350 G03 596 1521 0.299 0.285 0.25 0.306 0,397 0.486 1043 General repairs Rs/km Diaries (mean vohlcle age) Roadside Interview (mean vehicle age) Firewood Fertilizer Wheat Sugar Coal & Coke Paddy & Rice Iron & Steel Cement Salt 0,51 0.47 0,27 0,26 0.25 0.25 0.25 0.23 0.22 0.59 0,37 0.39 0.38 0.34 0.32 0.39 0!53 0.44 359 672 1060 0.19 0.31 0,27 025 0.30 0,24 292 348 307 767 i 042 488 635 348 243 554 551 0.239 0,244 dyrs i yr 0,358 0.259 t Oyrs 3yrs 04315 i yr 0.367 3yrs 1033 0.568 4yrs i 237 973 1159 916 848 i 555 658 1085 i 065 Tyres (cost) Rs/km (New tyre = Rs 2275) Diaries 0.142 0.1 O.ii Overall Rates: Petroleum Products 0.41 0!68 Yyres (no per i 000 km) Roadside Interview o.t49 0.ld3 0.207 0.246 o!5t 0.25 571 498 872 638 1014 1002 Total crew costs Rs/day Diaries Roadside Interview Dry Cargo 026 0.37 Sources: 1. Pakistan Railway Statistics For June 1985 2. Roadside Interview Survey 127 131 i Od 159 199 i 73 Oil and grease costs Rs/km (Oil = i 3.4 Rs/ltr) Diaries Vehicle Aclivity 0.141 0.19 0.129 0.193 8 COSTS, REVENUES AND PROFITABILITY relates only to vehicles traveling on paved roads in flat terrain (I.e. dala relating 10vehicles traveling in the mourltalnous north or on rough roads In the Mekran are omitted), Loading Labour Rs/km Diaries Vehicle Activity . 0.06 0.13 0.065 0,4i InformalIon on vehicle operating costs and revenues was collected from three different suweys, These were:. Some degree of variation In the results from tho different data sources Is to be expected, Differences in vehicle age help to explain some of the differences in mainle. nance and lyre COSIS, Octroi ond police Rs’km Diaries Vehicle Activity a) Yhe Roadside Interview Survey 0.148 0.17 0.102 0.16 b) Yruck Drivers’ Cost and Revenue Dlarles There Isa fairly close correspondence between the different surveys In crew costs, loading Iabour, gratuities paid to the police and oil and grease costs, Expenditure on tyres recorded by the Drivers’ Diaries appears to bo low In relatlon to the apporent lyre replacemerlt rate: howover a variety of repairs is made to extend tyro life and much use Is made of remoulded tyres. Large differ. e:lCeSWererecorded in the payments made for tho ~clroi (a local tax levied on loading and unloading freight) and for agen!?’ commission, For these items different operators will face different costs according to the journey and type of load carried. It Is possible that the surveys captured different patterns of vehicle operation. Agents’ commission Rs/km Dik~ries Vehicle Activity Roadside Interview C) Vehicle Activity Suwey 0.035 0.07 0,142 0.12 0.16 006 The data from the Drivers’ Cost and Revenue Dlarles covered different periods going back to the mid lg70s. Those data were aggregated Into monthly periods and converted to 1986 prices {o be comparable with the other two surveys. 0.16 0.158 f ... \ outright. In Ihe hire.purchaso case the costs of rnoeting and tho total timo period 10make the currenl loaded trip the repayment commitmonls are used, in place of the togethor with the lime spent empty prior 10making the purchase price, and an adjustment for inflation is mado loaded trip. for the repaymonl period. TI1Oostlmates for Bedford trucks rango from 967 to 1086 8.2 VEHICLE REVENUE Rs per day: a differcnco of about i 2 per cent. Because of tho smaller sample sizes [hero is greater uncertainty for Information on vehicle edrnings is presented in Tablo 18, the larger trucks. For these an adjuslmonl was made to Earnings por day were eslitllfited directly from tho the Roadside Intorvlow Data to accommodate Iho monthly earnings recorded in the Drivers’ Diaries data directional flow imbalanc~ of trucks Iravolling 10and from and from the data collection periods (one to four wooks) Karachi. Tariffs for loads traveling from Karachi were Ofthe Activity Survey, In the Roadside Intorviow Survey found to bo much higher than taritfs in the opposite earnings por day wore calculated from tho tarilfs charged direction: this difference was particularly murkod for 1 10 in this Section a brief analysis of operatlrrg costs, rev. enues and profitability is presented. A more comprehen. slve analysis of this data will be presented In a subsequent report, 8.1 VEHICLE OPERATING COST COMPONENTS Table i 7 gives estimates of the capital costs per day of running different typQsof vehicle. They include both depreclallon and Inlerest charges covoring the estimated vehiclo life. A current real interest rate of three por cent is assumed. Different costs tire given for trucks purchased by hire.purchase repayments from trucks purchwsed , 0 I Table 16 provides a summary of data collected on the main components of vehicle running costs by the different surveys, The data from the Roadside Interview Survey 24 25 I I I ,- - ..’, - —.—— — —. —_.-.._. —--——— .-__.. . . ...: .. .— TABLE 17 Vehicle Capital Costs Per Day (For trccks made In 85/86, i 986 prices) — Two.Axle Three-Axle Traclor.Trailer Bedlord Japanese Japanese JapanesQ Mean new purchase price QsOOO 305 377 519 625 Assumed vehicle life Years 15 13 12 12 Capital COSISper day: 1)for trucks purchased outright Rs 68 94 139 167 11)fortrucks purchased by repayments Rs 84 115 166 202 ill) mean estimate for all trucks Rs 80 ifl i 60 185 e traclor.tiallers for which there was also a marked discrep. ancy in the number of vehicles traveling in the two directions. 8.3 TOTAL OPERATING COSTS AND PROFITABILITY Estimates of mean lifetime operating costs, revenues and profitability are given In Table 19. Adjustments have been made to take account of the effects of vehicle age on operating costs, distance Iravelled and revenues. Lack of data prevents esllmates for tractor.trailers, Estimates of net profit are also given In Table 19, and estimates oi Internal rates of return (IRRs) are shown In Table ZO,The data suggest that the three.axle Japanese trucks are the most profitable white Bedford Ilucks are only just profitable, Lack of data prevents estimates for Iractor-trailers; these are believed to be Intermediate in profitability between the two and three.axle Japanese trucks. The results confirm impressions gained from informal irrterviows with various people connacted with the Industry, The IRRs given are in real terms and tflay should be viewed in relaiion to the alternative returns on capital. In real terms money invested in Pakistan on deposit at [ho bank has, in recent years, given a return of between zero and three and a half per cent. The profitability calculatlon~ are based on Iho assumption that for vehicles of different ages, revenues and costs will be maintained in real terms, HowevQr it is likely that the high levels of profitability found for the larger vehicles will decline as more of these vehlctes are introduced into Pakistan and competition forces down tariffs, Furthop more since early 1986 the Yen has appreciated in value and as a result the price of new Japanese trucks has risen substantially, This will also afldcl the profitflbilily of now operators entering the market, TABLE 18 Vehicle Earnings (lJean estimates, 1986 prices) Two.Axle Three-Axlo Tractor-Trailer Bedford Japanese Japaneso JaDoneso To/a/ earrring$ per day (RS) Diary Data for 1985/86 1005 i554 Roadside Interview 967 1179 1804 i 662 Roadside Interview. Q Adjusted for traffic directiorr llowlmbalance . l17i 1846 1917 J Activity Survey /, 1~86 i 26 I , .! - ..___ ..._. . . - .—- . . ,, ,, IIF e TABLE 19 Estlmaled Lifetlnle Operating Costs Por Kilome[re (1986 prices) TWO.AXIO Two-Ax18 Three.Axlo Bedford Japanese Japanese Distance perday Kms 329 304 373 Running costs: Fuel Crew Maintenance and repairs Tyres 011and grease Loading Iabour Octrol, police, taxes Agents commission 1.257 0.426 0.322 0.142 0!141 0>079 0.171 0.078 Rs por km 1,333 0.472 0!294 0.142 o#190 0,086 0.193 0.115 i .732 0.587 0!388 0.213 oji93 0.149 0.183 0.110 Total running costs 2,GiG 2.825 3.555 Estimated capital costs: i) vehicle purchased oulrighl 0.207 0.309 0.373 1)vohlcle purchased with repayments 0.255 0.378 0)445 Ill) mean estimate for all trucks 0.243 0.365 0.429 Total Revenue per km 2.939 3.347 ~.302 Nel Profit: i) vehicle purchased outright 0.116 0.213 0.454 11)vehlclo purchased with repayments 0>068 0.144 C.372 Iii) mean ostlmate Ior all trucks 0.000 0.157 0.398 TABLE 20 Estimated Inturnal Rate of Return (lRR) for Different Trucks TWO.AXIO TwoAxle Ttlre~.Axl~ Bedford Japanese Japanese per cenl Estimated IRR based on outright purchase 9.3 18.1 50,6 Estlmatod IRR based on mean terms 01repayments 6.3 15,t 70>3 .— 27 -. - \ , Using the cost and revenue data co’fected from the Roadside Inlervlew Survey an Investlgallon was made of the changes In profllablllty of different vehicles with trip distance, Long distance trips appear 10be unprofitable for Bedford Irljcks, while for two and three.axle Japanese trucks long dlslance trips appaar to be much more profitable, This confirms the widely held view that trucks with small carrying capaclly are more suited to short distance journeys where their flexlblllfy Is an advantage, 9 DRIVERS’ PROBLEMS AND ROAD ACCIDENTS 9.1 DRIVERS’ PROBLEMS During the Roadside Interview Survey drivers were asked to Identify up to three key problems that they encountered In the course of their work, The results are shown In Table 21, The most Important problem Idenfi{ied was pollee harassment, which was mentioned by two thirds of all drivers, Pollee harassment is connected with Iho payment of gratuities to pollee on traffic duly: this practice Is very widespread and is bellevad to apply also to publlc transport as well as to fhe frelghl transport Industry. Data from tho Drivers’ Cost and Revenue Diaries Survey suggests that the police receive on average about Rs 45o per month from each vehicle, equivalent to just under half of the average Industrial wage, The second and third most Imporfanl problems were poor roads andlearofrokuers, For both of these ahlgher proportion of the drivers of the Japanese lrucks identified these problems because a greater proporflon of them operateln Baluchlstan andln Slnd. Baluchlstan hasa high mileage of unpaved main roads and both Slnd and Baluchlstan are noled for robbery attacks, An Interesting difference, relating to their economic performance, emerged between the Bedford and Japa. nese trucks, High operatlrtg costs were mentioned by zo per cent of Bedford drivers but by only four per cent of Japanese truck drivers. 9.2 ROAD ACCIDENTS Table 22 gives data relating to accidents suffered by the trucks during th~ previous year. In folal 9 per cent 01 drivers reported one or more accidents during the year. On average, for each accident, vehicle damage amountad lo about i3percent ofvehlcle valuoarld load damage to less that one per cent of vehicle valua. Of II1O accidents 77percenl lnvolvednoltljury, 14porcQrlt Involved rnlnor injuries, three per cent resulted In tlospitallsatlon and six por cent resulted in fatalities, ‘Roll-over’ accidenls wore the most common involving about 39 per cent of the total. The high sided trucks used In Pakistan appear to be particularly susceptible to this type of accident. ‘Roll.ovor’ accidenfs caused Ihe leas! pei$onal injury, As expected ‘head. on’ and pedesfriall accidents caused most of the fatal and serious Injuries, TABLE 21 Drivers’ Main Problems 2 Axle Bedlords Japat)ese Trucks No, of Per Cent No, of Per Genl Ar,swers of Drivers Answel’s of Drivers Police Harassment 17i6 66.3 436 67.6 Poor Roads 853 33,0 Fear of Robbers 614 363 56,3 23.7 High Running Costs 522 25i 38.9 20.2 District Ta,’ 23 222 36 8.6 37 Fmdlng Loads 164 5.7 Low Salary 6.3 55 55 8.5 2.1 13 Low Tariffs 47 2.0 i ,8 Competltlon 49 29 4,5 1.9 3 0.5 Spare Parts 21 Flndlng Finance 1 Driver’s Unemployment 1 Unnecessary Delays 1 Loan Repayments o Vehicle Breakdown o Other Problems 2a7 ),i i 0.2 0 0 0 0 0 1.1 51 7,9 Total Answers 4553 Number of Drivers Giving i 262 Positive Answers 2588 645 Source: Roadside Interview Survey —— 28 TABLE 22 Road Accidents Two.Axle Olher All BPdfords Trucks Trucks No. of vehicles Involved In accidents during previous yuar 254 Total No, of accldelts 45 288 299 50 No. of accidents as V. of total trucks 11 33a 7 Per cent of accidents with truck damage 95 to Mean tiuck damage’ Rs ao 25,5oo 92 Per cent with load damage 36,OOO 27,100 20 Mean loaddamage’ Rs 21 7,000 20 i 1,600 7,900 Accldenl Type Rollover p~r COn/ 39 Head.on 38 22 39 Side 26 18 22 Nose.lo.tail 5 12 16 Obstacle 12 6 iz Animal 5 ~ o 0 Other 2 0 0 2 Personal Injury Type Por Cc/l/ No injury 79 Minor injuries only 67 Ii 77 26 14 Hospitalised (no falalitles) 4 0 Fatal 3 6 7 6 Source: Roadside Interview Survey ‘ For llIose cases whore damago occurred 10 SUMMARY OF MAIN RESULTS The main findings of fhis study are as follows: 1) Overall tho road frolghl transport industry is very compotilive and the exlsling vehicle Ileel is run officlontly, However there appears 10be scopo for the irrtrcduclion of grealer numbers of Iargor vehlclos. II) Road frelghl transport has been growing in importance In Pakistan, In i 983 it accounled for 70 por cenl of Iotal inland freight Inoveml]nl, ill) During the i 970s and early 1980s Iho two.axle 7- Ion Bedfotd truck dominated tho industry, Howovtir during the last fivo years newer and larger lwc.axle Japanese trucks have taken an increasing proportion of the market, iv) Most trucks in Pakistan are sfrengthoned 10Iaku heavier loads, II IS common for the Bedfords which uro designed 10 carry 7 totls 10 l~ko i 1 tons and !or two.axlo Japanuse trucks desigrt~d 10 carry 11 tons 10transport loads of i 6 Ions, Three.axlo votliclos carry Up 1030 [orls and Iractor.trailer units will carry ovor 50 tons. v) Two.axle Bedford trucks appo;lrod fo bo only marginally profitable while II1OIargor capocily trucks wore found to be much moro prolilable, The inlernal rato of roturrr(lRR) for two-axle Japaneso trucks was estimated to b~ about 15 por cent while for three-axle Japanese Irucks th6 IRR was ~sllmaled to be over 50 per cent, vi) Small repair workshops are widely distributed throughout Paklslan. Spare parts are plentiful: tnany are factory rnado in Pakislan and some are made to order in tho small workshops vii) Commercial Iroight transport in Pakistan Is organisod on a free markel basis: freight Iarills are dolermined by supply and demand. Entry Into the industry is cheap and easy, and apart from the operation of tho Nntiorral Logislics Coil, there is little direct govern. menl inlelvention. viii) The predominant form of ownorshlp Is by itldividual entrepreneurs who provide a “hire and reward” service. There is a very high turnover in vehicle ownership. Over half of the Bedford trucks wore purchased by their currunl ownor during tho previous two years. ix) “Own account” operations tend to be confined to urban collection and delivery work; they are virtually non. existent in long distance transport operations. The probloms associated with managing staff and vehicles wero idenlifiod by industrial freight consignors as the 29 .- —.--. main reasons against developing the use of Iheir own vehicles. The “lor hire” sector is readily able to provide transport cheaply and quickly and there Is very little demand for purpose built speciallsed vehicles x) Vehicle iinance is provided through an informal system of hire purchase arrangements between owners and middlemen, many of whom arc freight agents. Bank finance is very rare, A wide range 01effective interest rates Is paid for truck purchase through these agree. ments. The modal rate of Interest charged Is about 20 por cent. On the whole, owners of the larger and newer trucks find it easiest to meet their financial commitments. xl) Trip lengths In Paklslan ara long; the average loaded trip length for Bedford trucks was 500 kms. For the larger capacity Japanese trucks It ranged from 650 to over 1000 kms. Empty running accounled for about 16 per cent of total vehicle kllometres, Annual travel appears to be in excess of 100,000 kms for those trucks reglltarly engaged on long haul transport. xii) Overall journey speeds (including rest slops) are low at about 23 kph. The typical pattern of operations usually Involves Iwo drivers and one assistant, They will travot night and day going from job 10iob for IJp to two weaks at a time before returning to base, The principal driver Is responsible for finding work, colloctlng revenue, keeping accounts and malnlalning the vehicle In good rcoalr. xiii) Most Industrial Irelght consignors wero found 10 favour road transporf In comparison with rail in view of the former’s flexibility, speed, convenience and greater accountability in the case of damage, xiv) The widespread network of freight agerds was found to play a key role in the operations of the industry. Over 60 per cent of loads were placad through agents, Over 90 per cent of agents were found 10have access to a working telephone and 90 per cent of agents clalmed that on average they could find a vehicle to consign a load within one hour, xv) The national Imbalance in freight flows was found to be reflected in freight Iatlffs. On average, Irelght rates for goods travelllng Inland from Karachi were about 35 por cent higher than rale$ Ior the reverse direction, xvi) Freight tariffs per kilometre were found to decline markedly with Increasing iournoy distance. Tracto~ trailers and three-axle trucks provided transport at tariff rates that were broadly compelitivo with Pakistan Railways: these rate~ Wereroughly equivalent 10about 65 per cent of the tariffs charged by the two.axle Bedford trucks, xvii) Tho most common complaint 01drivers related 10 ttle widespread problem of police harassment, Frequent complaints were also made about road conditions and the fear of robbers, ailhough by international standards the main roads In Pakistan aro nol bad and the actual incidence of highway robbory is v~ry SMaII. 30 xviii) About 9 per ceflt of Vetlicles were Involved In an accident In the previous year. Of those accidents, 77 per cent involved no inlurY, i 4 Per cent Involved minor injuries, in three percent of the cases people were hospltallsed and insix per cent of the cases fatal injuries were Incurred, Vehicle ‘rollover’ occurred In 39 per cent of the accidents, 11 ACKNOWLEDGEMENTS The work described In this report forms part Of a pro. gramme of Ioint research between Ihe Overseas Unit (Ilead J S Yerrell) of the Transport and Road Researctl Laboratory, UK and the National Transport Research Centre !Head M S SwatI), Pakistan. 12 REFERENCES Cundill, M, A. and P, M Hull (i 979) Reducing Empty Travel By Goods Vehicles, TRRL Laboro/ory Report NO 876. Transport and Road Research Laboratory, Crowthorne, Cundill, M, A. (1986) Road.rail competition for fraight traffic in Kenya, TRRL Researcl) Repor/ No. 41. Trans. port and Road Reseorch Laboratory, Crowthorno, Hundal, S, A. (1985a) Transport Statistics. NTHC Repor/ No, 83. Nafional Transport Research Cen(re, Islamobad. Hundal, S. A. (i 985b) Survival Rate of Molor Vohiclos in Pakistan. NTRC Reporf No, 90. Nationul Transport Research CanIre, Islamabod. Japan International Cooperation Agency (JICA), (1983) The Study on National Transport Plan in tho Islamic Republic of Pakistan. Tokyo. ttlaioed, A, (1980) Highway Speed Survey, NTRC Ropor/ No. 5t. National Transport Research Contre, Islamabad Majeed, A. (1983) Road Troffic Origin.Destination Survey (i979.80). NTRC Hepor/ No. 67, Nalional Transport Research Centro, Islamabad, Maieed,A,(1985) Vohiclo Operating Costs. NTRC Report No. 79. Nutional Transport Research Contre, Islamabad. APPENDIX A: ADDITIONAL TABLES TO THE MAIN TEXT TABLE Al Roadside lnlerviaw Staliorls Place Code Road Section Total Province Dalo Interviews 1 2 3 4 5 6 7 8 9 10 Ii 12 3 14 15 16 17 iB 19 20 21 22 23 24 25 26 27 28 29 30 3i 32 33 34 35 36 37 38 39 Rawalpindi - Murroe Taxila - Hasan Abdal Abbottabad. Mansehra Batgram - Bosham Allock Bridge Mardan - Malakand Poshawar. Nowshora Poshawar - Kohal Bannu - DI Khan Di Khan. DG Khan Rawolpindi . Mandra Jhelum Bridgo Guiranwala. Lahoro Faisalabad - Shoikhupura Sargodha - Faisaktbad Okara - Sahiwal Multan - Bahawalpur Muzuffargarh - I:alehpur DG Khan - Rakhni DI Khan - Dnry’] Khan Pano Aqil - Mirpur Malholo Jncobabod . Dora M~rad Jamali Larkann - Ghafi Yasin Hydorabad - Sakrand Hyderabad . Mirpur Khas I(otri - Dadu Hyderabad - Kar:lchi Karachi - Thalto Karachi - Lflhal Sibi - Dndhar Nushki - Ouolla Ouolla - Bostafl Muslimbaqh to Zhob & Loralai Khuzdar - Kalal Desima . Surab Bosimtl - l>anjgur Panjgur - Turbal Turbat - Gawadnr Turbat - Awaran Total Intorviows Puniab Punlab N.W.F.P N,W.F.P Puniab N,W.F.P N,W.F.P N,W,F.P N.W,F.P N.W.F.P Pun]ab Punlnb Punlab Puniab PurlJob Punlab Punlab Punlab Puniab Punlab Sind Sind Sind Sind Sind Sind Sind Sind Bnkrchislan Ualuchislan Qaktchislnn Ualuchislan Ualuchist;m 10/01/86 12/01/86 14/01/86 16/0i /86 18/01/86 20/Oi/86 22/01/86 2d101186 26/01/86 28/01/86 10/02/86 i 2/02/BG f4/02/86 1610218G 18/02/8G 20/02/86 ZZ/02/8G 24/02/86 26/021aG 2a/02/aG i a/03/aG 20/03/a6 221031aG 24103/aG 2G/03/a6 2a/03/a6 30/03/a6 Oi /04/86 03/04/a6 1o/041a6 121041aG 14/0418G 16/041a6 19/041UG 21/041a6 231041aG 25/04/aG 2710dlaG 25/04ia6 69 103 98 68 139 i 09 96 9a 9a 55 43 95 94 134 i 03 i 00 109 110 105 99 79 102 50 i 32 toa 120 133 izi 99 112 42 99 ai ii5 13 18 10 29 65 3453 31 .. ., . ..— ... . .. . .. . ... .. . .. . ,. . .—— TABLE A2 Trucks Surveyed: By Interview Province, Make And Type Make Province NWFP Punjab Total Sind Balucltis!an TABLE A3 Aae And Value Spectrum FOI Two-Axle Trucks Two.Axle Bedfords Two Axle Japanese Trucks Model Number Per cent Per cent Current Number Per cent Current Year In of all Value In Value Survey Bedford Survey Sales Rs 000 Rs 000 Bedford 2 axle 3 axle Tractor Trallar 2 axle 2 axle 2 axle 3 axle Tractor Trailer 2 axle 3 axle Tractor Trailer 2 axle 2 axle Tractor Trailer 2 axle 2 axle 3 axle Tractor Trailer 2 axle Yractor Trailer 1111 3 12 2 35 1 i 28 6 5 2 3 1 2 19 4 1 14 29 i8 1 5 i 303 524 613 1 2 1 45 2 3 32 t 6 1 3 2 3 5 12 43 59 1 10 845 386 2 1 106 1 1 117 2 1 2 t 41 10 8 1 3 683 2634 3 1 BMC/Leyland Ford Hlno 16 1957 1959 1960 19Gt t 962 1963 1964 i 965 19G6 1967 1968 1969 1970 1971 1972 1973 1974 1975 i 97G 1977 1978 1979 1980 1981 i 982 1983 1994 i 985 1986 Total 2 2 3 2 8 0,3 10 0.4 72 2.7 GO 2,2 81 3!0 56 2,1 5t 1.9 i 08 4.1 57 2>2 63 2,4 100 3,8 115 4,4 211 8.0 185 7!1 168 6.4 8G 3,3 120 4,6 232 167 ::: 102 3.9 191 7.3 178 6.B 139 5,3 54 2.1 2 48 60 65 70 83 60 98 93 95 104 ill 10G 127 114 114 123 i 28 i 33 131 143 14G i G6 i 72 18G 197 223 266 290 325 113 150 70 217 293 ioi 102 i 82 238 257 265 317 341 383 406 4 0!8 o,G 0!2 0.6 0.8 1.9 1.4 2.1 2.5 4.3 54 i3.4 19!0 38!4 8.7 100 23 1 13 190 7 11 International Man Mazda Mercedes 10 12 1 i 4 4 30 3 4.4 i 6.8 ::; 3.2 5.4 7.6 3,4 6.6 7.3 8.8 G 3 4 9 7 10 12 21 26 65 92 186 42 7 6 10 29 7 J Mitsubishi Nissan 1 I ! 1 7 2 axle 3 axle Tractor Trailer 19 16 86 98 85 Saviem Toyota 2 axle 2625 100 485 2 Mean i 55 337 2 axle 1 Others/Unspecified i Source: Roadside Interview Survey 19 Total 622 Source: Roadside Interview Survey 3453 32 33 ~~ i ,, 1 . ‘&_..-... ----- ....... * .. ,,, . ‘o I ( ! I I I 1 TABLE A4 Age And Value Spectrum 01 Nissan Three.Axle & Traclor-Trailers Nissan 3 Axle Trucks Nissan Tractor Trailers Model Number Per cent Current Number Per cent Year Current Value Value Rs 000 Rs 000 1974 i 976 1977 i 97C i 979 i 980 1982 1983 1984 1985 1986 i i .0 i ,0 7.1 6.1 7.f 11.2 i 7,3 40>8 6.1 3 3.6 2.4 8,3 7,1 5.9 8.3 i5.5 22.6 17.9 1,2 438 425 360 4a4 413 360 5ao 573 634 700 2 7 6 5 7 13 19 15 i 350 30i 360 3io 503 498 527 soa ; 6 7 ii 17 40 6 TABLE A7 Empty and Loaded Trip Length Distribution by Direction Trip From Karachi To Karachi Total Per Cent Length Kms Loaded Empty Loaded Empty Trucks Loaded 5- 50 51- 100 tol - 200 20}- 300 301. 400 401- 500 501. 600 601- 700 70 i - aoo 80t - 900 901-1000 100i -1200 1201.1400 1401.1600 1601-1800 i aoi -2000 66 97 t 93 102 135 129 i 49 118 67 27 15 9 8 4 2 1 2 0 1 0 0 1 76 t27 106 81 397 423 626 265 250 268 194 i 2a i 40 103 104 135 i 96 63 99 29 351a 53.0 59!3 72.8 76.0 84.0 77.8 a5.2 60,0 89.3 88!5 95,6 92.9 90!5 97.0 89,9 Total 98 i 00 84 Mean 100 483 534 Sourco: Roadside Survey t 78 i aa 91 45 55 96 51 45 24 42 35 59 8a 24 51 14 45 34 35 15 54 10 10 6 13 6 3 2 100 64 60 50 57 70 94 33 45 12 TABLE A5 TABLE A6 Location of Interviews for Consignors and Frelghl Agents —- Number of interviews 1ocatlon Consignors Freighf Agen/s I(arachl 56 Lahore 49 36 37 Rawalplndl 23 29 Falsalabad i 9 Gujranwala la 28 Sarghoda 14 Sukkur 24 13 19 Abbottabad 11 Attock 9 10 9 Sheikhupura 4 Others 2 4 Types of Business Undertaken by Cotlslgnors Type Total Per cent Yextiles 35 la,6 Industrial mechanics 19 Iron and steel 10,1 18 9,6 Agricultural produce 17 9.0 General raw materials 15 7.8 Food/anlrnal feed 9 ~i.a Celnent 7 3.7 Agricultural mechanics 6 Vegetable oll/ghee 3.2 5 2.7 Minerals 5 2,7 petroleum products 4 2.i Fertilizer i 0>6 Others 25 13.3 Total Trucks 1307 404 1056 653 3420 Average Per Cent Of Loaded Trucks: BYTrips 7s.4 61!a By Vehicle K!IIV 69,1 934s 74,3 839 Source: Roadsid6 Inlervlew Survey Total i 8a 237 Source: Freight Consignors and Agents SUrvOy Yotal 188 i on,~ — Source: Frelghl Consignors and Agents Survey P,I,tI,I