India’s export-import (Exim) trade is projected at $800 billion by 2014 and $1800 billion by 2020. Port throughput, which was 940 million tons in March 2012, will grow at an estimated 266 per cent to 2,500 million tons in 2020. Port capacity of 1,020 million tons is estimated to grow by 315 per cent to 3,200 million tons during the same time. Such huge expansion requires an estimated $20 billion in port infrastructure investment to meet the projected growth.
As most of this will be under PPP, that too foreign capital; global competitiveness will be the deciding factor. If Indian port sector has to emerge as a key facilitator and accelerator towards economic development, it needs to be competitive in the global market place. Only competitiveness would ensure infusion of both local and foreign capital, technology up gradation and, above all, the best talent for the development of the sector and consequently for the economy as a whole.
Discussion is going from long time to implement conveyor belt but it is still pending. If it will be not implemented then there is growth of 88% in this application. If conveyor belt mechanism is implement then 70% of tipper market will come down.
According to estimates by the Ministry of Shipping, cargo volumes in India are expected to breach the 1-billion tonne mark in the 2011–12; the 2-billion tonne mark by 2016–17; and 2.4 billion tonnes by 2019–20. Going forward, growth of traffic at Indian ports is expected to be driven mainly by higher volumes of coal (to meet requirements of the large number of current and proposed thermal power projects based on imported coal); containers (given the market under-penetration and potential for cost savings); crude oil and POL (large upcoming refinery capacity); fertilizers (strong domestic demand and low self-sufficiency); and steel (mega projects proposed in the eastern part of the country). Most of the expected traffic growth in India is based on domestic demand drivers, which are expected to spur growth in various port-related logistics and service activities, although competitive pressures in these business lines would remain high.
Key Truck purchasing criteria for port application
One of the most important criteria is an AMC (Annual maintenance contract). Sub-contractor of ports are having agreement with its authority to load/ unload vessel in a particular time frame. In case if it get delays, sub contract have to pay penalty to port authority. If it happens due to break down or off road of the vehicle, sub contract can claim this penalty to OEMs. Trailer tipper use for transport material from port to warehouse because it is economical than tipper. It can carry more load per trip so the Total cost of ownership will be less. This mode of transportation does have penalty clause of loading and unloading time frame. Number of trips and speed are less compare to inside port running vehicle. In Govt ports, penalty is strictly implemented compare to private port. In case of accidents in Govt port vehicle will be attached with police station and it could take number of days. This will cause zero productivity during this time. Customers are having team of professional to negotiate with OEM, TCO is one of the important buying tool.
Major Players in Port Application
Private port's tipper market is dominated by European brands. Private ports are control by private owner of the port and less control by Govt authority so there will be flexibility in operational level. The port surface is very slippery, for this they need tippers with higher torque which can work more efficiently.
New OEMs are normally accept almost all terms & condition of buyers if they want to enter into this segment. Now a days some of the contractors are exchanging their old fleet with new power full trucks. To get finance is easy to buy new truck if the customers are having good profile and proper paper work.
In this segment there could be good chances for bigger wheelbase along with 24cubic meter tipper body or more than this body size. Scania and Volvo is coming with 32cubic meter tipper body.
On site after sales support play very important role at port application. Truck should not be off road in this application to avoid penalty of none productivity time.
Application of the type of Truck
Apart from these main products a large range of raw materials, semi-finished products and general cargos appeared in individual forecasts. Inside port area tipper works more efficiently due to fast loading and unloading. European tippers are used for gradient because it need more powerful engine and torque. Domestic tipper are preferred choice at port transport. Volvo and Scania are better than Mercedes Actros tippers port application. Product life cycle is around 2 to 2.5 years of tippers, it works around 22 hrs. out of 24hrs. Tippers are stopped only during some maintenance and repairs.
Type wise description of trucks inside port
Another player is also a new player in this application segment and has managed to sell double digit number for port application. Now private port operators are replacing their fleets with European tippers.Outside port area truck fleet is full of domestic players.
One of the reason that port contractor do not use European brand is in Govt. controlled port is the issue in case of occurrence of accidents. In such situations happening in Govt. controlled port, immediately police arrest the driver and book the truck. During booking period of truck it can’t be used for work and so it is huge loss for contractors. In case of private port, police cannot control all points.
Purchase Full Report