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 

9 Comments

APURBA BIKASH SHARMA

“Lot of international players are now plying in India….Its a challange for the Domestic players……Competition is tough….Cut throat competition……But the experience of domestic players is their biggest USP. ”

APURBA BIKASH SHARMA
Deputy Manager at Ashok Leyland

December 17, 2013 - 9:17 am Reply

Ashok Jaswal

Agree with Apurba.
Local players are having edge as they are having strong learning of Bharatiya consumer and it’s behavior.But no doubt road wouldn’t be smooth for any plays in the market place. In present scenario, keeping the prices at lowest level, without giving too much stress on the bottom margin is the biggest challenge. Also political factors plays there role…another barrier.

December 17, 2013 - 9:17 am Reply

Hitesh Gurunani

Yes, agree with Apurbasir,

Domestic players will be strongest in Truck segment.

Hitesh Gurunani
AMW
Built to Win

December 17, 2013 - 9:17 am Reply

Udaya Kumar

The scenario of domestic player’s strong dominance in the truck segment is anticipated to change with time and applications. It is also expected that, more than before, international OEMs will be adopting “GLOCAL” strategies to expand its market share.

December 17, 2013 - 9:17 am Reply

Sheel

We agree that Local OEM Truck Manufacurer has gear up.They have adopt & produce the Trucks based on Usage pattern
& adopt technology.But Service back up & cost of Parts is going to play important role here.

December 17, 2013 - 9:17 am Reply

Vijayakumar

Dear All,

Our Indian economy is depend upon performance of port only. As per ACG its good information for OEM of CV industry for promoting and explore their brands to the contractors.

December 17, 2013 - 9:17 am Reply

Neville Fernandes

Thanks for sharing!

Neville Fernandes
Manager
Mahindra & Mahindra

December 17, 2013 - 9:17 am Reply

T. SRINIVAS RAO

Dear Mr. Aravindan,
I am working for one project on Indian Logistics and Road transport industry. I need some inputs from professionals like you in this industry.
1.How many Logistic and Transport companies directly involved in Indian Logistc and Road Transport Industry?
2. What is actual fleet size involved in Road Transport Industry. (Trucks/Trailers/ Lcv’s, Insulated Trucks)
3. How many brokers/agents working directly or indirectly in this industry in India.

Can you help in this regard?
Your valuable inputs on this appreciated. Thank you.

December 17, 2013 - 9:17 am Reply

Amit Shrivastava

Quite informative. Any particular reasons why Volvo and Scania are preferred over Actros?

December 17, 2013 - 9:17 am Reply

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