Transport industry witnesses 89.8% increase in the load capacity

New Delhi, Dec 25 (UNI) The commercial goods transport industry registered an 89.8 per cent increase in total load capacity at 3.77 million tonnes (per trip) during the current fiscal (April-Nov'06) in comparison to 1.98 million tonnes (per trip) capacity during the corresponding period last year.

In addition, 90,182 new multi-axle (25-50 tonnes capacity) vehicles were added during the period, witnessing a growth of 85.35 per cent during the same period last year, according to a study by the Indian Foundation of Transport Research and Training (IFTRT).

This unprecedented growth in sales of high tonnage multi-axle vehicles has very aggressively expanded into the load segment normally dominated by Railways. During this period, the Railways have carried 10.6 per cent more freight than its previous year's performance (April-November).

Interestingly, the truck rentals during April-Nov'06 have also gone up by 8-10 per cent when diesel price went up by Rs 2 per litre in June-06 and have not dropped during current month despite Re 1 per litre cut in diesel price which is 65 per cent of the operting cost of a truck operator.

On the contrary, the Railways did not revised its freight charges upward during the period.

The growth in the high tonnage multi-axle trucks can also be attributed, apart from double digit manufacturing sector growth, due to curtailment in overloading of goods carriages in the aftermath of Supreme Court Order (November 9, 2005) directing the strict implementations of anti-overloading provisions under Sections 113 and 114 of Central Motor Vehicle Act, 1988.

However, the goods carriages largely engaged in ferrying of general cargo did not encounter similar growth in sales as against multi-axle trucks. In fact, the sales of light goods vehicles (5 tonne-7.5 tonne capacity) dropped by 10.85 per cent from 25,464 units in April-Nov'05 to 22,791 in April-Nov'06 and 16 tonner medium goods carrying vehicle sales remained virtually flat with nominal negative growth of 0.83 per cent.

But, the intermediate goods carriage (9 tonne-12 tonne capacity) dominating the high value cargo grew by 21.2 per cent.

The overall Commercial Vehicle in goods category have touched sales of 17,3145 (April-Nov'05) as against 1,29,775 (April-Nov'06), attaining 33.42 per cent growth.

This has virtually confirmed that commercial road transport is growing into movement of high density cargo, which is has been, historically, citadel of Indian Railways.

At the same time, these high tonnage multi-axle trucks are moving the cargo on extra long distances on trunk routes. As a matter of fact, Roadways and Railways are growing on the back of industrial growth in the country and heavy investment being made into manufacturing sector of the country.

Hence, there is a win-win situation for both the inland surface modes of transport and this growth is expected to continue in the coming periods.

However, the growth in Commercial Road Transport Sector is more laudable under the circumstances that there has been regular increase in cost of various inputs which go into its operation including diesel, tyres, vehicles and auto finance costs.

UNI DKS SBA VV1728