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Project presentationProject presentation
EFFECTIVE WEIGHT CONTROL
MANAGEMENT
Draft Final Report
Hans-Jochen Starke / Brig. Usman Shafi
2
Project ObjectivesProject Objectives
 Realistic and effective medium- to
long-term “Road Transport Weight
Control Recommendations”
– Embedded within the “Highway
Rehabilitation Project”
– Referring to previous studies and base
line field investigations 2005
– Within 12 calendar months after start
of the project
3
BackgroundBackground
 GOP – Strategy for Infrastructure Development / major budget allocations to develop
a friendly highway culture
 Highway development and overloading have emerged together and this unholy
linkage continues without a break in the overloading cycle
 Construction and rehabilitation of Highways is short-circuited reducing the lifespan
to an unacceptable level
 The road maintenance phase is circumvented
 Railways continues to be an absentee in the cargo market
 Axle overload control, implemented in the last 15 years failed repeatedly as only the
effects were addressed
 The ToR largely addressed the end of the overloading cycle with focus on overload
management through enforcement
 NHA agreed to initiate the WCM project to study the CAUSE AND EFFECTS LOOP for
the first time
 The approach to cope with overloading continues to be in a FIRE FIGHTING MODE
with uncoordinated actions, fragmented objectives and in the absence of
performance evaluation index
 The fines regime – so far – is a destructive mechanism for a negotiated price
 There is no change to the provincial axle overload control inertia / worried but
ignorant.
4
Project descriptionProject description (Paradigm)(Paradigm)
 The road transport operator economic contribution is an
essential part of the national economic development with
resulting socio-economic effects, but is grossly
undermined due their ignorance of national legal weight
limitations and lack of legal and practicable enforcement.
The answer is an integrated solution in the form of:
 Implementation of systematic changes based on the
principles:
– Minimising or excluding collateral damage to the national
economic development and the private road transport sector
– Creation and acceptance of legal obligations by those affected
– Sustainable self-regulated system of binding obligations and
related enforcement procedures
5
Procedure – Why, What, How?Procedure – Why, What, How?
 The project result is to be designed upon the analysis of a
complex symptomatic multidimensional dynamic system,
demanding stringent identification of a hierarchy of
categories and their interactions. The various probabilities
of interaction and the amount and nature of multiple
implications demanding an integrated approach and
methodology. (The Cause- and Effect Loop)
 The influence of the human input from cultural and mental
resources on the quality of the Implementation Plan
requires the statement of a multitude of arguments and
vague possibilities, to be taken into consideration by the
implementing authority, (The Implementation Frame)
 All envisaged political, legal, administrative, technical,
economic, financial, organisational and institutional
recommendations are evaluated and validity assessed in
their context of level of acceptance within the stakeholder
community. (The Operational Frame)
6
Overloading Reasons (WHY ?)Overloading Reasons (WHY ?)
 Traditional
– Mentality
– Habitual
– Experience
 Economical
– Transport Market
Mechanism
– Over- or Under capacity
of Transport availability
– Unpaired transport
 Legal Framework
– Lack of implementation
– Distorted enforcement
– Corruption
 Technical
– Enlarged vehicles
– Oversized loading
volume
– Over inflated tires and
reinforced frame
7
TransportTransport
SupplySupply
TransportTransport
BrokerBroker
TransportTransport
AgentsAgents
TransportTransport
DemandDemand
Direct Contract
Operators
Contract
Logistic
Contract
OVERLOADED %
2 - 3 Axle
70%
4, 5 & 6
Axle 40%
Theoretical Market
Structure
8
Overloading Cycle OrganismOverloading Cycle Organism
9
Properties of the RecommendationsProperties of the Recommendations
 The principles forThe principles for sequencing of recommendationssequencing of recommendations
depend upon the following imperatives:depend upon the following imperatives:
– Their ability to provideTheir ability to provide alternativesalternatives to overloadingto overloading
– TheirTheir socio economic impactsocio economic impact upon the SME community ofupon the SME community of
stakeholdersstakeholders
– TheirTheir self-regulatory impulseself-regulatory impulse and force of valuesand force of values
– Their economic and culturalTheir economic and cultural acceptabilityacceptability within the transportwithin the transport
marketmarket
– TheirTheir self-sustainabilityself-sustainability
– Their value forTheir value for flexibleflexible future developmentfuture development in domestic andin domestic and
international transportinternational transport
– TheirTheir just, fair and transparentjust, fair and transparent charactercharacter
– Their stringent, non-misleading and transparentTheir stringent, non-misleading and transparent enforcementenforcement
of law and regulations.of law and regulations.
10
Conclusions 1Conclusions 1
 The trucking sector is too primitive, traditional
and resistant to change- unlikely to improve in
a short timeframe
 There is no institutional structure available that
provides a common denominator for
improvement
 The existing organizational structure available
is a, SURVIVAL CLUB, in all the provinces, 4000
in number; these are usually individually driven,
sociologically conflictive, but driven by
common interests. These can be harnessed for
improvement
11
Conclusions 2Conclusions 2
 The socio economic environment for the trucker with all
its permanent influencing elements is unlikely to undergo
a change from within. There is no motivational force at
the domestic level to bring about a socio-economic
change in a short timeframe
 There is no TARRIF system that drives the market. It is a
cash flow based day to day expenditure recovery
instrument. This can be changed through education and
engagement
 The existing market mechanism is an undefined elusive
component of the economic sector, regulated by
interests groups and exploited by the commercial market.
This aspect needs to be incisively and diagnostically
investigated to determine the overloading disease cause
12
Conclusions 3Conclusions 3
 The fleet composition of over 67% two Axle trucks is
unlikely to witness any reduction in the near future without
a comprehensive GOP involvement, thus perpetuating the
overloading problem.
 There is no concept of Cargo Management except with Oil
Companies, The Goods forwarding component is ONLY AN
ADDA FACILITY FOR GOODS / LOAD FORMULATION. This
is apparently one cause of overloading, needs further
investigation
 The highway police constitute an 18%-22% contribution
towards the transportation cost in terms of fines and
extractions leaving little maneuver space for cost
management to the trucker-.He has the only choice of
overloading to meet costs
13
Conclusions 4Conclusions 4
 The dynamics of the DOMESTIC Transport Market are
unlikely to change in the near future. The overloading is
therefore likely to continue in the absence of Economic
Alternatives
 There is an absence of Legislative Implementation
measures –Selective enforcement of rules has wrinkled the
execution instrument , these are unlikely to affect in the
absence of a comprehensive multi-directional alternatives
 The quality of the Truckers Organizations make it a non-
starter for a change. Any one of the Stakeholders with an
existing Institutional base will have to take the lead to
engage, educate and proactively prepare them for the
change. This will need a demonstrative support of the GOP
14
Conclusions 5Conclusions 5
 The only motivation stimulant (CARROT ) left for the
truckers is to educate them about the benefits of
International Cargo management participation in the post
TIR and CMR conventions Pakistan is likely to sign AND the
disadvantage to them if the are left out. The preparatory
phase will by default filter the benefits to all the
stakeholders. The strategy therefore could be based on this
inevitability.
 There is no platform of the STAKEHOLDERS club, the
present ones are outward looking and highly antagonistic
towards each other. There is a need for some external
Agency to engage all of the stakeholders continuously to
form one common interest club.
 Policy instruments at the Federal or Provincial level are
absent (trucking-, registration-, licensing policy)
15
Conclusions 6Conclusions 6
 The provincial participation in the transport sector continues to be
primitive, rigid, highly decentralised and sensitive to change (licensing
and registration procedures)
 Absent institutional framework at the Federal level for coordinating,
promoting, monitoring, directing any transport sector related reform
 Organisational changes / technical changes undertaken continue to be
splintered, non-directional, non-conforming, and therefore lack synergy
to achieve intermediate and final objectives (Customs duty reduction for
import of trucks for fleet composition change, unsupported by a
financial mechanism, without organisational framework, without
finalisation of technical standards and associated registration and
licensing implements)
16
Major ConclusionMajor Conclusion
Reform benefits
Reduced
Overloading
Beneficiary - ?
?
17
Major Conclusion ctd.Major Conclusion ctd.
The implementation process will generate
socio-economic benefits for the trucking
sector that must be translated into an
increased life of the roads, reduced
collateral damage, reduced overloading,
and restrict maintenance bill…..but……it
must have a clearly defined recipient of
the benefit for a trade-off during the
transition period.
18
Transport Reform
The Trucking Sector
Organisations –
Survival Clubs
The market andpricing mechanism
Domestic CargoManagement
International Cargo
Management Institution Building Plan
CPC-Certificate of
Professional Competence
TRAINING
IRU Fleet Composition
and Capacity
Fleet replacement
strategy
Implementation policy for
alternate transport mode
(combined transport)
Strategy for integration
of financial Institutions
Legal and administrative
Instruments
Standards for registration
and certification
Market condition evaluation
Formalisation Plan
for Road Transport
Industry
19
ScenariosScenarios
 Rough scenario – 1 to 2 years
– Short term solutions, parallel actions, high resistance
expected, dictation instead of cooperation, enforcement
based.
 Medium scenario – 1 to 5 years
– Medium term solutions, less resistance, education,
cooperation, coordination, alternatives in place,
transition period, rigid enforcement comes last.
 Long / soft scenario – 1 to 10 years
– Sensitive implementation, low resistance, applied
psychology, education and training, full cooperation,
multitude of alternatives, assistance to stakeholder,
transition period, stepwise increasing enforcement,
minimum parallel implementation but step by step
building on successful terminated progressive steps of
change. – see implementation loop.
20
Scenarios ctdScenarios ctd
Rider clause
– Common to all the scenarios is the path
that should be followed
“ Investigation (partly completed) 
Identification of causes 
Information and motivation 
Concession  Cooperation 
Implementation  Appreciation 
Prosecution”
21
GOP provides
Road Transport
status of
Formal Industry
Creation of
The Pakistan
Professional
Road Transport
Association
Road
Transport
Fleet composition
and Modernisation
Incentives
Interaction
Basic platform for envisaged changes
GOP
IRU
STAKE HOLDER
22
Creation of
Incentives,
Benefits,
and
Self regulation
Enforcement
by Law
of
Regulation
Cooperation
between
GOP
and
Stakeholder -
community
Resistance of
Change
Management
Applied
Psychology
Education and
Training
23
The Prognosis
and Treatment
Divergent
Antagonistic
Attitudes
Misperceived
Mistrusted
Resistant to Change
Socio-economic
insecurities
Stake Holder
Stake Holder
Properties
Confidence
Building Measures
Transport Sector
as an Industry
Cargo
Management
Transport Fleet
Concession
Create FTA, FRTA
(IRU membership
Create new operational
framework
24
StakeholderStakeholder PropertiesProperties
 GOP
 NHA
 MoC
 Trucker / Transporter Organisations
 Freight Forwarders
 Shippers
 Mo Industries
 Mo Commerce
 BoI
 Banks / FIs
 Insurance Sector
 Manufacturers
 Informal Truck / Body / trailer builder
 Police
 Customs
 CBR
 Pakistan society
 Antagonistic
 Insensitive
 Unrecognised / Informal
 Self conflicting
 Primitive and exploited
 Resistance to change
 Absence of any system
 Uneducated and uninformed
 Disorganised or splintered
 Reactive
 Irrational / emotional
 Insecure
 Survival Clubs
 Non-transparent
 Non-just
 Concerned and hopeful
 Misperceived and mistrusted
 Adequate technical base
25
Transport Sector - IndustryTransport Sector - Industry
 Corporatisation of Transport companies
 Eligibility for financial assistance
 Insurance System
 Self Regulative Effects
 Certificate of Professional Competence (CPC)
 Taxation and Accounting
 Concessions and licensing
 Quality assurance standards
 Trade Unions to regulate employee rights
 Better Transport Safety Performance
26
Transport Fleet ConcessionTransport Fleet Concession
 Formation of road transport companies
 Fleet modernisation, rationalisation,
environmental advantages
 Customs duties
 Licensing Systems
 Integration of existing truck / body
building capacity
 Additional value adding industry (Export)
and technical infrastructure
 Guaranty Fund and wreckage bonus
27
Cargo ManagementCargo Management
 Creation of a Transport Market Exchange System (International
and Domestic Cargo)
 To meet IRU standards
 CMR and TIR
 Formalisation of a domestic road transport document (replacing
the bilty)
 Economical tariff rates to meet macro- and microeconomic
demand.
 Efficient cargo operations (fast, secure and safe)
 Regulated transport management system
 Institutional capacity building
 Parasite Expenses to be abolished
 Availability of piggy-back alternative by Railways
 Provincial coordination and cooperation under federal legislation
28
Institutional ReformInstitutional Reform
 Create FRTA as a partner organisation for
the GOP/NHA/IRU
 Create FTA as a regulatory body with
provincial offices
 Obtain IRU – membership
 Install IRU – Academy (private or public)
 Steering Committee of Implementation
29
Operational FrameworkOperational Framework
 Database at Federal level
– Fitness Certificate
– Registration Rules and Procedures
standardised at the federal and implemented at
provincial level
– Licensing Systems (using biometric
technology for driving licenses)
 Insurance Framework
 Leasing Framework
 Vignette (Access document for Motorways
and Highways) – issued by FTA
30
Strategic Option – WCMStrategic Option – WCM
Transport Sector Reform – an indirect strategyTransport Sector Reform – an indirect strategy
To remove the socio-economic imbalance of
the trucking sector, undertake and
implement a long-term trucking sector
reform at the institutional and technical
level, while involving the stakeholders in a
restructuring programme to organise,
train and prepare them for participating in
the emerging international freight market
as a TOP-DOWN strategy.
31
ObjectivesObjectives
 Actively pursue the GOP for an immediate
recognition of the transport sector as an industry
 Develop strategies and objectives for
institutional, structural, organisational, technical,
financial reforms, supporting the above.
 Extensive and frequent stakeholders interaction
to bring them to a common platform as a prelude
to the formation of the Professional Road
Transport Association of Pakistan – acting as the
“CENTRE of GRAVITY”.
 Formulation of a steering committee with MOC
participation to initiate and pursue all
organisational, technical, operational, and
financial issues with the GOP on behalf of the
stake holders.
32
ObjectivesObjectives
 Creation of the institutional training framework for education and
formulisation of components of the transport sector (i.e transport
operator for CPC, sub-organisations as Dry Ports, Ports, Airports, Addas,
Transport and vehicle insurance, FTA for issuing Fitness-Certificates,
Vignettes etc, and for other different transport management components).
 Achieve and integrative process with the IRU, Stakeholders, FRTA and the
media.
 Creation of a Transport Market Exchange system (organisational,
operational, financial) covering all transport modes, thus, including road
transport and bridging the gap of market distance.
 Railway reform to address increasing cargo transport participation
 IMPLEMENTATION of reforms and legislation through the FTA, while the
NHIP only ensures ENFORCEMENT through a coordinated operational
framework
33
AdvantagesAdvantages
 Addresses the causes of overloading through an
indirect strategy, which is long term and
sustainable
 Incorporates and integrates all elements of the
stake holder community in to a positive
participatory role
 Develops compulsory institutions for long term
benefits by changing the character of the
trucking sector
 Stimulates all the concerned or related
institutional elements (Insurance, Banking,
Media, NHA, GOP etc) into a proactive role for
their individual benefits.
34
AdvantagesAdvantages
 This implementation process energizes and
initiates the entire reform as a corporate and
management function, thereby setting
administrative, institutional, training and
operational standards.
 This implementation process is designed to
achieve individual, organisational and operational
objectives simultaneously, thereby achieving
synergetic effects.
 The TOP-DOWN Approach offers the benefit of
early cooperation of the willing, gravitational pull
upwards of the doubtful, while leaving the dense
resistive medium of the stakeholder community
to a later insight.
35
What must be avoidedWhat must be avoided
1. The truckers and transporters are PERMENANTLY IGNORED , isolated
in all reform programs
2. Without putting socio-economic alternatives in place, the truck
operators are declared offenders only prosecuted and dismissed as
NON ROLE PLAYERS
3. The NHIP is both the” IMPLEMENTER”, and the “ENFORCER”.
4. Unconcerned agencies like the Chamber of Commerce assumes the
role of the Coordinator, Manager and the Protector of Rights of the
truckers community-While the relevant ones stay out
5. Delay in Organizational, Institutional Reform exacerbates the socio-
economic plight of the truckers while the GOP and other concerned
agencies focus on other reform aspects
6. Education and Training are ignored and branded as an
“IMPOSSIBILITY”
7. Strategies are implemented piecemeal with fragmented plans and
incoherent objectives
8. The Reform Process is selected as a BUFFET MENU, considered and
ignored at the same time
36
What must be avoided ctdWhat must be avoided ctd
 The Belief:
– that there is still time to consider, develop and execute an
implementation process
– that the Transport community will itself reorganize, restructure and
bring itself to the GOP s Reform START LINE
– that the Resistance to Change amongst the Transporters
“Stakeholders”, is permanent, uncompromising and thus a NON-
STARTER
– that The Overloading Disease is a SIMPLISTIC SURGERY CASE ,and
not a compound, complex SYMPTOMATIC TREATMENT
addressing the CAUSE
– that FINES will one day bring the Truckers Community to stop
overloading
– that the FINES REGIME IS NOT the sale of the destruction of the
Road for a negotiated PRICE
 THE POLITICIZATION OF THE TRUCKING REFORM, (which is
essentially a Corporate Management Implementation Function )
37
Quidquid agis, prudenter agas etQuidquid agis, prudenter agas et
respice finemrespice finem
LASTLY WE MUST AVOID
WRITING THE RULES OF
BEHAVIOUR FOR THE
RESIDENTS OF A
WILDLIFE PARK--------
-without first taming them.
38
DiagnosisDiagnosis
It may be concluded that the diagnosed disease of
overloading has virussed the Infrastructure Body,
which will only see health if the Causes and its
Symptoms are eliminated through a wholesome,
multidimensional broad based treatment.
It is the belief of the team leader and principle
advisor that no short term selective medication or
surgery to any part of the diseased body will ever
witness a healthy recovery.
39
The Project – team of the WCM-project for
the NHA-Pakistan.
Thank you !Thank you !
We especially thank the project recipient for their understanding and
help during the difficult project penetration process and the World
Bank Transport team in Islamabad for their proactive assistance and
guidance in the context of alternate views, findings and solution
gathering.
We are grateful to the staff members of the NHA – RAMD section
under the General Manager for their assistance and guidance as well
their critical and constructive input.
We specifically like to express our gratitude to the NHA Chairman,
NHA-Members OPS and Planning for their understanding and visions,
which helped us to stay on track and to find our way through a
difficult territory.

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DFR Project presentation-NHA

  • 1. Project presentationProject presentation EFFECTIVE WEIGHT CONTROL MANAGEMENT Draft Final Report Hans-Jochen Starke / Brig. Usman Shafi
  • 2. 2 Project ObjectivesProject Objectives  Realistic and effective medium- to long-term “Road Transport Weight Control Recommendations” – Embedded within the “Highway Rehabilitation Project” – Referring to previous studies and base line field investigations 2005 – Within 12 calendar months after start of the project
  • 3. 3 BackgroundBackground  GOP – Strategy for Infrastructure Development / major budget allocations to develop a friendly highway culture  Highway development and overloading have emerged together and this unholy linkage continues without a break in the overloading cycle  Construction and rehabilitation of Highways is short-circuited reducing the lifespan to an unacceptable level  The road maintenance phase is circumvented  Railways continues to be an absentee in the cargo market  Axle overload control, implemented in the last 15 years failed repeatedly as only the effects were addressed  The ToR largely addressed the end of the overloading cycle with focus on overload management through enforcement  NHA agreed to initiate the WCM project to study the CAUSE AND EFFECTS LOOP for the first time  The approach to cope with overloading continues to be in a FIRE FIGHTING MODE with uncoordinated actions, fragmented objectives and in the absence of performance evaluation index  The fines regime – so far – is a destructive mechanism for a negotiated price  There is no change to the provincial axle overload control inertia / worried but ignorant.
  • 4. 4 Project descriptionProject description (Paradigm)(Paradigm)  The road transport operator economic contribution is an essential part of the national economic development with resulting socio-economic effects, but is grossly undermined due their ignorance of national legal weight limitations and lack of legal and practicable enforcement. The answer is an integrated solution in the form of:  Implementation of systematic changes based on the principles: – Minimising or excluding collateral damage to the national economic development and the private road transport sector – Creation and acceptance of legal obligations by those affected – Sustainable self-regulated system of binding obligations and related enforcement procedures
  • 5. 5 Procedure – Why, What, How?Procedure – Why, What, How?  The project result is to be designed upon the analysis of a complex symptomatic multidimensional dynamic system, demanding stringent identification of a hierarchy of categories and their interactions. The various probabilities of interaction and the amount and nature of multiple implications demanding an integrated approach and methodology. (The Cause- and Effect Loop)  The influence of the human input from cultural and mental resources on the quality of the Implementation Plan requires the statement of a multitude of arguments and vague possibilities, to be taken into consideration by the implementing authority, (The Implementation Frame)  All envisaged political, legal, administrative, technical, economic, financial, organisational and institutional recommendations are evaluated and validity assessed in their context of level of acceptance within the stakeholder community. (The Operational Frame)
  • 6. 6 Overloading Reasons (WHY ?)Overloading Reasons (WHY ?)  Traditional – Mentality – Habitual – Experience  Economical – Transport Market Mechanism – Over- or Under capacity of Transport availability – Unpaired transport  Legal Framework – Lack of implementation – Distorted enforcement – Corruption  Technical – Enlarged vehicles – Oversized loading volume – Over inflated tires and reinforced frame
  • 9. 9 Properties of the RecommendationsProperties of the Recommendations  The principles forThe principles for sequencing of recommendationssequencing of recommendations depend upon the following imperatives:depend upon the following imperatives: – Their ability to provideTheir ability to provide alternativesalternatives to overloadingto overloading – TheirTheir socio economic impactsocio economic impact upon the SME community ofupon the SME community of stakeholdersstakeholders – TheirTheir self-regulatory impulseself-regulatory impulse and force of valuesand force of values – Their economic and culturalTheir economic and cultural acceptabilityacceptability within the transportwithin the transport marketmarket – TheirTheir self-sustainabilityself-sustainability – Their value forTheir value for flexibleflexible future developmentfuture development in domestic andin domestic and international transportinternational transport – TheirTheir just, fair and transparentjust, fair and transparent charactercharacter – Their stringent, non-misleading and transparentTheir stringent, non-misleading and transparent enforcementenforcement of law and regulations.of law and regulations.
  • 10. 10 Conclusions 1Conclusions 1  The trucking sector is too primitive, traditional and resistant to change- unlikely to improve in a short timeframe  There is no institutional structure available that provides a common denominator for improvement  The existing organizational structure available is a, SURVIVAL CLUB, in all the provinces, 4000 in number; these are usually individually driven, sociologically conflictive, but driven by common interests. These can be harnessed for improvement
  • 11. 11 Conclusions 2Conclusions 2  The socio economic environment for the trucker with all its permanent influencing elements is unlikely to undergo a change from within. There is no motivational force at the domestic level to bring about a socio-economic change in a short timeframe  There is no TARRIF system that drives the market. It is a cash flow based day to day expenditure recovery instrument. This can be changed through education and engagement  The existing market mechanism is an undefined elusive component of the economic sector, regulated by interests groups and exploited by the commercial market. This aspect needs to be incisively and diagnostically investigated to determine the overloading disease cause
  • 12. 12 Conclusions 3Conclusions 3  The fleet composition of over 67% two Axle trucks is unlikely to witness any reduction in the near future without a comprehensive GOP involvement, thus perpetuating the overloading problem.  There is no concept of Cargo Management except with Oil Companies, The Goods forwarding component is ONLY AN ADDA FACILITY FOR GOODS / LOAD FORMULATION. This is apparently one cause of overloading, needs further investigation  The highway police constitute an 18%-22% contribution towards the transportation cost in terms of fines and extractions leaving little maneuver space for cost management to the trucker-.He has the only choice of overloading to meet costs
  • 13. 13 Conclusions 4Conclusions 4  The dynamics of the DOMESTIC Transport Market are unlikely to change in the near future. The overloading is therefore likely to continue in the absence of Economic Alternatives  There is an absence of Legislative Implementation measures –Selective enforcement of rules has wrinkled the execution instrument , these are unlikely to affect in the absence of a comprehensive multi-directional alternatives  The quality of the Truckers Organizations make it a non- starter for a change. Any one of the Stakeholders with an existing Institutional base will have to take the lead to engage, educate and proactively prepare them for the change. This will need a demonstrative support of the GOP
  • 14. 14 Conclusions 5Conclusions 5  The only motivation stimulant (CARROT ) left for the truckers is to educate them about the benefits of International Cargo management participation in the post TIR and CMR conventions Pakistan is likely to sign AND the disadvantage to them if the are left out. The preparatory phase will by default filter the benefits to all the stakeholders. The strategy therefore could be based on this inevitability.  There is no platform of the STAKEHOLDERS club, the present ones are outward looking and highly antagonistic towards each other. There is a need for some external Agency to engage all of the stakeholders continuously to form one common interest club.  Policy instruments at the Federal or Provincial level are absent (trucking-, registration-, licensing policy)
  • 15. 15 Conclusions 6Conclusions 6  The provincial participation in the transport sector continues to be primitive, rigid, highly decentralised and sensitive to change (licensing and registration procedures)  Absent institutional framework at the Federal level for coordinating, promoting, monitoring, directing any transport sector related reform  Organisational changes / technical changes undertaken continue to be splintered, non-directional, non-conforming, and therefore lack synergy to achieve intermediate and final objectives (Customs duty reduction for import of trucks for fleet composition change, unsupported by a financial mechanism, without organisational framework, without finalisation of technical standards and associated registration and licensing implements)
  • 16. 16 Major ConclusionMajor Conclusion Reform benefits Reduced Overloading Beneficiary - ? ?
  • 17. 17 Major Conclusion ctd.Major Conclusion ctd. The implementation process will generate socio-economic benefits for the trucking sector that must be translated into an increased life of the roads, reduced collateral damage, reduced overloading, and restrict maintenance bill…..but……it must have a clearly defined recipient of the benefit for a trade-off during the transition period.
  • 18. 18 Transport Reform The Trucking Sector Organisations – Survival Clubs The market andpricing mechanism Domestic CargoManagement International Cargo Management Institution Building Plan CPC-Certificate of Professional Competence TRAINING IRU Fleet Composition and Capacity Fleet replacement strategy Implementation policy for alternate transport mode (combined transport) Strategy for integration of financial Institutions Legal and administrative Instruments Standards for registration and certification Market condition evaluation Formalisation Plan for Road Transport Industry
  • 19. 19 ScenariosScenarios  Rough scenario – 1 to 2 years – Short term solutions, parallel actions, high resistance expected, dictation instead of cooperation, enforcement based.  Medium scenario – 1 to 5 years – Medium term solutions, less resistance, education, cooperation, coordination, alternatives in place, transition period, rigid enforcement comes last.  Long / soft scenario – 1 to 10 years – Sensitive implementation, low resistance, applied psychology, education and training, full cooperation, multitude of alternatives, assistance to stakeholder, transition period, stepwise increasing enforcement, minimum parallel implementation but step by step building on successful terminated progressive steps of change. – see implementation loop.
  • 20. 20 Scenarios ctdScenarios ctd Rider clause – Common to all the scenarios is the path that should be followed “ Investigation (partly completed)  Identification of causes  Information and motivation  Concession  Cooperation  Implementation  Appreciation  Prosecution”
  • 21. 21 GOP provides Road Transport status of Formal Industry Creation of The Pakistan Professional Road Transport Association Road Transport Fleet composition and Modernisation Incentives Interaction Basic platform for envisaged changes GOP IRU STAKE HOLDER
  • 22. 22 Creation of Incentives, Benefits, and Self regulation Enforcement by Law of Regulation Cooperation between GOP and Stakeholder - community Resistance of Change Management Applied Psychology Education and Training
  • 23. 23 The Prognosis and Treatment Divergent Antagonistic Attitudes Misperceived Mistrusted Resistant to Change Socio-economic insecurities Stake Holder Stake Holder Properties Confidence Building Measures Transport Sector as an Industry Cargo Management Transport Fleet Concession Create FTA, FRTA (IRU membership Create new operational framework
  • 24. 24 StakeholderStakeholder PropertiesProperties  GOP  NHA  MoC  Trucker / Transporter Organisations  Freight Forwarders  Shippers  Mo Industries  Mo Commerce  BoI  Banks / FIs  Insurance Sector  Manufacturers  Informal Truck / Body / trailer builder  Police  Customs  CBR  Pakistan society  Antagonistic  Insensitive  Unrecognised / Informal  Self conflicting  Primitive and exploited  Resistance to change  Absence of any system  Uneducated and uninformed  Disorganised or splintered  Reactive  Irrational / emotional  Insecure  Survival Clubs  Non-transparent  Non-just  Concerned and hopeful  Misperceived and mistrusted  Adequate technical base
  • 25. 25 Transport Sector - IndustryTransport Sector - Industry  Corporatisation of Transport companies  Eligibility for financial assistance  Insurance System  Self Regulative Effects  Certificate of Professional Competence (CPC)  Taxation and Accounting  Concessions and licensing  Quality assurance standards  Trade Unions to regulate employee rights  Better Transport Safety Performance
  • 26. 26 Transport Fleet ConcessionTransport Fleet Concession  Formation of road transport companies  Fleet modernisation, rationalisation, environmental advantages  Customs duties  Licensing Systems  Integration of existing truck / body building capacity  Additional value adding industry (Export) and technical infrastructure  Guaranty Fund and wreckage bonus
  • 27. 27 Cargo ManagementCargo Management  Creation of a Transport Market Exchange System (International and Domestic Cargo)  To meet IRU standards  CMR and TIR  Formalisation of a domestic road transport document (replacing the bilty)  Economical tariff rates to meet macro- and microeconomic demand.  Efficient cargo operations (fast, secure and safe)  Regulated transport management system  Institutional capacity building  Parasite Expenses to be abolished  Availability of piggy-back alternative by Railways  Provincial coordination and cooperation under federal legislation
  • 28. 28 Institutional ReformInstitutional Reform  Create FRTA as a partner organisation for the GOP/NHA/IRU  Create FTA as a regulatory body with provincial offices  Obtain IRU – membership  Install IRU – Academy (private or public)  Steering Committee of Implementation
  • 29. 29 Operational FrameworkOperational Framework  Database at Federal level – Fitness Certificate – Registration Rules and Procedures standardised at the federal and implemented at provincial level – Licensing Systems (using biometric technology for driving licenses)  Insurance Framework  Leasing Framework  Vignette (Access document for Motorways and Highways) – issued by FTA
  • 30. 30 Strategic Option – WCMStrategic Option – WCM Transport Sector Reform – an indirect strategyTransport Sector Reform – an indirect strategy To remove the socio-economic imbalance of the trucking sector, undertake and implement a long-term trucking sector reform at the institutional and technical level, while involving the stakeholders in a restructuring programme to organise, train and prepare them for participating in the emerging international freight market as a TOP-DOWN strategy.
  • 31. 31 ObjectivesObjectives  Actively pursue the GOP for an immediate recognition of the transport sector as an industry  Develop strategies and objectives for institutional, structural, organisational, technical, financial reforms, supporting the above.  Extensive and frequent stakeholders interaction to bring them to a common platform as a prelude to the formation of the Professional Road Transport Association of Pakistan – acting as the “CENTRE of GRAVITY”.  Formulation of a steering committee with MOC participation to initiate and pursue all organisational, technical, operational, and financial issues with the GOP on behalf of the stake holders.
  • 32. 32 ObjectivesObjectives  Creation of the institutional training framework for education and formulisation of components of the transport sector (i.e transport operator for CPC, sub-organisations as Dry Ports, Ports, Airports, Addas, Transport and vehicle insurance, FTA for issuing Fitness-Certificates, Vignettes etc, and for other different transport management components).  Achieve and integrative process with the IRU, Stakeholders, FRTA and the media.  Creation of a Transport Market Exchange system (organisational, operational, financial) covering all transport modes, thus, including road transport and bridging the gap of market distance.  Railway reform to address increasing cargo transport participation  IMPLEMENTATION of reforms and legislation through the FTA, while the NHIP only ensures ENFORCEMENT through a coordinated operational framework
  • 33. 33 AdvantagesAdvantages  Addresses the causes of overloading through an indirect strategy, which is long term and sustainable  Incorporates and integrates all elements of the stake holder community in to a positive participatory role  Develops compulsory institutions for long term benefits by changing the character of the trucking sector  Stimulates all the concerned or related institutional elements (Insurance, Banking, Media, NHA, GOP etc) into a proactive role for their individual benefits.
  • 34. 34 AdvantagesAdvantages  This implementation process energizes and initiates the entire reform as a corporate and management function, thereby setting administrative, institutional, training and operational standards.  This implementation process is designed to achieve individual, organisational and operational objectives simultaneously, thereby achieving synergetic effects.  The TOP-DOWN Approach offers the benefit of early cooperation of the willing, gravitational pull upwards of the doubtful, while leaving the dense resistive medium of the stakeholder community to a later insight.
  • 35. 35 What must be avoidedWhat must be avoided 1. The truckers and transporters are PERMENANTLY IGNORED , isolated in all reform programs 2. Without putting socio-economic alternatives in place, the truck operators are declared offenders only prosecuted and dismissed as NON ROLE PLAYERS 3. The NHIP is both the” IMPLEMENTER”, and the “ENFORCER”. 4. Unconcerned agencies like the Chamber of Commerce assumes the role of the Coordinator, Manager and the Protector of Rights of the truckers community-While the relevant ones stay out 5. Delay in Organizational, Institutional Reform exacerbates the socio- economic plight of the truckers while the GOP and other concerned agencies focus on other reform aspects 6. Education and Training are ignored and branded as an “IMPOSSIBILITY” 7. Strategies are implemented piecemeal with fragmented plans and incoherent objectives 8. The Reform Process is selected as a BUFFET MENU, considered and ignored at the same time
  • 36. 36 What must be avoided ctdWhat must be avoided ctd  The Belief: – that there is still time to consider, develop and execute an implementation process – that the Transport community will itself reorganize, restructure and bring itself to the GOP s Reform START LINE – that the Resistance to Change amongst the Transporters “Stakeholders”, is permanent, uncompromising and thus a NON- STARTER – that The Overloading Disease is a SIMPLISTIC SURGERY CASE ,and not a compound, complex SYMPTOMATIC TREATMENT addressing the CAUSE – that FINES will one day bring the Truckers Community to stop overloading – that the FINES REGIME IS NOT the sale of the destruction of the Road for a negotiated PRICE  THE POLITICIZATION OF THE TRUCKING REFORM, (which is essentially a Corporate Management Implementation Function )
  • 37. 37 Quidquid agis, prudenter agas etQuidquid agis, prudenter agas et respice finemrespice finem LASTLY WE MUST AVOID WRITING THE RULES OF BEHAVIOUR FOR THE RESIDENTS OF A WILDLIFE PARK-------- -without first taming them.
  • 38. 38 DiagnosisDiagnosis It may be concluded that the diagnosed disease of overloading has virussed the Infrastructure Body, which will only see health if the Causes and its Symptoms are eliminated through a wholesome, multidimensional broad based treatment. It is the belief of the team leader and principle advisor that no short term selective medication or surgery to any part of the diseased body will ever witness a healthy recovery.
  • 39. 39 The Project – team of the WCM-project for the NHA-Pakistan. Thank you !Thank you ! We especially thank the project recipient for their understanding and help during the difficult project penetration process and the World Bank Transport team in Islamabad for their proactive assistance and guidance in the context of alternate views, findings and solution gathering. We are grateful to the staff members of the NHA – RAMD section under the General Manager for their assistance and guidance as well their critical and constructive input. We specifically like to express our gratitude to the NHA Chairman, NHA-Members OPS and Planning for their understanding and visions, which helped us to stay on track and to find our way through a difficult territory.

Editor's Notes

  1. On the Methodological Choices The starting point of the WCM-project was a simplistic, normative presumption that the overloading practice destroying the Pakistani roads is mainly motivated by individual greed combined with scarcity of transport capacity. The tentatively foreseen solutions would have been purely technocratic. The requirements of coordination, feasibility and effectivity[of the expected eradication plan did dictate the necessity to have a closer look on the validity of the basic assumption: greed as the motivation behind the practice. Strong indications on doubtfulness of the presumed motivation - i.e. pure greed as a motivator for overloading – started soon to surface. If it would be a valid explanation combined with the presumed scarcity of road transport capacity, the fact that Pakistan has got the lowest transport tariffs in the world could not be explained within the framework of normal logic of market economy. Orientation was thus re-focused in identification of the real reasons for overloading, the culprits enforcing it and then finding ways to kill the reasons with minimal collateral damages to economies and society. Any other choice would have been insufficient and possibly misguiding. [1] TOR of Effective Weight Control Management Project, para 12. of the contract; [2] C.f. e.g. World Bank Policy Note 2003 – Efficiency of Road Transport in India
  2. . TOR of the Project.
  3. One of different scientific methodologies, which had to be used to meet the challenge of the cross – scientific approach to the project. Cohen, Michael D., James G. March, Johan P. Olsen : A Garbage Can Model of Organizational Choice Administrative Science Quarterly, Vol. 17, No. 1. (Mar., 1972), pp. 1-25 UNDP/Enercon 2002
  4. Within the social and multi-cultural environment in Pakistan, the tasks require an unmistakable holistic approach containing reality (visible and hidden), perception of this reality (formulated by the concerned persons in their different functions). Thus, an approach mixing objective facts and subjective perceptions, including the results in different levels of uncertainty became the tool of the project. This multidimensional assessment, which is a mixture of technical, economical and psychological matter rules the fact-finding, charting, evaluation and assessment of the project with the aim to produce practical, acceptable and implementable recommendations.
  5. A Psychogram was developed by the project team to identify the limitations of possible changing actions before regression by the stakeholder community could be expected. The historic roots of the profession are deeply engraved into the minds and souls of the road transport members, which lead to strong emotional reactions on drastic changes of their environment. The paper will become a part of the Draft Final Report of the Project.
  6. Prerequisites for overloading.
  7. The Grey Area – Structure. The “grey” or unknown part are the players in the background, covered by the market players up-front. Road Transport Market Mechanism privileged market players dominating market players regulating market players market reach for SME transport operator Road Transport Operator’s economy non-rational (cash flow based) – tramp traffic) semi-rational (mix of cash flow and calculative) – tramp traffic with long-term contract fully rational (international audit standards) – transport-time and -quality related calculation.
  8. The picture, I think, might give in rough terms the structure for recommendations, presuming that the underlying theory is valid. At the same time it visualizes, I think, the flaw in NHA approach. Environment of missing alternatives, lack of influence on tariff-structure for operators, cash flow oriented market mechanism on operator side and rentability orientation on demand side of market with profit oriented middlemen. Gives an idea on where the “hands should be joined”. Unless something is done to the market properties ( a slow process) there’s not much chance – takes GOP-action; Government subsidies to transportation in general would ease the economic necessity to overload in the short run – takes GOP-action; Making it possible to invest with reasonable cost (re-structuring the fleet) would reduce the pressure to overload in the medium run – takes GOP-action; All this presuming the burden in taxation, fines etc. is not increased, rather it should be decreased by non-offenders. Weighing fee removed/reduced from non-offenders Queue-pass for reputed non-offenders (Vignette short term) Alternate transport (piggy-back) for overloaded trucks (short term) Regular offenders excluded from use of highway system (medium term) Association needed to fight and follow-up especially on the overlapping area Change from market domination to transport management system for the surface borne transport, which requires rules, which are transparent, non-discriminatory and unavoidable. (Long term, due to training required to receive access to the system.) System ruled by three factors: Total cost in ton/km – under consideration of paired or unpaired traffic Agreed price in ton/km – under consideration of total cost and transport quality (liabilities, transport security, damage and delay risks) Total guaranteed transport time including loading and offloading.
  9. The sequence of recommendations follows the principle, that the overloading necessity would become obsolete, if there are measures in place, which will make overloading uneconomical for the road transport operator. Thus, the problem of enforcing the issue will receive a controlling character on a random basis only. It is equally important, that the real culprit for overloading will be punished and the innocent will feel the just and transparent handling of the matter. This will provide the self-sustainability of the solution and will change attitude and habits in the long-term. According to information received (however not yet crosschecked), the community of the transport operators including the maintenance staff members and peripheral service provider count to 5 million people depending upon the road transport for their life quality. In addition, 500 thousand people are depending on the body-maker and trailer production industry, who would need alternatives for their life support, which could be made available with assembly solutions of trucks, busses and trailers for foreign investment. The solution would also provide the country with a new industry within globalisation (production or assembly closed to the customer) and the value adding benefits for the national economy.
  10. A Combination of experience, learning, conclusions and endless discussions trying to foresee all implications as well as possible flaws.
  11. The beneficiaries of the overloading practise due to different reasons, partly rational and partly irrational.
  12. Implementation Strategy
  13. We especially thank the project recipient for their understanding and help during the difficult project penetration process and the World Bank Transport team in Islamabad for their proactive assistance and guidance in the context of alternate views, findings and solution gathering. We are grateful to the staff members of the NHA – RAMD section under the leadership of the General Manager for their assistance and guidance as well their critical and constructive input. We specifically like to express our gratitude to the NHA Chairman, NHA-Members OPS and Planning for their understanding and visions, which helped us to stay on track and to find our way through a difficult territory.