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)
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
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
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
. TOR of the Project.
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
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.
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.
Prerequisites for overloading.
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.
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.
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.
A Combination of experience, learning, conclusions and endless discussions trying to foresee all implications as well as possible flaws.
The beneficiaries of the overloading practise due to different reasons, partly rational and partly irrational.
Implementation Strategy
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.