Project presentationProject presentation

EFFECTIVE WEIGHT CONTROL MANAGEMENT

Draft Final ReportHans-Jochen Starke / Brig. Usman Shafi

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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

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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.

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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

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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)

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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

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Transport Transport SupplySupply

Transport Transport BrokerBroker

Transport Transport AgentsAgents

Transport Transport DemandDemand

Direct Contract

Operators Contract

Logistic Contract

OVERLOADED %

2 - 3 Axle 70%

4, 5 & 6 Axle 40%

Theoretical Market Structure

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Overloading Cycle OrganismOverloading Cycle Organism

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Properties of the Recommendations Properties of the Recommendations The principles for The principles for sequencing of recommendationssequencing of recommendations

depend upon the following imperatives:depend upon the following imperatives:– Their ability to provide Their ability to provide alternativesalternatives to overloading to overloading– Their Their socio economic impactsocio economic impact upon the SME community of upon the SME community of

stakeholdersstakeholders– Their Their self-regulatory impulseself-regulatory impulse and force of values and force of values– Their economic and cultural Their economic and cultural acceptabilityacceptability within the transport within the transport

marketmarket– Their Their self-sustainabilityself-sustainability– Their value for Their value for flexibleflexible future developmentfuture development in domestic and in domestic and

international transportinternational transport– Their Their just, fair and transparentjust, fair and transparent character character– Their stringent, non-misleading and transparent Their stringent, non-misleading and transparent enforcementenforcement

of law and regulations.of law and regulations.

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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

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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

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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

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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

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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)

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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)

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Major ConclusionMajor Conclusion

Reform benefits

Reduced Overloading

Beneficiary - ?

?

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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.

18Transport Reform

The Trucking Sector Organisations – Survival Clubs

The market and pricing mechanism

Domestic Cargo Management

International Cargo Management Institution Building PlanCPC-Certificate of

Professional CompetenceTRAINING

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

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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.

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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”

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GOP provides Road Transport

status of Formal Industry

Creation of The PakistanProfessionalRoad TransportAssociation

Road TransportFleet compositionand ModernisationIncentives

Interaction

Basic platform for envisaged changes

GOP

IRU

STAKE HOLDER

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Creation of Incentives,Benefits,

andSelf regulation

Enforcementby Law

ofRegulation

Cooperation between

GOPand

Stakeholder -community

Resistance of Change Management

Applied Psychology

Education and Training

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The Prognosis and Treatment

Divergent Antagonistic

Attitudes

MisperceivedMistrusted

Resistant to Change

Socio-economicinsecurities

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

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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

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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

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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

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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

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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

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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

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Strategic Option – WCMStrategic Option – WCMTransport 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.

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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.

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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

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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.

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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.

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What must be avoidedWhat must be avoided1. The truckers and transporters are PERMENANTLY IGNORED , isolated

in all reform programs2. 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

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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 )

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Quidquid agis, prudenter agas et Quidquid 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.

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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.

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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.