Efficient trucking can help facilitate trade, reduce poverty and generate prosperity. This is according to the IRU and World Bank’s Road Freight Transport Services Reform guide.
This guide is the first of its kind and plans to improve quality and competition in the sector, based on practical examples of regulatory reform in other countries.
The guide is also structured for governments and policy-makers in emerging and developing economies where the transportation of cargo is almost entirely dependent on the road transport sector.
Some of the guide’s key points include the importance of the driver, condition of vehicles, technical inspections and business-enabling regulation.
Improving transparency safety and sustainability
Many performance gaps are presented in the trucking industry and include high costs, reduced profitability, a lack of road safety, environmental concerns, bureaucracy and corruption.
While regulated carriers are often required to compete against informal operators outside typical regulatory frameworks, the guide suggests that measures should be implemented to establish a “level playing field”. This would improve transparency, safety and sustainability.
“The goal is to foster transparent regulatory environments in which start-up and established carriers can both grow and professionalise their operations, improving safety, sustainability, resilience and competition,” IRU secretary general, Umberto de Pretto said.
Focus areas and action plans
Offering a complete framework, from an evaluation of the existing systems through to implementation of change, the guide demonstrates how to analyse data to identify areas of focus and then outlines how to structure a detailed action plan.
Jose Luis Irigoyen, senior director of transport and ICT global practice at the World Bank Group, said: “The billions invested in road infrastructure will only yield their full potential for economic growth and job creation if logistics services are operating efficiently along these roads.
“This guide provides a set of principles to help policymakers and practitioners assess the different challenges in road transport, and select a reform path most suited to a country’s stage of economic development and its institutional capacity,” he added.
Professional training
The professional training of drivers was highlighted as a key finding in the report. Establishing qualifications frameworks and delivering internationally recognised training promotes eco-driving techniques and leads to fewer crashes and fines, lower fuel consumption and less vehicle maintenance. It was also noted that fleet renewal incentives and vehicle inspections can radically change performance.
Since the mid-1970s, average fuel consumption has decreased by 40% from 50 litres per 100 kilometres to 30 litres per 100 kilometres in 2008. Formalised operations, modernised freight tracking and communications systems also help to streamline the industry.
An example of deregulation of the industry in Mexico in 1989 showed a decline in the cost of commodity distribution by 25 percent. The case study reinforces the need for the creation of a business-enabling environment for the development of a safe, reliable but competitive road transport industry.
