Transport Operations Overview This module covers the...

Module 3: Transport Operations Participant

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Transport Operations

Overview

This module covers the following topics:

�� Transport in the SECI region

�� Transport and its basic elements

�� Legal, social and technical views of the transport sector

�� Applications on transit passing

Objectives

By the end of this module, you will be able to:

�� Identify the problems regarding transport and trade in the SECI

region and incentives proposed to overcome these problems

�� Discuss the global road transport environment

�� Be aware of the legislation governing road transport

�� Explain the fiscal aspects of road transport

�� Describe technical and safety regulations governing road transport

�� Discuss the social aspects of the industry

�� Identify different visa regimes, charges and taxes

�� Describe the special forms of transport


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Scenario: A Strategic Alliance

Euro-Ex is a European logistics and transport company. The company is a

leading provider of global, end-to-end integrated logistics service products to select

high value industries. Euro-Ex has announced the formation of a strategic alliance

with EXL Logistics, a leading corporation in Southeast Europe.

EXL Logistics with its headquarters in Romania specializes in transportation

and distribution services throughout Europe. The EXL group incorporates a number

of Romanian trading and service businesses such as marketing, distribution, aviation

and shipping services.

"The purpose of the alliance between these two companies is to create a

seamless, integrated supply chain management capability in and between the Europe

and SECI region," stated Adrian, Vice President Global Strategic Marketing. "Euro-Ex

is a leader in value-added logistics to the technology marketplace in Europe, with a

significant number of customers requiring global supply chain solutions."

"Euro-Ex and EXL, through their combined transportation, distribution and IT

resources, are in a unique position to meet the fast-paced needs of global high tech

industries.

What difficulties are these two companies likely to face in the SECI region?


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Introduction

The primary role of a carrier is to deliver goods to a buyer so that the

goods arrive in the same condition as when they left. In order to execute this

delivery correctly, legally and within the agreed time, international transporters

have to carry out these transactions according to the freight, unloading and

transit legislation required in the specific country they are trading with.

There are two main groupings of legislation, which are: transportation

and customs. These cover the regulation of vehicles, vehicle drivers, the load

and importers and exporters.

The transportation and customs legislation regarding transportation in the

SECI area varies from country to country. A lack of harmonized legislation is

one of the main reasons effectiveness is lacking in the transport industry in this

region.

The implementation of standardization is crucial for the development of

the commercial and transportation fields in this region. When preparing to set

up a program of harmonization, the EC Directives and/or UN conventions that

are used in the 15 EC member countries, and those, which they are currently

trying to implement in the 13 EC candidate countries, are seen as important

guidelines that will provide harmony in the transportation and commercial

sectors of the region.


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International Road Transport

Transportation activities and facilities have a tremendous environmental,

social and economic impact. Almost six million people work directly for the

trucking industry in Europe. These are drivers, logistics experts, dispatchers,

and operations managers and so on. In addition, another 3.5 million earn their

living in directly related industries, such as truck manufacturing, repairing,

selling, leasing and insuring.

International transport generally implies the use of various transport links

(interfaces and modes), with each link corresponding to a transfer, storage or

transport operation either in the country of origin, in a transit country, or in the

country of final destination.

The variety of cultures, languages and commercial practices at both ends

of a trade transaction create problems in operations. Therefore, it is important to

establish rules of responsibilities for the involved parties in order to provide safe

and efficient trade transactions. A classical categorization of the transport

industry in international transport systems is shown in the figure below:

The Three basic Categories in the Transportation Industry:

Freight Forwarders/ brokers

Operators of transports /freight carriers

Owners /of means of transportation, of terminals, equipment etc.

Figure 1: The Three Basic Categories in the Transportation Industry


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“Securing balanced flows of cargo to

reduce empty return journeys" and

"establishing a network of electronic

communications and data processing

equipment" are the most important

services of forwarders.

Forwarders do...

�� Forwarders/brokers, that prepare documentation for export and

import (like forwarders and brokers)

�� Owners of the means of transportation/equipment/facilities

�� Operators of the transports/freight carriers ( Hertz,1993, p.28)

Freight Forwarding

Freight forwarding is all about the smooth flow of international trade. The

freight forwarder is the party who ensures that internationally traded goods

move from point of origin to point of destination to arrive:

�� At the right place,

�� At the right time,

�� In good order and condition,

�� At the most economic cost.

Foreign (export) freight forwarders, also known as consolidators, have two

principal functions. They are concerned with:

�� The forwarding of an export shipment from the point of origin to the

ultimate destination in some foreign market

�� The other is concerned with the securing of space on transportation

carriers

The services that foreign freight

forwarders perform in order to carry out these

basic functions are many. Although a forwarder

usually performs all the required physical

distribution services from the time an order is

placed until the shipment is delivered at the

foreign destination, perhaps a forwarder’s major

Discuss the role of transporters and forwarders in the transport process.


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contribution lies in the organization of shipment to the destination port, booking

a space on the carrier, and arranging insurance and documentation for

international freight movements. In addition, forwarders may also offer advice

on markets, government regulations and potential problems (Albaum, p.432).

Freight forwarders operate as agents; go betweens for importers/exporters

and carriers. They can secure special deals because both surface and air

carriers give volume discounts to customers shipping large quantities of freight

at one time.

The role of freight forwarders and multi-modal transport operators (MTOs)

is vital in providing third-party logistics. Their success depends very much on

the competitiveness and cost-effectiveness of the services they provide. The

leading players in this field have got there and profited by using information

systems for the automation of documentation and cargo tracking, global

geographical coverage and the services of first-class carriers.

The growing volumes of ocean, inland and

air freight traffic, handled by freight forwarders

and MTOs, along with the rising demand for

global logistic services, enable the leading

companies to become even more dominant in

the market but may result in the demise of many

smaller forwarding companies, especially in

developing countries and countries in transition.

However, the quality of services provided

always plays a major role in the competitive

environment: superior service provides for

greater profitability rather than chasing volumes

at low prices (UNCTAD, 1999, p.6).

Air/Ocean-Import/Export

Assistance

Determine needs

Rate negotiations

Information of foreign regulations

Book space on vessels

Arrange inland transportation

Prepare documentation

Carrier selection-price, transit times

Arrange cargo insurance

Bank documents

Provide shipment information

Assist with claims-put carriers on

notice

Basic Functions of Forwarders


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An international freight forwarder is:

�� A travel agent for products

�� Familiar with the import rules and regulations of foreign countries,

methods of shipping, government export regulations, and the

documents associated with foreign trade

�� Specialists in international shipping arrangements for goods, whether

by water, air, truck, or rail; international or within a country

�� Normally paid by receiving a discount or a fee from the firm that does

the actual shipping ( just like a travel agent )

�� Usually required to prepare the necessary documentation for the

transaction

Own Account Transport

According to the EEC Directive of 23 July 1962, intra-community own-

account transport is defined as follows. The transportation of goods by motor

vehicle is subject to the following conditions:

Table 1: Conditions for the Transportation of Goods

�� The goods transported must belong to the company or have been sold, bought,

rented, produced, extracted, transformed or repaired by it, or given to it

�� The carriage must be used to take goods to the company premises, to send them

from the company premises, to move them, either within the company premises,

or outside the company premises

�� The motor vehicles used for this carriage must be driven by members of the

company’s own staff

�� The vehicles transporting the goods must belong to the company or have been

bought by it on deferred terms, or hired provided that in the latter case they meet

the conditions of Council Directive 84/67 on the use of vehicles hired without

drivers for the carriage of goods by road


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Hired Vehicles

A hired vehicle is any vehicle which is leased out to a

company in return for a payment and for a predetermined

period so that the specified person/company can use that

vehicle for the carriage of goods.

Vehicles can be hired in EU member states provided that:

�� The vehicle is registered or complies with the laws in the EU Member

State of hiring

�� The contract relates only to the hiring of a vehicle without a driver

�� The hired vehicle is only to be used by the person/company that hire

the vehicle

�� The hired vehicle is driven by personnel of the person/company using

it

If the driver is not the person hiring the

vehicle, the driver's employment contract or a

certified extract from that contract giving in

particular the name of employer, the name of the

employee and the date and duration of the

employment contract or a recent pay slip should

be given.

Transport for Hire or Reward

The EEC Council Regulation 881/92 of 26 March 1992, states that

vehicles used for hire or reward must have an operating certificate (Community

license) with the exception of postal transport, transport vehicles that are

damaged or have broken down, transport of goods by vehicles whose

authorized payload does not exceed 3.5 tones, transport of medicinal products

As the application in EU directive

84/647/EEC states, the hiring period

cannot be less than two months.

Hiring Period


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or medical equipment, transport of emergency equipment) which can be freely

used. There are grounds for adding rail–road transport to this list.

Road Transport in SECI Region

Although a platform of common application in the transport sector has

been formed within the EU, the same platform does not exist in the SECI

region. In this region, there are different laws, regulations and different

applications of standards regarding land transport. One of the most important

differences is the Cabotage.

The Cabotage is the carriage of goods by a transport vehicle that is

registered in a country e.g. Romania but being used in another country e.g.

Bulgaria. Cabotage operations should be a long-term target among SECI

countries, below information is provided on how cabotage has been

implemented in the EU.

A cabotage authorization is issued in the name of the carrier. That carrier

may not transfer it to a third party. Each cabotage authorization may be used by

only one vehicle at a time.

The vehicle is hired by the carrier in the Member State of establishment to

carry out cabotage operations. However, the non-resident carrier may, in order

to complete a cabotage operation interrupted because of a breakdown or an

accident, hire a vehicle in the host Member State under the same conditions as

resident carriers.

The cabotage authorization and hiring contract, if any, must stay with the

vehicle. The cabotage authorization must be produced whenever requested by

inspecting officers.


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Cabotage transport operations are subject to the laws, regulations and

administrative provisions in force in the host Member State. They cover the

following areas:

Table 2: Areas of Cabotage in Transport Operation

Vehicles used to carry out cabotage operations must meet the general

requirements set for vehicles used in international transport.

Role of the Carrier in Import and Export

The first stage is the manufacture and packaging of goods for carriage.

Packaging is important for all cargo and there are many considerations to be

kept in mind, particularly with regard to the transport to be used.

The choice of the most cost-effective route/transport determines the type

of packing. Packing can be done by a forwarding agent who arranges for the

goods to be packed by a professional export packer. Or when packing is done

in-house, packers should be kept up-to-date with the latest developments and

the whole concept of packing as part of the marketing and distribution process

should be implemented.

The next stage is to make the necessary bookings with the carrier either

directly or through a forwarding agent. Details for the various modes are as

follows:

�� Rates and conditions governing the transport contract

�� Weights and dimensions of road vehicles; the carriage of certain categories of

goods, in particular dangerous goods, perishable foodstuffs, live animals

�� Driving and rest time

�� Value added tax (VAT) on transport services


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Stowage

When delivering by road the aim is to fill the truck’s entire cubic capacity,

while staying within the permitted load line regulations that are appropriate for

the particular journey. A balance must be found between payload and the

truck’s other weight requirements of fuel, water and stores. Extra payload may

have to be sacrificed in order to load cheaper fuel or vice versa.

The appropriate load line will vary from one route to another, since it

reflects the wind and road conditions to be expected in certain areas in certain

seasons (Bugg, Whitehead, 1984, p.206).

Transport Routes

There are a wide variety of routes transporters can use, each with their

own physical limitations, and advantages or disadvantages from a least total

distribution cost point of view. Many of these routes enable a consignment to be

sent as a unit load from door to door on a road network, which offers a secure

and speedy transit. The choice of route should take advantage of the best

features for that particular consignment at that particular time.

What are the most important factors to take into consideration when

determining shipment routes in the SECI region?


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The main factors to be considered when choosing the most appropriate

route/mode for a consignment are as follows:

�� The Nature of the Goods and the Overall Quantity of the Consign-

ment

The nature of the goods can affect the choice of transport in a variety of

ways. Some goods are too wide. Others are too long or too heavy to be sent by

road.

Weight is of great importance as well, especially if goods are to travel by

air, while with regard to road transportation there are limitations on all

dimensions including the overall weight and the axle weights. The

weight/measurement ratio is important in all forms of transport and tends to be

reflected in the freight rate composition, but weight is more important with some

Route Choosing Factors

Nature of Goods

Time Factor

Alternative Routes

Contractual Obligations

Strikes Wars

Climatic Factors

Limitations of the Actual

Mode

Limitations of the

Termini

Figure 2: Factors Affecting Route Selection


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consignments. Indivisible heavy loads not only have a weight problem as

regards to transport but frequently also present dimensional problems of length,

beam or height, any one of which can cause difficulties, particularly in overland

movements. With all such problems any inland movement should be passed on

to specialist heavy lift haulers with low-loaders.

�� The time factor; that is urgency and the season

The time factor affects the choice of a transport route. The cost

advantages of fast transit lie in reduced interest on capital tied-up during transit

and also lower charges, quotas and limitations. Speedier transit may mean less

warehousing at the final destination. If the speed of transit is increased

minimum stock levels can be reduced, saving warehouse space and inventory

costs such as depreciation and finance.

�� The alternative scheduled routes/modes available to that

destination and their frequency

Route availability and the frequency of various services are changing

rapidly as new services begin operations to increased destinations; the whole

concept of comparative total distribution costs has come about due to the

growing number of alternative routes/ modes available.

The advent of ro/ro operations has seen an increase in traffic using minor

ports instead of older major ports. The method combines the advantages of a

short sea crossing, which often has smaller tides, with road and therefore

provides greater flexibility and time saving.

What problems make shipping routes in the Balkans attractive as a means

of transport?


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�� Contractual obligations imposed by the importer's Letter of

Credit or the shipper's own contract with a party

An agent must always consider the seller’s wishes as regards route, and

must fulfill his/her contractual obligations with a freight contact.

There is a need to comply with the requirements set down in the Letter of

Credit. For example an agent, in order to meet his/her customer's urgent

request, forwarded a client’s goods by road instead of sea, and he/she failed to

advise the bank of this change so that the Letter of Credit could be changed. As

a result the bank refused to accept an Air Waybill instead of a Bill of Lading and

the transaction was delayed while the Letter of Credit was amended.

�� Strikes, wars and climatic factors

Possible interruptions to transit, such as major strikes, civil wars, political

embargoes and temperature changes must also be taken into consideration.

�� Limitations of the actual mode, including their degree of

unitization, facility for grouping, and their varying costs

Basically, the more valuable the cargo is, the greater the ability to pass on

higher freight charges to the final consumer, and in the case of liner freight

tariffs this is reflected in the higher freight rate. It must be remembered that with

such cargo the speedier the transit the greater the saving, as less interest is

paid on capital tied up in transit and there is a lower insurance premium. The

latter in particular reflects the value and the time the goods are at risk.

With high value cargo security is also important and the exporter must

select a system of transport with the smallest number of intermediate handlings,

possibly with a form of strong room stowage. In certain cases specialist security


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services may be used, and where high value cargo is subject to special security

measures the cost is always reflected in the freight rate.

�� Limitations of the termini, including efficiency of agents

The various physical, commercial and other factors influencing a port’s

development might be appropriate here since most cargo is charged at the

same freight rate to any particular destination, and there are considerable

quantity discounts to be earned.

Role of Logistics in Road Transport

Logistics became a topic for discussion in

the business world in the 1960s and 1970s and

began its rise to prominence in the 1980s. In the

1990s, logistics began to be discussed as a

major competitive weapon and in the future the

creation of streamlined, flexible and effective

supply and value chains will define the success

or failure of organizations and perhaps even

entire business areas.

Logistics is the process which seeks to provide for the management and

co-ordination of all activities within the supply chain from sourcing and

acquisition, from production where appropriate, and through to distribution

channels to the customer. The goal of logistics is the creation of a competitive

advantage through the simultaneous achievement of high customer service

levels, optimum investment and value for money.

CLM says that “Logistics is the part of

the supply chain process that plans,

implements, and controls the efficient,

effective flow and storage of goods,

services, and related information from

the point of origin to the point of

consumption in order to meet

customers' requirements”.

The Council of Logistics Management

How do logistics differ from transport?


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Shipping, transport and distribution can be grouped under one heading:

Logistics. Logistics planning involves not only the transportation side of

distribution but also provides the “place element” in the marketing mix by

helping to ensure that products arrive in sufficient quantities in saleable

condition at points where the consumer can most easily buy them. Thus

logistics management includes forecasting demand and matching supply to

meet that demand though procurement of materials, production scheduling,

inventory management, order processing, warehousing and transportation

(Quayle&Jones,1993, p.85).

In planning transportation the problems can be numerous; hidden costs

can be concealed, such as the costs of being out-of-stock which results in a

loss in business or delays over insurance claims.

Logistics, the management of flows, is first and foremost a provider of

service (UNCTAD, 1998, p.4). To maintain or improve its share of the market,

an enterprise must offer the elements below:

Right Product

Right Time

Right Place

Competitive Price

Manufacturing creates,

and trading locates goods

which result in customer

satisfaction.

Storage holds these

goods until they are

needed.

Transportation brings

them to where they are

needed.

Marketing results in the

transfer of the goods to

the person to whom

they are useful.

Figure 3: Important Elements in Logistics


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Case Study: Something is going Wrong…

The logistics firm X was experienced in the

market, and had a big market share. But their market

shares declined day by day. The employees

complained of insufficient salaries. In addition, the

insensitivity of the management increased the

problems. The employees’ reluctance had been

reflected in their jobs and the customers’ complaints

had started to rise.

Besides, number of the fired employees had started to rise as well. Newly

employed people were starting to complain of the same things some time later and

were saying that they worked hard but earned not much. The result always affected

customer satisfaction. For, the goods were not delivered on time. Besides, higher

prices due to the company’s self-confidence had caused the fast loss of customers.

The administration met to discuss the situation when the things went really

bad. The customers’ complaints were taken up carefully, and the result was against

the establishment objectives of a logistics firm. The company had lost its basic

elements.

1. What can be these basic elements?

2. What changes can the company make to win back its prestige?


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This implies that the following four basic functions must be correctly

performed:

In recent years, three dominant and interrelated themes have changed the

solution to the logistics equation in enterprises around the world (UNCTAD,

1998, p.7-8). These are:

�� Globalization

�� Information Technologies

�� Supply Chain

Figure 4: Changes Effecting Logistics

Information Technologies

Supply Chain

Globalization

Logistics systems are increasingly challenged to reduce

costs and increase customer service while enterprises are

expanding their international operations in search of new markets,

new materials, and sourcing, and new manufacturing sites.

Newer, faster, and cheaper computer hardware, software

and telecommunications technology allow aggressive

enterprises to substitute inexpensive information assets for

expensive inventory, transportation and other traditional

logistics costs.

As enterprises strive to build closer working

relationships with key suppliers and key customers, well-

integrated logistics processes are key components of

successful supply chain management.

�� Provision of, or access to the goods

�� Storage of the goods

�� Transporting the goods

�� Marketing the goods.

Table 3: The Functions of Logistics

What recent developments have affected logistic services?


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Transport Logistics

Transport logistics encompass all steps in the transfer of freight whether it

is modal or multi-modal. It also includes the interaction between the various

institutions intervening in international freight transport, the operators

transporting it, and the transport intermediaries providing brokerage services

between freight transfers.

Consequently, the customs administrators, insurance companies, banks,

transport operators, terminal operators, shipment operators, private carriers,

and intermediaries are considered as contributing to transport logistics (Castro,

1993, p.9).

Transportation Costs

Most products are sold in highly competitive markets therefore in order to

realize savings you must be able to control inventory (Roberts, 1999, p.16). This

can be done by:

Table 4: Inventory Control

�� Forecasting demand

�� Controlling transport

�� Tracing delivery

�� Managing order entry

�� Monitoring inventory

�� Managing the process


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To minimize total logistics costs a hierarchy of decisions must be made.

Total Logistics Cost (TLC) can be equated as the sum of the following:

It is very important to estimate how much you are spending on a total

logistics operation. Logistics-related costs are dynamic and do not readily fit

with traditional accounting methods.

Accounting difficulties become more pronounced when trying to determine

costs for a particular operation, a particular customer, or to evaluate, outsource,

or gain share opportunities. Activity-based costing can be used to help firms

manage and to benchmark logistics costs. The table below shows the variables

for total logistics costs:

Figure 5: Total Logistics Cost Decisions (Roberts, 1999, p.23)


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Table 5: Total Logistics Costs

International Transport Costs

International transport costs may be defined as direct and indirect costs,

which are incidental to the transportation of goods from the point of loading to

the destination. The definition of cost could be based on port-to-port, door-to-

door, port-to-door or door-to-port. The largest proportion of such costs goes to

freight charges, with inland freight being higher than sea freight. Other costs

include some or all of the following:

Table 6: International Transport Costs

�� Transportation

�� Facilities

�� Communications

�� Inventory

�� Material Handling

�� Packaging

�� Management

�� Handling Charges

�� Storage Costs

�� Insurance Costs

�� Documentation

�� Clearing and Forwarding Agents

�� Costs Incurred for Customs Clearence

�� Banking Fees

�� Administrative Costs

�� Security Costs


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Security costs incurred in providing additional security arrangements in

order to avoid dilution and loss by pilferage of goods in transit:

�� Costs incurred in crossing frontiers, fees for various overlapping

sanitary or health inspections

�� Additional costs for delays in excess of normal transit time and

uncertainty of traders

�� Monopoly elements, inflated costs of transport inputs, informal

payments

�� Damages for failure to turn in containers on time ( UNCTAD,1999

p.11)

The table below explains how to minimize total logistic costs:

Storage

Transport

Processing/trading

Result in

Market

Competitive Price

Right Time

Right Product

Right Place

Production &Logistics

Costs

Figure 6: Towards a Competitive Price

�� Ordering, loading and unloading

�� Storage costs

�� Safety stock carrying charges

�� Loss & damage

�� Spoilage due to shelf life

�� Transportation charges

�� Capital carrying in both transit and storage

Table 7: Minimizing Logistic Costs ( Roberts, 1999, p.10)


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Procedures and documentation can have a

strong impact on transport costs. The exchange of

goods requires not only the physical transportation

of goods, but also the movement of information,

which is often encoded in documents. In addition,

the movement of money as payment for the

fulfillment of contracts, cumbersome procedures and documentation has a

direct influence on transit costs. When documents accompanying goods are

held up, so are the goods.

Logistics Values

Try to simplify your transportation

process, where possible. Minimizing

procedures and documentation will

reduce costs and maximize

competitiveness.

Cost Reducing

Strong Corporate

Leadership

Successful

Marketing

Customer

Satisfaction

Ownership of

Responsibility

Creation of Internal

and External Value

Increase the

Capability

Six Emergening Themes That

Will Guide Logistics

Practice in the Next Century

Figure 7: Logistics Values

What should logistics firms do to create internal and external value?


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�� Logistics value is enhanced through strong corporate leadership

focusing on efficiency, effectiveness, and differentiation.

�� Value realization requires successful marketing of logistics

capabilities to others within the organization as well as to external

customers.

�� Greater emphasis is being placed on the “scientific” management of

logistics operations that can enhance the “art” of creating customer

satisfaction.

�� Logistics value is enhanced through the capability to integrate

product, information, and cash flows for decision-making purposes

that link both internal and external processes.

�� Logistics value is enhanced through ownership of responsibility,

internally as well as externally to the firm.

�� Successful logistics organizations have as their single focus the

creation of internal value for their organization and external value for

their suppliers and customers (Johnson, 1993, p.534-535)

Discuss the strengths and weaknesses of your company/country with regard

to transport operations.


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SWOT Assessment

Table 8: SWOT Assessment Regarding Logistics in Balkan Countries (UNCTAD, 1998,

p.9)

Factor

Assessment

Strengths

Increase in regional and international trade resulting in increased

transport and logistics demand;

Target population (consumers) with increasing needs for trade-

related services.

Weakness

Lack of local transport and logistics service expertise;

Deficient transport infrastructure (congestion, poor conditions, etc.);

High logistics costs.

Opportunities

Possibility of creating competitive advantages for local products;

Possibility of securing greater control over transport, processing,

packing and distribution;

Consequences of WTO-generated reduced barriers to trade and

investment;

Falling costs of international communications and transport.

Threats

Developing countries traditionally export primary commodities with

little value added;

Inelastic supply while importing countries are generally able to

choose from alternative source of supply;

Availabilities of substitutes for exported commodities;

Traditional reliance of exporting countries on international buying

cartels or distributors who do not always share their gains with the

supplier;

Barrier of protective tariffs and quotas and high transport costs

Lack of control over means of international transport to deliver

exports;

Obstacles facing developing countries in the form of appropriations

of value added by the various (foreign) links in the logistics chain up

to the final consumer.


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Competitive Priorities for Transport Firms

Table 9: Competitive Priorities for Transport Firms

Cost

Initial cost

Lifecycle cost

Quality

Total quality

Service quality

Transportation quality

Design quality

Conformance quality

Service

Delivery speed

Delivery reliability

Customer oriented (based or focused)services

Speed

Managerial speed

Decision-making speed

Strategy development speed

Operational speed

Flexibility

Operational flexibility

New product flexibility

Customization

Product mix flexibility

Production flexibility

Firm flexibility

Work force flexibility

The Marketing Strategy of a Transport Firm

Every transport firm should develop written guidelines that set forth the

business's marketing strategy. This document should be used to judge the

appropriateness of each action that the business takes. If a company has to

take action that is different from their usual business strategy, it may indicate a

temporary emergency action prompted by competition or other factors beyond

normal management control. Or it may indicate the need to change or revise the

company's marketing strategy.


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A good marketing strategy provides specific goals and can include:

Table 10: Specific Goals of Marketing Strategy in a Transport Firm

A good working marketing strategy should not be changed every year. It

should not be revised until company objectives (financial, marketing, and overall

company goals) have been achieved or the competitive situation has changed

significantly. The flowchart below explains the marketing strategy development

process of a company:

�� a description of the key target buyer/end user

�� competitive market segments the company will compete in

�� the unique positioning of the company and its products versus the competition

�� the reasons why it is unique or compelling to buyers

�� price strategy versus competition

�� marketing spending strategy with advertising and promotion

�� possible research and development

�� market research expenditure strategies

Establish the marketing category

Define your

pricing

Define company

Describe the image of your

company

Identify your target buyers

Identify your

services

Describe research and development

activities

Describe advertising and

promotions

Figure 8: Marketing Strategy Development Process


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Logistic Strategies of Transport Firms

Logistic strategies become more important when transport firms increase

their international operations and involvement. Coordinated logistic strategies

are a critical, cost-saving link between trading partners and customers.

By implementing coordinated strategies, companies can create value for

customers, reduce costs, and support critical production flexibility. The elements

of the logistic strategies of a transport firm are given in the table below:

Table 11: Logistic Strategies of Transport Firms

Structure Infrastructure

Facilities network

Operations process technology

Logistics process technology

Vertical integration

Work force

Operations planning control

Distribution planning control

Quality

Customer services

Organizational resources

Financial Strategy of Transport Firms Human Resources

Mergers, acquisitions

Equity management and dividends policy

Long-term dept financing

Working capital management

Tax management

Risk management

Financial institution

New alliances

Capital budgeting

Recruitment

Training

Work profile

Categories of interaction with service organizations in the transport industry:

�� Interactive communication between employees and customers, which

in turn depends on the behavior of employees, on what they say and

do, and how they say and do it


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�� Interactions with the various physical and technical resources of the

organization, such as vending machines, documents, waiting room

facilities, and equipment needed in the service production process,

etc.

�� Interactions with systems, such as waiting systems, seating systems,

billing systems, systems for deliveries, maintenance and repair work,

making appointments, handling claims, etc.

�� Interactions with other customers simultaneously involved in the

process

Effective transport service depends on:

�� The number and skills of personnel

�� Office hours, time tables and the time used to perform various tasks

�� Location of offices, workshops, service outlets, etc.

�� Exterior and interior of offices, workshops, and other service outlets,

etc.

�� Tools, equipment, documents, etc.

�� The number and knowledge of consumers simultaneously involved in

the process

Common Characteristics of Services

It can be difficult to define just what is meant by a service because most

products we buy contain a mixture of elements relating to goods and service

elements. A meal in a restaurant contains a combination of goods elements (the

food) and service elements (the manner in which the food is served). Even

apparently "pure" goods such as timber often contain service elements, such as

What are the differences between services and physical goods?


3-30

the service required in transporting timber from where it was produced to where

a customer requires it. The common characteristics of services are given below:

�� Services are more or less intangible

�� Services are activities or a series of activities rather than things

�� Services are at least to some extent produced and consumed

simultaneously

�� The customer participates in production, at least to some extent

(Grönroos, 1990, p.29)

The table below explains the differences between services and physical

goods: (Grönroos, 1990, p.28).

Table 12: Differences between Services and Physical Goods

Physical Goods Services

Tangible Intangible

Homogeneous Heterogeneous

Production and distribution separated

from consumption

Production, distribution and consumption

simultaneous process

A thing An activity or process

Core value produced in factory Core value produced in buyer-seller

interactions

Customers do not (normally) participate in

the production process

Customers participate in production

Can be kept in stock Cannot be kept in stock

The Marketing Mix for Transport Services

The marketing mix is not based on any theory, but on the need for

marketing managers to break down their decision making into a number of

identifiable and actionable headings. These headings are given in the table

below:


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Table 13: The Marketing Mix for Transport Services (Murdick, Render, Russel, 1990 p.533)

Product (Service) Price

Target markets

Services

Service level

Rent, lease, or sell

After-sales service

Warranties

Rent, lease, or sell

Structure and time

Discounts

Payment terms

Flexibility

Customer’s perceived value

Place Promotion

Location

Accessibility

Channels of distribution

Distribution coverage

Advertising

Publicity

Public relations

Selling by salespeople

Selling by service provider

Employees training in customer relations

Process Participation

Customer needs and wants

Customer involvement

Demand control

Quality control

Customer follow-up

Policies and procedures

Flow of activities

Interpersonal behavior

Skills

Attitudes

Commitment

Discretion used

Frequency of customer contracts

Selling activities

Training

Physical Evidence

External appearance of the site

Internal appearance and ambiance

Appearance of employees

Credentials of employees

Equipment

Materials

What advantages does focusing on service quality give shipping firms?


3-32

Service Quality in Transportation

Customers define quality…

Quality is conformance to a customer’s specifications.

Customers decide what they consider good quality, what they

consider important, and what they see as unimportant in

service production. They also judge the Perceived Service

Quality.

Quality is a journey…

Formulas for fixing quality quickly once and for all do not exist.

Good quality has to be pursued constantly, equally as much

when profits are up as when times are bad.

Quality is everyone’s job…

Everyone has customers, either external or internal

customers. Responsibility for producing quality and for quality

control cannot be delegated to one single person or, for

example, a staff office. Everyone has to see producing and

delivering good quality as their own responsibility.

Quality, leadership, and communication are inseparable…

In order to be able to produce, good quality people need

knowledge, feedback, support and encouragement from their

managers and managers have to show genuine leadership

when managing their subordinates.

Quality


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Quality and integrity are inseparable…

Good quality requires a corporate culture that emphasizes

integrity. Fairness, defined as treating customers and

employees alike has to be a core value shared by everyone.

Quality is a design issue…

Service quality has to be designated in advance. The use of

technology and personnel and the participation of customers

in the service production system should be forethought.

Otherwise, the organization is only partly prepared for

producing good quality.

Quality is keeping the service promise…

More than anything else customers expect service providers

to do what they have promised to do. If promises are not kept,

or if some critical part of the bundle of promises given is not

kept, quality deteriorates (Grönroos, 1990, p.262).

Discuss the advantages and disadvantages of meeting the necessary criteria

required to become a certified transport operator.


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Legislation Governing Road Transport

Access to the Profession

Professionalism is “the conduct, aims or qualities that characterize or

mark a profession”. A professional is someone “engaged in one of the learned

professions”; or “one that engages in a pursuit or activity professionally”.

The profession of the “road haulage operator” means the transportation

of goods for hire or reward by means of either a self-contained motor vehicle or

a combination of coupled vehicles.

Admission to the Professions of Transport

Most countries have different admission standards for transport

professions thus leading to different implementations. In the EU, the provision

EU directives govern admission to the occupations of road haulage operator.

Accreditation aims to set standards for those people involved in managing

transport operations (not necessarily owners). It covers basic knowledge of all

aspects of running a transport undertaking, namely;

Table 14: Basic Knowledge for Running a Transport Undertaking

�� Transport and business law

�� Business and financial management

�� Technical standards and operating practices

�� Licensing

�� Road safety

�� International aspects (for operators engaged in international transport)


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Role of Associations and Government in Setting Standards

An alternative approach is to encourage transport

operators to set their own professional standards. Even

without supporting regulatory measures there are strong

incentives for operators to achieve these professional

standards, because it would help them to:

�� Market their services more effectively to customers who want high

quality services

�� Increase their access to credit by improving their creditworthiness

The responsibilities required to implement this approach are shown in the

figure below:

�� Improving

Professionalism

�� Forming associations �� External assisting

�� Defining standards

�� Providing training

�� Connection with similar organizations

�� Providing basic

educational matters �� Awareness of Goals

�� Maintaining Dialogue

�� Adopting common standards

�� Entering into a MoU

Transport Industry Government

Figure 9: Responsibilities of Public and Private Sector


3-36

The transport industry and government should promote the need for

improved professionalism and determine the skills gap. A first step would be

to organize regional workshops for government to present policy initiatives and

to invite feedback

Transport operators and freight forwarders should consider forming one or

more associations that can represent their interests at a government level more

effectively than as a group of individual operators.

The government should seek external assistance (finance and advice) to

establish transport associations and support for training.

Associations should take responsibility for defining standards and for

providing industry-specific training.

The associations should affiliate with similar organizations in other

more developed countries in order to gain information and advice on defining

standards and setting up training and examination schemes. (In some cases

there will be a federation of transport association that can coordinate

assistance, especially with regards to defining standards of accreditation.)

The government should take responsibility for any basic educational

matters that are involved in increasing professional standards (e.g. literacy

standards may be low in some countries).

Public and transport customers should be made aware of the

professionalism goals of the transport industry and note those operators

seeking or achieving higher professional standards (e.g. through the operators

publishing a code of conduct).


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The government and transport industry should maintain regular

dialogue, perhaps through round-table meetings, to discuss transport issues

and policy developments.

When entering into international transport agreements, consideration

should be given to adopting common standards for training, regulation,

competency, data collection and enforcement.

The government should enter into a memorandum of understanding,

which requires relevant government agencies to consult with representatives of

the transport industry before making legal or policy changes that might have

significant impacts on the industry.

Access to the Profession as per EU Standards

As per directive 96/26/EC, those people who want to be road transport

operators should:

�� Be of good repute

�� Be of appropriate financial standing

�� Satisfy the condition as to professional competence

Good Repute

Local authorities should determine the requirements needed to be fulfilled

by those wishing to be transport operators in their countries. The following are

reasons why an operator should not receive accreditation:

�� They have been convicted of serious criminal offences, including

offences of a commercial nature

�� They have been declared unfit to pursue the occupation of road

transport operator under any rules in force


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�� They have been convicted of serious, repeated offences against the

rules in force concerning:

a. The pay and employment conditions in the profession

b. Road haulage or road passenger transport, as appropriate, in

particular the rules relating to drivers' driving and rest periods

c. The weights and dimensions of commercial vehicles

d. Road safety and vehicle safety

e. The protection of the environment

f. Other rules concerning professional liability

Financial Standing

As per EU Directive 96/26/ec, the operator must have available capital and

reserve of at least:

�� EUR 9000 when only one vehicle

�� EUR 5000 for each additional vehicle that is used

Professional Competence

With reference to 98/76/EC, professional competence must cover at least

the subjects listed below.

Professional competence is measured by a written examination, and if

necessary an oral examination is given. However, candidates who can provide

proof of adequate professional experience (e.g. 5 years in a management

position in the transport sector) do not have to take the full examination,

provided that their experience fulfills the requirements needed. In EU Directives

98/76/EC 1 October 1998, the holder of the certificate must be the person

actually managing the transport operation in a permanent capacity.


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The examination should cover the following subjects:

�� Provisions are applicable either to the transport of goods by road, as

appropriate, between E.U. Member States and between the

Community and non-member countries, arising out of national laws,

Community standards, international conventions and agreements

�� Customs practices and other formalities related to transport controls

�� Main traffic regulations in the E.U. Member States

A certificate is issued once the professional competence condition is

fulfilled. It can be obtained in three different ways: by passing an examination,

by having an equivalent diploma, or by having professional experience.

Road Transporters Knowledge

As per EU Directives, 98/26/EC 29 April 1998 professional road

transporters need some knowledge regarding their occupation. This knowledge

can be divided into three groups as shown below:

�� Road transport legislation

�� Road transport management

�� Vehicle engineering management


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Table 15: Required Knowledge for Road Transporters

Road Transport Legislation

�� Operator and driver licensing

�� Drivers hours regulations

�� Traffic regulations

�� Dangerous goods regulations

�� Public service vehicle regulations

�� Vehicle construction and use

regulations

Road Transport Management

�� Management objectives and

comparative-advantage

�� Concepts

�� Market and cost benefit analysis

�� Vehicle selection and utilization

�� Computerized and manual

scheduling

�� Computers in fleet management

�� Traffic management

�� Competitive tendering

�� Negotiation and contracts

�� Facilities and staff planning

�� Employment law and practices

�� Defect reporting and accident

procedures

�� Fuel management

�� Accounting and budgeting

�� Controlling expenditure

�� Risk management

�� Health and safety issues

�� Security

�� Civil Liability and Insurance

Vehicle Engineering Management

�� Vehicle construction and use

regulations

�� Safety inspections

�� Deriving a vehicle technical

specification

�� Use of statistics and analysis

�� Current development in technology

�� Workshop design and stores control

�� Workshop and fitter performance-

measurement

�� Health and safety issues

�� Workshop and vehicle costing and-

budgeting

Personnel Hiring

Most employees are honest. However, an internal

conspiracy is due to dishonest people obtaining jobs in the

organization, and becoming the "inside" people. So how can a

company ensure that a person who is going to use the

organization for illegal activities has not been employed? No personnel

selection system is foolproof.


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However, the following suggestions should be considered when recruiting:

The time and effort spent at the recruitment stage is vital, and is essential

in minimizing the risk of recruiting someone who is or may be susceptible to

illegal activities and who will bring these activities into an organization.

Role of the Associations in Defining Model Codes of Conduct

One way for operator associations to promote higher professional

standards is to define a set code of conduct, which must be observed by its

members. Under this approach, truck and bus operators should follow certain

rules of behavior such as:

Table 16: Recruitment Suggestions

�� Consult with trades unions, and get their agreement to introduce tight security

procedures into your selection system

�� Always issue in-depth application forms when recruiting staff

�� When you have got a "short list" of candidates, always conduct an interview

with the applicants. Question them thoroughly

�� Check references very carefully. Follow up any queries

�� Check with law enforcement agencies for criminal records

�� Check credit ratings

�� If in any doubt whatsoever, do not recruit!

�� Plan operations to ensure legal, safety and environmental obligations

�� Monitor drivers' compliance with the code

�� Train drivers beyond the legal minimum

�� Ensure that vehicles are safe, well maintained and clean

�� Respect other road users and pedestrians,

�� Require contractors and sub-contractors to follow the code

�� Respond in writing to complaint

�� Document all complaints

Table 17: Operators’ Rules of Behavior


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Access to the Market

Situation in SECI Region

Traditional bilateral arrangements are still characteristic of the SECI

Region. The majority of these countries pursue a rather protectionist policy and

limit the road freight quotas on the level of reciprocity. In very justified cases

however they are willing to issue additional permits, but only permits, which are

subject to taxes (these taxes can be defined as special vehicle taxation in the

transit country). While SECI countries suffer from a shortage of road permits in

some EU-countries, notably in Austria, they are hesitant to open up their

markets towards the East.

Another source of tension is in the value of different permits. Under the

existing regime, transit permits can be exchanged for third country permits in a

proportion, which is usually decided by the bargaining position of the country.

Owing to the varied interests of the different states, it has been well

recognized that an overall liberalization is the only way to satisfy any

participants in the European integration. This has also been foreseen in Europe

Agreements and is envisaged for the accession talks.

So we can understand why any attempts to achieve a partial solution,

which might undermine future liberalization, have failed so far. Some of the EU

candidate countries have gone even further and, for fear of the more

competitive EU transport operators, would like to have temporary safeguard

measures and agree on an asymmetrical opening up of the market.

They believe that this would enable their operators to adjust to the

progressive liberalization, modernize their vehicle fleet, introduce telematics in

their operations etc.


3-43

On the other hand, EU countries are not in a hurry for reciprocal

liberalization of road markets and they would prefer gradual liberalization

starting with the increase of transit permits only. While negotiations are taking

place on the ways and means, as well as the timetable of the European

integration of road freight sectors, such problems are discussed and resolved

within the framework of the European Conference of Ministers of Transport

(ECMT), as ECMT multilateral road permits offer additional, though not enough,

solutions.

Besides, this solution is not only for SECI, but also for the many other

central and Eastern European countries, which join this organization, provided

their vehicle fleets consists of environmentally friendly (green and greener)

trucks in order to make practical use of the theoretical opportunity.

The History of Access to Markets in the EU

Road transport services in Europe were traditionally

subject to bilateral inter-governmental agreements on the basis

of which governments annually agreed on road permit quotas

both for freight and passenger road transport.

These quantitative restrictions started to be an obstacle to trade

development due to the customs union of the EEC. Progressive liberalization

started in the eighties after long debates over the sequence of whether to

liberalize first and subsequently harmonize taxes or to harmonize taxation first

and only then liberalize.

The first step was the introduction of Community quotas in addition to

bilateral arrangements. By now the EU road transport market is fully liberalized,

except for transit through Austria.


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Regarding Council Regulation 96/26/EC, admission to profession is

subject to qualitative criteria only and once a Community carrier is established it

can enjoy free access to the road freight transport markets, full freedom is

granted in transit, bilateral, third country and cabotage traffic. Cabotage traffic

has been free from authorization since July 1 1998.

Member States are allowed to impose temporary quantitative restrictions

on road freight transport in the case of a crisis only, when there is over-capacity

in supply for a long period and it is unequivocal, significant number of carriers

suffer from financial imbalances and their survival is endangered, and it is

evident that in the short or medium term no market improvement can be

expected.

Fiscal Aspects of Road Transport

The differing fiscal policies adapted by SECI countries

inevitably lead to conditions of unfair competition. The

standardization of vehicle taxes, tolls and fuel excise duties

further contribute to the formation of the single road transport

market in the EU.

Though the procedures are to be decided nationally, the guiding principles

identify the minimum level for annual vehicle taxes, the maximum rate of user

charges per year (1250 Euro for the Euro-vignette) and the framework for

calculating toll rates.

According to the European definition user charges must be proportionate

to the use of the infrastructure, while tolls should be related to the costs of

construction, operation and development. To refine the common road taxation

system they plan to differentiate the rates depending on the technical standards

How do high tolls in the Balkan region affect land transportation?


3-45

of vehicles (non-Euro vehicles should pay higher annual taxes than the

environmentally friendly Euro-I or Euro-II vehicles; in case of user charges 3

categories of emission standards and 3 classes of road damages are to be

taken into account.

Most SECI countries have lower tax rates than the EU minimum.

Therefore, one of the results of the accession will be an increase in taxation

levels. This would further reduce the competitiveness of SECI operators, but it

will also have an effect on the whole economy, as transport costs will increase.

All ECMT Member countries levy fiscal charges on goods transport by

road, usually through a combination of taxes on possession of a vehicle and

charges related to their use on the road.A variety of criteria are used to assess

the level of vehicle tax. The permissible gross laden weight is the most usual,

but it can be replaced by or combined with other criteria. Taxation has three

main categories:

�� A territorial charge in the form of tolls or the Euro vignette

�� National based vehicle taxes

�� Fuel Excise Tax

A large number of countries charge road usage fees (either for the entire

network or, mostly, for highway and/or motorway networks, e.g. in the form of

the “Euro vignette”) and/or tolls (time- and/or distance-related charges).

In Germany, Belgium, The Netherlands, Luxemburg, Denmark and

Sweden, countries with no prior history of applying motorway tolls, growth in

international traffic led to the development of territorial based Euro vignette to

replace former national based charges in the large part.


3-46

Euro vignette fees are paid annually or over shorter periods, and the

pooled revenues are redistributed under a formula designed to relate income to

actual use of roads nationally.

Some charges are levied in the form of fixed fees per time unit or journey

or on the basis of kilometers traveled or ton/kilometers (the latter system is

particularly prevalent in Eastern Europe). Several countries have different

applications, for example:

�� National and foreign vehicles

�� Type of roads

�� Transit or other traffic

In order to assess the impact of taxes on the competitiveness of national

haulage industries, the taxation of labor and capital needs to be taken into

account as well as transport taxes and charges. There are large differences

between countries regarding transport charges, but differences in labor and

capital taxation cancel out most of the variation.

The net effective rate of transport charges is simply the overall weight of

charges obtained by summing up all the various charges and taxes levied

(vehicle, taxes, fuel taxes, tolls etc.), subtracting any reimbursements, discounts

etc. and expressing the overall figure in terms of a charge per ton km (or per km

or per liter of fuel used or some other common denominator).

In what sense might taxes collected in international land transport affect

transportation costs?


3-47

Taxation of Vehicles

Harmonization should aim to improve and standardize the collection (levy)

systems as well as aim to establish a fair mechanism for charging infrastructure

costs to haulers

According to ECMT rules, it is considered that for a vehicle with 3+2 axles,

of a total authorized laden weight of at least 40 tons but no more than 44 tons,

the minimum rate of tax is 929 Euros per year if it has standard suspension and

628 Euros if it has air-cushion suspension or the recognized equivalent. For a

vehicle in the same weight range but which has 3+3 axles, the minimum rate of

tax is 535 Euros for a standard vehicle and 336 Euros for a vehicle with air-

cushion suspension, or the equivalent.

Tolls and Road User Charges

EU countries may maintain or introduce tolls and road

user charges for the use of motorways or other multi-lane

roads with characteristics similar to those of motorways, or of

bridges, tunnels or mountain passes.

Tolls and user charges should not discriminate, directly or indirectly, on the

grounds of the nationality of the hauler or the origin or the destination of the

vehicles and may not be imposed on the same stretch of a motorway at the

same time.

Furthermore, the collection of tolls and user charges should be set up in

order to maintain a free as possible flow of traffic and to avoid any compulsory

controls or checks at Community internal borders.

What are the affects of having different taxation systems in different

countries in the transport sector?


3-48

User charges, including administrative costs, for all vehicle categories,

should be set by the Member States concerned at a level which is not higher

than the following maximum rates (in Euros):

Table 18: User Charges

Category

3 axles max.

4 axles min.

Non Euro 960 1550

Euro 1 850 1400

Euro 2 and less polluting 750 1250

These charges are imposed on heavy goods vehicles according to the

damage to the infrastructures and air pollution they cause. Maximum monthly

and weekly user charges are proportionate to the duration of use made of the

infrastructure. The daily user charge is 8 Euros for all vehicle categories.

Tolls are related to the costs of constructing, operating and developing the

infrastructure network concerned. Toll rates are charged according to:

�� Vehicle emission classes, provided that no toll is more than 50 per

cent above the toll charged for equivalent vehicles meeting the

strictest emission standards.

�� Time of day, provided that no toll is more than 100 per cent above the

toll charged during the cheapest period of the day.

Tolls and User Charges

Tolls and user charges may not both

be imposed at the same time for the

use of a single road section. However,

tolls maybe imposed in networks

where user charges are levied for the

use of bridges, tunnels and mountain

passes.


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Excise on Duties on Fuel

The minimum excise duty on diesel used as a fuel is set at 245 ECU per 1

000 liters, except in the case of Luxembourg and Greece, where the minimum

excise duty, in the period from 1st January 1993 to 31 December 1994, was set

at 195 ECU per 1 000 liters.

International Coherence in Taxation

The national based charges give rise to difficulties in international

transport as governments have to decide whether and how to levy national

charges on foreign owned vehicles.

Transit charges are waived in many cases due to reciprocal bilateral

agreements. The level of transit charges applied also varies greatly between

countries. To maintain fairness domestic and foreign haulers should be taxed

equally.

Are technical standards regarding vehicle, load and driver security taken into

consideration in the land transport sector?


3-50

Technical and Safety Regulations Governing Road Transport

Technical Standards and Aspects of Operation

Technical standards and the aspects of operation play a large role in

creating effective transport management. Differences in the implementation of

various technical standards in SECI countries contribute negatively to the

development of the transport industry in general. The EU directive 96/26/EC

deals specifically with these features:

Table 19: Technical Standards

Checking Tips for Drivers

There may be a variety of problems at the time of loading. It is important

that these are identified on paper and the proper way to do this is on the

CMR/POD for all to see.

For example, where a driver is asked to load in wet conditions and the

goods are subject to dampness, this situation must be highlighted on the

document - “Loaded in wet conditions. Goods liable to dampness” and signed

by the driver. If there is only a driver signature with no other comments it will be

assumed that the driver was totally satisfied with the load that is quality and

quality at the time of uplift.

�� Weight and dimensions of vehicles

�� Vehicle selection

�� Type-approval and registration

�� Vehicle maintenance standards

�� Loading and unloading of vehicles

�� Carriage of dangerous goods

�� Carriage of foodstuffs

�� The relevant environmental protection concepts with reference to the use and

maintenance of motor vehicles


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Trailer Identification and Condition

Check the number of the trailer against your

paperwork or verbal instructions, to ensure both

match.

Step 1:

Uplifting a Trailer

Step 2:

External Examination

�� Torn in curtain

�� Damage to panels / doors / roof

�� Condition of tires

�� Lights operational

Step 3:

Internal Examination-Empty Trailer

Step 4:

Internal Examination-Loaded Trailer

�� Cleanliness i.e. floor swept

�� No other contents on what is said to be an

empty trailer

�� Securing straps are available

�� TIR, cords are in position

�� Condition of the trailer meets a high standard

�� Is it sealed- if so check seal is intact? Nothing

more to be done.

�� If unsealed, open and check:

a. The load as described by your paperwork

b. That it is properly tied in and fit to travel

c. If not take steps to rectify matter and

report circumstances to operations

Figure 10: Uplifting a Trailer


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Maximum Authorized Weights and Dimensions

The objective of harmonizing weights and dimensions is

to remove the barriers to free movement between the

European countries that arises from the different standards

that are applied to the weight (international traffic) and

dimensions (international and national traffic) of road vehicles intended to carry

goods and passengers.

Road trains using extensible coupling systems in practice attain a

maximum length of 18.75 m when fully extended; whereas the same maximum

length should be authorized for road trains using fixed coupling systems. 2.50m

is the maximum authorized width for vehicles intended for the carriage of goods.

To prevent excessive road damage and to ensure maneuverability, when

authorizing and using vehicles, preference should be given to pneumatic or

equivalent suspension rather than mechanical suspension; whereas certain

maximum axle loads should not be exceeded, and the vehicle must be capable

of turning through 360° within certain limit values for the path followed. The

weights and dimension of SECI Countries are given in the following tables:

below:

How do different weight and size practices affect the transport sector?


3-53

Weight and Dimensions in Bosnia and Herzegovina

Width (m) 2.50 Refrigerated vehicles (m) 2.50

Height (m) 4.00

Length (m)

Motor vehicle Road train Articulated vehicle Trailer

12.00 .... ....

12.00 Weight on axle (t)

Single Double Triple

10.00 16.00 24.00

Motor vehicle 2 axles 3 axles

40.00 40.00

Road train 3 axles 4 axles

5/6 axles

40.00 40.00 40.00

Articulated vehicle 3 axles 4 axles

5/6 axles

40.00 40.00 40.00

Vehicle weight (t)

Trailer 1 axle 40.00

Weight and Dimensions in Albania

Width (m)

2.50 Refrigerated vehicles (m)

......

Height (m) 4.00

Length (m)


12.00 18.35 16.50

...... Weight on axle (t)


5.00 8.00

10.00 Motor vehicle 2 axles

3 axles 18.00 25.00


5/6 axles

40.00 40.00 44.00


5/6 axles

26.00 32.00 38.00

Vehicle weight (t)

Trailer 1 axle 6.00

Table 21: Weight and Dimensions in Bosnia

This table was adopted from UNECE, 2001 October

Table 20: Weight and Dimensions in Albania



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Weight and Dimensions in Bulgaria


Height (m) 4.00

Length (m)

For vehicles all vehicles For vehicles with one or more trailers

22.00 18.75

Weight on axle (t)

Single Tandem axle 1.0 to 1.3 m distance Tandem axle 1.31 to 1.4 m distance Tandem axle 1.41 to 2.0 m distance Tandem axle above 2.0 m distance

10.00 6.5 8.0 9.0

10.00 Vehicle weight (t)

For all vehicles

40.00

Weight and Dimensions in Croatia


Height (m) 4.00

Length (m)


12.00 18.75 16.50 12.00

Weight on axle (t)


10.00 .... ....

Motor vehicle 2 axles 3 axles 4 axles

18.00 25.00 31.00


5/6 axles

.... 36.00 40.00


5/6 axles

.... 36.00 40.00

Vehicle weight (t)

Trailer 2 axles 3 axles

18.00 24.00

Table 22: Weight and Dimensions in Bulgaria


Table 23: Weight and Dimensions in Croatia



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Weight and Dimensions in Greece


Height (m) 4.00

Length (m)


12.00 18.35 16.50 12.00

Weight on axle (t)


11.50 .... ....

Motor vehicle 2 axles 3 axles 4 axles

18.00 25.00 32.00


5/6 axles

.... 36.00 40.00

Articulated vehicle

3 axles 4 axles

5/6 axles

....

.... 44.00

Vehicle weight (t)


18.00 24.00

Weight and Dimensions in Macedonia

Width (m) 2.50 Refrigerated vehicles (m)

2.60

Height (m) 4.00

Length (m)


12.00 18.00 16.50

.... Weight on axle (t)


10.00 16.00.

.... Motor vehicle 2 axles

3 axles 4 axles

16.00 22.00

.... Road train 3 axles

4 axles 5/6 axles

.... 36.00 40.00


5/6 axles

.... 32.00 40.00

Vehicle weight (t)


.... 24.00

Table 24: Weight and Dimensions in Greece This table was adopted from UNECE, 2001 October

Table 25: Weight and Dimensions in Macedonia This table was adopted from UNECE, 2001 October


3-56

Weight and Dimensions in Romania


2.60

Height (m) 4.00

Length (m)


12.00 18.35 16.50 12.00

Weight on axle (t)


10.00 16.00. 22.00


16.00 22.00

Road train 4 axles 2+3,3+

2/3 axles

36.00

40.00

Vehicle weight (t)

Articulated vehicle 4 axles 2+3,3+

2/3 axles

36.00

40.00

Weight and Dimensions in Slovenia


....

Height (m) 4.00

Length (m)


12.00 18.75 16.50 12.00

Weight on axle (t)


10.00 .... ....


18.00 25.00

Road train 3 axles 4 axles 5/6 axles

24.00 35.00 40.00

Articulated vehicle 3 axles 4 axles 5/6 axles

28.00 36.00 40.00

Vehicle weight (t)

Trailer 1 axle 18.00

Table 26: Weight and Dimensions in Romania This table was adopted from UNECE, 2001 October

Table 27: Weight and Dimensions in Slovenia This table was adopted from UNECE, 2001 October


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International Vehicle Weight Certificate (IVWC)

The International Vehicle Weight Certificate (IVWC) was drawn up in

accordance with the provisions of the Protocol on the Introduction of an

International SECI Goods Road Vehicle Weight Certificate (IVWC) to the

Memorandum of Understanding (MoU) on the Facilitation of International Road

Transport of Goods in the SECI Region (Athens, 28 April 1999).

The International Vehicle Weight Certificate (IVWC) has been designed to

avoid repetitive weight measurements of goods road vehicles en route in

international transport, particularly at border crossings. The use of the certificate

is optional by transport operators.

Standard Set on Motor Vehicle Emissions

A whole series of EU Directives have been aimed at road motor vehicle

emissions. Emissions are falling measurably even though traffic volumes

continue to rise. The implementation of the new adopted Auto-Oil Program will

depend on the eagerness with which Member States apply European

regulations. The program focused on the following areas:

Table 28: Auto-Oil Program Areas

�� Fuel qualities (lead and sulphur content)

�� Cleaner exhaust gases (catalytic converters)

�� CO2, CO, VOC (Volatile Organic Compounds), NOx and particle emissions

�� Regular vehicle inspection

�� Research into new forms of propulsion and fuel

What kind of problems are transporters facing with the implementation of

emission standards in the Europe Union?


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From the 1st January 2005 petrol and diesel must contain no more than

50 ppm of sulphur, a level that was agreed by Council and Parliament at the

end of the Auto-Oil Program. However, the other environmental parameters

have not yet been fixed for 2005 (except for the levels of aromatics in petrol)

and the recent analysis in Auto-Oil II has focused on these parameters rather

than sulphur.

Auto Oil II has followed the same basic approach as the first program but

taking fuller account of the potential of emission sources other than road

transport and of other road transport measures than the so-called technical

measures; taking advantage of reactive air quality models in order to

understand better the interactions of different pollutants and in extending

participation in the Program to MSS and NGOs in addition to the auto and oil

industries.

Recent technological development coupled with a greater desire to make

progress on issues such as climate change has raised the issue of sulphur in

fuel and the level that is appropriate to keep pace with these new

developments.

The Communication from the

Commission reviewing the Auto-Oil II Program

shows that road transport is responsible for a

declining relative share of total emissions of the

most common atmospheric pollutants, but that

further improvements in air quality will require

an approach that addresses other sources

more systematically.

Auto-Oil II Programme

The aim of the European Auto-Oil II

Programme (AOPII) is to make an

assessment of the future trends in

emissions and air quality. For more

information:

http://europa.eu.int/comm/environme

nt/autooil/


3-59

Case Study: A Dramatic Accident

T-Transport Company was given the task of

transporting 10 tons of meat from country A to

country B. But there was not enough time for

transportation. The loading was completed

successfully and the truck set out on the

determined day. At first everything was all right

but after six hours’ driving, there was an

accident.

The accident was not a fatal one but the truck’s freezing system had been

damaged. There was at least another 16 hours to go but without this system it was

impossible to deliver the goods in a healthy condition. For that reason, the driver

had to find a place to mend the damaged system.

To his surprise, he found out that the cost would be much higher than he

expected. But the worst was yet to come: he realized that some of the insurance

documents of the truck were missing, and he could not pay the money.

So, he immediately called his company. The company took up the situation

and sent him the money. But all these caused a great loss of time and the goods

could not be delivered on time, besides the damages of some of the goods.

1. Which mistakes of the driver and the company could have caused this situation?


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Social Aspects Governing Road Transport

Obligations for the driving and rest times of truck and coach drivers have

a positive effect on traffic safety, but at the same time they increase the costs of

road transport. The AETR Agreement restricts driving hours only in the case of

international transport, as the duration of journeys is usually long.

The Community legislation however extends these restrictions to all

domestic journeys, too. SECI operators are obliged to keep to these rules when

they enter EU territory, since the national traffic rules of the country where the

vehicle travels are to be observed. They do not have to apply them however for

domestic journeys.

This harmonization will result in SECI operators paying extra costs, as

more drivers will be employed to offer the same service to customers as before

and costs will also rise due to vehicle maintenance becoming more frequent. All

this will need to be supported by different organizational structures.

On the other hand, the accession to the AETR Agreement will undoubtedly

increase the quality of service provided so far as the security of the truck and

goods transported goes. Since the Europe Agreements give freedom for

establishing enterprises, SECI structural changes will favor EU operators who

are willing and able to expand.

The Driver’s Responsibilities in Transport Operations

Drivers are the representatives of any transport company, who are present

at the customer's premises with first hand knowledge of what goes on. The

company is totally dependent on their drivers feeding information back correctly

so that the proper process of administration, investigation and comparison can

take place. Therefore, driver professionalism becomes an important matter.


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The movement of goods between points A and B is the responsibility of

the driver. The driver is expected to ensure that:

�� The goods are securely fixed within the trailer before moving off

�� During travel the driver should take all the necessary steps to prevent

theft of goods in the vehicle by parking in secure or very active areas

�� They drive in accordance with prevailing road conditions

�� They have respect for road conditions

�� They have respect for others using the roads

�� They have respect for property of others

To date, serious weaknesses have been noted in:

�� The reporting of accidents

�� The handling of goods in transit

In order to assist in eliminating these weaknesses the driver must:

�� Report all accidents/vehicle damage immediately

�� Sign for all loads and show clearly the circumstances prevailing

�� Think of security

�� Communicate

The driver is the only person present on site and therefore they have all

the vital information.

The driver must:

�� Examine visually where possible

�� Always be present during loading where permitted

�� Check the load for: quantity; against paperwork and damage

�� Secure the load before commencing their journey


3-62

Drivers in Road Transport

According to AETR regulations, the minimum age of drivers engaged in

the international road transportation of goods shall be for vehicles of a

permissible maximum weight not exceeding 3.5 tones, 18 years old.

For other vehicles:21 years or 18 years where the person concerned holds

a certificate of professional competence that he/she has completed a training

course for drivers of vehicles intended for the carriage of goods by road.

In the figure below the driving ages for vehicles are given:

Knowledge, Skill and Behavior for Driving a Power-Driven Vehicle

The driver’s knowledge, skill and behavior while driving a power driven

vehicle is covered in detail in the directive 91/439/EEC, which addresses the

following issues:

18 years old 21 years old

exceeding 3.5 tonnes not exceeding 3.5 tonnes

Figure 11: Driving Age


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Table 29: Knowledge Skill and Behavior for Driving a Power-Driven Vehicle

Driver’s Knowledge and Skill

Trucking is a very dangerous profession, about 600 drivers a year die in

highway accidents. Drivers need important knowledge to avoid these accidents.

They must be able to demonstrate knowledge and a sound understanding in the

following areas as shown below:

�� Drive safely; drivers of all power-driven vehicles must have the necessary

knowledge, skill and behavior

�� Recognize traffic dangers and assess their seriousness

�� Have sufficient command of their vehicle not to create dangerous situations and

to react appropriately should such situations occur

�� Comply with road traffic regulations, and in particular those intended to prevent

road accidents and maintain the flow of traffic

�� Detect any major technical faults in their vehicles, in particular those posing a

safety hazard, and have them remedied in an appropriate fashion

�� Take account of all the factors affecting driving behavior (e.g. alcohol, fatigue,

poor eyesight, etc.) so as to retain full use of the faculties needed to drive safely

�� Ensure the safety of all road users, and in particular of the weakest and most

exposed by showing due respect for others

Traffic Controls

Basic Driving Skills

Turns and Intersections

Lane Driving

Sharing the Road

Emergency Driving

Driving within the Law

Registration and Insurance

Figure 12: Driver’s Knowledge and Skill


3-64

Driver’s Attitude

Communicating with other road users using the authorized means:

Driving Licenses

Transport for hire and reward between

member countries of the European Union is

conducted under a Community license, which is

issued for a period of five years and is

renewable. The license has a multilateral

character since it can be used for transport

operations between two member countries,

neither of which is the company’s country of

origin. Since 1st July 1998, they can be used for

cabotage operations within the Member State.

The ability to make progress is an

important advanced driving skill, but

progress must never compromise

safety. Excess speed (speed above

the statutory limit) and inappropriate

speed (excessive speed for the

circumstances, regardless of the

statutory limit) are dangerous and

are not acceptable.

Driving Speed

�� Reacting appropriately in actual risk situations

�� Complying with road traffic regulations and the instruction of the police, traffic

wardens, etc.

�� Showing due respect for other road users

�� Passing parked or stationary vehicles and obstacles

�� Passing oncoming vehicles, including in confined spaces

�� Overtaking in various situations

�� Approaching and crossing level-crossings

�� Approaching and crossing junctions

�� Turning right and left at junctions or in order to leave the carriageway

�� Taking the necessary precautions when alighting from the vehicle

91/439/EEC 29 July 1991


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Drivers of vehicles in these categories must also demonstrate knowledge

and sound understanding in the areas set out below:

�� Obstruction of the field of view of the driver and other users caused

by the characteristics of their vehicles

�� The effect of wind on the course of the vehicle

�� Rules on vehicle weights and dimensions

�� Rules on driving hours, rest periods and use of the tachograph

�� Principles of braking systems and speed governors

�� Precautions to be taken when overtaking because of the danger of

splashing spray or mud

�� Reading a road map

They must in addition be capable of:

�� Checking the power-assisted braking and steering systems

�� Using the various braking systems

�� Using speed reduction systems other than the brakes

�� Adjusting course when turning to allow for the length of vehicle and its

overhang

�� Know the safety factors relating to vehicle loading

Figure 13: Driving License Categories used in Road Transport (Europe)

Maximum authorized mass is over 3 500

kilograms; motor vehicles in this category may

be combined with a trailer having a maximum

authorized mass which does not exceed 750

kilograms.

A combination of vehicles where the tractor

vehicle is in category C and its trailer has a

maximum authorized mass of over 750

kilograms.

C1

C

EC1

EC

Seri


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Minimum Requirements for Driving Tests

Driving tests should ensure that applicants for driving licenses have the

required knowledge and skills, and behavior. Questions must be asked on

points such as road traffic regulation, general rules and regulations, the vehicle

and its equipment.

Applicants shall undergo medical examination before a driving license is

first issued to them and at regular intervals thereafter.

Applicants must go through a medical check of the following health items

to ensure that there is no condition that makes it dangerous for them to drive a

power-driven vehicle:

Table 30: Health Check Items

Driver licenses shall not be issued to, or renewed for, applicants or

drivers who:

�� Suffer from complaints or abnormalities of the locomotors system

�� Have serious arrhythmia

�� Sight

�� Hearing

�� Locomotors Disability

�� Cardiovascular Diseases

�� Diabetes Mellitus

�� Neurological Diseases

�� Mental Disorders

�� Alcohol

�� Drugs and Medical Products

�� Renal Disorders

�� Miscellaneous Provisions


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�� Suffer from a serious neurological disease, unless the application has

an authorized medical report which states that he/she can drive

�� Severe mental disturbance

�� Severe mental retardation

�� Severe behavioral problems due to ageing; or personality defects

leading to serious impaired judgment, behavior or adaptability

�� Are dependent on alcohol or unable to refrain from drinking and

driving

�� Are dependent on psychotropic substances

�� Suffer from serious renal insufficiency subject to authorized medical

opinion and regular medical check-ups

Driving and Resting Periods of the Drivers

Different resting and driving periods in SECI countries not only lead to

unfair competition but they also severely affect the safety of transport

operations. The figure below shows the driving periods of drivers:

Continuous Driving 4,5 Hours

Daily Driving 9 Hours (10 hours twice a week)

Fortnightly Driving 90 Hours

Working Day/Spread Over Normally 13 Hours

Figure 14: Driving Periods


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The daily driving period between any two daily rest periods or between a

daily rest period and a weekly rest period shall not exceed nine hours. It may

be extended twice in any one week to 10 hours.

A driver must, after no more than six daily driving periods, take a weekly

rest period. The weekly rest period may be postponed until the end of the sixth

day if the total driving time over the six days does not exceed the maximum

corresponding to six daily driving periods.

The total period of driving in any one fortnight shall not exceed 90 hours.

Maximum Continuous Driving Periods

No continuous driving period shall exceed four hours except where the

driver cannot reach a convenient stopping place or his/her destination; in such a

case the driving period may be extended by no more than 30 minutes.

If the daily driving period exceeds eight hours the driver shall be required

to discontinue driving during not less than two uninterrupted periods of 30

minutes.

Breaks and Rest Periods

After four-and-a-half hours' driving, the driver should have a break of at

least 45 minutes, unless he/she begins a rest period. This break may be

replaced by breaks of at least 15 minutes each distributed over the driving

period or immediately after this period. The figure below explains the daily

driving and rest periods of a driver:


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In each period of 24 hours, the driver should have a daily rest period of at

least 11 consecutive hours, which may be reduced to a minimum of nine

consecutive hours not more than three times in any one week, on condition that

an equivalent period of rest is granted as compensation before the end of the

following week.

During each period of 30 hours when a vehicle is operated by at least two

drivers, each driver shall have a rest period of not less than eight consecutive

hours (AETR).

Weekly Rest Period

In addition to the daily rest periods, every crewmember shall have a

weekly rest period of not less than 24 consecutive hours, which is followed by

a daily rest period. A weekly rest period, which begins in one week and

continues into the following week, may be attached to either of these weeks.

A combination of vehicles used for the carriage of goods where the

permissible maximum weight of the combination of vehicles exceeds 20 tones,

the driver is to be accompanied by another driver from the start of the journey,

or be replaced by another driver after 450 kilometers, if the distance to be

traveled between two consecutive daily rest periods exceeds 450 kilometers.

Figure 15: Daily Driving and Rest Periods

4.5 hours 4.5 hours 1 hour 45 min. 45 min.

Daily Driving Period Twice a Week


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The figure bellow shows the rest periods of a driver:

In the course of each week, one of the rest periods is extended, by way of

a weekly rest, to a total of 45 consecutive hours. This rest period may be

reduced to a minimum of 36 consecutive hours if taken at the place where the

vehicle is normally based or where the driver is based, or to a minimum of 24

consecutive hours if taken elsewhere. Each reduction shall be compensated by

an equivalent rest taken en bloc before the end of the third week following the

week in question (AETR). Individual Control Book

Every driver or driver's mate writes in an individual control book, a record

of his/her occupational activities and rest periods. He/She must keep the book

with him/her and produce it whenever required by the control authorities.

Exceptional cases must be recorded in the

individual control book. Such as danger, in case

of force majeure, to render aid, or as a result of

a breakdown, to the extent necessary to ensure

the safety of persons, of the vehicle or of its

load and to enable him/her to reach a suitable

stopping place or, according to circumstances,

the end of his/her journey.

Weekly Rest 45 Hours

(reducible to 36 hours)

Daily Rest Periods 11 Hours

(reducible to 9 hours)

Figure 16: Rest Periods

Drivers and attendants should be

required to carry their control books

with them during their hours of work

and to produce them on demand to

the supervisory authorities.

Control Book


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The driver should record in the individual control book the nature of and

reason for his/her departure from those provisions.

Every driver should keep a register of the

individual control books they use; the register

should show at least the name of the driver or

driver's mate to whom the book is issued, the

driver's or driver's mate's signature in the

margin, the number of the book, the date of

issue to the driver or driver's mate and the date of the last daily sheet

completed by the driver or driver's mate before final return of the control book to

the undertaking after use.

In the Event of an Accident or Damage to Property

As a result of an accident or damage to property, the transport company

and drivers should take all appropriate measures in order to minimize the

financial or other risks for its own company and/or to its clients. Such measures

include but are not limited to:

Table 31: Measures in the Event of an Accident or Damage to Property

�� Stop and give identity information about yourself and your firm

�� Provide details of your vehicle

�� Note the full name and address of the third party

�� Note detail of their vehicle i.e. registration number, make, type, extent of damage

�� Take the details of any Police Officer attending i.e. his/her number.

�� Note the exact location of the accident/damage

�� Note down the main junction

�� Take down details by doing a rough sketch

�� Do not admit liability

�� Notify operations without delay

�� Take a note of the operation’s person to whom you speak

�� On return to the office, complete an accident report form

Used books should be kept for no less

than 12 months after the date of the

last entry and should be produce with

the registers of issue, at the request of

control authorities (AETR).

Used Books


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Case Study: An Interesting Journey

Çetin received the goods from the sender in

good condition, having completed the necessary

transactions in consignment note, set out for B

country from A country. While the vehicle of Speed

Logistics firm is passing through C country, the

thieves approach the moving vehicle from behind,

cut the cover and empty some of the load.

The driver, unaware of the situation, continues his progress. Stopping to

control the vehicle after the warning of drivers passing by, Çetin notices the

situation. Having called the firm and informed them of the situation, Çetin stitches

the cover and sets out, and immediately applies to the officials of C country.

But the misfortunes of Çetin are not over yet. In spite of making a

complaint, Çetin is in guilty position, let alone finding a solution. For, the officials

are suspicious that the goods were stolen by Çetin himself and sold within the

country, intending to start legal procedures. According to that, Çetin has to pay the

taxes for these goods, thought to be sold.

As a matter of fact, Çetin went on his way after paying the tax, since he has

to get the goods in place on time. Nevertheless, since the goods are missing, there

were problems during the delivery according to the consignment note and he had

to meet the loss.

1. What must the driver do first of all when he encounters an extraordinary

situation?

2. What would you do if it happened to you? Insurance, notification of the situation,

delivery, etc.?


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Visa Regimes

Yet another issue hindering the free movement of transportation is the

problem of visas for the drivers of vehicles.

For this reason, the United Nations European Economic Council

(UNECE) and the SECI Regional Road Transportation Committee (SECI-

RRTC) have started to work on:

�� facilitating visa formalities

�� shortening the period required to obtain a visa

�� issuing multi-entry annual visas

Conformity is needed in order to solve the three main problems stated

above. For this purpose, when it is taken into consideration that Greece as a

member of European Community (EC) and Romania and Bulgaria as

candidates for membership and Turkey as a member of the Performing

Customs Union since 1996 as well as being a candidate for membership in the

SECI region and other countries of the region having made bilateral harmony

agreements with the E.C., it is inevitable that these countries have to harmonize

transportation and customs regulations in line with E.C. regulations.

Vehicle and Goods Security

One has only to think for a moment of the wide variety of

goods moved by road to realize how desirable many of these

loads are to thieves. Insurance companies as well as

operators of fleets are concerned that security should be

effective.

What problems do visa applications create for transport sector?


3-74

In fact insurance companies often require certain precautions to be taken

by the operator as a condition of providing insurance.

Haulage Associations are also concerned about vehicle and load security

and they have produced a guide for the use of its members. Among the points

mentioned are:

�� Recruitment of staff: references should be checked. If a new driver is

employed do not let the vehicle be taken out until you have their P45

and other documents.

�� Alarms and immobilizers should be fitted in vehicles.

�� If a driver has a valuable load he/she should be instructed not to get

out of the cab if stopped.

�� Vehicles should not be left unattended, especially at night.

�� Keys should never be left in the vehicle. If a key is lost, all locks and

switches should be changed.

�� Drivers should be asked to change their routine so they don’t visit the

same places at the same times.

�� When a vehicle is sold, the company name should be removed.

�� A cash bonus could be given to drivers that observe security rules.

Security is also important for the long-term future of the business, because

if a company gets a reputation for bad security, customers may withdraw their

trade.


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Liability and Insurance

Where at the time of loading the driver identifies damage, he/she should

bring this to the notice of the customer. The customer should remove the

damaged goods but if they insist that loading should be continued a CMR

discharge should be filled out showing the prevailing conditions e.g. “Damaged

goods identified to customer. Instructed to send on“, signed by the driver.

Insurance Cover

Insurance cover will depend on the sales contract terms, and if these

include insurance cover by the seller any stipulations requested by the buyer in

his/her Letter of Credit must be covered.

If the buyer is responsible for the insurance, the seller will still need to

cover the goods up to the point where title passes to the buyer and also insures

for any contingent risk in case his/her customer rejects the documents or goods.

Unless the buyer stipulates that he/she requires facultative insurance with

its own policy, most exporters or their forwarders cover the risk with a certificate

issued against an “open cover” policy. Under the open cover policy the shipper

or their agent agrees to insure all their cargo with an underwriter, who in turn

undertakes to cover the entire shipper or agent’s consignments. The shipper’s

agents or their brokers can issue the certificate themselves and the

underwriters might not be aware of the shipment until a claim arises.

Green Card Insurance

A Green Card is an international certificate of insurance

issued on behalf of a national bureau in accordance with

Recommendation No 5 adopted on 25 January 1949 by the

Road Transport Sub-committee of the Inland Transport

Committee of the United Nations Economic Commission for Europe.


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The Green Card System facilitates international traffic while settling the

legal questions regarding the different compulsory motor insurance laws in the

participating countries. Further it makes it simple to settle claims in the event of

an accident in the visited country ensuring that the claimant is correctly

compensated. Thus, the visiting motorist is put into the same legal situation as a

liable domestic motorist. There are at present forty-three countries participating

in the Green Card System. The situation in SECI countries is given in the

following table:

Table 32: Green Card Countries

Albania

Bulgaria

Croatia

Greece

Macedonia

Moldova

Romania

Slovenia

Turkey

Yugoslavia

Compulsory Necessary Recommended * Adopted From Swiss National Bureau of Insurance

The Green Card System operates on the basis of the Compulsory Third

Party Insurance Laws of the participating countries with the effect that

compensation of the claimant is guaranteed on the basis of its domestic law

notwithstanding the fact that the accident was caused by a vehicle from abroad.

Various countries therefore demanded that motorists purchased frontier

insurance when crossing their borders, with the advantage that the laws

governing the sum insured and extent of cover in the countries visited were

complied with. Even today one can still obtain this type of certificate of

!

!

!

AL

B

HR

MK

GR

MD

YU

TR

RO

SK


3-77

insurance from the Customs Authorities of the visited countries for periods of

one to six months.

The Green Card, which is issued by third party motor risk insurers, serves

as an international insurance certificate for cross-border traffic. (Today the

Green Card is still compulsory for some Countries in Eastern Europe and the

Mediterranean Basin and is recommended for longer distance travel).

The Status of the Green Card

The Green Card is equivalent to the national Motor Insurance Certificates

of each and all of the countries that a motorist visits. As such it is accepted

without any obstacle or cost by the authorities of all countries for which the

individual Green Card is valid.

The Green Card presented by a motorist on

a temporary visit to a certain country or countries,

which is validated for the country or countries

concerned, provides evidence of the existence of

insurance cover in respect of the minimum

requirements of the relevant "local" Compulsory

Third Party Insurance Laws.

Motorists intending to travel outside of their own country are provided with

an International Motor Insurance Card ("The Green Card"), which has to be

presented at borders and in the event of an accident.

For residents of the above-mentioned countries, the Green Card is

compulsory for all of the other countries participating in the Green Card System.

The Green Card certifies that the

visiting motorist has at least the

minimum compulsory third party

insurance cover required by the laws

of the countries visited.

Status of Green Card


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For non-residents of the above-mentioned countries, the Green Card is

compulsory for all of the participating countries.

Liability for the Carriage of Goods

The convention on the contract for the international carriage of goods by

road (CMR) dated 1956 have recognized the desirability of standardizing the

conditions governing the contract for the international carriage of goods by road,

particularly with respect to the documents used for such carriage and to the

carrier' s liability.

The consignment note is a legal contractual document between consignor,

road transport operator and consignee, which standardizes the conditions

governing the contract for international road transport, particularly with respect

to documents to be used and the carrier’s liability with the aim of facilitating

international road transport and international trade.

To use the CMR note, at least one of the countries involved in the

international transport (of origin or of destination) should be a Contracting Party

to the CMR Convention. (http://www.iru.org/TIR/Glossary/16.E.html)

The contract of carriage is confirmed by making out a consignment note.

The absence, irregularity or loss of the consignment note does not affect the

existence or the validity of the contract of carriage that remains subject to the

provisions of this convention.

What monetary limits of liability should apply to what units of cargo, and in

what circumstances?

What are the objectives of a cargo liability regime?


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The liability of the carrier for the consequences arising from the loss or

incorrect use of the documents specified in and accompanying the consignment

note or deposited with the carrier is that of an agent, provided that the

compensation payable by the carrier shall not exceed that payable in the event

of loss of the goods.

The sender has the right to dispose of the goods, in particular by asking

the carrier to stop the goods in transit, to change the place at which delivery is

to take place or to deliver the goods to a consignee other than the consignee

indicated in the consignment note.

To exercise this right the first copy of the consignment note, on which the

new instructions to the carrier have been entered and indemnifies the carrier

against all expenses, loss and damage involved in carrying out such

instructions, must be produced.

Figure 17: An Example of Consignment Note


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After arrival of the goods at the place designated for delivery, the

consignee is entitled to require the carrier to deliver to him/her, against a

receipt, the second copy of the consignment note and the goods. If the loss of

the goods is established or if the goods have not arrived after the expiry of the

period, the consignee is entitled to enforce in his/her own name against the

carrier any rights arising from the contract of carriage.

The consignee who avails him/herself of the rights granted to him/her

should pay the charges shown to be due on the consignment note, but in the

event of dispute on this matter the carrier should not be required to deliver the

goods unless the consignee has furnished security.

If for any reason it is or becomes impossible to carry out the contract in

accordance with the terms laid down in the consignment note before the goods

reach the place designated for delivery, the carrier should ask for instructions

from the person entitled to dispose of the goods.

Nevertheless, if circumstances are such as to allow the carriage to be

carried out under conditions differing from those laid down in the consignment

note and if the carrier has been unable to obtain instructions in reasonable time

from the person entitled to dispose of the goods, he/she should take such steps

that seem to be in the best interests of the person entitled to dispose of the

goods.

Where circumstances prevent delivery of

the goods after their arrival at the place

designated for delivery, the carrier should ask

the sender for their instructions. If the consignee

refuses the goods the sender is entitled to

dispose of them without being obliged to

produce the first copy of the consignment note.

CMR itself deals with liability, burden

of proof, exclusion of liability and

limitation of liability. Any provision in

an international road carriage contract

which is inconsistent with the

provisions of CMR will be

unenforceable.

Liability and CMR


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Even if he/she has refused the goods, the consignee may nevertheless

require delivery so long as the carrier has not received instructions to the

contrary from the sender.

When circumstances preventing delivery of the goods arise after the

consignee, has given an order for the goods to be delivered to another person,

should apply as if the consignee were the sender and that other person were

the consignee.

The carrier is entitled to recover the cost of his/her request for instructions

and any expenses entailed in carrying out such instructions, unless such

expenses were caused by the wrongful act or neglect of the carrier. The carrier

may immediately unload the goods for account of the person entitled to dispose

of them and thereupon the carriage is deemed to be at an end. The carrier

should then hold the goods on behalf of the person so entitled.

He/she may, however, entrust them to a third party, and in that case

he/she will not be under any liability except for the exercise of reasonable care

in the choice of such third party. The charges due under the consignment note

and all other expenses remain chargeable against the goods. The consignment

note should contain the following particulars: Table 33: The Content of Consignment Note

�� The date of the consignment note and the place at which it is made out

�� The name and address of the sender and carrier

�� The place and the date of taking over of the goods and the place of delivery

�� The name and address of the consignee

�� The description in common use of the nature of the goods and the method of

packing, and, in the case of dangerous goods, their generally recognized

description

�� The number of packages and their special marks and numbers

�� The gross weight of the goods or their quantity otherwise expressed

�� Charges relating to the carriage (carriage charges, customs duties)

�� The requisite instructions for customs and other formalities


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The parties may enter in the consignment note any other particulars that

they may see as useful. On taking over the goods, the carrier must check:

�� The accuracy of the statements in the consignment note as to the

number of packages and their marks and numbers

�� The apparent condition of the goods and their packaging

CHECKLIST Vehicle � Open vehicle without a tarpaulin, as agreed to by the sender Packaging � Without packaging � Defective � Inadequate Quantity, Markings, Packet Number (Barrels, sacks, items etc.)

Impossible to check because: � Loading effected by the sender � Atmospheric conditions � The large quantity of packets � Sealed container Goods Accepted � In obviously bad condition � Damaged � Damp � Frozen � Not protected against atmospheric conditions and carried as such at the sender’s own

risk Handling, Loading, Securing

Handling, loading, securing effected � By the sender � By the driver in atmospheric conditions likely to damage the goods and at the

sender’s request

Unloading effected � By the consignee � By the driver in atmospheric conditions likely to damage the goods, at the request

of the consignee

Figure 18: CMR Checklist


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Liability of the Carrier

The carrier is liable for the total or partial

loss of goods and for any damage that occurs

between the time when he/she takes over

possession of the goods and the time of

delivery, as well as for any delay in delivery.

The carrier is not liable if the loss, damage or delay was caused by the

claimant or by instructions given by the claimant.

The carrier must be relieved of liability when the loss or damage arises

from the special risks inherent in one more of the following circumstances:

The consignment note must be prima

facie evidence of the making of the

contract of carriage, the conditions of

the contract and the receipt of the

goods by the carrier.

Contract of Carriage

�� Use of open uncovered vehicles, when their use has been expressly agreed and

specified in the consignment note

�� The lack of, or defective condition of packing in the case of goods which, by their

nature, are liable to wastage or to be damaged when not packed or when not

properly packed

�� Handling, loading, stowage or unloading of the goods by the sender, the

consignee or person acting on behalf of the sender or the consignee

�� The nature of certain kinds of goods which particularly exposes them to total or

partial loss or to damage, especially through breakage, rust, decay, desiccation,

leakage, normal wastage, or the action of moth or vermin

�� Insufficiency or inadequacy of marks or numbers on the packages

�� The carriage of livestock

Table 34: Circumstances which the Driver is not Liable


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Special Transport

Transport of Dangerous Goods (ADR)

ADR is based on the UN

Recommendations on the Transport of Dangerous

Goods as regards the listing and classification of

dangerous goods, their marking and labelling and

packaging standards, but it also contains much

more detailed provisions as regards.

ADR is a certificate that is prepared for the carriage of dangerous goods

by road. It is intended primarily to increase the safety of international transport

by road, but it is also an important trade facilitation instrument. Drivers of

vehicles carrying dangerous goods on ADR operations should be in possession

of the documents shown below:

Figure 19: Required Documents for Drivers on ADR Operations

Nature of Danger Document

Details Pertaining to the Dangerous Substance

A Certificate of Approval

Training Certificate

ADR (Accord Dangereux Routiers)

is the European Agreement

concerning the international carriage

of dangerous goods by road; it was

adopted at Geneva on 28 October

ADR


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There is no official format but usually a 'CMR' or similar note is used to

give the details regarding the dangerous substance. The CMR standardizes

conditions of carriage, documentation for load and carrier liability which police

are not normally concerned with.

The information about the nature of the

dangers of the substance must be available in

the languages of all countries of transit. Also

there should be a certificate of approval for

vehicle and a training certificate (ADR Certificate)

for the driver.

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Classes of Dangerous Goods

Dangerous goods are articles or substances which are capable of posing

a significant risk to health, safety or to property when transported by road. For

ease of identification of dangerous goods, the international community has

created a classification system. All dangerous goods are included in one of the

nine primary classes. In some cases it has also been necessary to sub-divide

some of the classes into divisions.

There is a label for each class/division in order to categorize the nature of

the hazard. These labels must be affixed to the outside of the package when it

is offered for transport and must remain on the package while it is in transit.

Examples of these are given in the table below:

What dangerous goods are transported by land?

As per directive 96/35/EC, the five

year validity of the ADR certificate may

be extended in the final year of its

expiry if its holder has attended

refresher courses or passed an

examination both of which the

competent authority must approve.

Validity of ADR Certificate


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Table 35: Classes of Dangerous Goods

Class Sub-class Symbol Description Examples

Class 1

Explosives

These materials will explode. TNT

ANFO

nitroglycerine

Class 2

Gases

Class 2.1

Flammable

gases

These are gases which will burn. acetylene

hydrogen

LPG

Class 2.2

Non-flammable

non-toxic

gases

These gases are usually

compressed and so are a source

of stored energy and some may

also present an anoxic hazard.

air

carbon

dioxide

nitrogen


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Class 2.3

Toxic gas

These gases are toxic. Being

gases, they will rapidly disperse

if there is a leak.

chlorine

methyl

bromide

Class 3

Flammable

liquids

These liquids will burn. petrol

kerosene

Class 4

Flammable

solids

Class 4.1

Self-reactive

substances &

desensitized

explosives

Solids easily ignited and readily

combustible.

sulfur

phosphorus

picric acid


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Class 4.2

Spontaneously

combustible

These materials will catch fire if

exposed to air without any heat

being applied.

charcoal

(non-

activated)

Class 4.3

Dangerous

when wet

This class is also known as

'Emits flammable gases when

wet'. These are dangerous when

wet.

calcium

carbide

Class 5

Oxidizing

substances

Class 5.1

Oxidizing agent

These are all oxidizing agents

other than organic peroxides.

When substances burn in air,

they combine with oxygen and

so are said to have been

oxidized.

chlorine

calcium

hypochlorite

sodium

peroxide


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Class 5.2

Organic

peroxides

(liquid or solid)

These are a particular class of

oxidizing agent. They have all

the normal hazards of oxidizing

agents.

benzoyl

peroxides

methyl ethyl

peroxides

Class 6

Toxic and

infectious

substances

Class 6.1a

Poisons

These are liable to cause death

or serious injury to human

health if inhaled, swallowed or

absorbed through the skin.

cyanides

lead

arsenic

Class 6.1b

Harmful

These are materials which must

be stored away from food stuffs

but which are not classified as

poisons.

pesticides

heavy metals


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Class 6.2

Infectious

substances

Substances containing viable

micro-organisms that may cause

disease in humans or animals.

diagnostic

specimens or

live vaccines

Class 7

Radioactive

substances

Materials or combinations of

materials which spontaneously

emit ionizing radiation.

uranium

radio

plutonium

Class 8

Corrosives

These chemicals will eat away at

a wide range of materials

including some materials of

construction for tanks and your

eyes and skin.

Special protective equipment

needs to be worn.

hydrochloric

acid

sodium

hypochlorite

sodium

hydroxide


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Class 9

Miscellaneo

us goods

Substances and articles which

have potentially dangerous

properties that are relatively

minor, or are not covered by any

of the classes already described.

aerosols

polyester

beads

ADR Check

Check means any check, control, inspection, verification or

formality carried out by the competent authorities for reasons

of safety inherent in the transport of dangerous goods.

Checks should be carried out using a list of common items applicable to

such transport. It is necessary to draw up a list of infringements deemed

sufficiently serious by all EU countries to result in the application to the vehicles

What are the driver responsibilities in an ADR Operation?


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concerned of appropriate measures depending on the circumstances or the

requirements of safety, including, where appropriate, refusal to admit the

vehicles concerned into the Community.

In order to improve compliance with safety standards for the transport of

dangerous goods by road, it is necessary to carry out random checks and cover

an extensive area of the road network. Those violating safety rules should be

immobilized on-the-spot or at a place designated for that purpose by the said

authority without causing a safety hazard.

CHECKLIST

1. Place of check:.............................................. 2. Date:.................................................. 3. Time..................................

4. Vehicle nationality mark and registration number:...........................................................................

5. Trailer/semi/trailer nationality mark and registration number:...........................................................

6. Type of vehicle: Lorry Road train Articulated vehicle with platform

7. Undertaking carrying out transport/address:............................................................................................................

.................................................................................................. 8. Nationality: ................................................................

9. .........................................................................................................................................................................................

10. Driver’s mate: ..............................................................................................................................................................

11. Consignor, address, place of loading:

(*)......................................................................................................................

..............................................................................................................................................................................................

12. Consignor, address, place of unloading: (*)..............................................................................................................

.............................................................................................................................................................................................

13. Gross mass of dangerous goods by transport unit:...............................................................................................

What is the difference between a dangerous goods carrier and a normal

carrier?


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26. Prohibition of mixed loading

27. Handling and storage

28. Leakage of goods or damage to package

29. UN number/package labeling/UN packaging code

30. Vehicle and/or container marking

31. Tank or bulk transport hazard label(s)

32. Tool set for temporary repairs

33. At least one scotch per vehicle

34. Two orange-colored lights

35. Extinguishers

Inspected Infringement established Not applicable










Vehicle equipment

36. Driver’s personal protective equipment Inspected Infringement established Not applicable


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Infringements

According to directive 95/50/EC, the following are regarded as

infringements:

Table 36: Infringements

�� Goods not authorized for transport

�� Absence of consigner’s declaration on the conformity of the goods and their

packaging with transport regulations

�� Vehicles which, on checking, display leaks of dangerous substances due to

the lack of leak proof integrity of tanks or packages

�� Vehicles with no type-approval certificate or with non-regulation orange panels

�� Vehicles without safety instructions or with inappropriate ones

�� Inappropriate vehicle or packaging


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Livestock Transportation

The shipment of livestock is carried out by a small

number of freight forwarding firms that specialize in this type of

transportation. Veterinary certificates showing that the animal/s

has a clean bill of health have to be provided. Vaccination

certificates may be necessary and the exporter must ensure that the regulations

of the importing country regarding animal importations are strictly complied with.


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The factors affecting a journey plan are given in the figure below:

Careful planning of any journey is essential; the route, time, likely weather

conditions, distances, opening hours of customs offices, stages and stopping

places must be considered beforehand, as well as any facilities which might be

required for tending, feeding, watering and milking the animals if such facilities

are not carried on the transport unit.

Care must also be taken to ensure that all necessary health certificates

have been obtained and that the route followed does not jeopardize the health

of the animals in any way.

Early notification of the expected time of

arrival at control posts will help minimize delays.

Therefore consignor, carrier and consignee

should make every effort to ensure that this is

done.

Certificates

Planning of the journey

Quantity of food

Notification of arrival

Preliminaries

Route

Stopping Places Stages

Customs Hours

Distance

Weather

Time

Planning Journey

Figure 22: Factors Affecting a Livestock Journey Plan


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Preparation of Animals

For cattle not intended to be slaughtered directly, immunization and/or

treatment for internal and external parasites should be considered well in

advance of any export.

A record of the feeding and watering times should accompany the animals

throughout the journey. Each animal must have a legible identification number

which must be recorded accurately on any accompanying documentation.

When preparing animals for transport the following should be checked:

Table 37: Preparation of Cattle before Transportation

All areas of the transport unit which has been or will be in contact with

animals, including any receptacle, equipment or fitting, should be cleaned and if

necessary disinfected before loading and after unloading. Personnel’s outer

clothing and footwear should be changed, washed or cleaned at the end of the

journey and before contact with any other animal.

Designation of a Person in Charge

During transport by road the functions of the attendant may be assumed

by the driver of the vehicle. When, because of time or distance, a single driver

cannot ensure that the transport will be carried out without delays, or provide

Disease

Acclimatization

Group size

Feeding and watering

Identification

Tethering

Rest

Sedation

Cows in milk


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proper care of the animals, the presence of a second driver or an attendant is

indispensable.

Loading

Loading should take place from a properly

constructed ramp, lift or loading bay, though

appropriate manual lifting is permissible if the

animals are small enough, and even desirable in

the case of young calves which might have

difficulty in negotiating a ramp. All loading

facilities should be suitable for their purpose,

stable and maintained in a good state of repair.

The following criteria are considered to be satisfactory for loading ramps:

Use ramps when loading animals. If

the animals are small enough manual

lifting is permissible.

Do not lift animals by the head, horns

or legs or tail during loading or

unloading.

Loading of Animals

Figure 23: Loading Ramp Criteria

30°

3 cm (space between top of ramp and vehicle Not more than 25 cm (steps

from ground to ramp and from top of ramp to vehicle)

Not less than 1 m for calves Not less than 1.3 m for adult cattle

Not more than 30°(and possibly

less for descent)


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Transport

The length, width and height of space available for animals should be

displayed on road vehicles. Appropriate indications or symbols on the outside of

the vehicle should make clear that live animals are being carried.

Vehicles must be suitable for the transportation of cattle throughout the

journey. They must be designed so that the animals are completely secure and

cannot escape. Loading and access doors should be equipped with adequate

means to ensure that the animals do not fall out when they are opened.

Any edges and corners inside the vehicle should be rounded off and wheel

housings projecting into the body of the vehicle should be adequately covered.

A vehicle carrying cattle should be fitted with sufficient partitions to safeguard

the welfare of the animals. Such partitions shall be fixed securely. Nails must

not be used and any fitting must not cause injury.

Stocking Density

The following indicative figures are considered to be satisfactory when

cattle are being transported:

Table 38: Stocking Density Indicators

Category Approximate weight in kg Area per animal in m²

Small calves 50 0.30 to 0.40

Medium sized calves 110 0.40 to 0.70

Heavy calves 200 0.70 to 0.95

Medium sized cattle 325 0.95 to 1.30

Heavy cattle 550 1.30 to 1.60


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Very heavy cattle > 700 > 1.60

Duration and Interruption of the Journey

Subject to careful planning and all facilities being available cattle can be

transported for long periods without problems. It is recommended however that

they should be inspected approximately every 6 hours and especially when the

welfare of the animals could be in doubt.

The animals should be transported to their destination as soon as possible

and delays, particularly in transshipment and marshalling yards, should be

reduced to a minimum. If delays occur, adequate care shall be given to the

animals particularly in relation to feeding, watering, milking and ventilation.

Post-transport

On arrival at their destination the animals should be unloaded as soon as

possible, offered water and, if necessary, food and be allowed to rest. All

animals should be examined closely at unloading and veterinary assistance

obtained if necessary.

After prolonged periods of transport (36 hours or more) the health of the

animals should be monitored for 4 or 5 days - except where they are to be

slaughtered on arrival or shortly afterwards.

Transport of Perishable Food Stuff

The advent of refrigerated and cool chamber facilities in most road

transport means that the more obvious forms of perishability can be avoided.

Road haulage operators carrying perishable foodstuffs under refrigeration

to and/or through most European states should normally comply with the


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European ATP Agreement is incorporated in the International Carriage of

Perishable Foodstuffs Act 1979.

The ATP regulations specify the minimum 'lay-down' temperature, which

must be maintained for the various categories of frozen or chilled foodstuffs,

and for most the transit time must not exceed forty-eight hours.

Vehicles and equipment have to be tested to make sure that their thermal

efficiency is up to standard and the vehicle is issued with an ATP certificate

showing that it conforms to the temperature control requirements of the

particular cargo.

Combined Transport

Combined transport means that each mode of transport takes over that

part of the transport task that it can perform best. 80% of all road transport runs

over short distances. In this specific area, the truck cannot be replaced by

another means of transport, because the truck is the only mode that can serve

wide scattered areas. Block trains are often a more efficient solution when large

volumes of cargo can be concentrated and carried over longer distances.

A characteristic feature of combined

transport is that it links the advantages inherent

to the two modes of transport. On the one hand

one has the efficiency of rail transport in

moving bulk freight which makes it ideal for

long-distance operations. On the other hand

there are the unrivaled advantages of the truck

in bulk and distribution transport over short and

medium distances.

Combined Transport

Combined transport can be defined

as the combination of at least two

modes of transport in a single

transport chain, without a change of

container for the goods, the greater

part of the transport is done by rail,

inland waterway or ocean-going

vessel, and the shortest possible

initial and final journeys by road.


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In addition combined transport also meets the increasing demands for

environmentally friendly transport. The figure below explains the combined

transport system:

Techniques of Combined Transport

Combined transport groups single consignments together into large

standardized loading units that can be easily transferred between ship, wagon

and truck.

Swap bodies are removable road vehicle bodies that can be transferred

by a lifting device from road vehicle to rail wagon. A road train can

accommodate two swap bodies of some 7 m length each, a semi-trailer chassis

can carry a 13 m long unit. A complete freight train normally offers a capacity of

70 swap bodies of 7 m each, i. e. the capacity of 35 road vehicles in long haul

operation.

In other cases, not the removable swab body, but the complete semi-

trailer including the axle assembly is carried on a freight train. In such cases,

the semi-trailer is lifted by crane from the road surface into the rail wagon. The

rolling gear of the semi-trailer is accommodated in the pocket of the rail wagon.

Figure 24: Combined Transport

Combined Transport


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In Europe, the same transfer terminals can handle freight containers, swap

bodies and semi-trailers alike and transfer them between road and rail using the

same lifting devices.

Complete road trains or articulated road

vehicles including the truck are carried on

some European lines on special rail wagons

("Rolling Highway"). But the total transport

assembly, rail wagon plus road vehicle,

comes out to be very high. Such units can

only pass through railway tunnels or

underpass bridges crossing the rail track

when railway wagons are used that are

equipped with very small wheels and a very

low loading platform. Such special designs are difficult to manufacture and to

maintain and thus rather costly.

In advanced countries, combined transport plays an important role. The

European Union concentrates on and supports the ecologization of transport. In

recent years, in connection with efforts to regulate the excessive growth of road

transport and to reduce its impact on the environment, the importance of

combined transport has been increasing.

Special Features

Where road vehicles or their loading

units go by rail as combined transport, a

number of special features need to be

taken into account, as the usual loading

dimensions for railway wagons are

exceeded. The upper limits for the

height and width of a loading unit are

set by the loading gauge. On a number

of rail routes there are restrictions on

these dimensions because of tunnels,

bridges, overhead cables.

Summary

Transportation activities play an important role on the economic growth of the

countries. Transport is an integral part of all social and economic activities. Today six million

people work directly for the trucking industry in Europe. These are drivers, logistics experts,

forwarders and so on.

The differing fiscal policies adapted by SECI countries inevitably lead to conditions

of unfair competition. The standardization of vehicle taxes, tolls and fuel excise duties further

contribute to the formation of the single road transport market in the EU.

The lack of harmonization, along with the violation of practices already in place, has

a negative economic impact on the economies of all countries involved and inhibits fair

competition and growth in the region. To date a number of initiatives have been implemented

to standardize trade practices in the area, however until a common view is seen from all

governments these efforts cannot be fully effective.


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Key Terms

ADR

AETR

CMR

Combined Transport

ECMT

Export

Financial Standing

Fiscal Harmonization

Fuel Excise Duties

Green Card

Good Repute

Hired Vehicle

Human Resources

Individual Control Book

Livestock Transport

Physical Goods

Profession

Professional Competence

Road Haulage

Road User Charges

Route

Semi-Trailer

Service

Stowage

Taxes

Technical Standards

Tolls

Trailer

Transport

Transportation Costs


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Progress Check

1. Specialists in international shipping arrangements for goods, whether by

water, air, truck, or rail; international or within a country. Those people

are;

a. International road transporters

b. Travel agents

c. International freight forwarders

d. Drivers


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e. Customs Brokers

2. Which of the following does not match with the functions of logistics?

a. Provision of, or access to the goods

b. Storage of goods

c. Transportation of the goods

d. Marketing the goods

e. Arranging cargo insurance

3. Which of the following does not concern with the common characteristics

of services?

a. Services are intangible

b. Can be kept in stock

c. Services are series of activities

d. Customers participate in production

e. Cannot be kept in stock

4. When checking a trailer externally,

a. Control the torn in curtain

b. Control the damage to panels

c. Control the lights

d. Control the position of cords

e. Control the damage to panels

5. Which of the following is wrong? Truck drivers must demonstrate

knowledge and sound understanding in the following areas:


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a. The effect of the wind on the course of the vehicle

b. Rules on driving hours, rest periods and use of the tachograph

c. Rules on vehicle weights and dimension

d. Reading a road map

e. The effects of journeys on drivers

6. Which of the following is wrong about the driving and rest periods?

a. The daily driving period is 9 hours (ten hours twice a week)

b. In each period of 24 hours, the driver should have a daily rest period

of at least 11 consecutive hours

c. Total of weekly rest is 36 consecutive hours

d. Total of weekly rest is 45 consecutive hours

e. No continuous driving period shall exceed four hours

7. Which of the following is wrong? In the event of an accident:

a. Do not give any information and call your company immediately

b. Note the full name and address of third party

c. Note the exact location of the accident or damage

d. Stop immediately, identify yourself and give information concerning

your vehicle

e. Take the details of any police officer attending

8. ADR concerns with the;


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a. International carriage of goods

b. Transportation of the dangerous goods

c. Transportation of perishable food stuff

d. Carriage of livestock

e. National carriage of goods

9. According to the contract of carriage in which circumstances the carrier is

liable?

a. Defective condition of packing in the case of goods

b. The carriage of livestock

c. When the goods are loaded by the sender

d. Total or partial loss of goods at the place of delivery

e. Insufficiency of marks or numbers on the packages

10. Which of the following is wrong? When transporting livestock;

a. It is important to plan journey before transportation

b. All necessary health certificates should be obtained

c. Animals should be prepared in care

d. Transport unit should be cleaned

e. Veterinary certificates should be provided according to the request

of consignee

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